Quote "There may be other companies that provide the same low fee services as Vanguard. Anone know of any?"
Schwab is also really good. They offer similar ETF and Bond funds to Vanguard at even slightly lower rates! My employer directly deposits to my checking acct. and then I use that to feed a savings acct. and a retirement acct. One login, and about 10 minutes per month. I don't know of a more simple solution.
My opinion is that Taylor's advice is spot on. It's exactly what the Andrew Hallam, poor Teacher would advise. Re-balancing at regular intervals is the key that will force you to be a dispassionate investor and sell stocks when they are high, or invest in more stocks when they are low. For instance - markets have been climbing this year, so everyone should be selling their profits, when they re-balance, and purchasing more bonds. If stocks go down, when you re-balance, you sell bonds to buy more stocks.
One last piece of advice... if you haven't, start today! Many career International teachers don't get pensions. You need a lot of money to retire. For instance, I know a couple who started saving USD 100K per year, and living off of 47K. If they can continue doing this, and the stock market gives a 7.5% annual return, in 25 years, we will have over 7 million dollars. Getting over 7 million from a 2.5 million investment sounds fine to me.
How to invest the money you get at the end of your contract
health care
One other piece of advice is to get vested in a countries social security AND health care schemes. In the USA you need 40 quarters of employment to get vested in SS & Medicare and you can check this online now to see what years you have in.
Health care is huge cost and you may be better off investing in Costa Rica real estate or Thailand as they have reasonable health care costs. Otherwise plan on working until 66+ (USA) and then paying only the supplemental insurance on your own, or saving enough to retire before the age it kicks in.
Western European countries offer health care if you work long enough but I don't know the details......anyone?
Health care is huge cost and you may be better off investing in Costa Rica real estate or Thailand as they have reasonable health care costs. Otherwise plan on working until 66+ (USA) and then paying only the supplemental insurance on your own, or saving enough to retire before the age it kicks in.
Western European countries offer health care if you work long enough but I don't know the details......anyone?
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Yantantether
- Posts: 168
- Joined: Tue Apr 10, 2012 12:41 am
There is this thing called a broker. And they can buy you anything (if they have the right licenses). Nothing substitutes good research, and having trade insiders. I'msure we can make educated guesses on which companies related to education have a good future, and which are crap.
I'm probably going to stop my ridiculous managed fund, as the fees are stupid, and I earn more interest from dumping it in a bank account.
Land is always a good bet. Forget the overpriced white elephant on top of it.
I'm probably going to stop my ridiculous managed fund, as the fees are stupid, and I earn more interest from dumping it in a bank account.
Land is always a good bet. Forget the overpriced white elephant on top of it.
Comment
@christyn2
Activity=Change=Cost. An actively managed portfolio, means the manager is changing the composition of the portfolio, everytime they make a change that transaction incurs a cost. Costs reduce your return.
Front loaded funds mean you pay a fee up front for management of the portfolio, but your also paying a commission fee as well which ultimatly reduces your return. Id look at what return your getting as thats what matters. Paying a fee for an investment that doesnt produce a return is twice stupid. Your money isnt working or working as well as it could be, in which case you need to swallow the loss from the fee and move the funds into an investment thats going to maximize your return.
@Danda
That emergency saving account is just a liquid instrument (cash) investment as well.
My description of investments are illustrative examples, they are not indicative of my personal investment choices.
@mathman
no a broker cant buy you anything. There are simply investments including stocks/bonds/instruments that are not available on US exchanges or Markets.
@Yantantether
Foreign persons cant own land, but foreign corporations can. Foreigners can start corporations in Thailand.
@euxpat
You can buy SS credits by paying selp employment tax, but since you have to pay your contribution and the employers contribution your talking 15%. Thats not bad, but there are better. It depends what your retirement goals are. If you plan on retiring overseas, then medicare will be useless to you. In which case a retirement annuity is cheaper (at about 11%) then the 15% for SS.
It is though why many ITs eventually gravitate to eithe ra super cheap asian country (such as thailand), or end up in Europe where they can collect a pension and have socialized health care schemes.
@Taylor
I wouldnt say your portfolio is super diversified, its very US heavy. That portfolio is exactly the type that would have been and was devastated by the housing and CDO market. truly having a ratio of domestic (USA) and international assets in a portfolio is the way to diversify a portfolio. That may be unpatriotic, but this is money.
Activity=Change=Cost. An actively managed portfolio, means the manager is changing the composition of the portfolio, everytime they make a change that transaction incurs a cost. Costs reduce your return.
Front loaded funds mean you pay a fee up front for management of the portfolio, but your also paying a commission fee as well which ultimatly reduces your return. Id look at what return your getting as thats what matters. Paying a fee for an investment that doesnt produce a return is twice stupid. Your money isnt working or working as well as it could be, in which case you need to swallow the loss from the fee and move the funds into an investment thats going to maximize your return.
@Danda
That emergency saving account is just a liquid instrument (cash) investment as well.
My description of investments are illustrative examples, they are not indicative of my personal investment choices.
@mathman
no a broker cant buy you anything. There are simply investments including stocks/bonds/instruments that are not available on US exchanges or Markets.
@Yantantether
Foreign persons cant own land, but foreign corporations can. Foreigners can start corporations in Thailand.
@euxpat
You can buy SS credits by paying selp employment tax, but since you have to pay your contribution and the employers contribution your talking 15%. Thats not bad, but there are better. It depends what your retirement goals are. If you plan on retiring overseas, then medicare will be useless to you. In which case a retirement annuity is cheaper (at about 11%) then the 15% for SS.
It is though why many ITs eventually gravitate to eithe ra super cheap asian country (such as thailand), or end up in Europe where they can collect a pension and have socialized health care schemes.
@Taylor
I wouldnt say your portfolio is super diversified, its very US heavy. That portfolio is exactly the type that would have been and was devastated by the housing and CDO market. truly having a ratio of domestic (USA) and international assets in a portfolio is the way to diversify a portfolio. That may be unpatriotic, but this is money.
Any Australian teachers looking into this?
I have read Andrew Hallam's book and have contacted Vanguard Australia, but they told me that because I am a non-resident for tax purposes that they cannot open an account for me:
"Vanguard Investments Australia Ltd and its Funds are registered in Australia and are operated to comply with Australian laws.
We regret to inform you that unfortunately Vanguard Australia can no longer accept applications from non-Australian residents which includes Australian citizens currently residing overseas.
This policy is as a result of the US Foreign Account Tax Compliance Act (FATCA) and similar expected legislative changes in Canada, Europe and elsewhere which increases our compliance burden from accepting non-residents."
I am currently looking into investing via Singapore (DBS Vickers or Standard Chartered) as per the advice on Andrew Hallam's website.
I have read Andrew Hallam's book and have contacted Vanguard Australia, but they told me that because I am a non-resident for tax purposes that they cannot open an account for me:
"Vanguard Investments Australia Ltd and its Funds are registered in Australia and are operated to comply with Australian laws.
We regret to inform you that unfortunately Vanguard Australia can no longer accept applications from non-Australian residents which includes Australian citizens currently residing overseas.
This policy is as a result of the US Foreign Account Tax Compliance Act (FATCA) and similar expected legislative changes in Canada, Europe and elsewhere which increases our compliance burden from accepting non-residents."
I am currently looking into investing via Singapore (DBS Vickers or Standard Chartered) as per the advice on Andrew Hallam's website.
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Yantantether
- Posts: 168
- Joined: Tue Apr 10, 2012 12:41 am
'Foreign persons cant own land, but foreign corporations can. Foreigners can start corporations in Thailand'.
Sure PSY. Dog's can shiit all over the place but it's better if they don't, right?!
If you want to invest all your hard earned cash by using loopholes to dodge the property laws of a country then go right ahead. Just don't complain when they turn up one day and take it all off you!
Sure PSY. Dog's can shiit all over the place but it's better if they don't, right?!
If you want to invest all your hard earned cash by using loopholes to dodge the property laws of a country then go right ahead. Just don't complain when they turn up one day and take it all off you!
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Yantantether
- Posts: 168
- Joined: Tue Apr 10, 2012 12:41 am
[quote="IAMBOG"]I know someone who bought a house in Thailand through his corporation. It doesn't seem to be an problem. No sh1t involved.[/quote]
So, tell me.......do they own the company 100% or is it 51% Thai?
Assuming the Thai element of the company don't decide to pee on your chips one day in the near future, providing the Thai Govt. don't change the laws on company ownership - which is by no means impossible, you keep up payments to keep the co. legal + set up costs et., all should be well!
Sarcasm aside, yes it can be done but I really don't think it would be wise to have it on your list as a serious way of investing your life savings, unless you have a personal investment in Thailand such as family.
So, tell me.......do they own the company 100% or is it 51% Thai?
Assuming the Thai element of the company don't decide to pee on your chips one day in the near future, providing the Thai Govt. don't change the laws on company ownership - which is by no means impossible, you keep up payments to keep the co. legal + set up costs et., all should be well!
Sarcasm aside, yes it can be done but I really don't think it would be wise to have it on your list as a serious way of investing your life savings, unless you have a personal investment in Thailand such as family.
So I'm reading The poor Teacher and now I get it! I feel I was very naive about the hidden costs of actively managed funds before reading this book. My question is: can I transfer my money out of American Funds into Vanguard without paying some sort of cost? The book kind of leads me to believe that yes I can. I'm not ready to discuss thus yet with my financial advisor because it is very clear to me that I need to dump him so I'm asking here.
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Snowbeavers
- Posts: 72
- Joined: Fri Jul 17, 2009 11:56 pm
[quote="christyn2"]So I'm reading The poor Teacher and now I get it! I feel I was very naive about the hidden costs of actively managed funds before reading this book. My question is: can I transfer my money out of American Funds into Vanguard without paying some sort of cost? The book kind of leads me to believe that yes I can. I'm not ready to discuss thus yet with my financial advisor because it is very clear to me that I need to dump him so I'm asking here.[/quote]
You will face some significant costs unfortunately. But the money you pay will pale in comparison to the money you pay in fees compounded over the longterm. Some financial companies have huge penalties for getting out early (I paid 40%) but it was the best move I ever made.
More discussion on it here: http://andrewhallam.com/category/expat- ... provident/
You will face some significant costs unfortunately. But the money you pay will pale in comparison to the money you pay in fees compounded over the longterm. Some financial companies have huge penalties for getting out early (I paid 40%) but it was the best move I ever made.
More discussion on it here: http://andrewhallam.com/category/expat- ... provident/
maybe
You likely paid a front load of 5,75% on the way into American Funs, but might not have any on the back side. It would depend on the type of account (IRA, 401, or is it just cash from tax free job?) ask you advisor or read the literature/prospectus.
maybe
You likely paid a front load of 5,75% on the way into American Funs, but might not have any on the back side. It would depend on the type of account (IRA, 401, or is it just cash from tax free job?) ask you advisor or read the literature/prospectus.