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Millionaire Expat, 2nd Edition

Book Description

Build your strongest-ever portfolio from anywhere in the world

Millionaire Expat is a handbook for smart investing, saving for retirement, and building wealth while overseas. As a follow-up to The Global Expatriate's Guide to Investing, this book provides savvy investment advice for everyone—no matter where you're from—to help you achieve your financial goals. Whether you're looking for safety, strong growth, or a mix of both, index funds are the answer. Low-risk and reliable, these are the investments you won't hear about from most advisors. Most advisors would rather earn whopping commissions than follow sound financial principles, but Warren Buffett and Nobel Prize winners agree that index funds are the best way to achieve market success—so who are you ready to trust with your financial future?

If you want a better advisor, this book will show you how to find one; if you'd rather go it alone, this book gives you index fund strategies to help you invest in the best products for you.

  • Learn how to invest for both safety and strong returns
  • Discover just how much retirement will actually cost, and how much you should be saving every month
  • Find out where to find a trustworthy advisor—or go it alone
  • Take advantage of your offshore status to invest successfully and profitably

Author Andrew Hallam was a high school teacher who built a million-dollar portfolio—on a teacher's salary. He knows how everyday people can achieve success in the market. In Millionaire Expat, he tailors his best advice to the unique needs of those living overseas to give you the targeted, real-world guidance you need.

Table of Contents

  1. Cover
  2. Title Page
  3. Foreword
  4. Acknowledgments
  5. Introduction
  6. Chapter 1: Grow Big Profits without Any Effort
    1. Why Average Returns Aren't Normal
    2. Stocks Pound Inflation
    3. What Has the Stock Market Done for You Lately?
    4. Undressing Stocks with 50 Shades of Gray
    5. The Stock Market Stars as the Great Humiliator
    6. Fast‐Growing Economies Can Produce Weak Returns
    7. Bonds Are Protective Nets for Jumpers
    8. Can You Lose Money with Bonds?
  7. Chapter 2: Don't Start a Fight with an Escalator
    1. Yes, the Financial District Loves You!
    2. Global Investors Getting Fleeced
  8. Chapter 3: Where Are the Customers' Yachts?
    1. Global Investors Bleed by the Same Sword
    2. American Expatriates Run Naked
    3. Why Brokers Want to Muzzle Warren Buffett
    4. Financial Advisors Touting “The World Is Flat!”
    5. Hedge Fund Money Spanked for Its Con
    6. Why Most Investors Underperform Their Funds
    7. Why Do Financial Advisors Lie?
  9. Chapter 4: Don't Let a Fool or a Psychopath Wreck Your Future
    1. The deVere Group Faces Trouble
    2. Expats Pay the World's Highest Investment Fees
    3. A Canadian Investor Gets Bled
    4. Investment Schemes That Cripple Like a Virus
    5. British Expats: Can I Trade You That Diamond for a Big Lump of Coal?
    6. Featuring the Rip‐Offers
    7. The 10 Habits of Successful Financial Advisors…Really?
    8. When Your Advisor Is a Sales Commando
    9. Welcoming Sharks into the Seal Pool
    10. Misled Investors Pay the Price
    11. Would You Like a Band‐Aid for That Bleeding Gash?
    12. Masters of the Insured Death Benefit Illusion
    13. Free Fund Switching Isn't a Perk
    14. Making Millions off the General Public
    15. Fooling the Masses with Numbers
    16. Regulators Making an Effort
    17. Record Complaints in the UAE Are Gaining Some Attention
    18. Can Squeaky Wheels Gain Redemption?
    19. Should You Ditch Your Offshore Pension?
    20. When High Fees Meet Gunslingers
    21. A Son's Inheritance Gets Plundered
    22. Canadian Teacher Gets Scalped
    23. Investor in Thailand Makes the Great Escape
    24. Poor Performance Packs a Three‐Way Punch
    25. Responsible Savers Often Pay a Big Price
  10. Chapter 5: Self‐Appointed Gurus and Neanderthal Brains
    1. Why Most Investors Should Hope for Falling Markets
    2. Are You Cheering for the Right Team?
    3. If You're Just Starting Out, Pray for Stocks to Sputter
    4. Should You Worry When Stocks Hit All‐Time Highs?
    5. The Only Thing That Matters
    6. It's Not Timing the Market That Matters; It's Time in the Market
    7. High Unemployment and High Stock Returns
    8. What Can You Miss by Guessing Wrong?
    9. When Investors and Advisors Sabotage Their Rides
    10. Popular Stocks Underperform
    11. How About the Next Big Thing?
    12. When Genius Fails
    13. Are Index Fund Investors Smarter?
  11. Chapter 6: An Employer's Greatest Challenge
    1. Keep the Foxes Out of the Henhouse
    2. Is Your Devil Big or Small?
    3. Don't Give a Climber a Flaming Rope
    4. Would You Hire a Guy without a License to Drive Your Retirement?
    5. Fees—How Much Is Too Much?
    6. So What's the Solution for Global Employers?
    7. When Employers Offer Carrots
    8. Non‐American Teachers: If You Slash Your Bicycle Tire We'll Reward You With A Push
    9. How School Administrators Could Really Boost Savings
  12. Chapter 7: Couch Potato Investing
    1. Don't Bonds Tie You Down?
    2. Is It More of a Fling than a Real Relationship?
    3. Are You Worried That Bond Interest Rates Are Low?
    4. Potatoes Growing Globally
    5. Bonds Relative to Age and Risk
    6. What If You're Falling Behind?
    7. Profiting from Panic—Stock Market Crash 2008–2009
    8. Owning the World
    9. Where Do You Plan to Retire?
    10. Are You Retiring in an Emerging‐Market Country?
    11. Does This Sound Too Good to Be True?
  13. Chapter 8: Investment Advisors with a Conscience
    1. Do You Have a Ninja's Discipline?
    2. Qualities of a Great Financial Advisor
    3. Investment Professionals Worth Considering
    4. British Investors: You Ready for a Hybrid?
    5. Crush Your “Sophisticated” Investment Friends
    6. Why Many Global Expats Are Naming Their Newborns Mark
    7. Conclusion
  14. Chapter 9: Choosing Your Offshore Brokerage—For Non‐Americans
    1. DBS Vickers Securities Opens the Door to Everyone
    2. Why You Should Avoid TD Ameritrade Singapore
    3. TD Direct Investing International (Internaxx)
    4. Saxo Capital Markets—A Jewel with Distractions
    5. Swissquote Offers Options
    6. Is Interactive Brokers the Dark Horse Winner?
  15. Chapter 10: The 30 Questions Do‐It‐Yourself Investors Ask
    1. What's the Difference between an Exchange‐Traded Index Fund (ETF) and an Index Fund?
    2. Do Non‐Americans Have to Pay US Estate Taxes upon Death if They Own US Index Shares?
    3. What's a Sector‐Specific ETF?
    4. Should I Buy an Index that's Currency Hedged?
    5. What's the Scoop on Withholding Taxes? (For Non‐Americans)
    6. Will You Have to Pay Currency Conversions?
    7. Should I Be Concerned about Currency Risks?
    8. Do the Unit Prices of ETFs Show Which are Expensive or Cheap?
    9. If I Have a Lump Sum, Should I Invest It All at Once?
    10. I'm in Some Expensive Products, but They're Currently Down in Value. Should I Sell Now or Wait?
    11. How Do I Open a Brokerage Account and Make Purchases? (For Non‐Americans)
    12. What If I Find a Higher‐Performing Bond Index?
    13. What If I Find a Cheaper ETF?
    14. Should I Be Most Concerned about Commissions, Annual Account Fees, Fund Costs, or Exchange Rate Fees?
    15. How Little Can I Invest Each Month?
    16. Stock Markets Are High. Should I Really Start Investing?
    17. Should I Buy ETFs from Vanguard, iShares, Schwab or Another Low‐Cost Provider?
    18. Can Muslims Build a Portfolio of Shariah‐Compliant Funds?
    19. Could You Build a Portfolio of Socially Responsible Index Funds?
    20. Why Doesn't My Brokerage Offer the Funds I Want?
    21. Why Hasn't My Bond ETF Risen in Value?
    22. What If My Bond ETF Is Priced in a Different Currency?
    23. Are Cryptocurrencies, like Bitcoin, Good Investments?
    24. Should I Buy a Real Estate Investment Trust (REIT) Index?
    25. Should I Buy a Smart Beta ETF?
    26. Should I Invest in Gold?
    27. Don't Small‐Company Stocks Beat Larger‐Company Stocks?
    28. What If You and Your Spouse Represent Different Nationalities?
    29. Could Index Fund Investing Become Too Popular?
    30. What If I Need Help Building My Portfolio?
    31. Let's Go!
  16. Chapter 11: Portfolio Models for American Expats
    1. Do You Currently Invest with Vanguard?
    2. Couch Potato Investing with Vanguard
    3. Couch Potato Investing with a Vanguard Stick Shift
    4. When Investors Binge on Speculation
    5. Socially Responsible Investing
    6. Interactive Brokers Offers a Great Deal
    7. Doing the Couch Potato with Interactive Brokers
    8. Socially Responsible Couch Potato Portfolio
    9. Don't Contribute Illegally to Your IRA
    10. What Exactly Is an IRA?
    11. Roth IRAs Are Different
  17. Chapter 12: Portfolio Models for Canadian Expats
    1. Canadian Funds Earn an “F” for Costs
    2. Brokerage Options for Expatriate Canadians
    3. Brokerages for Canadians in Capital Gains–Free Jurisdictions
    4. Building a Canadian Couch Potato Portfolio
    5. ETF Canadian Price War
    6. What About RRSPs and TFSAs?
    7. Swap‐Based ETFs—The Ultimate Legal Tax Dodge
  18. Chapter 13: Portfolio Models for British Expats
    1. Expensive Firms Performing Like a Virgin
    2. Couch Potato Investing for British Expatriates
    3. How Do You Rebalance a Multicurrency Portfolio?
    4. Socially Responsible Investing for British Expats
    5. Shariah‐Compliant Investing for Muslims
    6. Are You Really Ready to Do This?
  19. Chapter 14: Portfolio Models for Australian Expats
    1. Fancy an Australian Couch Potato?
    2. Socially Responsible Investing for Australians
    3. Now Look Deeply into That Mirror
  20. Chapter 15: Portfolio Models for New Zealand Expats
    1. Socially Responsible Investing (SRI)
    2. Do You Have What It Takes?
  21. Chapter 16: Portfolio Models for South African and South American Expats
    1. South African Investors
    2. South Africans Fry Up the Couch Potato
    3. South American Investors
    4. Are You Having Troubles Selecting Your Portfolio?
  22. Chapter 17: Portfolio Models for Irish and European Expats
    1. The European Cheapskate Couch Potato Portfolio
    2. Socially Responsible Investing for Europeans
    3. Don't Get Suckered by the Sirens
  23. Chapter 18: Portfolio Models for Asian Expats
    1. Speculators Suffer
  24. Chapter 19: Setting Your Bull's‐Eye
    1. What's a Better Definition of Wealth?
    2. What's This Ailment Expatitis?
    3. Cheating Conventional Retirement Rules
    4. Married Couple Lives Well on Just $20,000 a Year
    5. Could You Retire on Less than $15,000 a Year?
    6. The Home‐Country Retirement Plan
    7. How Much Money Will You Need?
    8. British Teacher in Japan Aims to Retire in Style
    9. Single Canadian Woman Lights Her Investment Fire
    10. Dubai‐Based Pilot Plans to See His Savings Soar
    11. Now It's Your Turn
  25. Chapter 20: How Much Money Should You Be Saving?
    1. How to Never Run Out of Money
    2. Could You Cleverly Withdraw More than 4 Percent?
    3. Third‐Culture Kid Sets Her Savings Goal
    4. How Much Money Will Rosanna Need?
    5. Where Can International Teachers Save a Lot of Money?
    6. Robert and Yik Consider Thailand or New Zealand
    7. Should This Couple Stress?
    8. Couple Plans for a Two‐Country Retirement
    9. Now It's Your Turn
  26. Conclusion
  27. Index
  28. End User License Agreement