portfolio rebalancing [CHINA]

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Topic Author
marinero
Posts: 26
Joined: Tue Aug 06, 2019 5:16 am

portfolio rebalancing [CHINA]

Post by marinero »

Hi everyone,

Here's my situation:
Country of residence: China
International lifestyle: Will move to Europe within 5 years.
Age: 45
Currency: EUR
Emergency funds: 6 months cash
Debt: No debt

CURRENT PORTFOLIO REBALANCING / MODIFYING
  • I want to: sell the Emerging Markets and buy a world tracker like IWDA that already has emerging in it
I am in a much better place in terms of monthly salary and financial security that I can weather a storm, for higher long-term returns. Also, I have at the moment 3 different products. I'd like to simplify my portfolio.

What does the boggle community say?

Marinero
boglehooligan
Posts: 96
Joined: Mon Mar 23, 2020 11:38 am

Re: portfolio rebalancing [CHINA]

Post by boglehooligan »

Hi Marinero,

I took a look at your Lifestyle Strategy fund and found it to be heavily tilted to UK. Im not sure what is the rationale for this fund is given that UK represents a tiny percentage of the global stock market.

I agree with you and would keep it simple with VWRP
glorat
Posts: 1025
Joined: Thu Apr 18, 2019 2:17 am

Re: portfolio rebalancing [CHINA]

Post by glorat »

I would need a bit more information such as how you're holding the current investments and what broker you're using from China. Do you still have access to the European stock broker? (E.g. LifeStrategy 80% equity 20% bonds seems like a mutual fund, but you want to go into an ETF, which you'd need to buy via a stock broker like Interactive Brokers).

Because if you had full freedom of what to invest in, then the question should not be about portfolio rebalancing but what you think your target asset allocation should be.

I took the liberty of scanning your history at search.php?author_id=150995 but some of the info seems in conflict with what you're talking about now.

In absence of this info. Going 80% VWRP and 20% AGGG would be the obvious approach.
Topic Author
marinero
Posts: 26
Joined: Tue Aug 06, 2019 5:16 am

Re: portfolio rebalancing [CHINA]

Post by marinero »

Hi both thanks for the advice. Some quick answers from me:

Broker: I am using Interactive Brokers. I have access to everything you guys have. I have access to all the ETFs including the popular iShares + Vanguard ones.

Target Allocation: You hit it on the nail. Because I am in a different financial position with multiple income streams that don't correlate to each other I am wondering if I should move to 100% stocks. I don't depend on the investments for making it. Even if they tank and it takes 2-3 years to come back to previous levels, I can take it. What's your view on this 100% allocation given my situation?
glorat
Posts: 1025
Joined: Thu Apr 18, 2019 2:17 am

Re: portfolio rebalancing [CHINA]

Post by glorat »

So you've got full access to global stock markets and if the rules haven't changed for foreigners living in China you have no capital gains or dividend taxes to worry about - at least not until you return to Europe. You may need to check if you need to do a rebasing exercise before returning to Europe - consult your tax advisor on that.

As for the investments, generic advice applies so others can comment. However, I would say that the steps are
1) Decide on your asset allocation
2) Rebalance to that target allocation ASAP minimising fees and time out of the market.

For 1), 100% global stocks isn't the norm around here... 80/20 is the max aggressiveness. I assume you're willing to see 50% get wiped out any point in time and wait 10 years for it to recover and not lose any sleep. If not, read up on a good balance. My earlier suggestion of VWRP/AGGG still applies.
Stork
Posts: 175
Joined: Wed Feb 17, 2021 9:44 am
Location: Portugal (EU)

Re: portfolio rebalancing [CHINA]

Post by Stork »

glorat wrote: Sun Feb 11, 2024 3:04 am
For 1), 100% global stocks isn't the norm around here... 80/20 is the max aggressiveness. I assume you're willing to see 50% get wiped out any point in time and wait 10 years for it to recover and not lose any sleep. If not, read up on a good balance. My earlier suggestion of VWRP/AGGG still applies.
- or 15 years if you factor in inflation! Happened if you invested 2 January 2000, at least in Euroland.
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