1) I wonder if UAE forum might be more appropriate. Please check that forumAdvice on the following portfolio. Trying to optimize for less taxes.
Notes:
1. I live in UAE where there are no income taxes.
2. Citizen of India
3. 35M. Will return to India when I retire in 20 years.
50%: S&P500 Swap based ETFs (0% tax)
Swap based US ETFs domiciled in Ireland are not subject to any US taxes. Gives me exposure to developed countries. Splitting between I500 and SPXS.
25%: Index funds based out of India (12.5% tax)
12.5% LTCG tax and no dividend tax for accumulation funds. Gives me exposure to developing countries. Splitting between SENSEX and Nifty index funds.
10%: Fixed deposit in banks based of out UAE (0% tax). Getting close to 5.5% on my deposits in AED. AED is pegged to USD.
10%: In Dubai real estate (0% tax). Getting 6% from rental income and some more from capital appreciation.
5%: Physical Gold (0% tax)
Welcome any thoughts/advice. What am I doing wrong? Does the additional risk due to less diversification justify the tax advantages of my portfolio? Appreciate general thoughts on the this as well.
2) I don't understand the message fully.
What does it mean based out of India? you mean you are purchasing Indian market stocks or all Emerging Markets? It's not clear because you say 'gives me exposure to developig countries' but then Sensex and Nifty are India only. So that gives you exposure to India, not to all developing countries.
3) In general this sounds ok. However:
I would change the SP500 into a Developed Market ETF (Vanguard Developed Markets or MSCI World) if there is one at 0% tax.
I would change the 'fund based out of India gives me exposure to developing market' into a Emerging Markets (EM) ETF (Vanguard EM, or MSCI EM)
If you have no access to an EM ETF with 0% tax, you could also have your entire equity into a Developed Markets ETF
Statistics: Posted by jg12345 — Sat Sep 14, 2024 1:49 am — Replies 1 — Views 217
