Building a simple but effective portfolio. Death rate. 2022 access US Founds

[edertos]

I have just opened an account with IBKR and I want to start investing in ETF now taking advantage of this stock market downturn.

I wanted to build a simple portfolio and I thought about this:
1)
VT: 100%.

VTI: 55%.
VEA: 35%
VWO: 10%.

What do you think? The option 2 seems more attraktive to me i think.

I have a couple of questions:

What happens in 2022 when we no longer have access to US-domiciled ETFs? Will this ETF lose value because fewer people will be able to access them? Does it make sense to start investing in these funds knowing that in two years I won’t be able to access them?

I read that you have to keep in mind not to exceed 60,000 USD of investment in US-domiciled ETFs to avoid the death rate. Could I only invest in VTI+VEA+VWO up to 60.000 USD? Is this so?

Thank you very much.

[nabalzbhf]

@edertos

What happens in 2022 when we no longer have access to US-domiciled ETFs?

Who said that would happen?

@edertos

Will this ETF lose value because fewer people will be able to access them?

Definitely not, I doubt CH retail investors in that ETF can move the price

@edertos

I read that you have to keep in mind not to exceed 60,000 USD of investment in US-domiciled ETFs to avoid the death rate.

Please read the forum, the 60k limit is vastly misleading, in practice it’s currently 11M.

[edertos]

Thank you for your answer nabalzbhf

Blockquote
Who said that would happen?

It is being discussed in this thread:

Swiss might lose access to US domiciled ETFs in 2020 - what are you going to do about it?

Well, if IB and others will really stop offering US ETFs to people domiciled in Switzerland, then the question remains if we should keep whatever we have in the US, or just sell it all and buy the Europeans ETFs. If this terrible scenario really plays out, then I guess I will just buy the VWRL from that point. Then you could start asking yourself: should I keep my IB account, convert the CHF to USD and buy the USD variant of VWRL which is traded on LSE, or maybe just go with PostFinance or Swis…

Blockquote
Please read the forum, the 60k limit is vastly misleading, in practice it’s currently 11M.

I read this in Mr. MP’s Post:

Mustachian Post - Establishing a Bogleheads three-fund portfolio as a Swiss...

I will invest up to CHF 60’000 maximum into this ETF because afterwards, the US estate law makes your heirs lose 40% of the amount invested into this fund. I will then switch to the Ireland based ETF Vanguard FTSE All-World UCITS

[yakari]

1.we do not know what will happen, but there is no reason not to invest now in a us based etf. Worst case you hold, or even selling would be cheap with IB.
2. MP is wrong. If >60000usd, your heirs would have to fill a form for the irs, but would not have to pay taxes (limit here is a bit difficult to calculate but basically about 10 mio).

[ma0]

We should start to close the posts with those 2 misleading information.
BOTH are wrong.

[essential]

Stick to 100% VT and keep it simple. Your life will be a lot easier.

[yakari]

@ma0

We should start to close the posts with those 2 misleading information.
BOTH are wrong.

i706na.pdf

My source. Please tell me where i am wrong.

[ma0]

Your first mistake is that you check the us government site instead of the swiss one.

[Swisslife]

How is this a mistake on @yakari’s end if it refers to the US? I think it’s exactly the opposite and you are the one mistaken here…

[xorfish]

So the cost is around 4.5 hours of work.

[ma0]

My bad. It’s a nightmare finding information on both sides.
You either need to sum up stuff from official sources, or trust other sources.

1. Estate Tax treaties between US and Switzlerand (last one signed in 2017)
2. 11 million limit for US national on inheritance.

The 1. make swiss citizen and resident like US citizen for point 2. You can’t really find it written on the same paragraph on an official document.

My source was a pdf from PWC I got from their site. I can’t find it anymore.