[Brazil] My portfolio: seeking advice

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Topic Author
hutlain
Posts: 7
Joined: Sun May 28, 2023 12:45 pm

[Brazil] My portfolio: seeking advice

Post by hutlain »

Hello Bogleheads!

I got this suggestion from the Boglebot for a conservative portfolio:
* 80% AGGU iShares Core Global Aggregate Bond (USD Hedged)
* 20% VWRA Vanguard FTSE All-World

Or even:
* 75% AGGU iShares Core Global Aggregate Bond (USD Hedged)
* 25% VWRA Vanguard FTSE All-World

I'm assuming the two aforementioned funds don't pay out interest or dividends (they're accumulating), and therefore are tax free in Ireland for non residents. Is this a correct assumption?

Also I'm assuming there's no deposit protection for those funds. Again, please let me know if this is correct.

Country of Residence: Brazil. Not a US person.
International Lifestyle: I expect to leave Brazil before retiring.
Currency: USD
Emergency funds: I have six months worth of expenses in a money market account and a good health insurance.
Debt: No debt.
Age:: 45-50
Desired Asset allocation: 20% stocks / 80% bonds or 25% stocks / 75% bonds.

I'm willing to not touch the stock portion of the portfolio for 5 years.
My portfolio is in the USD mid 6 figures and I contribute monthly to Brazil's pension system, so I'll be eligible at 65.

Please advise.
Thanks. Have a great day!
Last edited by hutlain on Sun May 28, 2023 3:40 pm, edited 2 times in total.
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LadyGeek
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Re: [Brazil] My portfolio: seeking advice

Post by LadyGeek »

Welcome! As a reminder, cryptocurrency as an investment is off-topic. See: Greater Fool Investing Strategies[/color]
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Topic Author
hutlain
Posts: 7
Joined: Sun May 28, 2023 12:45 pm

Re: [Brazil] My portfolio: seeking advice

Post by hutlain »

Thanks for the reminder.

I edited the post and removed all info regarding bitcoin.
DJN
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Re: [Brazil] My portfolio: seeking advice

Post by DJN »

Hi,
there is a section on the Bogleheads Wiki for Brasil:
https://www.bogleheads.org/wiki/Investing_from_Brazil
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.
Topic Author
hutlain
Posts: 7
Joined: Sun May 28, 2023 12:45 pm

Re: [Brazil] My portfolio: seeking advice

Post by hutlain »

Hi DJN

Thanks I saw that.
My questions are more related to the portfolio and to the non-US domiciled funds.
TedSwippet
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Location: UK

Re: [Brazil] My portfolio: seeking advice

Post by TedSwippet »

Welcome.
hutlain wrote: Sun May 28, 2023 1:36 pm I'm assuming the two aforementioned funds don't pay out interest or dividends (they're accumulating), and therefore are tax free in Ireland for non residents. Is this a correct assumption?
Yes. Although, even if they did pay out interest or dividends, they would still be entirely free of Irish tax for non-Irish residents. Ireland applies no taxes whatsoever to returns on Ireland domiciled ETFs held by non-Irish residents. Full details in the wiki:

Nonresident alien investors and Ireland domiciled ETFs - Bogleheads
hutlain wrote: Sun May 28, 2023 1:36 pm Also I'm assuming there's no deposit protection for those funds. Again, please let me know if this is correct.
Any deposit protection would generally be a function provided by the broker, not the ETF or ETF provider; for example, US domiciled ETFs are not insured by FDIC. Depending on your broker, you may well find that there is a decent level of protection for broker deposits.
Topic Author
hutlain
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Joined: Sun May 28, 2023 12:45 pm

Re: [Brazil] My portfolio: seeking advice

Post by hutlain »

Thank you TedSwippet. Much appreciated!

For those who have thoughts on the asset allocation or the specific funds themselves, please chime in.
ebeb
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Re: [Brazil] My portfolio: seeking advice

Post by ebeb »

I dont know about Brazil market, but 75% bonds at your age seems too much and portfolio will grow much less. I only have 30% bonds :shock:
80% VOO | 20% BND+TBILL+CASH | Don't believe Nobody because Nobody knows nothin' - Anon
Topic Author
hutlain
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Joined: Sun May 28, 2023 12:45 pm

Re: [Brazil] My portfolio: seeking advice

Post by hutlain »

Thanks ebeb. That's a great point and I'm pondering it.
Last edited by hutlain on Sun May 28, 2023 9:00 pm, edited 1 time in total.
ebeb
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Re: [Brazil] My portfolio: seeking advice

Post by ebeb »

You can read more about Asset Allocation in https://www.bogleheads.org/wiki/Asset_allocation .
80% VOO | 20% BND+TBILL+CASH | Don't believe Nobody because Nobody knows nothin' - Anon
Topic Author
hutlain
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Joined: Sun May 28, 2023 12:45 pm

Re: [Brazil] My portfolio: seeking advice

Post by hutlain »

Thank you, sure thing.
DJN
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Re: [Brazil] My portfolio: seeking advice

Post by DJN »

hutlain wrote: Sun May 28, 2023 3:43 pm Hi DJN

Thanks I saw that.
My questions are more related to the portfolio and to the non-US domiciled funds.
HI,
I am interested to know what platform you are using, who gives access to the funds you mention and how do you report income or gains in your tax returns?
Also what fees are applicable?
If the laws and regulations have changed it would be useful to update the Wiki.
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.
Topic Author
hutlain
Posts: 7
Joined: Sun May 28, 2023 12:45 pm

Re: [Brazil] My portfolio: seeking advice

Post by hutlain »

Hi

There are a number of US-based brokers that will open accounts for Brazil residents. These are the best known: Avenue, Passfolio, Stake, TD Ameritrade, Interactive Brokers, Tastyworks.

The laws and regulations are being discussed as of now. They may or may not change, the deadline for changes is end of August 2023. The way foreign investments are reported won't change. The discussion is about the tax rates.
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