Quotations by Andrew Hallam

Harvard Health references a study published in the CDC journal Preventing Chronic Disease that found that people who continued working past the age of sixty-five were three times more likely to be in good health than those who retired earlier. And older people who continue working also have lower odds of developing dementia. The socialization aspect of working can increase longevity. If the job requires some physical activity, it can also boost physical health. But perhaps most importantly, part-time employment gives them ikigai, a Japanese term that means a sense of purpose, a reason to be. Having purpose boosts happiness and fights mortality. The money retirees earn from a part-time job can also reduce financial stress.  [2022] - Andrew Hallam

Part-time work can help people defer their pensions. For example, if someone were eligible to collect a pension at age sixty-two but they deferred those payments, they could earn a much higher income later. This might come in handy if they’re among those who require money to cover higher medical or care facility costs. The benefits of deferring pension withdrawals apply to most corporate defined benefit pensions. They also apply to most state-sponsored plans, such as the Canada Pension Plan (CPP), the UK state pension, and America’s Social Security. [2022] - Andrew Hallam

WWOOF is an international organization that offers volunteers room and board in exchange for working on organic, sustainable farms. You could also try helpx.net. They list hosts around the world who are willing to trade food and accommodation in exchange for work on community projects and organic farms, at homestays, in backpacker hostels, and on sailing boats. Workaway.info offers similar opportunities for people around the world. You could also house-sit. Trustedhousesitters.com is one of the most established sites for matching up house-sitters and houses. Other sites you could look at are nomador.com, mindmyhouse.com, and housecarers.com. [2022] - Andrew Hallam

Connections between stock and business profits correlate strongly over long time periods—15 years or more. But short term (and 10 years is considered a stock market blip), markets are mad because people are crazy. [2018] - Andrew Hallam

A particularly prevalent problem in many Asian countries involves family‐controlled companies satisfying family desires at the expense of external minority shareholder wishes. Most global expats are aware of the corruption among many emerging‐market businesses. Such palm greasing is one of the reasons strong economic growth doesn't always manifest itself in the stock market. [2018] - Andrew Hallam

I recommend shorter term or broad market government bond index funds. [2018] - Andrew Hallam

Many sales representatives flog offshore pensions from companies like Zurich International, RL 360, Friends Provident, Generali, Aviva, and Royal Skandia (Old Mutual) without realizing their clients are usually charged on three levels: annual management costs, establishment costs, and hidden mutual fund management fees. Sometimes, there are also “mirror fund” charges. Some of the more common brokerages selling offshore pensions include the deVere Group, Montpelier Financial Consultants, Austen Morris Associates, Globaleye Financial Planning, the Henley Group, Gilt Edge International, Warrick Mann International, the Alexander Beard Group, SCI Group Ltd., W1 Investment Group, Holborn Assets, and the Sovereign Group. [2018] - Andrew Hallam

Studies show non‐currency‐hedged stock market ETFs perform better. [2018] - Andrew Hallam

Some people believe if they buy large, established companies they could beat a simple index. Unfortunately, it's easier said than done. The 10 biggest stocks in the United States always looks like a hurricane‐proof list. But the 10 biggest stocks change all the time. And those betting on the biggest firms as a group have always reaped weak returns. [2018] - Andrew Hallam

Breathlessly jumping onto a hot IPO is usually a bad idea. Fewer than one‐third of the newly public businesses were trading above their IPO price by the decade's end. IPOs are a great deal for the investment banks that underwrite them but usually a terrible deal for regular investors. [2018] - Andrew Hallam

I follow a simple Couch Potato strategy: maintaining 40 percent bonds and 60 percent stocks. [2018] - Andrew Hallam

Here are four discount brokerages for non‐American expatriates: DBS Vickers Securities, based in Singapore; TD Direct Investing International (now Internaxx), based in Luxembourg; Swissquote, based in Switzerland; and Saxo Capital Markets, located in more than 20 worldwide locations, including Hong Kong, Singapore, Uruguay, and the United Arab Emirates. Interactive Brokers, an American firm, allows Americans and non‐Americans to open accounts from almost every country in the world. If you're a non‐American expat, avoid TD Ameritrade Singapore. Investors pay 30 percent dividend withholding taxes because the brokerage trades solely on the US market. [2018] - Andrew Hallam

Many expatriates (with Americans being an exception) can avoid paying capital gains taxes on investment profits if they invest with firms situated where they won't be charged capital gains taxes and if their resident country won't tax them on foreign earned investment gains. Legal tax havens for investments include locations such as Luxembourg, Singapore, Hong Kong, some of the British Isles, and the Cayman Islands. [2018] - Andrew Hallam

Ongoing fund costs and annual account fees are far more detrimental than commissions and exchange rate fees. [2018] - Andrew Hallam

The 1 percent rule: Never pay more than 1 percent of your total invested proceeds in commissions. [2018] - Andrew Hallam

Bond index funds rise and fall in price. But over the long term, they aren't meant to gain elevation. Long term, profits are derived from bond interest payments. Some investors think they've lost money on their bond index, if the unit price has dropped. But with short‐term or broad bond market index funds (or ETFs), that rarely happens over a period of two or more years. If it does occur, it will eventually revert to the mean. [2018] - Andrew Hallam

Some investors own international bond ETFs that are priced in US dollars. If the US dollar rises against other currencies, the price of such a bond ETF will show an exaggerated loss. For an American investor, that loss could be real. After all, if they plan to retire in the United States, they'll pay future bills in US dollars. As such, if they buy an international bond market index, they would be taking a currency risk. But for a non‐American investor, that loss isn't real. Always remember that the listed currency of an ETF is irrelevant. [2018] - Andrew Hallam

Smart beta index funds are cheap, compared to actively managed funds. But they cost a lot more than most standard index funds. Strategies based on a cherry‐picked past might sell new Wall Street products. But they aren't always better for investors. That's why I suggest that you keep things simple. [2018] - Andrew Hallam

Global Nomad portfolios (single, globally diversified portfolios that have no home‐country bias) would work well for couples that don't know where they want to retire. They would also suit couples retiring in an emerging‐market country. Emerging‐market countries have small, volatile markets. Retirees who choose to invest with a “home‐country” emerging‐market bias would be taking unnecessary risk. Instead, they could spread their risk across a multitude of global economic regions. [2018] - Andrew Hallam

Some Canadians have opened nonresident accounts with Toronto‐based TD Waterhouse. Investors can open such accounts only in person, and they must provide proof they reside overseas. Many Canadian accountants suggest doing so won't jeopardize nonresidency status. [2018] - Andrew Hallam