Category: Stocks & ETFs
Receive Tax Free Dividends in The Netherlands
If you’re a long-term index investor residing in the Netherlands, you can receive dividends tax free. Although I’m not a big fan of dividend investing, I still want to share some strategies that ETF investors can utilize without much effort. Basically, you’d leverage the tax treaties and tax codes of different countries to legally avoid dividend …
IWDA vs SWDA – What’s The Difference?
New investors that want to diversify globally don’t understand the difference between $IWDA vs $SWDA. And indeed, both of those represent the iShares Core MSCI World UCITS ETF (Acc), so the distinction might be confusing to beginners. In this post, I’ll explain why some ETFs have multiple tickers and how to choose between them. iShares …
EU Countries Without Capital Gains Tax
Europe is known for high taxes and overregulation. However, there are places throughout this continent that are quite favorable for investors, and especially welcoming for the less active ones. In this post, I’ll summarize the European countries in which it’s possible to lower the capital gains tax rate to 0%. No Capital Gains Tax in Europe …
CSPX vs SXR8 – What’s The Difference?
If you’re a beginner investor, you might be uncertain about the difference between $CSPX and $SXR8. And indeed, both of those represent the iShares Core S&P 500 UCITS ETF (Acc). In this post, I’ll explain why some ETFs have multiple tickers and how to choose between them. iShares Core S&P 500 UCITS ETF First, let’s …
Sticking to a Strategy (Notes From the 2020 Recession)
I wrote this post for a discontinued blog during the market crash of March 2020, before the Covid recession was officially announced. I decided to republish it on dpetkovski.com because it’s evergreen content – it gives unique insights into the mind of a retail investor during market turmoil. And the thought process should be applicable …
Investment Costs with Dutch Banks (Full Comparison)
Investing through the Dutch banks is quite popular with investors from the Netherlands. This is mostly due to the ability for automatic periodic investments and tax optimization through the Northern Trust Funds. In this post, I’ll compare the costs of “the Big 3” Dutch banks: ING Bank, ABN Amro, and Rabobank. Assumptions: the Type of Investor …
Inflation Explained
I’ll start with a story from 2014. A friend from Macedonia started an interesting discussion – how much money a person would need to stop relying on a salary: “In our country”, he said, “you can live comfortably on €400 per month, which is less than €5k per year. Multiply that by 40 (years), and …
Opportunity Cost With a Twist
Opportunity Cost is the cost associated with foregone opportunities. Most of the time when we make a decision, we pick one of multiple mutually exclusive options. Although people usually consider the risks and returns of the chosen option, many tend to neglect the potential rewards of the alternatives. And it makes sense, as a person is …
5 Steps to Overcome Investing Fear
You’ll never self-actualize if you allow fear to subdue you into paralyzing risk-aversion. This post won’t necessarily show you where to start, but it will clearly show you why you’re in the position you’re in. Follow the 5 levels below and figure out the decisive factor that prevents you to employ your past productivity (i.e. …
VTSAX in Europe?
If you’re an aspiring investor from the EU, you most probably researched whether you can buy $VTSAX in Europe. And I can see why – the fund contains over 4000 companies from all market caps for the incredibly low expense ratio of just 0.04%. Since it’s the go-to approach for many passive investors from the …
Recession Predictions vs Economists & the Media
“Economists predicted 9 of the last 4 recessions.” People often get obsessed with predictions and live in continuous fear of a market collapse. This is my attempt to convince you that uncertainty is normal. As someone that strategically invests since 2017, I know how to filter out the noise and sleep comfortably with a 7 …
Northern Trust Funds vs ETFs: Full Comparison
The Northern Trust index funds are quite popular with Dutch investors. Due to their low costs, tax optimization, and availability at the local banks, many investors from the Netherlands prefer the Northern Trust (NT) funds over ETFs. In this post, I’ll compare the total cost of a portfolio of NT funds with the alternatives. Northern …
Market Order vs Limit Order โ Placing Orders Tutorial
Understanding the terms “market order” and “limit order” becomes crucial once you’re ready to make trades. If you’re a beginner, making your first buy order might terrify you. We’ve all been there. But it’s much simpler than it looks. This post is a n00b-friendly introduction to executing a buy order. Different Types of Orders When you click …
Capital Gains Taxes in All EU Countries (for ETF Investors)
If you’re an index investor, you might want to compare the treatment of profits across various countries. Whether you plan to live off of your portfolio or simply want to optimize while accumulating, understanding the tax framework is of utmost importance. In this post, I’ll do a detailed breakdown of how UCITS ETFs are taxed …
Replicating VWCE – Optimize for Cost and Performance
VWCE won the hearts of many European investors and became the go-to ETF for a one-fund portfolio. I can see the appeal of that. You buy a single ETF and you’re done – no need to rebalance, no need to worry about asset allocation, etc. However, there is another parameter that many investors seem to ignore: the …