Investing in International Stock Markets from Chile

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admin
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Re: Investing in International Stock Markets from Chile

Post by admin » Tue Oct 30, 2018 11:43 am

so far i have not found anything close as far in pay out. but i will keep looking.

i am building a bar bell portfolio, big weight in nice, boring safe, and then sort of tappering towards a small high risk, highly concentrated piece to juice the gains of the overall portfolio; but, i want income, dividens, etc from the high risk part to flow back in to the lower risk segment to be reinvestment.

i call it 'playing with the houses money' portfolio. essentialy just like in a casino, when i win, i set asside half the winnings. that walks out that door with me, no matter what happens with the rest of the money. i figure if it has served me well in a casino, probably not bad for the markets. granted the odds in a casino are at least known; most of the markets, are the poster child for the 'gambler's fallacy' in practice.

benjamin graham, in "the intelegent investor", basicaly said portfolio rebalancing using this type of system is the best, not because it nessacarily make more money; but gives you something to do, and keeps you from making stupid mistakes with the rest of your portfolio.
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mem
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Re: Investing in International Stock Markets from Chile

Post by mem » Thu Nov 01, 2018 7:39 pm

I have been reading through the various investment threads, and (correct me if I am wrong), but it seems like most of the residents here in Chile, are investing in Chilean stocks via ADR's using US brokerage accounts?

So in looking through ADR's for Chilean companies, and there are some like for SQM and Concho Toro, but take for instance Falabella or Ripley, I am not seeing those.

Are those of you investing in Chilean retail like Falabella and Ripley using a Chilean brokerage account? I had just read in some older threads that the Chilean brokerage sites are terrible, old tech, not secure, and basically made them sound like they should be avoided at all costs, but maybe that has changed and people are using them now?

I am particularly interested in Falabella since they also have the banking arm, at least as far as the retail related stuff goes.

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Re: Investing in International Stock Markets from Chile

Post by admin » Fri Nov 02, 2018 1:05 am

i believe most perment residents in chile are doing direct buys in chile on the chilean stock exchange.

if you do want to buy the adrs traded in the states, here are a few that i can think of in new york

ltm
sqm
banco de chile
think there is a bsantder
ccu

concho de listed recently, after like 30 years in new york.

to get fallabella and most the rest of the big chilean companies without a u.s. adr, try the ech etf. it pretty much is everything in the ipsa.
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mem
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Re: Investing in International Stock Markets from Chile

Post by mem » Sat Nov 03, 2018 3:38 pm

admin wrote:
Fri Nov 02, 2018 1:05 am
i believe most perment residents in chile are doing direct buys in chile on the chilean stock exchange.

if you do want to buy the adrs traded in the states, here are a few that i can think of in new york

ltm
sqm
banco de chile
think there is a bsantder
ccu

concho de listed recently, after like 30 years in new york.

to get fallabella and most the rest of the big chilean companies without a u.s. adr, try the ech etf. it pretty much is everything in the ipsa.
Thanks, I actually prefer the Chilean brokerage option over the ADRs. I had just seen some old negative commentary on other threads about the Chilean online brokerages. I think my first step will be to get the brokerage account at Bice where I have a current account and a CD already. I remember they asked me about brokerage services when I opened the account but I wasn't interested in 2015. Now I am. I am not planning to daytrade or anything, mostly just buying dips and holding for mining/lithium(SQM), retail(Falabella), and co ncho/toro. I figure this makes more sense than just having cash sitting in an account and should get some better passive income returns over the long run

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Re: Investing in International Stock Markets from Chile

Post by admin » Sat Nov 03, 2018 7:04 pm

just to muddy the waters, from the irs:

Nonresident Aliens who receive interest income from deposits with a U.S. bank, savings & loan institution, credit union, or insurance company, or who receive Portfolio Interest (described in Publication 519, U.S. Tax Guide for Aliens) are exempt from taxation on such interest income as long as such interest income is not effectively connected with a United States trade or business


NOTE: If your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States.
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Re: Investing in International Stock Markets from Chile

Post by admin » Thu Nov 08, 2018 7:16 pm

so, I had the first dividend payment deposited to rent4 account. This was a clearly a dividend, on a U.S. ETF, holding foreign stocks, that pay dividends. Yea, it looks like Uncle Trump, took a 32% bite out of the payment.

So, the stock is currently paying 5.56% dividends before taxes, and like 4.20% after withholdings. Not super, but not bad.

Will report back on the more exotic ones.

I bought a bit of several different animals, to experiment on. Somewhere I will find the happy mix of taxes and returns for a none-resident alien. At least I am getting paid something for the experiment, and the real money should be in the capital gains that is not taxed.
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Re: Investing in International Stock Markets from Chile

Post by admin » Thu Nov 08, 2018 7:21 pm

Interesting. I just discovered that rent4, took the dividen / interest payment / whatever they are payments from my foreign bond funds, EDF and EDI, and automatically reinvested them and bought shares. for example, EDF, I should have had two, monthly payments of 0.18 cents a share so far. As I did not have sufficient payments to buy a whole share, they held the funds somewhere for a month, and then bought as soon as I had sufficient funds. I am still owed a fraction of a share it looks like.

Which makes it all the harder to determine if this was their way of getting around the tax withholdings, or I had 30% withheld, and then they bought the share. If that gets around the tax withholding, I am all for DRIPing the payments.

In any case, I did not ask them to do it; but, big thumbs up to them if they automatically found the best way around the withholding that way.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Thu Nov 08, 2018 10:20 pm

admin wrote:
Thu Nov 08, 2018 7:21 pm
Interesting. I just discovered that rent4, took the dividen / interest payment / whatever they are payments from my foreign bond funds, EDF and EDI, and automatically reinvested them and bought shares. for example, EDF, I should have had two, monthly payments of 0.18 cents a share so far. As I did not have sufficient payments to buy a whole share, they held the funds somewhere for a month, and then bought as soon as I had sufficient funds. I am still owed a fraction of a share it looks like.

Which makes it all the harder to determine if this was their way of getting around the tax withholdings, or I had 30% withheld, and then they bought the share. If that gets around the tax withholding, I am all for DRIPing the payments.

In any case, I did not ask them to do it; but, big thumbs up to them if they automatically found the best way around the withholding that way.
I can't find the home page of these funds but I remember some funds from iShares having 2 versions – accumulating and distributing, with different tickers. As I understand, accumulating funds are popular in Europe for the tax reasons.

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Re: Investing in International Stock Markets from Chile

Post by admin » Fri Nov 09, 2018 8:22 am

that makes sense. i would love to find a list of them. that would solve the tax problem.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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Re: Investing in International Stock Markets from Chile

Post by jehturner » Sat Nov 10, 2018 9:08 am

Yeah, I've read somewhere that the US doesn't have accumulating funds for some reason. However, I think if the fund itself accumulates dividends, that's factored into the NAV (which tracks some total return index), rather than the share holding. Otherwise, your broker might reinvest distributions in new shares, though I'd have expected them to ask first.

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