Fiddling about with stocks, funds, etc. No conspiracy theories, please.

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I spoke with a Steuerberater today and found out that capital gain taxes must be paid in Germany, even if the holdings that created the gains are from another country. This is quite unfortunate as the rate here is 10% higher than the US long term rate. But at least it's not taxed twice. Is this right? How could they even track this here?

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20 hours ago, AlexCLE said:

How could they even track this here?

 

There are numerous automatic exchanges of tax-relevant information: http://www.oecd.org/tax/automatic-exchange/

 

The US, being special, decided to do its own information exchange, FATCA: https://www.bzst.de/DE/Steuern_International/FATCA/FATCA_node.html

and please see here for the FATCA agreement between Germany and the US: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Verein_Staaten/2013-10-15-USA-Abkommen-FATCA-Gesetz.pdf?__blob=publicationFile&v=3

 

20 hours ago, AlexCLE said:

I spoke with a Steuerberater today and found out that capital gain taxes must be paid in Germany, even if the holdings that created the gains are from another country.

 

Did he/she also tell you about the change in the German taxation of funds from 2018?

 

Please read:

and:

and:

 

 

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Thanks for starting this topic thread. 

 

Anybody know how can a beginner start with basic investment in Germany (or Europe)? Do I need to contact a bank? Are there online platforms? What are these ETFs that people talk about - Are these online platform from where we can buy investment portfolio? Any books/websites that introduces to the investment in Germany? 

 

Say I want to buy stock in Siemens. How would I start about it? 

 

And, can I buy stocks in US companies from Germany? How would I start?

 

What is the minimum amount of money that you need to start with? Minimum amount to get a feel for investing?

 

Cheers. 

 

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On 23.1.2018, 18:26:13, fraufruit said:

Everything I've been reading says the cars are crap. Just saw another story on the Tesla X. Many people suing and getting their money back. Of course, cars aren't his only business.

 

Missed this.

I drive a Model S. ( amongst other things )

Frankly, It is probably the best car I have ever driven and the collision avoidance system is nothing short of Spooky..Sure, it has a limited range ( even shorter in Winter ) but even here out in the Boonies, there are enough fast chargers around. You just need to plan a long journey a little better.

 

You get lemons with every make. I had a Volvo that sucked big time and eventually got rid of it as it was in the shop more often than not.

 

Try a test drive, you will love it ;)

 

 

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On 20.1.2018, 10:05:11, fraufruit said:

I don't think this bull market can hold out much longer. What are other's opinions?

 

Note the date.

It is all her fault :P

 

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Yep, LeCheese! This is fraufruit´s fault...most annoying lady!:lol:

 

http://www.bbc.com/news/business-42957834

 

And many average punters with equity funds etc panic - they shouldn´t. What goes up must go down and vice versa. Inexperienced savers with funds can read up on the ( LONG TERM ) Cost Average Effect for reassurance.

 

https://www.moneyland.ch/en/cost-average-effect-definition

I am a professional independent insurance broker and authorised advertiser. Contact me.
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I for one wouldn't touch publicly traded shares with a bargepole. After all, as the Economist notes:

 

Quote

Common to all the papers is the recognition that the public markets are, as conspiracy theorists have long argued, not truly public at all. Changing the law to fix that may not even be feasible. 

 

https://www.economist.com/news/finance-and-economics/21736561-one-study-suggests-insiders-profited-even-global-financial-crisis-another

 

as John Maynard Keynes noted:

 

Quote

Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.

 

https://www.maynardkeynes.org/keynes-the-investor.html

 

Sources:

 

Quote

"Political connections and the informativeness of insider trades" by Alan D. Jagolinzer, Judge Business School, University of Cambridge; David F. Larcker, Graduate School of Business, Rock Center for Corporate Governance, Stanford University; Gaizka Ormazabal, IESE Business School, University of Navarra; Daniel J. Taylor, the Wharton School, University of Pennsylvania. Rock Center for Corporate Governance at Stanford University, Working Paper No. 222.

"Brokers and order flow leakage: evidence from fire sales" by Andrea Barbon, Marco Di Maggio, Francesco Franzoni, Augustin Landler. National Bureau of Economist Research, Working Paper 24089, December, 2017

"The Relevance of Broker Networks for Information Diffusion in the Stock Market" by Marco Di Maggio, Francesco Franzoni, Amir Kermani and Carlo Summavilla. NBER Working Paper, No 23522, June, 2017.

 

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10 minutes ago, jeremytwo said:

I for one wouldn't touch publicly traded shares with a bargepole.

Problem is that there aren´t mayn alternatives in a zero interest environment.

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5 hours ago, jeba said:

Problem is that there aren´t mayn alternatives in a zero interest environment.

Just what I was thinking. Though I think getting 8% over the long term in the stock market is still not that great but it seems to be the safest way as the risk can be diversified and there's a strong history of success. If anyone has ideas on how to get 20%+ with a marginal increase in risk, I'm all ears!

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I have 6 stocks in one account - my unrealized gain with them is currently 56.40%. Have bought and sold over the years.

 

In a much newer  (couple of years) Tactical Growth account, I have 16 stocks that are up 6.81%. In this market. Looked a lot better a couple of weeks ago. :)

 

 

 

 

 

 

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On 2/1/2018, 9:37:31, AlexCLE said:

I spoke with a Steuerberater today and found out that capital gain taxes must be paid in Germany, even if the holdings that created the gains are from another country. This is quite unfortunate as the rate here is 10% higher than the US long term rate. But at least it's not taxed twice. Is this right? How could they even track this here?

 

My understanding is that the Cap Gains need to be reported to determine level of income, but the gains are paid in the US.  

 

I have some very long term holdings, but i have a trading account too. 

 

A couple of unrelated ideas to contribute to the thread:

 

1.  If you are a US citizen and your online broker dumps you (happened to me), Interactive Brokers is an inexpensive and good choice, especially if you trade options.

 

2.  In my opinion, In the next two years, i expect the markets to go up, the USD to go down and interest rates to go up.   Inflation will become a topic this year.  

 

3.  In my opinion, the current stock market correction won't last past end of March.  

 

4.  GE is interesting, but i have no position yet.   

 

Good luck to everyone.  

 

 

 

 

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5 minutes ago, SA618 said:

GE is interesting, but i have no position yet.   

 

I've had it for many years and am down 37% so I've been snatching up more while it's cheap in an effort to bring down my cost basis. I believe in the company and think it will get back up. Right now, it's my biggest loser. IMO, good time to buy.

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10 minutes ago, SA618 said:

 In my opinion, In the next two years, i expect the markets to go up, the USD to go down and interest rates to go up.  

That is the million dolar question. Let the Italian eurosceptics win the election next month and the Euro will drop significantly - that´s what I´m betting on.

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24 minutes ago, SA618 said:

My understanding is that the Cap Gains need to be reported to determine level of income, but the gains are paid in the US.  

 

If the gains are unrealized, there is no income, of course.

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Ow boy, I had to check my finances yesterday on unrelated business and peeked into my investments . . . 

 

That was fun.

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All depends on when the last time was that you peeked.

 

I remember calling my broker years ago during the 2000 or 2008 fiasco and saying, "I just looked at my portfolio....." He butted in and said, "You did WHAT??!"

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On 1/29/2018, 7:19:47, Starshollow said:

@Maarsch: let me know the ID-numbers of your ETFs and I can tell you if they are fully replicating or not. Fair enough ?

 

Cheerio

 

PS: while it is certainly better to invest than not investing at all, you limit your current portfolio too much to three regions in the world, the USA, Japan and Germany. That leaves you more vulnerable to ups and downs in this regions (i.e. you are less diversified than would be recommendable). I would strongly recommend to exchange them to one world wide (which always means there will be a strong share in it from the US) and then you can add some regions that you want to overweigh yourself if you feel like it.  Right now you are leaving out most of Europe, most of Asia (including China and India!)  and all of Latinamerika and Africa in your selection

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.

Cheers. I'll look in my list and send you that over message. (not something I should post on a board perhaps?)

 

Regarding non USA/Germany/Japan ETFs, can you recommend anything?
Europe should be good. China, while not growing as fast as 10 years ago should still be pretty damn good. Africa and South America . . . I know they use currency . . . I mean, they contain economies, right? Economies that are going . . . up?

 

We set some stuff up, automatic monthly buying, and would re-visit it later.

Then . . . life. So I am past when I wanted to re-adjust our course and have not really increased my knowledge in this area to do so wisely.

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7 minutes ago, fraufruit said:

All depends on when the last time was that you peeked.

 

I remember calling my broker years ago during the 2000 or 2008 fiasco and saying, "I just looked at my portfolio...." He butted in and said, "You did WHAT??!"

 

They're all long-term investments, so I need them to pay have an average yearly return >0% (>5 would be nice) over 20 years (or so) and that things like last week and 2008 will happen in-between.

So I purposefully didn't check when it was going on . . . .but then I needed to do something else and just clicked over to the overview . . . 

Good thing I know this means nothing.

 

Absolutely . . . .

Nothing

 

Nothing to worry about

Image result for worried gif

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