Portfolio Charts

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Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

Hmm... there's not really a good spot for that. You're probably best off considering that as an outside income stream sorta like a rental. I know Dragline has asked for a custom asset field that might be able to account for something like this, and I'll think about that some more.

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jennypenny
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Re: Portfolio Charts

Post by jennypenny »

Sorry, I wasn't trying to give you an assignment. I'm just stuck with an annuity and it's large enough that I need to account for it somehow.

I miss when my entire life savings was in a passbook account. lol

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

Not an assignment, but still a good idea! ;) I appreciate the question.

Dragline
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Re: Portfolio Charts

Post by Dragline »

Do it for jp, if not for me . . . :D

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

You guys will probably find the latest tool interesting. It directly compares different withdrawal methods and analyzes their effect on retirement spending levels and account balances over time.

https://portfoliocharts.com/2016/10/06/ ... trategies/

eudaimonia
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Re: Portfolio Charts

Post by eudaimonia »

Wow, that is super helpful! Thanks.

workathome
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Re: Portfolio Charts

Post by workathome »

Nice photos too :-)

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C40
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Re: Portfolio Charts

Post by C40 »

Oh man, that's awesome. And great timing for me :-)

Thanks Tyler!

BRUTE
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Re: Portfolio Charts

Post by BRUTE »

that's pretty cool. how does Tyler9000 come up with these novel calculators?

IlliniDave
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Re: Portfolio Charts

Post by IlliniDave »

Back to the annuity topic, I too have annuity income (both SS and one from my employer). I typically ignore them when it comes to analysis of assets and net worth. You can estimate a present value for them and consider them a "bond-like" asset. For SS people use rules of thumb like 12x-14x whatever your current annual benefit is. For annuities you can go to immediateannuity.com and play around with the inputs to get what it would cost to buy a similar annuity to what you anticipate, and put that figure in the bond category too. I've done that for giggles just because it makes me look a few hundred k-bucks wealthier than I am :)

The most straightforward thing is to just subtract off the anticipated annuity/SS income from whatever withdrawals you intend to make like Tyler suggested above. I think if you dig around in the customization of firecalc you can enter pensions in addition to SS. I haven't played around with portfoliocharts as much since by the time I knew about the site I'd already built my own simulation/calculator that is dialed right in to my situation. But it looks like a really cool tool suite. Tyler9000 has done the world of future retirees a great service.

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

BRUTE wrote:how does Tyler9000 come up with these novel calculators?
Usually I come across a good question that I don't know the answer to, or a statement that I intuitively believe to be true or false but want some data to back it up (or prove me wrong). Basically, forums like this one inspire new ideas. Keep it up! :D

MrNotRobot
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Re: Portfolio Charts

Post by MrNotRobot »

Tyler9000 wrote: Data for multiple countries is still on my long-term wish list
I'm in Australia and from here it is no problem to buy NYSE traded ETFs through my online broker, at minimal additional cost. I guess it would be no problem from many other countries as well including Canada and UK. This should make it entirely possible to invest in any of the portfolios exactly as they appear on Portfolio Charts. It would be interesting to see how the portfolios performed with currency exchange rates incorporated.

Regarding the list of country data that you're looking for, I think it would be of great value to include Japan.

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

MrNotRobot wrote:I'm in Australia and from here it is no problem to buy NYSE traded ETFs through my online broker, at minimal additional cost. I guess it would be no problem from many other countries as well including Canada and UK. This should make it entirely possible to invest in any of the portfolios exactly as they appear on Portfolio Charts. It would be interesting to see how the portfolios performed with currency exchange rates incorporated.
Interesting train of thought.

To make the numbers valuable in foreign countries, I'd need to adjust for both currency exchange rates and also local inflation. I'm totally down for that if the resulting numbers would actually be actionable.

I just need some more info on the specifics of how that would work. Are you able to literally purchase the same US fund like VTI and TLT as you can in the US, or are you using special version in Australian dollars? What are the "minimum additional costs"? And does it work the same way in other countries as well?

BRUTE
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Re: Portfolio Charts

Post by BRUTE »

can't anyone do currency and local inflation calculations on their own? there are also differences in local taxes.. for example, afabk, US stock exchanges will withhold capital gains tax on stocks of foreigners for the IRS. it then might or might not be taxed again by the local government. way too complicated for Tyler9000 to model for every country.

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

Let's set taxes aside for a moment -- I agree those are really complex. How exactly does a foreign investor buy US-based funds? Does anyone have any experience with that, or can you point me to an online guide describing the process for your country?

Solvent
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Re: Portfolio Charts

Post by Solvent »

Eeek. Well, I don't think it's a simple answer. When I was in Aus, I could directly buy US shares/funds, but my broker would charge much higher trade costs, and then in addition charge ongoing custody costs.
You can also buy, on the ASX, something like Vanguard's VTS, which as I understand it tracks a basic US index with no hedging. This is a better option for most investors I think, given trade costs. But how this plays into your charts, with fees, etc., I don't know.

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

Solvent wrote: You can also buy, on the ASX, something like Vanguard's VTS, which as I understand it tracks a basic US index with no hedging. This is a better option for most investors I think, given trade costs. But how this plays into your charts, with fees, etc., I don't know.
Yeah, that's also been my impression with other countries and it seems like the best solution that I'm aware of. For example, the Canadian equivalent of VTI is VUN. I started a spreadsheet a while back to make a list of international fund equivalents, but didn't get very far. Maybe I'll revisit that.

Thanks for the info.

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Seppia
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Re: Portfolio Charts

Post by Seppia »

Tyler9000 wrote:Let's set taxes aside for a moment -- I agree those are really complex. How exactly does a foreign investor buy US-based funds? Does anyone have any experience with that, or can you point me to an online guide describing the process for your country?
Ciao Tyler
I recently moved back to Italy from the USA, so I studied the subject quite a bit.
To keep it short:
The best bet for European investors is generally (I say generally because there might be some slight differences by country) to avoid buying strictly American funds.
Vanguard and blackrock offer etfs, generally based in Ireland for tax efficiency and traded around Europe, who will be equivalent to the American etfs.
See here for example (holland has some of the best choices for vanguard etfs, I'm in Italy and buy their etfs on amsterdams stick exchange) https://www.vanguard.nl/portal/site/kii ... /documents
So we do have in general a more limited choice, and expense ratios are a bit higher, but other than that they're the same.
The advantage of these etfs is that they usually are armonized
This means that for example when I'm in Italy, I will only pay Italian taxes on dividends when I get the dividends from europes ETF VEUR, even if the ETF is traded in holland
Last edited by Seppia on Sun Oct 16, 2016 1:37 am, edited 1 time in total.

Ontarian
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Re: Portfolio Charts

Post by Ontarian »

Tyler9000 wrote:Let's set taxes aside for a moment -- I agree those are really complex. How exactly does a foreign investor buy US-based funds? Does anyone have any experience with that, or can you point me to an online guide describing the process for your country?
I'm Canadian (obvious given my username) yet all the ETFs I currently hold are US-listed. Before entering an order in my TFSA, RRSP, or taxable account, I use Norbert’s Gambit (it's a Canadian thing, though anyone could use it to less-expensively convert currency between CAD<->USD) to purchase USD. Then I simply place an order with my online broker (Questrade - the best Canadian one) for VTI or EWS or NGE. All three ETFs are traded on the NYSE. I included EWS and NGE because I'm wanting to buy them. I'm waiting for CAD to come up some against the USD before converting plus I'm betting NGE will fall more. Now is as good a time as ever to buy EWS though.

I feel like sharing that this is my first post in the ERE forums! I'm a big fan. Lots of wise people here I continue to learn from. Other 26 year old university students are gearing up for a night out filled with $6 Labatt Blue or Caesars, but I'm here reading the forums while I eat supper.

Tyler9000
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Re: Portfolio Charts

Post by Tyler9000 »

@ Seppia & Ontarian -- Thanks! You've given me a lot to look into.

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