Permanent Portfolio Updates

This page is the update page for the pdf report: The Permanent Portfolio — Is This The World’s Best Investment Strategy?

It is an investment strategy covered in chapter 10 of The Global Expatriate’s Guide to Investing book.

The Permanent Portfolio — Is This The World’s Best Investment Strategy? is a free bonus report made available to all my subscribers who requested my Nine Laws to Financial Freedom, which was the basis of my first book, Millionaire Teacher.

If you don’t have a copy of either, simply subscribe with you name and email from the right side of screen.

You can find your country by scrolling down the page. Let me know in the comments if you’d like your country listed or if the links no longer work. We’ll update as soon as we can.

If you have any questions, please ask them in the comments as well.

 

Permanent Portfolio Last Updated: 8th December 2014

 

Permanent Portfolios for:

Americans
Canadians
Europeans
British
Norwegians
Australians
New Zealanders
Singaporeans
Indonesians
Chinese
Hong Kong
South Africans
South Americans

 

 

Permanent Portfolio For Americans

Allocation

ETF

Symbol

Expense Ratio

25%

Vanguard’s Total Stock Market ETF (VTI)

VTI

0.05%

25%

iShares 20+ Year Treasury Bond Index (TLT)

TLT

0.15%

25%

Vanguard’s short-term government bond ETF (VGSH)

VGSH

0.12%

25%

iShares Gold Trust ETF (IAU).

IAU

0.25%

 


Canadian Permanent Portfolio Model

Allocation

ETF

Symbol

Expense Ratio

25%

(Canadian stocks)

iShares S&P/TSX Capped Composite Index ETF

XIC

0.05%

25%

(Long term Canadian government bonds)

BMO Long Federal Bond ETF

ZFL

0.2%

25%

iShares Gold Bullion (Non-Hedged)

iShares Gold Bullion (Non-Hedged)

CGL.C

0.56%

25%

(Short term Canadian government bonds)

Vanguard Canadian Short Term Bond Index ETF

VSB

0.15%

 


The European Permanent Portfolio

Allocation

ETF

Symbol

Expense Ratio

25%

(European bonds)

iShares Euro Government Bond 7-10yr

IBGM

(UK exchange)

0.20%

12.5%

(Global stocks)

Vanguard’s FTSE All World UCITS ETF

VWRL

(UK exchange)

0.25%

12.5%

(European stocks)

Vanguard FTSE Developed Europe

VEUR

(UK exchange)

0.15%

25%

(Gold)

iShares Physical Gold ETC

SGLN

(UK market)

0.25%

25% Cash

     

 

 

Permanent Portfolio For British Investors

Allocation

ETF

Symbol

Expense Ratio

25%

(British government bonds)

iShares UK Gilts 0-5 yr UCITS

(medium term bond index)

IGLS

0.20%

25%

(British stocks)

Vanguard UK FTSE 100 Stock Index

VUKE

0.10%

25%

(Gold)

iShares Physical Gold ETC

SGLN

0.25%

25% Cash

     

 

 

The Norwegian Permanent Portfolio

Allocation

ETF

Symbol

Expense Ratio

25%

(European bonds)

iShares Euro Government Bond 7-10yr

IBGM

(UK exchange)

0.20%

12.5%

(Global stocks)

Vanguard’s FTSE All World UCITS ETF

VWRL

(UK exchange)

0.25%

12.5%

(Norwegian stocks)

Global X MSCI Norway ETF

NORW

(UK exchange)

0.50%

25%

(Gold)

iShares Physical Gold ETC

SGLN

(UK market)

0.25%

25% Cash

     

 

 

Permanent Portfolio—Australian Style

Allocation

ETF

Symbol

Expense Ratio

25%

(Government Bonds

Vanguard Australian Government Bond Index

VGB

(Australian exchange)

0.20%

8.33%

(Australian Stocks)

Vanguard Australian Shares Index

VAS

(Australian exchange)

0.15%

8.33%

(US Stocks)

Vanguard U.S. Total Stock Index

VTS

(Australian exchange)

0.05%

8.33%

(Global Stocks)

Vanguard All World (ex U.S.) Stock Index

VEU

(Australian exchange)

0.15%

25%

(Gold)

BetaShares Gold Bullion ETF

QAU

(Australian exchange)

0.49%

25% Cash

     

 

 

Global Permanent Portfolio For New Zealanders

Allocation

ETF

Symbol

Expense Ratio

25%

(Gold)

iShares Physical Gold ETC

SGLN

(UK market)

0.25%

25%

(Government Bonds)

iShares Global AAA-AA Government Bond

SAAA

(UK market)

0.2%

15%

(Global Stocks)

iShares Global Stock Index ACWI UCTTS (SSAC)

 

or

Vanguard FTSE All World ETF

 

SSAC

(UK market)

or

VWRL

(UK market)

0.60%

 

or

0.25%

 

10%

(US Stocks)

iShares MSCI New Zealand Capped ETF

ENZL

(US market)

*maintain less than $60,000 USD in this index

0.51%

25% Cash

     

 

 

Permanent Portfolio For Singaporeans

Allocation

ETF

Symbol

Expense Ratio

25%

(Gold)

SPDR Gold Shares (O87)

(O87)

(Singapore exchange)

0.4%

25%

(Singapore Bonds)

(ABF Singapore Bond Index)

A35.SI

(Singapore exchange)

0.26%

12.5%

(Global stocks)

Vanguard FTSE All World UCITS

VWRD

(UK exchange)

0.25%

12.5%

(Singapore stocks)

SPDR Straits Times Singapore Index

ES3.SI

(Singapore exchange)

0.30%

25% Cash

     

 

 

Permanent Portfolio For Indonesians

Allocation

ETF

Symbol

Expense Ratio

25%

(Gold)

Hang Seng RMB Gold ETF

83168.HK

(Hong Kong exchange)

1.0%

25%

(Asian Bond Index)

ABF Pan Asia Bond Index

2821.HK

0.19%

12.5%

(Global stocks)

Vanguard FTSE All World UCITS

VWRD

(UK exchange)

0.25%

12.5%

(Indonesian stocks)

XIE Shares Indonesia

3031.HK

(Singapore exchange)

0.39%

25% Cash

     

 

 

Permanent Portfolio For A Chinese Citizen

Allocation

ETF

Symbol

Expense Ratio

25%

(Gold)

Hang Seng RMB Gold ETF

83168.HK

(Hong Kong exchange)

1.0%

25%

(Chinese government bonds)

CSOP China 5 Year Treasury [Government] Bond

3199.HK

(Hong Kong exchange)

0.49%

12.5%

(Global stocks)

 

Vanguard FTSE All World UCITS

VWRD

(UK exchange)

0.25%

12.5%

(Chinese stocks)

 

Horizon MSCI China

2823.HK

(Hong Kong exchange)

0.25%

25% Cash

     

 

 

Permanent Portfolio For A Hong Kong Citizen

Allocation

ETF

Symbol

Expense Ratio

25%

(Gold)

Hang Seng RMB Gold ETF

83168.HK

(Hong Kong exchange)

1.0%

25%

(Hong Kong bonds)

iBoxx ABF Hong Kong Index

(Bond Index)

2819.HK

(Hong Kong exchange)

0.15%

12.5%

(Global stocks)

Vanguard FTSE All World UCITS

VWRD

(UK exchange)

0.25%

12.5%

(Hong Kong stocks)

Tracker Fund of Hong Kong

(Stock Index)

2800.HK

(Hong Kong exchange)

0.15%

25% Cash

     

 

 

A South African’s Permanent Portfolio

Allocation

ETF

Symbol

Expense Ratio

25%

(South African government bonds)

NewFunds Govi SA Government Bond Total Return Index

NFGOVIJ

(Johannesburg Exchange)

0.28%

12.5%

(Global stocks)

Vanguard FTSE All World ETF

VWRL

(UK market)

0.25%

12.5%

(South African stocks)

Satrix 40

STX40

(Johannesburg Exchange)

0.45%

25%

(Gold)

iShares Physical Gold ETC

SGLN

(UK market)

0.25%

25% Cash

     

 

 

A South American Permanent Portfolio

Allocation

ETF

Symbol

Expense Ratio

25%

(Global bonds)

iShares Global Government Bond Index

IGLO

(UK market)

0.20%

12.5%

(Global stocks)

iShares Global Stock Index ACWI UCTTS (SSAC)

or

Vanguard FTSE All World ETF

SSAC

or

VWRL

0.60%

or

0.25%

12.5%

iShares Canada Latin American index

XLA

(Canadian market

0.67%

25%

(Gold)

iShares Physical Gold ETC

SGLN

0.25%

25% Cash

     

 







best-hotel-car-bnr

204 Responses

  1. Norvin says:

    Hi Andrew,

    Do you have any suggestion on portfolio for Indonesian working in Singapore?

    Cheers,
    Norvin

    • Hi Norvin,

      You could open an account with DBS Vickers and build a global portfolio of ETFs with an Indonesian component. The Indonesian stock index (ETF) trades on the Hong Kong exchange, under the symbol 3031.HK. I’ve added all the information with the other countries. My book describes how to open the account you would need, and how to make the purchases. Here’s the link, if you want to check it out: http://andrewhallam.com/a/expat-reviews

      Cheers,
      Andrew

  2. Margaret says:

    Hi Andrew

    How about a local Singaporean working in Singapore?

  3. Turtle Investor says:

    For the Singaporean investor, Hang Seng RMB Gold ETF seems a little expensive and excessive at 1%, isn’t it?

    The estimated total expense ratio (the “TER”) of the Fund, which is the sum of anticipated direct
    charges to the Fund expressed as a percentage of the Net Asset Value of the Fund, is up to 1%
    per annum. The TER includes the fees of the Manager, the Custodian and the Trustee, but
    excludes the indirect cost of the swaps to the Fund which is built into the value of the swaps.

    How about SPDR Gold Shares (O87) instead where Gross Expense Ratio is 0.40% instead? It has been run for 10 years since inception and is listed on SGX as well.

    http://www.spdrs.com.sg/etf/fund/fund_detail_GLD.html

  4. Kakynologyst says:

    Hey Andrew,

    Do you have portfolio for Malaysian?

    Cheers

  5. Jaron says:

    Hey Andrew

    May i know the reason why 25% were allocated to cash? And do you recommend adding reits etf in the portfolio?
    Pardon me, i am still quite new to investing.

    Warm regards

    • Hi Jaron,

      I didn’t design this portfolio concept, so I don’t suggest tinkering with it. This portfolio is a classic that has stood the test of time and made very nice profits in the process. The portfolio has 25% cash because, during periods of deflation, it often comes out the winner. The portfolio was designed to weather four economic conditions: prosperity, deflation, recession and inflation.

  6. Norvin says:

    Hi Andrew,

    Thanks for the portfolio.
    By the way I noticed you recommended Vanguard FTSE All World ETF for some countries and Vanguard FTSE All World UCITS for HK, Indonesia and China. Any particular reason for this?

    Norvin

  7. Jaron says:

    Hi Andrew

    Thanks for your reply. So what you mean by cash is cash equivalent investments, such as money market funds, certificates of deposit (CDs), and Treasury bills? Is there any investment vehicle in singapore that has it?

    Thanks a lot.

  8. Shane says:

    Hi Andrew – the million dollar question: are you personally going to start using the permanent portfolio? The stats don’t like, but the thought of owning 25% gold is very off-putting to me, at a purely emotional level.

    • No Shane, as I mentioned in my book, I use the cap-weighted couch potato model with a couple of Canadian Horizon swap based ETFs in there. I tried to be very upfront about where my personal money is. But if someone forced me into the Permanent Portfolio, I would know that I would be OK. The PP never looks good. People are always wary of at least one of its asset classes (as you are, with gold) which is why hardly anyone does it. But it works!

      Cheers,
      Andrew

  9. regina says:

    Hi Andrew,

    Do you have a portfolio for Phillipines?

  10. regina says:

    Hi Andrew,

    Would you be able to add in portfolio for a filipino working in singapore.

  11. Brendan Miller says:

    I have followed the PP ever since I first read about it here. Prior to that I was just doing the usual ETF/bonds investment planning also recommended here.

    So now it is time for me to rebalance and I just sold a bunch of shares (ticker: PRF) 5 days ago. To rebalance, I purchased more gold ETF’s (ticker: IAU). However, what I would like some thoughts and opinions on, is what about buying some oil/gas ETF’s? The price of oil is at a historic low and oil/gas ETF’s have taken a pounding, see http://tinyurl.com/lkq2yt3

    I know we shouldn’t speculate, and normally I don’t, but….

    And secondly, I did quite well out of PRF, what do you think of similar ETF’s as opposed to the bog standard Vanguard offerings?
    See this article and comments: http://tinyurl.com/ntyjbwj

    Anyway, looking forward to hearing from you Andrew, and others.
    Regards
    Brendan

  12. Bebop says:

    Thought I saw the one for Singaporeans? Where did the table disappear to?

  13. Chris says:

    Hi Andrew,

    For Singaporean, any difference between VWRD
    (UK exchange) and VT (US exchange).

  14. Bao says:

    Dear Andrew,

    I am a Hong Kong residence. My question is if I have an account in US and I already purchased Vanguard Total World Stock and the expense ratio is 0.18%, cheaper than VWRL (0.25%, if I buy in HK). Does that make a difference to my investment portfolio in Hong Kong?

    If I prefer couch potato style portfolio (50% stock and 50% bond), is it okay to invest 50% of my money in Boxx ABF Hong Kong Index and the rest in Tracker Fund of Hong Kong (2800), provided that I already keep enough of cash for emergency use?

    The last question is about how to invest. Should I pay attention to the time of investment or can I simply invest at anytime regardless of the market value? Does it make a difference between monthly/quarterly contribution and a specific market time? Your book talks about the importance of building up a responsible portfolio. It would be great if you can share more on the strategy part as it seems like I often buy in a time when the market value is high with my monthly contribution to ETF.

    Thank you for your time.

    • Hi Bao,

      I have a few questions for you. I’m assuming that you’re talking about my book, The Global Expatriate’s Guide To Investing. Is that correct? http://bit.ly/globalexpat

      You’ll find answers to all of your questions within it. Also, what is your nationality? If you’re not American, you risk paying U.S. estate taxes on your Vanguard Total World Stock Index if it trades on the U.S. market. This is why it’s better to buy a non-U.S. domiciled ETF. Look at my book’s index, on U.S. estate taxes.

      Cheers,
      Andrew

  15. dan says:

    Andrew
    I will be starting the permanent portfolio strategy on December 31 of this year. Instead of buying CGL.C (non-hedged) I was going to buy CGL (hedged). My rational was when gold goes up the us dollar usually goes down. If I buy the non-hedged version my gold gains will be whiped out by the currency fluctuation losses. By buying the hedged version I would be simulating the gains that a US citizen would get. Your thoughts?

  16. Leo says:

    Hi Andrew,

    I’m a Singaporean and I looked at the portfolio for Singaporeans. I was wondering, in a stock market slump, would the portfolio give negative returns? The reason is that the gold ETF and bond ETF aren’t actually negatively correlated to the STI ETF and total market ETF. This is unlike the 20 year treasuries which is negatively correlated to the SPY ETF. Thanks!

    Leo

    • Leo,

      You are likely looking at very short time durations to determine whether something is negatively correlated or not. Remember, we need to be comparing decades here, not annual years. I can also assure you that in 2008/2009 (the last massive stock drop for the STI) gold rose while the STI dropped. The Permanent Portfolio won’t make money every year. When stocks slump (stocks fell about 45% in 2008) the Permanent Portfolio lost money too, losing 0.7%. But historically, it hasn’t dropped dramatically. The worst year since 1971 was a drop of just 4.1%, in 1981. That should answer your question. There have been many down years for stocks since 1971. But no catastrophic drops for the Permanent Portfolio.

      Cheers,
      Andrew

      • Leo says:

        Hi Andrew,

        Thanks for the explanation! Just wondering for the Singapore portfolio, when you allocate 25% into Cash. What exactly does this Cash refer to? Thanks again!

        Leo

  17. Neil L. says:

    For the Hong Kong Portfolio, you recommend Vanguard FTSE All World UCITS. I have an account at HSBC, which only gives access to the HK and US exchanges. If I purchased the Vanguard ETF, I would need a different brokerage. Are there any global stock ETFs available on the HK exchange? I couldn’t find any. If I don’t want to open another brokerage account, I guess I would have to suck up the fees of the US exchange.

  18. Neil L. says:

    Another question. Why do you not suggest 25% cash holdings for the American and Canadian portfolios but it is suggested for the other portfolios? I thought the 25% cash was a fundamental part of the Permanent Portfolio?

  19. Neil L. says:

    Why is there no 25% allocation in cash for Canadian and American investors under this plan?

    • Neil,

      A short term government bond index can replace the cash component. If none is available, you would simply use a cash account.

      • Neil L. says:

        Thanks Andrew. Sorry for the double post above. Ever since the government here went more insane than usual, the internet has not been working very well. My last two questions did not even appear until days later on my screen. This is why I do everything in Hong Kong. Nothing works properly in China.

  20. Henk van Tijen says:

    Hi Andrew,
    Just a quick question re. the European assets:

    ** 25% (European bonds) iShares Euro Government Bond 7-10yr IBGM (UK exchange)

    Why so short term bonds? Harry Browne clearly states that the bonds in the PP must be 20+ years in order to have the balancing effect. Shorter term bonds just don’t react to interest that much.

    I went for German bonds, as Germany is a trustworthy creditor. (No point in weighting in basked cases as Spain, France). For example, this one still has 25 yrs to go:
    http://www.boerse-go.de/Anleihe/bundesrepdeutschland-DE0001135366

    Cheers

  21. Daniel says:

    Hi Andrew,
    I would be very happy to see your suggestion on a Swedish Permanent Portfolio; in particular I wonder which long term bonds to acquire.
    Thank you for you input.
    Cheers

    • Hi Daniel,

      Without a Swedish stock or bond ETF available with iShares UK or Vanguard UK, your best option might be the Permanent Portfolio for Europeans, as listed above.

      Cheers,
      Andrew

      • Daniel says:

        Andrew, I appreciate your swift reply! Unfortunately, you confirmed what I thought so far. I just wonder if the exchange rate risk then ruins the point of having long term bonds. Considering taking some risk, in what way would it then matter if I went for European bonds (IBGM or e.g. LYMTF) or US long term bonds directly? Thanks again!

        • Hi Daniel,

          I don’t know your nationality. If you are Canadian, and you can buy Canadian government bonds, then I suggest you do so. If you are American, do likewise with U.S. government bonds. If you’re European, go with a European government bond index. This eliminates currency risk with your fixed income (bond) component.

          Cheers,
          Andrew

          • Daniel says:

            Hi again,
            I’m a German living in Sweden – that’s why I was looking into bonds without currency risk (i.e. in Swedish crowns). Yet again, since – as far as I know – there is no proper long term bond (i.e. 20+ years), I was wondering what to do about: In this situation, I dont see a (major) difference in buying US bonds or Euro-bonds, since I get the currency risk either way. (However, the Euro-bonds might have some tax-advantages as Sweden is part of the EU (though they refuse to introduce the Euro:-))

            Still, I dont have too good a feeling about settling for foreign bonds – I’d probably rather buy Swedish mid-term bonds (7yrs). Not happy about that solution, though.

            I appreciate your feedback on my thoughts.

            Best,
            Daniel

          • Hi Daniel,

            You might consider this Swedish government bond market ETF: http://www.bloomberg.com/quote/XACTOBLI:SS

            Cheers,

            Andrew

  22. Jaron says:

    Hi Andrew,

    I am from Singapore, and i notice that there is limited broker offering UK exchange for the world indexes, i found out that DBS offer both Canadian and Uk exchange, i am wondering if there is any complication if i opt for the Canada exchange instead of choosing the UK one.

    Thanks for your advise

  23. Jim says:

    Hi Andrew,

    Just finished both your books, great reads and I’m inspired now. I’m british with permanent residency in Singapore. I was thinking of following the singapore permanent portfolio. However is it better to use the British one or a combination of both?

    Cheers,
    Jim

  24. Si says:

    Hi Andrew,

    I have just finished your new book which was great and I’ve recommended it to some friends. I’ve been burned by an offshore fund.

    I’m looking to take the first steps in building a Vanguard portfolio. The first question mark arises from your section on Interactive Brokers (IB). I am an Irish citizen living in Singapore who will likely return inside the next 5 years. You mentioned about the possibility of US Estate taxes and I am following up with IB on that.

    If you could help me understand if I was to take your advice an follow the European portfolio on the UK exchange, if I purchase using IB would I still be liable for US estate taxes as IB is based in US? Would the same apply to Schwab also? I mention those as I have restrictions on what brokers I can use, working in IT in the finance industry.

    Once I clear that hurdle I’m all set to get on-board.

    Thanks,
    Si.

    • Si,

      With Schwab and IB, as mentioned in my book, there is that possibility of U.S. estate taxes. It’s far more remote with IB than it would be with Schwab. Many feel comfortable going with IB. But I don’t mind paying a tad bit extra in commission fees for personal piece of mind. Currently, TD Direct International offers a decent deal, since they removed their annual wrap fee charge of 0.25%.

      • Si says:

        Hi Andrew,

        Before starting to build my portfolio, I have a couple of concerns I’d like to run buy you. In the absence of buying Vanguard on SGX, my next preference would be to avail of a Euro exchange and use my Euro saving to avoid the need to convert into GBP, especially given the decline of Euro recently an my likelihood of returning to Ireland in the future. I can’t seem to find any Euro exchange selling Vanguard (?) so I’m considering iShares as the alternative with Dutch/German/Italian exchanges

        Looking at their list of products via https://www.ishares.com/uk/individual/en/literature/brochure/ishares-uk-product-range-guide-en-gb-rc-brochure.pdf , the 2 below look like good options to cover US and World equities
        iShares Core S&P 500 UCITS ETF 0.07%
        iShares Core MSCI World UCITS ETF 0.20%

        Taking the S&P as an example, I am concerned of incurring additional fees

        1) Deutsche Börse http://www.boerse-frankfurt.de
        Management Fee 0.40%
        Total Expense Ratio 0.40%

        2) Euronext https://etp.euronext.com/en/products/etfs/IE0031442068-XAMS they quote the TER as 0.40%

        3) Italian http://www.borsaitaliana.it/borsa/etf/scheda.html?isin=IE00B5BMR087&lang=en Annual fees of 0.2%

        I didn’t factor in exchange fees as well. Am I interpreting the above correctly and I would just be liable to pay the 0.07 if you buy direct from iShares itself? I have no idea of tax restrictions from buying from above, but if I was am I correct in saying that Italy is an option?

        I’m in recovery mode from a Vista so that last thing I want to start doing is incurring unnecessary fees. Any advice welcome…confused!

        Thanks,

      • Si says:

        Hi,

        An update from Interactive Brokers regarding Estate Taxes:
        “The US Estate Tax for foreign investors apply to US securities only and it does not take into consideration where the broker resides in”.

        Therefore it looks like IB can be used to buy non-US securities through IB.

        Regards,
        Si.

  25. Tim says:

    Hi Andrew
    I’m a British national resident in Singapore and have an eTrade account. I have realized from your book that I am paying withholding tax and and liable for estate duties so am looking to change this. I’ve noticed that eTrade does offer trading on UK, France, Germany, Japan, HK and Canada exchanges. Presumably if I was to stick with eTrade but just change the funds to the sort recommended in your book, then I would no longer incur withholding tax or estate duties. Or are there any other issues I should be aware of?
    thanks
    Tim

  26. Sean says:

    Hi Andrew,

    I am an American living in Singapore. I like Vanguard products. However, I realized Charles Schwab has an international acct into which I can deposit in SGD and they would use JP Morgan institutional exchange rate to convert to USD. Also, I get access to their ETFs at no commission. So I thought rather than going through the trouble of wiring money to USA using bank exchange rate, CS may suit me better. I am interested in some short term investments as well and Optionsexpress has an office in Singapore and it is a subsidiary of CS so I thought it would be good combination. My accountant, however, recommends Vanguard.

    I can either go with 1. CS/optionsexpress – easy access from Singapore or 2. Vanguard and Tradeking – low cost/commision, but have to wire money to USA

    What do you think is a better option? Thank you for taking time to read this,

    Sean

  27. Lynn says:

    Hi Andrew,

    Thanks for sharing your knowledge in your blog as well as in your book. I’m a Malaysian working in Singapore, hoping to create a stock portfolio that would generate reasonable returns. As per your comment above, we shall wait for your updates on the ‘Malaysian’ portfolio.

    Another question to you, when you are creating the portfolio (which to me is quite balanced, i.e. 25% for each component), would the ratio be different if you are planning to allocate a portion for real estate/property investment? Just wondering whether what your thoughts are on this.

    Many thanks.

    Lynn

    • Hi Lynn,

      I wouldn’t change a diversified portfolio, negating bonds or any other asset class, if I had real estate elsewhere. However, many people that don’t own real estate add another layer to their portfolio, in the firm of a real estate income trust index.

      Cheers,
      Andrew

  28. Brian says:

    Good day Andrew, my name is Brian and I recently accepted a new position within my company which has my wife and I moving from Canada to Singapore.
    I have just opened a basic bank account at DBS. I have read and own both your books, Millionaire Teacher (paper and audio book) and (Expatriates guide to investing). Both excellent books and I love how you simplify everything so that newbies like myself can understand.
    I believe you said DBS also has low cost investment options? I am new to these types of investments (I have a couple investment properties in Canada as well as my RRSP’s as my only investments so far).

    Do you also know of a good fiduciary in Singapore? Or do you find it easier to just manage on your own? Once I do it once, I’m sure I can easily maintain or rebalance on my own, could actually be fun.
    At home, my accountant who specializes in real estate has partnered with BDO who apparently has an office in Singapore which might make things transparent and flow from country to country. I will most likely hang onto my real estate in Canada and use our Canadian savings to purchase one or two more single family properties there but I would like to start investing here as well.
    Or is it very difficult to transfer money from Canada to Singapore to give me a jump start on investing here?
    I would still like to start automatically depositing money into the investment options that you describe in your books every month and need to set this up.

    Any insight would be greatly appreciated.

    Thanks,

    Brian

    • Hi Brian,

      With the correct banking routing numbers, it’s easy to move money from Canada to Singapore. As I mentioned in my book, you might even find it advantageous to sell your RRSPs once you are away from Canada for a year. You will pay tax of 25% to do so. But you likely earned a 40% or so rebate when you bought them.

      Managing an account of ETFs with DBS Vickers is easy. Keep in mind that Singapore is very different to Canada. Most of the financial advisors you meet are going to be snakes. True fiduciaries are rare. If you want to pay someone to look over your shoulder, try Marc Ikels. He might say no (this isn’t his regular beat) but he would be an excellent help if he’s willing. http://andrewhallam.com/2015/04/marc-ikels-singapore/

  29. ken k says:

    hi Andrew

    great read, thank you so much for sharing such valuable information
    i just subscribed and got your 9 Laws to Financial Freedom

    i’m also keen to read your bonus report on the permanent portfolio
    how do i get a copy of that?
    thanks

  30. ric says:

    Hi Andrew,

    This is a very good information. I’ve also stumbled upon these articles:

    http://blog.pocketrisk.com/the-best-asset-allocation-ever-the-uk-permanent-portfolio/

    5. Harry Browne’s Permanent Portfolio:
    http://monevator.com/9-lazy-portfolios-for-uk-passive-investors-2010/

    I’m from UK. My questions are:

    1. Can I use either ‘Vanguard UK Long Duration Gilt Index’ or ‘iShares UK Gilts 0-5 yr UCITS’ ?

    2. I’ve read somewhere that you need big amount to invest in Vanguard index funds? Is that true? I’m just an ordinary person.

    Thanks.

    Regards,

    Ric

  31. balol says:

    Hi Andrew

    I am of Mauritian nationality in my mid 20s. Recently moved to Singapore after spending 8 years in the UK. Thinking of starting an invest especially as Singapore tax regime is very favourable.

    I first came across your article about Index funds below and now this one on permanent portfolio.
    http://andrewhallam.com/2010/11/how-british-expatriates-can-invest-using-index-funds-in-singapore/

    Which one do you recommend in my case and through which company? Saxo Capital Markets? Also any advice on the best timing with the Greece issue likely to have an ongoing impact …

    Cheers
    Balol

  32. Jo says:

    Hi Andrew,

    Just putting this for other investors.
    For the Australia version, I think you made a minor mistake. The QAU ETF is currency hedged, which I believe you don’t want.

    I think the proper ETF is GOLD or PMGOLD. (where they are non-hedged)

    Thanks
    Jo

  33. Ylan says:

    Dear Andrew

    Harry Browne did not specifically address small and medium economies, but recommended to invest in your local market. Craig Rowland, in his excellent book “the permanent portfolio – harry browne’s long-term investment strategy” recommended that investors in small economies invest in an all-world stock index.

    I’d appreciate it if you could clarify for me a point regarding your recommendation for the stock allocation of the portfolio:

    For large economies (US, Canada, and British investors) you recommend the local stock market.

    For other economies (Europe, Norway, Singapore, Indonesia, China, Hong Kong, South Africa and South America) you recommend to invest half of the stock allocation in a world-wide index, and half in the local or regional (developed Europe or Latin America) market.

    However, you recommend for Australians to divide the stock allocation into three equal parts: Australia, US, and all world ex-US. For New Zealanders you recommend to invest 60% of the stock allocation (15% of total portfolio) in all world, and 40% (10% of total portfolio) in the local market.

    Can you please explain the logic behind this?

    • Ylan,

      I don’t think it matters much. Nobody knows which allocation would work best. It’s just important to keep in mind that if your market is a small one (your home market) then a larger global allocation is important. As I mentioned in my book, the exact allocation doesn’t matter much. What matters, is rebalancing your allocation based on the allocation you set.

      Cheers,
      Andrew

  34. Ylan says:

    Many thanks for the prompt reply, Andrew.

    I agree – six of one, half dozen of the other (also known as “same difference”). There is no way to know in advance what is the optimal allocation.

    I think your idea of allocation half of the stock portion to your local market and half to “all world” makes good sense for those of us that do live in countries with medium and small economies. I was just wondering about the reason for the “deviation” in the case of Australia and New Zealand.

    Perhaps the rule of thumb should be invest only in your own country for major economies (US, Canada, Eurozone, etc.); invest half in your own economy and half in an all world index for medium sized economies; and for small economies a smaller portion in your own local economy and a larger portion in all world index.

    I’d like to take this opportunity to highly recommend Andrew’s excellent book “The Global Expatriate’s Guide to Investing”. I bought it on a business trip last February and found it very informative and helpful. It covers all the basics of index investing, Harry Browne’s Permanent Portfolio strategy, the Couch Potato, and fundamental indexing; and then delves into specific recommendation based on your nationality (effect of taxation) and country of residence.

  35. Ramona Crane says:

    HI Andrew,
    My husband and I have ETFs with TD and purchase monthly. We have just inherited $50 000 and we are unsure where to invest this. Would it be a good idea to invest with Vanguard or stick with TD? If possible we would like to divide it between the 2 of us to advantage of the TFSA maximum also. Any help would be appreciated.

    • Hi Ramona,

      If you have ETFs with a TD Brokerage account, then you aren’t really investing “with TD”. You are investing in the underlying funds you have purchased. In all likelihood, those ETFs are iShares, Vanguard, BMO or Horizons products. TD doesn’t have a family of ETFs. As such, your money is already low cost.

      If possible, splitting the maximum annual contribution into each respective TFSA account is a good idea.

      • Ramona says:

        Hi Andrew,
        Sorry, I meant to state e-funds with TD bank, can bond, can equity, U.S. Equity and international. Normally we have monthly contributions, however with this inheritance I thought maybe we should look at Vanguard. After looking at both fees and history, there doesn’t seem to be a big incentive to move from TD e funds. Is there a tipping point when an investor should move from e funds to true ETF funds? Right now my husband has $250k and I have $100k in TD Efunds. Read and keep referring back to your Millionaire Teacher book and bought copy for our son too – loved it.

        • Hi Ramona,

          You have enough money to warrant a move to ETFs. You could buy them through TD Waterhouse. You could buy an iShares Canada stock index (XIC) and the expense ratio is 0.05%. Your e-Series Canadian index fund costs about 0.35%. I’m guessing your portfolio costs about 0.45% on average. You could drop that, with ETFs, to about 0.15%. But those e-Series funds are very convenient: automatic purchases available; automatic reinvestment of dividends. All good products.

  36. Balol says:

    Hi Andrew

    I am of Mauritian nationality in my mid 20s. Recently moved to Singapore after spending 8 years in the UK. Thinking of starting an invest especially as Singapore tax regime is very favourable.

    I first came across your article about Index funds below and now this one on permanent portfolio.
    http://andrewhallam.com/2010/11/how-british-expatriates-can-invest-using-index-funds-in-singapore/

    Which one do you recommend in my case and through which company? Saxo Capital Markets? Also any advice on the best timing with the Greece issue likely to have an ongoing impact …

    Cheers
    Balol

    • Hi Balol,

      There are many brokerages that you can choose from. I listed many of them in my book for expats. I would currently recommend TD Direct International. It’s based in Luxembourg. But you could wire your money there.

      Also, as I mentioned in my book, it isn’t a good idea to try to “time” stock and bond market investments. The book outlines my philosophy. My philosophy is aligned with Warren Buffett’s. He also says nobody can time the markets, based on global or national events, such as what you allude to, about Greece. http://bit.ly/globalexpat

      Cheers,
      Andrew

  37. Rodrigo Gomes says:

    Hi Andrew,

    I read your two books and feel lucky to have started my investment plans with them.
    I’m 33 and live in the Republic of Ireland – although I’ve got double citizenship (Brazilian and Portuguese).

    As I’m not planning to come back to Brazil, after reading your books I started searching for brokers and investment options in Ireland. Unfortunately, we don’t have the options the Brits have.

    One broker that stands out for its prices is “Degiro”. They are a Dutch company established in 2008 by a group of five former employees of Binck Bank (the largest online broker in The Netherlands). They offer services in Belgium, Czech Republic, Denmark, Germany, Spain, Greece, Finland, France, Ireland, Italy, the Netherlands, Norway, Hungary, Austria, Poland, Portugal, Sweden and United Kingdom.

    Considering the price, the absence of an annual fee and how many European countries it serves, I was confused when I didn’t see them mentioned on your books or website. By looking at their fees, you start thinking it might be one of the situations that “it is too good to be true”.

    As I am in the initial steps to understand all the jargon and what lies behind the marketing, I would like to ask your opinion on them.

    I couldn’t really understand their products either. If you go to check their “Products and Markets”, you can choose “Shares”, “Futures”, “Bonds”, “Options”, “CFD” and “Spreadbetting”.
    Is it possible to create a Couch Potato, Permanent, or Fundamentally indexed portfolio with them? Are their fees and rates misleading?

    Sorry for the huge post but I’m sure many Europeans will appreciate your take on their so called “unheard-of low prices”.

    Cheers

  38. Dai Nguyen says:

    Hi Andrew,

    I am 18 and looking to build a portfolio but not sure where and how to start Also. I live in Vietnam and I am still a HS student. Can you give me some advice

    thanks

  39. Giorgos says:

    Dear Andrew,
    Thank you for your book. As you mentioned Greece, I would like to say that I am resident of Greece and Greek citizen.
    In my country, we have signed double taxation agreements but Government does not apply them for its citizens. A USA stockbroker for instance is withholding US taxes 30% from me and then Greek Government is withholding Greek withholding tax in addition, if I am payed by a Greek stockbroker or a Greek bank. I would rather a stockbroker abroad who is not withholding anything. I have noticed that UK stockbrokers do not withhold tax at source for UK didvidends. You recommended TD Direct International in Luxembourg. I wrote them and they answered:
    «What is the withholding tax rate (tax you deduct at source) on payments of UK and Ireland source stock dividends?
    Answer: Irish and UK 20%.»
    Can you recommend a stockbroker in UK, not in Luxembourg, that accepts EU residents?
    Best Regards,
    Giorgos.

  40. Giorgos says:

    Dear Andrew,
    In addition TD Direct International in Luxembourg wrote me that If I have no trades in the year, I will be charged €45 per per quarter or (45€ ? 4) 180€ annually. On the other side in TD Direct in UK the relative inactivity fee is waived, if you have an individual portfolio valuation over £15,000. I read that they accept only UK residents, but they answered me in writing by e-mail that they can accept me as an EU citizen.
    What is your opinion?

    Thank you.
    Giorgos

    • Giorgos,

      A UK based account will likely attract capital gains taxes. A Luxembourg based account would not. No contest there. Go with TD Direct International in Luxembourg. In the end, it will likely be far far cheaper.

      • Wyn says:

        Dear Andrew,

        I’ve read both of your books. They are great! I’m just curious as to why you’re recommending TD Direct International in Luxembourg over Saxo in Singapore in recent posts.

        I’m a UK expat based in South Korea and I’m now in the process of choosing between those two brokerages. Please could you give a brief outline of what advantages TD Direct International has over Saxo. Thanks!

  41. Wyn says:

    Dear Andrew,

    I’ve read both of your books. They are great! I’m just curious as to why you’re recommending TD Direct International in Luxembourg over Saxo in Singapore in recent posts.

    I’m a UK expat based in South Korea and I’m now in the process of choosing between those two brokerages. Please could you give a brief outline of what advantages TD Direct International has over Saxo. Thanks!

    • Wyun,

      In my book, I mentioned that Saxo would be initiating a 0.12% account wrap fee. They have since done so. Meanwhile, TD Direct International has lowered their fees. Hands down, TD Direct International is cheaper. It’s also a far easier brokerage platform to work with.

      Cheers,
      Andrew

      • Neil L. says:

        Any issue with Canadian expat non-residents opening an account with TD, given that it is a Canadian bank? Although I am a non-resident, I don’t want Revenue Canada snooping around in there.

        • Neil,

          This book will answer all of your questions. There’s no yes or no answer, because there’s a degree of specifics you need to understand: http://bit.ly/globalexpat

          • Neil L. says:

            Hmm, I have numerous copies and have read it quite a few times but I don’t recall where this was mentioned. I will have to check again.

          • Neil L. says:

            Found it in the book. I guess my concern would be a new Canadian government changing the laws so they would have access but I would assume that Luxembourg law would supersede that. I will take a closer look at TD. Thanks.

  42. Tony says:

    Hello Andrew.. Your book was a great read.. I fell into the Royal Skandia trap unfortunately and wished I was a lot more knowledgeable way back then..

    Now going to try out the permanent portfolio and invested

    25% in Ishares global bond
    25% in Ishares gold
    25% Vanguard FTSE world
    25% Ishares short corporate bond..

    Saxo bank is the only one which will allow me to sign up based on country of residence right now so guess i’m stuck with the wrap fee for now..

    I was planning to settle down in thailand eventually and was wondering if I should include DB trackers MSCI Thailand index (XCS4) as part of the portfolio mix.

  43. Stephen says:

    Hi Andrew,
    I’ve opened an account with TDDII and I’ve compared the fees and other features (such as multiple currency accounts – and for certain ETFs Saxo only offer in certain currencies, e.g. no VWRL in GBP, only VWRD in USD) with Saxo. TDDII wins from my analysis. However for diversification purposes, is it worth splitting investments across 2 brokerages, rather than investing all your retirement funds via TDDII for example? While TDDII is better than Saxo, the wrap fee of 0.12% is still not too bad (with TDDII you have a quarterly fee anyway). Thanks!

  44. Chris says:

    Hi Andrew, for Canadians I was wondering about iShares Gold Trust (IGT) instead of iShares Gold Bullion. Gold Trust has less then half the expense ratio then that of Gold Bullion.

  45. Sunny says:

    Hi Andrew,
    Just bought and read your book. Really liked it as it answered a lot of questions that other financial advisors were unable to given that I am a Canadian citizen but non-resident as far as CRA is considered as I am an expat in China. I am thinking of opening an account with TD Direct in Lux and using a blend of international stock ETF’s and Bond ETF’s.
    1) As I am not sure I will return to Canada, does it make sense to have Canadian ETF’s as well ?
    2) Should I buy the ETF’s on the Canadian exchange ? Can I avoid the tax witholding on capital gains as well as dividends as I am not taxed on global income in China as a short term resident ? You had mentioned Horizon swap ETF;s might help but I do not fully understand how.
    Would love to hear your views
    Thanks
    Sunny

  46. Benjamin says:

    Hello Andrew,
    Sorry if this was asked already, but I read through all the comments and couldn’t find anyone asking.
    Why do we have these nationality-specific portfolios in the first place? What is to stop somebody – for example, a PRC citizen who is more interested in Canada’s TSX market, or an Indian citizen interested in your recommended UK or New Zealand portfolio – from buying into those markets instead? Will they be required to have withholding taxes like if they had invested in the USA?
    For my specific case, I am a non-resident Canadian, my spouse is a non-resident non-Canadian, but we would like to have some assets in her name as well, so she can have easy access in case of premature death. However, as our goal for retirement is speculated to be in Canada, we would of course like to have both our assets follow the Canadian portfolio.

    Thank you

    • Hi Benjamin,

      You can invest in whatever portfolio you like. I created country specific portfolio biases to adhere to home country currencies upon repatriation. You don’t need to do that. But if you are repatriating to Canada, it’s nice to have a portfolio that leans towards Canadian stocks (thereby currencies) rather than those from South Africa, for example.

      Cheers,
      Andrew

  47. Ben says:

    Hi Andrew,
    Okay, so I’ve just finished your book and I’m trying to decide whether to go Global C.P. or P.P. style of investing.
    I LOVE that you give an update showing what the P.P. for different nationalities might look like. However, I’m leaning a little more towards the Global C.P., so 70$ Global Stock Index and 30% Bond Index (I’m 35/yrs old) might be best. That said, I am excited yet terrified b/c the only U.S. brokerage that will take me (for cheap) is Interactive Brokers, and their platform looks really really complex! Just to get my feet wet (I’ll be investing $40K in like 3 weeks), can you advise what particular trackers/symbols an American might invest in for a 70% Global and 30% Bonds portfolio? There are so many options!!! I think I can show ninja-like restraint in my re-balancing habits.

  48. Ben says:

    Hi Again, Andrew;
    Man oh man, I get half-way through the registration process with Interactive Brokers and it turns out they won’t let you register unless you meet several points of experience…for example at least 2 years trading online!
    Wow, wow, wow…this is getting nearly impossible for Americans. I think my government is about to kill my dream career and get their wish…jobs coming home! I was REALLY looking forward to online trading myself and saving big-time! But, it looks like that’s a near impossibility. So, it looks like I might have to give my money to an index investment manager. 1) Do you have any last-ditch ideas for brokers that might take me? 2) So say I go with an index manager that charges 1% fiduciary fees, assuming that’s on top of the fund fees of .01-.8% ish, are we talkin a massive hit in the long-run here?

    Thanks for everything so far,
    Ben

  49. Graham says:

    Andrew,
    Both of your books have been a real eye-opener for me and a lot of people! Thanks for all the advice/knowledge you share. You are literally changing peoples lives. What kind of portfolio would you recommend for an Irishman, who is a long-term resident in South Korea (10+ years), with no plans to return to Ireland in retirement (hoping to retire in Malaysia but not for another 20-25 years)? I am in the process of opening an account with TD International, starting with an initial $10-15k with plans to invest a further $10k/year. As TD charges per trade, would you recommend adding further investments as 1 lump sum at the end of each year or splitting it into 2 or 3 equally spread out additions? I like the idea of investing mostly in the U.S./Canada and Europe focused ETFs but confused about possible capital gains or other tax implications (if any). I am a little wary of the Korean stock market. I would appreciate any advice you might have.
    All the best,
    Graham

  50. Hi Graham,

    The portfolio that I listed in table 17.4, page 239 of my global expat investing book would serve you really well. It’s a simple combination between a global bond market index and a global stock market index. I think this would be perfect. Here’s link: http://bit.ly/globalexpat

    Cheers,
    Andrew

  51. Graham says:

    Thanks Andrew!
    Looking at the 2 global stock ETFs you suggest in Table 17.4 of THE GLOBAL EXPAT GUIDE TO INVESTING, as the iShares and Vanguard ETFs both offer similar products, it is obvious that I should choose the one with the lowest expense ratio (0.25% vs. 0.60%) or are there other things that need to be considered?
    Graham

  52. Graham says:

    Thanks Andrew!
    I had a look at Table 17.4 in The Global Expat Guide and have one further question regarding the 2 recommended stock choices (iShares and Vanguard). As they are both global stock ETFs, am I right in thinking that I should just choose the one with the lowest expense ratio (0.25% vs. 0.60%) or are there other things that I need to consider?

  53. Ben says:

    Hi Andrew,
    In your book you advise going with Admiral Shares since they are a lower expense ratio.
    VTI now has an Admiral Shares option (VTSAX). However, both VTI and VTSAX have an ER of .05%. I have already started a PP using Interactive Brokers and was wondering if I should switch from VTI to VTSAX (since I have over $10K in the fund). Would there be any advantage in doing so?

    • Ben,

      You are confused about a couple of things. VTI is an ETF that tracks the U.S. stock market. VTSAX is its indexed mutual fund equivalent. While they both track the same market, they are purchased in different ways. If you own an ETF (such as VTI) stick with it. Don’t sell it to invest the proceeds into a Vanguard U.S. mutual fund index. That doesn’t make sense. Your VTI is as cheap as they come.

      Cheers,
      Andrew

  54. fabien says:

    Hello Andrew,

    I am a resident French, what do you recommend ETF for France?

    There is the Permanent Portfolio for European you tell me, but brokerage fees for the UK market are much higher than for the US market.

    thank you,

  55. Hi Fabien,

    If you buy ETFs off the U.S. market, you risk saddling your heirs with U.S. estate taxes when you buy. So don’t buy anything off a U.S. exchange. https://assetbuilder.com/knowledge-center/articles/how-us-estate-taxes-could-hammer-non-american-expats

    Cheers,
    Andrew

    • fabien says:

      Hello Andrew,

      What you say applies only ETF?

      What I know is that for US stocks, we are entitled to an allowance of 20% of French taxes because of double taxation. France is among the countries that have an agreement with the US. For ETFs and US Fund is not entitled to a deduction of 20% because we do not own the stocks.

      So the most interesting ETF market for France is the UK market?

      Best regards,

      • Sorry Fabien, I don’t have an answer to that. I am not familiar with French taxes, as they pertain to U.S. estate taxes. The U.S. will likely try to grab its mitts on some of it, if you grow very wealthy. That’s the case in Canada, outside tax sheltered accounts.

        Cheers,
        Andrew

        • fabien says:

          I just noticed that the media do you recommend for the European PP are also available on Euronext (operator bours of Paris and the Netherlands) so it does not cost me more in brokerage fees.

          SGLN is not available to my broker (Binck), I’ll replace it with GLDM managed by Lyxor (French Funds by “Societe Generale”), more volatile than the base index, but it is the only one I found.

          Best regards,

      • Ylan says:

        Hi Fabien

        I’m not familiar with the specifics of double taxation agreements between France and the US, but generally double taxation agreements work like this:

        First, the US IRS will tax you for any dividends, profits from sales, and death taxes.

        If French taxes are higher (let’s say the US tax is 15%, and the French tax is 20%) the French tax authorities will tax you on the difference (5% of the proceeds from sale, before the IRS takes its cut, in my example).

        So, in my example if you made a profit of $10,000, the US will tax you for $1,500, and France will tax you an additional $500.

        • fabien says:

          Hello,

          In the product sales framework for not porblème this, we completed a W8-BEN form for an EIN idetifiant given by the IRS. That’s what I did for my digital book selling business on Amazon KDP. A condition of being in a country that has a Accors with the US, which is the case of France.

          • Fabien,

            Keep us posted on whether you don’t have to pay 30% withholding taxes. The promise can be one thing. The reality can differ. If I were you, I would not buy off the U.S. exchange. There are too many better options now. And with the U.S. government being strapped for cash, they could come after foreign money. The upside is small. The downside is huge.

  56. Ben says:

    Hi Andrew,
    Things are going really well with my Interactive Brokers PP and I’ll be dumping loads more in soon.
    Now, then, my gf is a Spanish citizen living in northern Africa and getting paid in USD. She is late 30’s and has a bunch of money in banks, i.e. no retirement plan…YET!!! In looking for best options for her I’ve messaged a number of brokers. So far Virtual Brokers in Canada has the best response (user-friendly platform, low costs, ETF’s, etc.). Ideally I’d want her growing passively from a European or Canadian brokerage, but what about these USD she gets paid in? Is it possible for her to trade using her USD, but avoid the US Exchange and/or IRS nightmare? Very difficult situation, what do you think?

    • Hi Ben,

      My bigger question is this: why invest your girlfriend’s money in a jurisdiction that may charge her capital gains taxes? As I mentioned in my book, The Global Expatriate’s Guide To Investing, expats are better off investing in a non capital gains free jurisdiction if their expatriate country of residence allows it. That isn’t Canada. The currency question you asked is like getting concerned about pennies, when $10 dollar bills may be flying from her wallet. Here’s link: http://bit.ly/globalexpat

  57. Gerry says:

    Hi Andrew,

    I am a Canadian expat who plans to create a permanent portfolio with TD direct investing. Long term I plan to move back to Canada so I will benefit from addition retirement income through CPP and a Teachers pension plan. I’m ok with moderate risk at most and plan to rebalance twice a year. Does the following permanent portfolio make sense? 18% Vanguard VDU, 18% Vanguard VUN, 18% iShares XIC, 36% Vanguard VSB, 10% iShares CGL? Thanks.
    Gerry

    • Hi Gerry,

      It does make sense. But it doesn’t align with the Permanent Portfolio model. Your allocations are different. I’m assuming you have tweaked it differently for personal reasons.

      Cheers,
      Andrew

      • Gerry says:

        Thanks Andrew,

        I increased the VSB and decreased gold to reduce risk because my suggested portfolio did not include a Long term bond or cash component. I’m also considering 25% CGL, 25% VSB, 25% Long term bonds, 8% XIC, 8% VDU, 8% VUN. Does the decreased amount of stock exposure in this allocation reduce potential returns compared to the first one? Thanks again.
        Gerry

        • Hi Gerry,

          I wish I knew. Nobody knows how future asset allocations will perform going forward. Out of curiosity, how did you determine your “suggested portfolio?”

          Cheers,
          Andrew

          • Gerry says:

            Hey Andrew,

            I wanted to have a bond allocation to match my age so 36% VSB. I wanted stock exposure from Canada since I’m Canadian, the US, and the developed countries from around the world, but I didn’t want it all packaged into one index. That’s why I chose 18% XIC, 18% VUN, and 18% VDU. I also read about the permanent portfolio in your global expat investing book and it interested me, so I proceeded to read quite a few articles on investing in gold. That led me to 10% CGL. I wanted a higher allocation to stock indexes than gold because of golds higher volatility so that’s why I picked 18% for each stock index and only 10% for gold. That was my logic, whether it’s logical or not. Regardless I think my portfolio is diversified. Thanks again.
            Gerry

          • Hi Gerry,

            It doesn’t follow the Permanent Portfolio model. But it’s a good, diversified portfolio. Well done. Now keep adding money and hope that the markets stagnate for a few years while you are adding assets to these ETFs.

            Cheers,
            Andrew

  58. Graham says:

    Hi Andrew!

    Just have one follow-up question regarding the ETFs in Table 17.4 in The Global Expat Guide. I am looking at the iShares global bond (SAAA) and Vanguard All-World ETF (VWRD). However, as the iShares one seems to have a base currency of GBP and the Vanguard USD, does that mean I would have to open 2 currency accounts with TD International? Could you suggest any alternative but similar bond ETF with a base currency in USD? This would enable me to keep one currency account and not have the hassle and extra expense of dealing/transferring money in 2 currencies. As always, your help and advice are greatly appreciated.

    Graham

  59. Ben says:

    Hi Andrew,
    I’m a little confused about the parameters in which a non-US citizen might get hit with Estate Tax. I know trading off the NYSE makes it possible. But is that the only way? I mean, an ETF like VWRD (All-World) trades on the UK Exchange, but it prob has over 40% U.S. stocks. Would this not also bear US tax liability?
    Thanks,
    Ben

  60. Ben says:

    Cool,
    There is a firm called Exante, based out of Malta.

    1) After talking with TD Direct Int and Saxo, it seems like Exante is much more like Interactive Brokers for Europeans. Anyway, if you (Andrew) or anyone has any info on them that contradicts my own findings (.5% currency conversion fee, no maintenance fees, ETF commission fees ranging .025%-.1% of the movement, flat fee of 25Euro to withdraw, investments backed by ING).

    2) Andrew, in your book you suggest several Couch-Potato Portfolios for Europeans. However, they are almost entirely traded off the UK Exchange. My friend makes money in USD, but will have to grow her retirement in another currency to avoid Estate Tax. She does not foresee herself retiring in GB, so thinks the Euro would be a better investment currency for her. Can you suggest any short-term bond ETF’s and Stock ETF’s that trade in Euros?

    Infinite Thanks!!!
    Ben

    • Thanks Ben,

      It’s good to see that new brokerages are competing. It should bring the costs down for everyone. Your friend won’t have to pay UK estate taxes if the portfolio is held offshore.

    • Ben,

      If your friend still feels this is a risk, she could buy ETFs off the Canadian exchange: via iShares Canada or Vanguard Canada. You can see examples in my expat book. You could also search them yourself online.

      Cheers,
      Andrew

      • Ben says:

        Excellent advice, Andrew.
        Since she’s European, she’ll likely want to grow her money in Euros (to avoid converting from USD to make trades, and then into Euro when taking out). Soooo, I’m really searching for good Stock and Bond ETF’s that trade in Euros.

      • Ben says:

        Thanks, Andrew.
        She’s really interested in trading in Euro’s if possible, to avoid paying exchange fees going in AND coming out. Sooo, I’m asking experts for good Stock and Bond ETF’s that trade in Euros.

        • toony says:

          Ben,
          Something for you maybe if thinking of keeping things in EUR

          Equity
          VEUR – Vanguard Dev Europe, avail EUR on NYSE Euronext (0.12% ER)
          VEVE – Vanguard Dev World, avail EUR on NYSE Euronext (0.18% ER)
          IWDE – iShares MSCI World, avail EUR on LSE or Euronext (0.55% ER)

          Bond component
          IEGX – iShares European Gov Bond 3-5 ur, avail EUR on LSE (0.2%)
          EUN3 & ISOZ – iShares Global Gov Bond, avail EUR on Deutsche Boerse Ag exchange (0.2% ER)
          VETY – new from Vanguard – Euro Gov Bond, avail EUR on NYSE Euronext (0.12% ER)

          • Ben says:

            Awesome suggestions!!

            One reason I’m loving this is because I see the wisdom in avoiding speculation. But, I just realized that it’s impossible to avoid completely. I mean, even choosing between VWRL:LN (GBP) and VWRL:NA (EUR) is a dice roll. I mean, in choosing an exchange one has to speculate on currency. This year’s growth of the two I mention above, for example, is a difference of like -4% and 5%.

          • No Ben, that isn’t the case at all. Currency movements have nothing to do with those ETFs. Remember, you are investing in the underlying currency within the ETFs, in each case, not the currency that it’s listed in! The listed currency is 100% irrelevant. It’s really really really important to understand that. If you convert to a single currency, you will notice that the returns were exactly the same for both global indexes, regardless of its list. Convert the proceeds both to Euros, Canadian dollars, Australian dollars (it doesn’t matter) and you will find that their returns were identical.

            Cheers,
            Andrew

  61. Frodo says:

    Hi Andrew,

    A Canadian who currently lives in HK and previously lived in SG. Have SGD funds at a SG Bank in Singapore, HKD and USD in HK, CAD in Canada. 32 year old, saving aggressively and aiming to retire around 40. May move to another country in Asia for retirement , Taiwan perhaps. Won’t retire in HK or SG. Can you advise me which country portfolios (above) should I invest in? All my funds are terms deposits or laying in cash at the moment.

    Will also purchase your book.

  62. Chia says:

    Andrew

    Hi

    I have just come across with your articles and I find them informative and interesting. So I am wondering on whether its possible for you to advise a Singaporean like me on how should I reposition my portfolio in 2016? Currently I have some investments mainly in equities and unit trusts. A little bit on bonds as well. I would exclude real estates because I am staying in my residence and have no intention to monetize it.

  63. Chia says:

    Lastly, I am a Singaporean and with no intentions to move out of Singapore. Awaiting for your reply.

    Thanks

    Chia

  64. RK says:

    Hi Andrew! I’m a Singaporean teacher!

    I’ve read both your book, as well as this book, The Singapore Permanent Portfolio. I’m just wondering why you chose the ABF Bond Index instead of Singapore Government Securities 30 Year Bond?

    Thanks!

  65. CK says:

    Hi Andrew,

    Thanks for your informative blog. Would like to add on a few comments here on the following topics :

    (1) We can buy the Singapore Government Securities 30 year bond through some brokerages here. I’ve checked with POEMS, they are able to buy the bond for their customer.

    (2) I believe “A35.SI” might not be as effective as the 30 year bond to offset the volatility of stocks. It’s volatility is low and not as negatively correlated.

    (3) Just checked with TD Armitrade in Singapore. If our brokerage account is domiciled in Singapore, we (non-resident alien) are not subject to US Estate tax. However, I’m not sure if this is the case for other brokerages, will call them up as well.

    • What matters, is where the ETF is domiciled, not where the brokerage is domiciled. So if you bought a S&P 500 index that traded on the SGX, you would be fine.

      Cheers,

      Andrew

  66. CK,

    You are incorrect about your third point above.

    Cheers,
    Andrew

  67. CK says:

    Hi Andrew,

    Thanks for your reply. I called up POEMS and OptionsXpress as well, they gave me the same feedback that there’s no Estate duty tax for Singaporeans invested in US market?

    Could you advise which is the right organisation in Singapore to approach on this enquiry? I tried SGX, but they refused to comment on tax matters.

    regards,
    CK

    • CK,

      The brokerages you spoke to should also refrain from speaking on foreign tax matters. I am extremely surprised to hear that they have given an opinion on the matter, especially considering that they are not qualified to do so. Asking them the question you posed is like asking a barber if you can legally have a haircut. If you would like to speak to an expert on the subject, contact one of the following financial advisors: Marc Ikels (in Singapore) Marcikelsconsulting.com; Peggy or Chad Creveling (in Bangkok) or Tony Noto (in Hawaii).

      There’s no point in taking a risk at all with U.S. domiciled ETFs, purchased via a Singapore brokerage. Too many completely safe options exist to bother taking the risk. This article applies to any non-American living in Singapore: https://assetbuilder.com/knowledge-center/articles/how-us-estate-taxes-could-hammer-non-american-expats

      Cheers,
      Andrew

  68. lakmin says:

    Hi,

    Andrew really found it helpful reading all your comments above. I am a Sri lankan residing near Dubai and at the moment the only firm that i could buy any ETF’s is from Saxo Bank. ( TD direct foes not allow me to unfortunately due to my nationality). do you think the relative cost is still worth it or are there any alternatives that you can suggest in the UAE?

    many thanks.

    Lakmin

  69. CK says:

    Hi Andrew,

    Thanks for your feedback.

    I could replace “VTI” with “VUSD”. But is there an alternative for “TLT” elsewhere? I’m considering putting in UOB’s Gold deposit now instead of buying “O87” to replace “GLD” as the SGX ETF is too illiquid.

    regards,
    CK

  70. Ronald says:

    Andrew, I have a bit of a luxury problem. I have a substantial account with Saxo, but unfortunately their 0.12% fee is costing me a couple of hundreds a month. I tried TD however they won’t take me because of my country of residence. I also have an account at Interactive Brokers which is cheap and very satisfactory. However the aggressive US system with regards to their citizens and residents, combined with the typical US paranoia and hysterics make me intuitively feel that we are about a millimeter away from the point where they will try to start taxing non residents/non citizens who invest through a US broker. Which so far has prevented me from moving my Saxo holdings to IB. Do you have any color on this? Am I too suspicious?

  71. CK says:

    Hi Andrew,

    Although the gold ETF “O87” is traded in SGX, the factsheet mentioned that it is domiciled in US. How is this different from “GLD” in NYSE? Are we out of reach of US Estate Law?

    Thanks in advance.

    regards,
    CK

  72. Rui da Cunha says:

    Hi Andrew,
    in the European Portfolio, all the ETF are in Uk market or exchange. does this mean that i’m buying in pounds? Im am Portuguese, so i would later need to convert them to euros – am i wrong – losing big amounts of money.
    Please, can you clarify this for me?
    (BTW, love your Millionaire Teachers book! Good job!)

    Thanks in advance,
    Regards,
    Rui.

  73. Conrad says:

    Hi Andrew,
    Great read! My wife and I are living and working in the Emirates. I’m wanting to set up a portfolio for my wife who is 48 yrs of age. A friend of mine actually found your investment portfolio and did just that. I’m thinking that might be our best option or table 16.6 for global expats. We will most likely return to Canada within the next five years. We don’t mind risk. I have an ok pension, superan to return to. Seeing that I have limited time to invest what would you recommend ? Thanks Andrew

  74. Andrew says:

    Andrew,

    The O87 gold share is domiciled in USA but traded in SGX. Does this mean it will be liable to the same inheritance tax as the ETF’s that you have advised non US citizens to avoid?

    Many thanks,

    Andrew

  75. Ben says:

    I’m with Interactive Brokers and using the USA PP you suggest above (and doing well).
    However, I’ve been thinking that the PP might be a bit risk-averse for me, being 35 and a long way from retirement.
    What if:
    15% = IAU (Gold)
    15% = TLT (Treasury)
    15% = VGSH (Bonds)
    55% = VTI (Stocks)

    In other words, treating the PP kind of like the Couch Potato (except with Gold, T-bills, and Bonds taking the place of bonds only), and moving slowly towards a 25% x 4 balance as I get older.

    • Hi Ben,

      This strategy would improve your long term returns. Well done. Next week, I’ll be publishing a very comprehensive analysis of the Permanent Portfolio.

      Cheers,
      Andrew

  76. Ben says:

    Hi Andrew,
    Does the following count as a PP?

    25% – Stocks
    25% – Long Bonds
    25% – Short Bonds
    25% – Gold

    ( I ask this because the American PP above suggests something like it)

  77. Anthony says:

    Hi Andrew

    Your book is a great read

    can the cash portion be substituted for short term corporate bonds or better to use short term treasury bonds??

    • Sure! Just make sure it’s not a junk rated bond index. In other words, it shouldn’t be called a “high yield government bond index” or something to that effect.

  78. Steve says:

    Hi Andrew,

    I am a 29 year old British international school teacher living in Bangkok, and after reading Millionaire Teacher I would now like to begin my investing journey. At this moment I would feel more comfortable investing in something like the Vanguard Target Retirement funds or the Vanguard LifeStrategy funds. This way I would feel comfortable in the knowledge that I am investing my money wisely, with all the balancing done for me as I continue to add to my investment each month. Unfortunately I do not have the money to invest directly with Vanguard. Do you have any recommendations as to how I could recreate this set up? I only think like this because having read your book, I see clearly what I want to do with my money, however I am not clear on how to actually get the money there and then manage it.

    Kind Regards,
    Steve

  79. John says:

    Hi Andrew,

    First thanks for sharing all this information and for the ‘millionaire teacher’ book – I took a big loss on an investment (through a friend no less) that on inspection was doing all the things you warn against, so I cut my losses and am about to re-allocate my savings to your strategy. I know keeping the comments up to date must be a big task and I’m just adding to it so I’ll try to be brief!

    As a British expat in Hong Kong who plans to stay in Asia and keep HK as my financial base, would you still recommend the ‘HK citizen’ portion of this post: https://andrewhallam.com/permanent-portfolio-updates/

    Any reason for gold rather than a larger allocation in the other funds?

    Thanks very much for your time!

  80. Mark says:

    Hi Andrew,
    I just finished reading your great book “Millionaire Teacher”. It was great read – so simple to understand. Thank you! I have just ordered your new book “The Global Expatriate’s Guide to Investing” Can’t wait to delve into it.

    I am in my mid 50’s a British Expat living and working in Canada, BC your previous home. Decided to get the Canadian Citizenship. I have a TFSA account (tax free shelter) where I have been holding a handful of Canadian Blue-Chips dividend stocks. I have been buying when the price right and holding them until the ex-dividend date and if there is a growth I sell the stock and collect the dividends. So far I have not lost any money doing the above but I don’t quite like having to constantly keeping a watchful eye on the TSE everyday. I would like cash the stocks and create a mix portfolio with 40-50% in a bond index (due to my age) but wasn’t quite sure as to how I should proceeds because when I sell the stocks I will have a large lump sum. My fear is with the current prevailing market conditions would it be prudent to purchases indexes in one drop. Or should I keep my stocks and start making contributions on a monthly basis to smooth out the market price as you have explained in your book. If you could shed some light on this.

    Best Regards,
    Mark

    • toony says:

      Mark,
      Your “buy the dividend” strategy is fraught with much danger. There’s many reasons why this is a bad strategy – here’s a couple:

      1. You are speculating, not investing when constantly buy & sell. Speculating (or market timing) is a “zero sum game”. When you add in the cost of each trade, it becomes a mathematical certainty that you will underperform compared to EVERYONE else that simply buys once and hold.

      Some guy by the name of Buffett said his favorite holding period is “FOREVER”. Since I’m not as smart as he is, I follow his advice 🙂

      To alleviate your fears about investing at market highs, here’s a great article:
      http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

      Some other guy by the name of Boggle said “Don’t do something, just stand there”. With a couch potato portfolio, I prefer to sit down instead 🙂

      Go with your last paragraph – As explained in Andrew’s book, regular contributions to your portfolio and not selling is guaranteed to make you more money than worrying about the stock market and constantly buying/selling!

  81. Charles Messier says:

    Hi Andrew !

    Is the Canadian Portofolio is still good ?

    Charles

  82. Charles Messier says:

    Is your portfolio is a PP ? In lesaffaires.com you said that your portfolio is composed of 4 ETF, one of the canadian market, one of american market, another of the international market and finaly one of the world market. Not look like the PP ?

  83. Anand says:

    Hello Andrew,

    Your book on Expat investing has literally changed my behavior towards finance and introduced me to the world of passive investing and personal finance. Thank you so much.

    I am a 30 year old Indian expat living in Brazil and wish to passively invest using ETFs for the retirement. After consulting an international Tax specialist, I have come to the conclusion that Irish domiciled income reinvesting ETFs are my best bet. I am considering the following ETFs.

    IWDA iShares Core MSCI World UCITS ETF TER- 0.20% [Acc] – 60.00%
    EIMI iShares Core MSCI Emerging Markets IMI UCITS ETF TER- 0.25% [Acc] – 5.00%
    IWVL iShares Edge MSCI World Value Factor UCITS ETF TER- 0.30% [ Acc] – 15.00%
    CBU0 iShares $ Treasury Bond 7-10yr UCITS ETF TER- 0.20% [Acc] – 15.00%
    ITPS iShares Global Inflation Linked Government Bond UCITS ETF TER- 0.25% [Acc] – 5.00%

    I have a couple questions for you:
    1) Should I replace CBU0 with the SUAG even though the later iShares bond is a distributing ETF? I am worried about the lower holdings in CBU0 even though its AAA rated. Generally speaking with Bond ETFs, should fewer holdings be a concern if credit ratings are AAA?

    2) I noticed that ETFs following the same index and issued by the same companies but denominated in different currencies differ quite a bit in value and tracking error. For example, IWDA in USD vs SWDA in GBP and ITIP in USD vs UTIPin GBP. Is that expected and how does it affect someone like me who has to invest in a currency other than the one I receive my salary in invest in?

    Again, I would like to thank you wholeheartedly for helping expats like me around the world.

  84. Eldon Nesbitt says:

    I was recently telling someone about the Permanent Portfolio and when I did an internet search for a graph to show them I found several interesting graphs at https://portfoliocharts.com/portfolio/permanent-portfolio/

    When I compared them to the graphs for a 3 Fund (Boglehead) portfolio,
    https://portfoliocharts.com/portfolio/three-fund-portfolio/

    I noted that the long term returns for the former were somewhat less than those of the latter (4.4% vs 5.2%) but I was more struck by how much more quickly the returns approached the long term average and how much less erratically the portfolio value would have changed if retirees had been making 4% annual withdrawals.

  85. Mark says:

    Hi Andrew,

    Just wondering if there is a BND equivalent that trades on the TSE. I want to stay invested in american bonds but avoid the potential estate tax of owning american assets (I’m canadian). Thanks!

  86. Steve Karpinski says:

    Hi Andrew, I recently read your book and loved it. I am 25 and want to put my money in Vanguard ASAP. Is this the portfolio you now recommend for the U.S.? I was going to do your original one from the book with 75% split between total U.S. and International index funds and then 25% U.S. bond index. Just curious what you think would be better for me.

    • Hi Steve,

      Go with the original one in my book.

      Cheers,
      Andrew

      • Steve Karpinski says:

        Thank you I appreciate the fast response. An additional question I had about this is I filled out the application the other day and it asked me if this was for retirement or general savings. Does this matter what I answer? Does it change anything? I do have a Roth 401k through the company I work for but wasn’t sure if it made any difference in my selection.

  87. Fin says:

    Hi Andrew!
    You last updated the ‘Permanent Portfolio For Singaporeans’ in 2014. As a Singaporean, i am curious if you would have any changes/revisions for a Singaporean’s portfolio in 2016?
    Would you still recommend VWRD for a global stock index? I am a little lost in deciding between VWRD and VXC etf. I have seen several mention of VXC in some of your recent comments. Based on what i have read online, can you correct me on the below please? I am trying to determine which etf would make more sense to buy as a Singaporean.
    VWRD (on UK exchange) – no foreign withholding tax, no US estate tax
    while VXC ( on the Canadian exchange _ 15% foreign withholding tax, no US estate tax

    Many Thanks!
    Fin

  88. Sam Lovett says:

    Hi Andrew, I’ve just set up my PP after buying your book, really hope you can answer this quick question 🙂

    Would you consider, as a good starting point: 25% VUKE, 25% IGLS (ISHARES III PLC UK GILTS 0-5YR UCITS ETF), 25% SGLN (ISHARES PHYSICAL M ISHS PHYS GOLD ETC USD(GBP), 25% cash as a good starting point?

    • Hi Sam,

      This looks good. But don’t let it be your starting point. Let it be your starting and your finishing point. If you start with it, stick to it…forever. This is the biggest challenge. But you can do it!

      Cheers,
      Andrew

  89. Ryan Menzies says:

    Hey, Andrew! I’m an aspiring bilingual teacher in Texas. I read your first book and have ordered the second. Thank you for all of your knowledge! I have been sifting through the comments, looking for advice about ETFs vs regular index mutual funds, as well as saving for a house…I was hoping you might be able to make a couple of things more clear for me:

    -1-
    I’m 32 years old, I have $10,000 invested with Vanguard, of which 35% is in the Total Stock Market Index (VTSMX) , 35% is in Total International S.I. (VGTSX) and 30% is in the Total Bond Index (VBMFX).

    I have recently learned more about ETFs and am wondering why I shouldn’t exchange the monies in these funds for their equivalent ETFs and their lower expense ratios. Is there some reason I am not aware of that it would be better to hold onto these indices rather than moving towards ETFs?

    -2-
    Once I nab a teaching job, I’ll likely grab a house at the same time to make use of some programs in Texas that offer down payment grants and property tax savings to teachers (and other “Texas heroes” as they are called).

    I have $5,000 saved for a down payment on a home (separate from the $10,000). I plan to save for the next 1-2 years, hopefully quadrupling to $20,000 before buying . Where would be the best home for this money for this time period?..something with more growth than a savings account but still not very volatile, and with the ability to liquidate when needed in 1-2 years?

    Thanks again for all of your help!

    Saludos,
    Ryan

  90. Mark says:

    Hi Ryan,
    Those funds have very low expense ratios and you won’t find much lower in ETFs. VTI has a MER of 0.05 compared to your 0.16% on VTSMX which is what I use. The asset class and risk are all pretty similar. If you are using Vanguard as your trading platform, than they do not have charges for buying/selling Vanguard products.

    As for your second point, that’s a pretty short horizon and if you want low volatility and low risk in the short-term, than ETFs aren’t your choice. You would be better off with HISA, money market funds, CDs, or TIPS. Even bond ETFs can fluctuate somwhat in the short-term.

  91. Mark says:

    Hi Andrew,

    I would like to create a long term (20 yrs) Permanent Portfolio for my UK ISA tax free savings. I am currently living in Canada but not sure whether I might retire in UK or Canada. I was looking to follow your recommendations which date back to Dec 2014.

    25% IGLS (British government bonds) iShares UK Gilts 0-5 yr UCITS (medium term bond index)
    25% VUKE (British stocks) Vanguard UK FTSE 100 Stock Index
    25% SGLN (Gold) iShares Physical Gold ETC
    25% Cash

    I wanted to get your thoughts on the above pots and whether it is still good to have Physical Gold in the portfolio or consider a different pot? You may recall we exchanged a few comments recently on my Canadian Portfolio which I followed the recommendations but I have not as yet purchased the Gold allocation. Also for the 25% cash do you mean keeping cash in a savings account?

    Thanks,
    Mark

    • Hi Mark,

      If you think you will retire to the UK, keep this portfolio as it is. If not, please see the Permanent Portfolio model that I provided for Canadians. You could blend them both if you really don’t know where you’ll end up. Keep the cash in cash or in a short term government bond index, like VSB for Canadians.

      Cheers,
      Andrew

  92. Win says:

    Hi Andrew,

    reading the exponential returns to reinvest dividends, the simplest way is to just buy more of the ETF using the dividend that was paid out right?

    In essence, funds kept for wealth building should not be spent but reinvested at the annual balancing of portfolios.

    Am i right?

  93. Ryan Menzies says:

    Much thanks to Andrew and all of you knowledgeable contributors to this blog!

    As an American watching his presidential regime change-the president elect’s assignment of cabinet members that echo the sort of folk that put policies into motion in the 1920s that led to the crash of ’29-the Permanent Portfolio has peaked my interest.

    I am curious if anyone has ever thought of a blend between the Permanent Portfolio and the Millionaire Teacher strategy (Ex: 30 years old=30% bond, 35%int/35% US stocks)? Half of your money in one, half in the other…Does this make any sense? From the PP perspective, blending them results in half of the gold exposer and, depending on age, from a little more to almost double the stock exposer. It would be my guess that this blend might give slightler higher dividends. It’s been food for my thoughts lately. The again, it might possibly just be math-brain porn.

    One more quickie: In the American PP, if I wanted to diversify the stocks, would I half the 25%, or do 15% US, 10% International? If the answer is in your second book, I’ll pipe down and just be patient. It should arrive in the post next week.

    Saludos,
    Ryan

    • Ryan,

      If you choose such a portfolio, select your allocation and stick to it for the next 40 years….or however long you live. If you don’t do that, it won’t make sense (for reasons I discuss in my expat book). No investor should ever change their strategy based on economic events or based on forecasts of economic events to come. Your portfolio idea is sound. But stick to it forever, if you choose to build such a portfolio.

      Cheers,
      Andrew

  94. Ryan Menzies says:

    Agreed on all fronts.
    I started 2 months ago using the MT method, but as I’m still learning, I’ve yet to put the final tweaks to my long term allocation. I’ll definately stick to my percentages once all aspects have been considered and the porftfolio is allocated for the long haul!
    Any way the wind blows, calm investors with static percentages we should remain.

    Thank you for your insight.

    Cheers,
    Ryan

  95. PJ says:

    Gold too heavy? Need US exposure?
    Hi Andrew this is my PP
    VDU 17% Ftse world Ex US CAD
    STI 17%
    087 33% USD
    ABF SING 33%
    1. Am I too heavy on gold should I lower the %

    2. Considering CAN $ Index (VFV) S&P
    500 is this a good option for exposure?

    Thinking 25% gold, 25% Bond, 20% Ftse world, 15% SP 500, 15% STI
    welcome your thoughts
    PJ

  96. PJ says:

    GREAT many thanks Andrew I will rebalance

    Ps: in keeping my wife who is Thai; aware of our money matters for Xmas I gave her Millionaire
    Teacher which after alot of searching I found in Thai. Initially not impressed with her well wrapped gift…. she is now halfway through already …. 🙂 so I iam waiting for her to suggest her own Thai PP or balanced portfolio.

    As a many number of expats have mixed national marriages just wonder if any of your readers would find it of interest if you posted a link list of.languages your books are available in.

    I will provide the link for thai version if helpful
    Cheers
    Pj

    • Thanks PJ,

      I would like to see a link to the Thai edition! The Global expat’s book, unfortunately, won’t be available in Thai. It hasn’t sold enough copies to warrant a translation.

      Cheers,
      Andrew

  97. PJ says:

    Pps.. do you know if Global Expat is available in Thai

  98. Steve says:

    Hi Andrew
    Thanks for sharing all this info. I want to check with you: For the Singapore Portfolio, why do you pick A35 instead of 30-year SGS?

    Thanks

    • WIN says:

      I think the reason would be liquidity and ability to purchase more units.

      ETF allows you to sell and buy / rebalancing the allocation. SGS bonds lock you up for the duration.

  99. Ryan Menzies says:

    Need some help!

    I’ve just about converted my mutual funds to their equivalent ETFs, however I’m hung up on the gold.
    What investment platform offers comission-free trades for iShares Gold (IAU)?

    I was thinking of Fidelity because they offer comission-free trades for other iShares like TLT, but have just found out that they DO charge comission to trade IAU.

    Thoughts?

  100. Ryan Menzies says:

    I guess my real question is…
    Are commission-free trades for gold ETFs like IAU possible? If not, do some online platforms offer less commission cost than others?

  101. Hi Ryan,

    I am not familiar with a brokerage that will allow you to trade IAU without paying a commission.

    Cheers,
    Andrew

  102. Ryan Menzies says:

    That makes sense. I was loving the idea of being able to add monies at any time to the portfolio….but I suppose for the gold shares I’ll add monthly, and happily pay for the convenience of not having to dig a hole in my backyard to stack physical bars.

    Saludos,
    Ryan

    • Neil says:

      Check out Goldmoney (personal accounts). Canadian company that buys gold for you and stores it in vaults internationally. Legal company in Canada. 0.5% commision over spot prices to purchase and redeem. Nice if you want to hold actual gold in the Personal Portfolio instead of paper gold. Easy to add funds and to withdraw.

  103. Ramona says:

    Hello, I am feeling a little confused. I have recently (1Yr ago)set up accounts with Vanguard as indicated in the first book. Should I now change to the Canadian Permanent Portfolio with only 1 Vanguard account and add the Gold component? Need help with this.

  104. Jalpan says:

    Hello Andrew! Thanks for all the information you share.

    This is a wonderful blog you’ve put up! I have 2 questions:

    1) I just can’t seem to subscribe! I tried multiple times but I didn’t get any e-mail!

    2) How would you suggest going about setting up the permanent portfolio in a country like Sweden which doesn’t have long term bonds? Would you suggest setting up the European permanent portfolio?

    Thanks a ton once again!!!

Leave a Reply