The Muse Blog Jessica Chastain with a kangaroo.
With the joy of seeing my amount of dollars going up, I took advantage of the holiday to finish studying and set up my wallet.
I have already decided that I am going to open an account at BB Americas also to take advantage of the international transfer by paying only 0.38% of IOF to the Brazilian state squad, the bad side is that I will have to pay U $ 15.00 monthly (BB Américas account fee + A minimum of $ 10 brokerage commission in Interactive Brokers (which will be good because I will make 10 orders of $ 1 monthly, so I will always be diversified in the portfolio.
How did I get my wallet?
See: This is a theoretical portfolio, I have NOT DONE these assets yet, and I do not have the account at Interactive Brokers yet. Consider a portfolio exercise as a study exercise.
Well, first I read almost half a hundred books by national and international authors, as well as several blogs, forums in Brazil and abroad.
Let us speak here only from the outside now:
The bogleheads.org forum has helped me a lot. The blog and the book Early Retirement Extreme as well as the blog of Mr. Money Mustache (thanks, man, I saved a lot of money because of you) and also the blog and the book of Simple Dollar. I have registered all the assets in Google Finance and also in my MorningStar portfolio (for free, both).
What opened my mind about investing abroad was:
1: protect me from exchange variation
2: Get lifetime income in other currencies
3: protect the heritage of governments
4: be able to emigrate one day in the future already with equity in foreign currency
5: to be able to invest in excellent companies that we do not have here, finally are many advantages of investing abroad.
The disadvantages are the cost, ” low profitability” (? ) And things like inheritance, death, taxes and repatriation of money (which do not intend to bring ever more, of course). My idea is to contribute $ 2500.00 per month to this portfolio, this will give almost 50% of my total contribution capacity, so it will be from now on 50% foreign / 50% Brazil, but this will take time to balance because I already have many investments In Brazil, perhaps over time and the consolidation of my future assets, I migrate more contributions abroad.
In Bastter System, Bastter.com has a tab called “others” that you can register what you want, with the code you want, but it will not pull automatic quotes and you will have to go evenly, But okay, come on, check out my initial portfolio for study and follow-up.
As I did my allocation, simple:
Stocks = 80%
REITs = 10%
bonds = 10%
Let’s see the details in BS:
The idea is to distribute resources among various countries, currencies, and funds:
Let’s start by BONDS (10%):
Code: EMB – 2.50% (ETF bonds of emerging countries)
VBTLX – 2.50% (Vanguard Fund) Total Bonds USA
VWOB – 2.5% Vanguard ETF Bonds world
SCHZ – 2.5% Charles Schwab ETF bonds the Total USA
Total 10% – Here I am diversified in the dollar and other hundreds of currencies and governments paying sovereign bonds to domestic and foreign investors, is the most conservative part of the portfolio and will grow less, estimated annual yield at 4.5% gross.
Now REIT (10%) – I put some ETFs but also want some individual and can go as adding some more studies.
Code: 1.5% VAP (Australian REITs ETF)
O, OHI, DLR, ESS 0.5% each (USA),
VNQI (global REITs ETF Vanguard) 1.5%
SCHH 2.5% (reits ETF US Charles Schwab)
IFEU (reits Europe 2.5%)
Total = 10% (Here I already have a small allocation and income in dollars, Euro and Pound sterling).
And to finish the CORE of the portfolio that are the stocks – It is no use to want to be rich or to form equity abroad in fixed income (bonds) or Reits, because they are very taxed and can not grow as much as shares, you have to leave For actions abroad, different from Brazil that can be tranquil only with fixed income.
To facilitate my life and my ignorance I chose to use ETFs abroad in 95% of my allocation of shares, I separated 5% of the total to buy individual shares on their own, maybe 20 shares with 0.25% in each, this Is the initial plan. Here the diversification is extended for protection and return in several currencies.
The total will be STOCKS 80%, we’ll see how it went:
15% – CHIX: CHSPI (iShares core SPI) – an index that measures the entire Swiss bag, bought in Swiss Francs.
3% NOBL – ETF dividends aristocrats USA – Companies that have increased their dividends uninterruptedly for 25 years.
9% VAS – Vanguard ETF total market Australia
4% BRK.B – Berkshire Hathaway (Holding of 50 companies – the USA – does not pay dividends)
3% Consumer Staples VDC – Vanguard ETF Consumer Companies USA
2% VCR Basic materials – Vanguard ETF USA
5% VHT – Vanguard ETF health the USA
5% EWH -ETF Total Market Hong Kong (picks up many companies from China)
8.5% FLIGHT (Vanguard ETF SP500) 500 largest companies USA
7% ES3 Index ETF Singapore
7% VEUR (shares of Europe)
9% VTI (Vanguard Total Index USA)
5% for my own stock portfolio abroad (I’m still adding gradually).
Total 80%, with 36.5% of this total being 80% in the US alone, or almost half of the international portfolio is in the US, but that’s no problem because companies are global.
Preference for ETFs low management fee (fee expenses) THAT HERE IS EXTREMELY IMPORTANT! The fact that you do not pay a rate higher than 0.5% per year, THIS IS THE ROBOT! DO NOT ADMIT EVER! These ETFs have ridiculous rates of 0.05%, 0.01% or 0.28% (Vanguard and Charles Schwab), preference for US stocks. Diversification in Swiss Franc, Hong Kong dollar, Singapore, Australia.
In Morningstar, the portfolio was the same (I could not add the local Singapore index I put here (ES3), but add another one (EWS) just for the record, the values are fictitious and the site itself that puts the price of a single asset:
When I start to contribute in this portfolio and study more I will put a small percentage also in REIT of Singapore.
For now, that’s it, the post was great and gave a lot of work and is the result of many hours of study and research, I hope you like and comment your opinion on the portfolio abroad.
Thanks for having me,