Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 6337

Non-US Investing • Non-US Portfolio: Current Yield, NOT Capital Gains

$
0
0
I have a specific question on which I am looking for some community input.

I have a rather specific tax situation which means that I am taxed very highly for any capital appreciation in my portfolio but much less so for any income I receive. I won´t go into the specifics but enough to say that it is very much worth it for me to maximize current yield and sacrifice capital appreciation. Additionally, as a non-US citizen and non-US domicile, any dividends coming from the US have a 30% Withholding tax, whereas those coming from other jursidctions don´t have that problem.

So given that, could you suggest to me a portfolio which you think would:
1. Maximize current yield
2. Preserve capital
3. Avoid US shares and ETFs to mimize leakage to US withholding taxes

If there is no simple buy/hold/rebalance portfolio to achieve this, I would also be open to more complicated strategies (e.g. involving calls and puts) which you think I should explore in order to do this.

I am grateful for your suggestions.
There are (Europe) a lot of high yield funds and ETFs around. They tend to be over-concentrated. For example in the UK income funds they all hold a lot of tobacco, utilities, pharmaceuticals. Nonetheless this is an option. If it's a global dividend fund it will include Apple and Microsoft, most likely, but not Alphabet (Google), Meta or Berkshire Hathaway. Or Tesla, ofc.

US has a 30% withholding tax on dividends paid to foreigners? However if you use an Irish domiciled fund it's only 15%? I only vaguely remember the discussion here.

Statistics: Posted by Valuethinker — Tue Jan 02, 2024 3:14 am — Replies 1 — Views 196



Viewing all articles
Browse latest Browse all 6337

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>