Author Topic: Double checking VTIAX is the international VTSAX  (Read 1996 times)

TheAnonOne

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Double checking VTIAX is the international VTSAX
« on: August 17, 2016, 09:51:34 AM »
Hey Team~

I currently have a bit over $220,000 in VTSAX (Total US Adm) and want to START getting some exposure into international shares. I will probably switch my contributions into a spread until I can get an appreciable percentage into international.(25-50 percent, not sure what yet)

I am mainly double checking that VTIAX is the appropriate vehicle for that.

Also, is anyone versed in what the extra tax implications are for VTIAX being international?

TheAnonOne

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Re: Double checking VTIAX is the international VTSAX
« Reply #1 on: August 17, 2016, 10:02:19 AM »
As for the tax related question, I think I answered it myself...

http://www.investopedia.com/articles/personal-finance/012214/understanding-taxation-foreign-investments.asp

Investopedia has a decent breakdown of deductions and credits and how they apply...

Interest Compound

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Re: Double checking VTIAX is the international VTSAX
« Reply #2 on: August 17, 2016, 10:24:02 AM »
Yes, VTIAX is what you want. At the end of the year Vanguard sends you the tax forms, it's pretty easy to fill out.

TheAnonOne

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Re: Double checking VTIAX is the international VTSAX
« Reply #3 on: August 17, 2016, 10:30:19 AM »
Yes, VTIAX is what you want. At the end of the year Vanguard sends you the tax forms, it's pretty easy to fill out.

Thanks!

Now to actually research into what is a good allocation... The past 2 years was more about just acquiring some cash without thinking about it's allocation very much. The efficiency of portfolio management don't really matter until you get a decent portfolio size....

MustacheAndaHalf

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Re: Double checking VTIAX is the international VTSAX
« Reply #4 on: August 17, 2016, 12:04:55 PM »
Based on what you've said, you should make the switch first.  Switching your future contributions to 100% international won't budge the percentage much (100% US on 220k account).  So even the low end of your range, 25%, will take some time.  I would urge you to start now, and worry about 25% or 50% after you've started the switch to international.  Consider that so far, you let the account reach $50k... $100k... $200k with zero international.  I wouldn't put that off indefinitely to do more research when you're already convinced you need at least 25%.

Or to put it another way, you're convinced of 25% international, so use that goal.  Then research if your goal should become 50%, but get started first.

TheAnonOne

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Re: Double checking VTIAX is the international VTSAX
« Reply #5 on: August 17, 2016, 12:22:21 PM »
Based on what you've said, you should make the switch first.  Switching your future contributions to 100% international won't budge the percentage much (100% US on 220k account).  So even the low end of your range, 25%, will take some time.  I would urge you to start now, and worry about 25% or 50% after you've started the switch to international.  Consider that so far, you let the account reach $50k... $100k... $200k with zero international.  I wouldn't put that off indefinitely to do more research when you're already convinced you need at least 25%.

Or to put it another way, you're convinced of 25% international, so use that goal.  Then research if your goal should become 50%, but get started first.

Yea, it has been bugging me to a varying degree over the year. I started the year with 180k, and now I am sitting at 225k+.

I think life just got away from me (not that it's a crime to own only US shares), but still it will probably require an actual transfer(sell/buy) instead of doing contributions given that we invest around 3k/month. It would take a pretty long time to hit 50-70 grand at that rate.

TheAnonOne

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Re: Double checking VTIAX is the international VTSAX
« Reply #6 on: August 18, 2016, 09:27:01 AM »
Chatted with the SO last night, we decided on 60/40 (60US) (40INT) for better or worse...

Are there any statistics on long term growth for INT stocks?

Heckler

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Re: Double checking VTIAX is the international VTSAX
« Reply #7 on: August 18, 2016, 10:37:28 AM »

Are there any statistics on long term growth for INT stocks?

See EAFE and EM for International, depending on which your fund holds.