US non resident citizen global two fund portfolio

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
normalmal
Posts: 16
Joined: Wed Feb 14, 2018 12:16 pm

US non resident citizen global two fund portfolio

Post by normalmal »

Hey guys,

I'm a US non resident citizen. I have my portfolio at Schwab and have been following the below strategy for a few years:

Stocks:Bonds 90:10

Stocks
US:International - 60:40
US - SCHB
International - 80:20 SCHF:SCHE

Bonds
SCHZ - US only

In order to simplify things further and not worry about US:International ratios, I am considering moving to a global two fund portfolio with global stocks and bonds funds such as Vanguard FTSE All-World UCITS
ETF (Acc) and iShares Global Government Bonds UCITS ETF (Acc).
I would probably have to open an account with different broker for this

Do you recommend global two fund portfolios? If so, which two funds are recommended in my case as US non resident citizen?
TedSwippet
Posts: 5181
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: US non resident citizen global two fund portfolio

Post by TedSwippet »

normalmal wrote: Thu Jun 08, 2023 11:47 am In order to simplify things further and not worry about US:International ratios, I am considering moving to a global two fund portfolio with global stocks and bonds funds such as Vanguard FTSE All-World UCITS
ETF (Acc) and iShares Global Government Bonds UCITS ETF (Acc).
Have you investigated the US's spiteful PFIC tax rules? If not, see this wiki article (and weep):

Passive foreign investment company - Bogleheads

In short, this is a Really Bad Idea. Anything UCITS is almost certainly, for you, a US tax death-sentence. For more in general on the difficulties you will face as a US citizen living outside the US, see this wiki article:

US tax pitfalls for a US person living abroad - Bogleheads
normalmal wrote: Thu Jun 08, 2023 11:47 am I would probably have to open an account with different broker for this
You will probably find that a lot of brokers want nothing to do with you. US brokers because you are not a US resident (US AML laws), and non-US brokers because you are a US citizen (US FATCA law). If you do need another for any reason, Interactive Brokers and Schwab International are probably going to be your first -- and perhaps only -- options.

Finally, I'd suggest moving this thread to the Non-US Investing forum, where you will find similarly afflicted (by US citizenship) expats. You can request this using the "!" icon at top right.
User avatar
oldcomputerguy
Moderator
Posts: 17931
Joined: Sun Nov 22, 2015 5:50 am
Location: Tennessee

Re: US non resident citizen global two fund portfolio

Post by oldcomputerguy »

^ I got it. This topic is now in the Non-US Investing forum.
There is only one success - to be able to spend your life in your own way. (Christopher Morley)
Post Reply