Mustachian portfolios


#243

Or you may just as well miss out on all the gains as could never be as low as today. In other words - don’t time the market.


#244

@wapiti I am not sure I fully understand why you recommended the IE fund instead of the US fund. It was my understanding that for a US domiciled fund L1WT is ‘0%’, there is 30% L2WT withholding tax, but you can file a W8BEN form to reduce withholding tax to 15% and then using DA-1 the remaining 15% would be credited for overall income taxation. In contrast, with the IE fund L2WT is ‘0%’ but one will have to pay 15% L1TW. So I don’t understand how the IE fund is better from a tax perspective?
Thanks for your feedback.


#245

Hi everyone,

here is my position, and I would love to hear about your thoughts on my plans.
30 y/o, single.

I finally opened an account at IB.
I plan to dump around 30k initially, then add 2-3k CHF every 2 months or so.

Regarding the structure, my thoughts were with:

  • 50% VTI - 0.04% TER (US total)
  • 40% VEA - 0.07% TER (ex-US developed)
  • 10% VWO - 0.14% TER (emerging)

In addition to that, I currently own:

  • Novartis shares - currently cca 18k (will grow depending on how much longer I stay with the company)
  • 3rd pillar - moving to VIAC 80% Global fund - currently cca 17k
    (so pretty well covered for CH market I’d say)

I don’t think I will put any more money into these two for now.

Any useful feedback more than welcome!

Thank you,
D


Thanks for adding to my contemplation, I was thinking to opt for full cash this year instead of stocks / 50-50 split.
As I believe it doesn’t really help the “diversification” principle.
And of course throw that into IB. :slight_smile:

Cheers!


#246

Perfect, IMO.
If I were you, I’d reduce the stake at Novartis.


#248

Based on the low amount and the weighting you have chosen, I would propose the other option to buy only the VT ETF:
-No rebalancing needed
-Easier for taxes at the end of the year
-Only one transaction needed each month instead of 3

However, the TER will be a little higher 0.1 instead of 0.062, this will be compensated by the number of transactions

Sell the Novartis shares
Choose 100% in VIAC instead of 80%


#249

I bought a total of 3000 CHF in a mix of VTI+VEA+VWO last month. Spend a total of 1$ in fees at IB. Can’t be bothered to calculate the invested amount where the TER difference will exceed this cost, but I recon it’s pretty low!


#250

Hi,
I am investing for the first time. After doing quite a bit of research, the short list which I have settled on is the following:

  • VTI (40%)
  • VB (10%)
  • VEA (in the range 25%-30%)
  • VSS (10%)
  • VWO (in the range 15%-10%)

I intend to open an account in IB and buy all the ETFs there.

I hope to reach FI asap, and at least within 10 years.

I would very much appreciate your thoughts on my intended portfolio.

Thank you.


#251

Thanks for your comment, wapiti.

In which way is it easier regarding taxation if I own shares in 1 vs 3 Vanguard funds?

I actually kind of like the idea of being able to easily adjust the proportions; although perhaps not for the correct reasons. :slight_smile:


#252

When you will need to prepare your tax declaration you will have only to fill 16 (12 buys, 4 dividends) lines instead of 48.

At the end, I woudn’t bother too much. Both options are good.


#253

@all, 2 more questions:

  1. Reading a bit more around, and with the interest of reducing effort with (de)taxation:
    Would it make sense to purchase funds for points 2 and 3 which are not traded on ARCA? (developed ex-US and emerging markets)
    I see the 2 I mentioned are labelled with FTSE, but the ticker I got within IB app tells me they are “ARCA-based”.
    Did I get something wrong?
    Are the TERs somewhat higher if the funds are traded at other stock exchanges?
    Should I identify different tickers/funds for this purpose? :slight_smile:

  2. Do you think the weightings above make sense, or should I somehow adjust (for a non-US resident)?

Many thanks,
D