[Haiti] - First time investor seeking portfolio advice

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Topic Author
ftb_234
Posts: 2
Joined: Mon Nov 14, 2022 3:43 pm

[Haiti] - First time investor seeking portfolio advice

Post by ftb_234 »

Country of Residence: Haiti

International Lifestyle: Permanent Haitian resident, might make a move to Europe or alternatively Canada

Currency: USD

Emergency funds: Currently have six months worth of expenses

Debt: None

Age: 28

Desired Asset allocation: 80% stocks / 20% bonds

Hi all,
I plan to invest approximately $1500 - $2000 monthly (via Interactive Brokers), starting with a low 5-digit lumpsum initial investment. Currently, I have no significant needs or wants that might warrant a lack of patience.

Proposed Portfolio
VWRA Vanguard FTSE All-World: 80%
AGGU iShares Core Global Aggregate Bond (USD Hedged): 20%

Questions
1. Tax information has been surprisingly difficult to get a hold of, but I believe capital gains tax is 15% for my home country. Can anyone confirm?
2. I would love to get any advice and suggestions

Thanks in advance!
rhe
Posts: 121
Joined: Sun Feb 26, 2017 2:10 am

Re: [Haiti] - First time investor seeking portfolio advice

Post by rhe »

Seems like a pretty reasonable plan to me!

My only suggestion would be that you probably do not need to hedge the bond portfolio if you are thinking of moving in the future to Canada or Europe, since neither of those use USD. Unless you are hedging to USD because the interest rates are generally higher there than in Europe? If so, then you basically have a little carry trade there.
Valuethinker
Posts: 45864
Joined: Fri May 11, 2007 11:07 am

Re: [Haiti] - First time investor seeking portfolio advice

Post by Valuethinker »

ftb_234 wrote: Mon Nov 14, 2022 4:09 pm Country of Residence: Haiti

International Lifestyle: Permanent Haitian resident, might make a move to Europe or alternatively Canada

Currency: USD

Emergency funds: Currently have six months worth of expenses

Debt: None

Age: 28

Desired Asset allocation: 80% stocks / 20% bonds

Hi all,
I plan to invest approximately $1500 - $2000 monthly (via Interactive Brokers), starting with a low 5-digit lumpsum initial investment. Currently, I have no significant needs or wants that might warrant a lack of patience.

Proposed Portfolio
VWRA Vanguard FTSE All-World: 80%
AGGU iShares Core Global Aggregate Bond (USD Hedged): 20%

Questions
1. Tax information has been surprisingly difficult to get a hold of, but I believe capital gains tax is 15% for my home country. Can anyone confirm?
2. I would love to get any advice and suggestions

Thanks in advance!
This is fine as an asset allocation. Long term growth but accepting that there will be painful downcycles. Bonds *should* diversify against equities in such situations but have done that to a much lesser extent in the last 12 months (a period of Central Bank tightening, ie rising interest rates).

Your main problem will be if you move to some country with a different taxation regime. This is country specific.

Often when you do that you have to sell all your investments to establish a capital value for capital gains tax purposes. Before becoming resident in the new country. If you move to Europe then European brokers won't allow you to buy US domiciled products. If you moved to the UK, the taxation on US funds which are not "reporting" (there is a list that HMRC publishes of all the funds that are) then the taxation is punishing.

But you need specific advice when you know your country of destination.

A little background

The main concern with those coming from unstable countries is protection of their assets from unwarranted expropriation. Now if this was Iran then that could come via US sanctions. It is not -- Haiti is not oppositional to the western powers. So my guess is everyone in Haiti with money keeps a bank account in Miami (or Canada or wherever)?

One would want to make sure one has some savings in an FDIC insured account somewhere (or equivalent deposit insurance by a reputable government).

I am default assuming you are doing this - and one shouldn't necessarily be admitting this in open discussion on the internet.
Topic Author
ftb_234
Posts: 2
Joined: Mon Nov 14, 2022 3:43 pm

Re: [Haiti] - First time investor seeking portfolio advice

Post by ftb_234 »

Thanks for all the advice! I'll switch out the hedged bond and be careful to have my bases covered! Fingers crossed :)
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