[Dominican Republic] Portfolio Advice

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Topic Author
kaidou1000
Posts: 5
Joined: Tue Apr 02, 2019 6:02 am

[Dominican Republic] Portfolio Advice

Post by kaidou1000 » Wed Mar 25, 2020 9:18 am

Hi folks,

I'm back. I did some reading on the wiki, read the little book, opened an IB account, and did some research on taxes. So I'm back with my portfolio and some questions.

Country of Residence: Dominican Republic(DR)
International Lifestyle: I'm a digital nomad so I move every 3/6 months and live out of airbnbs. At some point in the next 2 years I'm going to settle just not sure where. I guess I can settle wherever my partner needs to be since I'm location independent(have yet to meet her though). Retirement wise, I'd say the DR is a pretty good country for that.
Currency: USD
Emergency funds: Yes, 3 months though I could do 6 too. Technically, 3 months salary lasts me 6 months since I spent about half.
Debt: no debt!
Desired Asset allocation: 75% stocks / 25% bonds
Boglebot suggestions:
80% VWRA Vanguard FTSE All-World
20% AGGU iShares Core Global Aggregate Bond (USD Hedged)
Age: 30
Current total portfolio: high-five figures.

I have USD$ 70k ready to invest and I'm able to invest ~50K each year. My current goal is to allocate 80/20 or 75/25 in Ireland Domiciled ETFs and being able to retire by 2030 (I'd probably just keep working).

Questions:
  • Given that I want to retire by 2030. What is more appropriate 75/25 or 80/20 or something different altogether?
  • Given the bear market. I know we're not supposed to time the market but what would be a good strategy to buy? I'm currently have 10k in my IB account and plan to transfer the rest soon, after I "test the waters".
  • Are there any guides on how to actually buy these assets using IB? I'm new to trading.
  • Guessing a IB lite account is what I need. Not the pro. Am I correct?

User avatar
galeno
Posts: 1640
Joined: Fri Dec 21, 2007 12:06 pm

Re: [Dominican Republic] Portfolio Advice

Post by galeno » Wed Mar 25, 2020 10:28 am

80% VWRD + 20% AGGU is the way to go.

At this point all you should be doing is DCA'ing as much of your monthly salary as you can. Rebalance if you want to control risk.

Google the new FIRE people. Check out their channels on YouTube.

At 30 you already know there are great places to live that are very inexpensive.

The key to a successful early retirement is to control COSTS. Right now the biggest threats to your FIRE plans are women and children.

rhe
Posts: 77
Joined: Sun Feb 26, 2017 2:10 am

Re: [Dominican Republic] Portfolio Advice

Post by rhe » Thu Mar 26, 2020 10:27 am

kaidou1000 wrote:
Wed Mar 25, 2020 9:18 am
[*] Are there any guides on how to actually buy these assets using IB? I'm new to trading
The easiest way to figure out how everything works is to set up the "paper trading" account that should come along with your real account. You can then mess around with TWS until things make sense to you. The only difference between the paper account and the real account that I noticed was that the market (obviously) doesn't respond to your paper account, so trading light volume things is different because the bots are missing.

Topic Author
kaidou1000
Posts: 5
Joined: Tue Apr 02, 2019 6:02 am

Re: [Dominican Republic] Portfolio Advice

Post by kaidou1000 » Thu Apr 02, 2020 9:42 pm

rhe wrote:
Thu Mar 26, 2020 10:27 am
The easiest way to figure out how everything works is to set up the "paper trading" account that should come along with your real account. You can then mess around with TWS until things make sense to you. The only difference between the paper account and the real account that I noticed was that the market (obviously) doesn't respond to your paper account, so trading light volume things is different because the bots are missing.
I had no idea this was possible. I've been playing around and learning. Thank you so much!
galeno wrote:
Wed Mar 25, 2020 10:28 am
At this point all you should be doing is DCA'ing as much of your monthly salary as you can. Rebalance if you want to control risk.
I've done some reading on the project. Given the current market I plan to do either 5k biweekly or 10k a month until I am fully invested.

User avatar
occambogle
Posts: 170
Joined: Thu Dec 12, 2019 4:58 am

Re: [Dominican Republic] Portfolio Advice

Post by occambogle » Sat Apr 04, 2020 2:25 am

IBKR Lite is only available for US residents.... just FYI. So you’ll have to get IBKR Pro. I’m doing that and quite happy with them.

Otherwise your plan sounds good to me. I don’t know anything about Dominican Republic but is there an advantage to accumulating vs distributing ETFs in terms of tax? Just to consider.

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