Adds global portfolio and home bias educational articles
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Lint / Lint and Typecheck (push) Successful in 38s
All checks were successful
Lint / Lint and Typecheck (push) Successful in 38s
Introduces two in-depth learning articles: one guiding users on global, low-cost portfolio construction and tax-optimized account selection; another explaining home bias risks and practical diversification steps. Updates the learning hub to highlight both articles for improved user education on investment risk and allocation.
This commit is contained in:
341
src/app/learn/home-bias-in-investing/page.tsx
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341
src/app/learn/home-bias-in-investing/page.tsx
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import Link from 'next/link';
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import { Alert, AlertDescription, AlertTitle } from '@/components/ui/alert';
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import { Button } from '@/components/ui/button';
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import { Info } from 'lucide-react';
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import { AuthorBio } from '@/app/components/AuthorBio';
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import { FaqSection, type FaqItem } from '@/app/components/FaqSection';
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const faqs: FaqItem[] = [
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{
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question: 'How much of my portfolio should be domestic?',
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answer:
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'A common approach is market-cap weighting globally (roughly 55–60% US, 40–45% international today). Some investors keep 10–30% home tilt for currency needs, but large overweights increase concentration risk.',
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},
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{
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question: 'Does currency hedging remove home bias?',
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answer:
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'No. Hedging manages currency volatility but does not reduce country/sector concentration. Home bias is about overweighting domestic equities relative to their global weight.',
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},
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{
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question: 'Are there times when a home tilt makes sense?',
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answer:
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'Yes. If you have future liabilities in local currency (housing, tuition) or you want to simplify taxes, a modest tilt can be justified. Keep it intentional and sized.',
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},
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{
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question: 'What about emerging markets?',
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answer:
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'Global indexes already include emerging markets (EM). Adding a small EM tilt is optional; avoid excluding EM entirely to prevent regional concentration.',
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},
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{
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question: 'How do I reduce home bias in practice?',
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answer:
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'Replace single-country funds with global or All-World ETFs. Set an allocation policy (e.g., 80% global cap-weight, 20% local tilt) and rebalance to it instead of reacting to headlines.',
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},
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];
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export const metadata = {
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title: 'Home Bias in Investing: Why It Matters and How to Fix It',
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description:
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'Home bias concentrates risk in one country. Learn why it happens, how it hurts returns, and simple steps to global diversification.',
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openGraph: {
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title: 'Home Bias in Investing: Why It Matters and How to Fix It',
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description: 'Reduce country concentration, improve diversification, and stay tax aware.',
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type: 'article',
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url: 'https://investingfire.com/learn/home-bias-in-investing',
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},
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};
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export default function HomeBiasPage() {
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const jsonLd = {
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'@context': 'https://schema.org',
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'@type': 'Article',
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headline: 'Home Bias in Investing: Why It Matters and How to Fix It',
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author: {
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'@type': 'Organization',
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name: 'InvestingFIRE Team',
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},
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publisher: {
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'@type': 'Organization',
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name: 'InvestingFIRE',
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logo: {
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'@type': 'ImageObject',
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url: 'https://investingfire.com/apple-icon.png',
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},
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},
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datePublished: '2025-01-24',
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description:
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'Understand home bias, its risks, and practical steps to diversify globally while respecting local tax rules.',
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};
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return (
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<article className="container mx-auto max-w-3xl px-4 py-12">
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<script type="application/ld+json" dangerouslySetInnerHTML={{ __html: JSON.stringify(jsonLd) }} />
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<nav className="text-muted-foreground mb-6 text-sm">
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<Link href="/" className="hover:text-primary">
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Home
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</Link>
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<span className="mx-2">/</span>
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<Link href="/learn" className="hover:text-primary">
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Learn
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</Link>
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<span className="mx-2">/</span>
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<span className="text-foreground">Home Bias</span>
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</nav>
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<header className="mb-10">
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<h1 className="mb-6 text-4xl font-extrabold tracking-tight lg:text-5xl">
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Home Bias: The Hidden Risk in Your Portfolio
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</h1>
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<p className="text-muted-foreground text-xl leading-relaxed">
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Overweighting your home market feels comfortable but concentrates risk. Here’s why it happens
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and how to diversify without creating tax headaches.
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</p>
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</header>
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<div className="max-w-none">
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<Alert className="mb-8">
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<Info className="h-4 w-4" />
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<AlertTitle>Bias Check</AlertTitle>
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<AlertDescription>
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If your country is less than 10% of global market cap but more than 50% of your portfolio,
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you’re taking concentrated country and currency risk.
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</AlertDescription>
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</Alert>
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<h2>What is Home Bias?</h2>
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<p>
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Home bias is the tendency to hold a far larger share of domestic stocks than their global
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weight. Investors in the US, UK, Canada, Sweden, India, and Australia all exhibit this behavior
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despite different market sizes.
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</p>
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<h2>Why It Happens</h2>
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<ul className="mb-6 list-disc space-y-2 pl-5">
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<li>
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<strong>Familiarity:</strong> You know the brands and news cycle.
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</li>
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<li>
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<strong>Currency needs:</strong> You expect to spend in your local currency.
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</li>
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<li>
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<strong>Access & regulation:</strong> Some brokers limit foreign listings (PRIIPs/UCITS).
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</li>
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<li>
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<strong>Tax frictions:</strong> Forms, withholding tax, and paperwork discourage global
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exposure.
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</li>
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</ul>
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<h2 className="mt-16">Why It’s Risky</h2>
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<ul className="mb-6 list-disc space-y-2 pl-5">
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<li>
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Country/sector concentration (e.g., US tech, Canadian financials/energy, Swedish industrials)
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</li>
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<li>Currency risk without diversification benefits</li>
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<li>Policy and regulatory risk (capital controls, tax changes)</li>
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<li>Missed growth in other regions and sectors</li>
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</ul>
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<h2 className="mt-16">Fixing Home Bias (Practical Steps)</h2>
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<ol className="list-decimal space-y-2 pl-5">
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<li>Measure: compare your country weight to global cap weights (ACWI/FTSE All-World).</li>
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<li>Adopt a global core: one All-World ETF (VWCE, VT, VWRA, DHHF) or IWDA+EMIM combo.</li>
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<li>Set a deliberate tilt: e.g., 20% home, 80% global. Rebalance to policy, not headlines.</li>
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<li>
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Match currency to liabilities: keep cash for near-term local spending; hedge bonds where
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available.
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</li>
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<li>Use local wrappers to handle tax but hold global funds inside them when allowed.</li>
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</ol>
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<h2 className="mt-16">Tax & Wrapper Considerations</h2>
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<p>
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You can stay globally diversified while using local tax shelters. The key is picking the right
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share class and domicile:
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</p>
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<ul className="mb-6 list-disc space-y-2 pl-5">
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<li>
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US: Avoid PFICs; prefer US-domiciled ETFs in IRAs/401k. Consider foreign tax credits in
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taxable.
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</li>
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<li>
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UK/EU: UCITS ETFs (PRIIPs compliant). Accumulating classes reduce admin in many systems.
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</li>
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<li>Canada: US-domiciled ETFs in RRSP may reduce withholding; TFSA does not.</li>
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<li>
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Sweden: ISK/KF simplify reporting; IE-domiciled ETFs help withholding compared to
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US-domiciled.
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</li>
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<li>
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Australia/NZ: Use Super for tax efficiency; outside, consider broad local + global ETFs.
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</li>
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</ul>
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<h2 className="mt-16">Evidence & Further Reading</h2>
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<ul className="mb-6 list-disc space-y-2 pl-5">
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<li>
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MSCI, “The Home Bias Effect in Global Portfolios” —{' '}
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<Link
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href="https://www.msci.com/research-and-insights/quick-take/did-home-bias-help"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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MSCI
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</Link>
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</li>
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<li>
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Vanguard Research, “Global equity investing: The benefits of diversification” —{' '}
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<Link
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href="https://www.vanguardmexico.com/content/dam/intl/americas/documents/mexico/en/global-equity-investing-diversification-sizing.pdf"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Vanguard
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</Link>
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</li>
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<li>
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Sercu & Vanpee (2012), “The home bias puzzle in equity portfolios” —{' '}
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<Link
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href="https://doi.org/10.1093/acprof:oso/9780199754656.003.0015"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Oxford University Press
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</Link>
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</li>
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<li>
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Fisher, Shah & Titman (2017), “Should you tilt your equity portfolio to smaller
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countries?” —{' '}
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<Link
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href="https://doi.org/10.3905/jpm.2017.44.1.127"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Journal of Portfolio Management
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</Link>
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</li>
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<li>
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Attig & Sy (2023), “Diversification during hard times” —{' '}
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<Link
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href="https://doi.org/10.1080/0015198X.2022.2160620"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Financial Analysts Journal
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</Link>
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</li>
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<li>
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Blanchett (2021), “Foreign revenue: A new world of risk exposures” —{' '}
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<Link
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href="https://doi.org/10.3905/jpm.2021.1.237"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Journal of Portfolio Management
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</Link>
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</li>
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<li>
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Anarkulova, Cederburg & O’Doherty (2023), “Beyond the status quo: A critical assessment
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of lifecycle investment advice” —{' '}
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<Link
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href="https://doi.org/10.2139/ssrn.4590406"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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SSRN
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</Link>
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</li>
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<li>
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Goetzmann (2004), “Will history rhyme?” —{' '}
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<Link
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href="https://doi.org/10.3905/jpm.2004.442619"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Journal of Portfolio Management
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</Link>
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</li>
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<li>
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Ritter (2012), “Is economic growth good for investors?” —{' '}
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<Link
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href="https://doi.org/10.1111/j.1745-6622.2012.00385.x"
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className="text-primary hover:underline"
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>
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Journal of Applied Corporate Finance
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</Link>
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</li>
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<li>
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French (2022), “Five things I know about investing” —{' '}
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<Link
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href="https://www.dimensional.com/us-en/insights/five-things-i-know-about-investing"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Dimensional
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</Link>
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</li>
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<li>
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Bryan (2018), “World War 1 and global stock markets” —{' '}
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<Link
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href="https://globalfinancialdata.com/world-war-1-and-global-stock-markets"
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className="text-primary hover:underline"
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target="_blank"
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rel="noopener noreferrer"
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>
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Global Financial Data
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</Link>
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</li>
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<li>
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Episode 200: Prof. Eugene Fama (2022) —{' '}
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<Link
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href="https://rationalreminder.ca/podcast/200"
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className="text-primary hover:underline"
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||||||
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target="_blank"
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rel="noopener noreferrer"
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|
>
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|
Rational Reminder Podcast
|
||||||
|
</Link>
|
||||||
|
</li>
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<li>
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Merton (1973), “An intertemporal capital asset pricing model” —{' '}
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<Link
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||||||
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href="https://doi.org/10.2307/1913811"
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className="text-primary hover:underline"
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||||||
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target="_blank"
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rel="noopener noreferrer"
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|
>
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Econometrica
|
||||||
|
</Link>
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||||||
|
</li>
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||||||
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</ul>
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|
||||||
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<div className="my-10 grid gap-4 sm:grid-cols-2">
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<Link href="/learn/where-to-park-your-money">
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<Button size="lg" className="w-full text-lg">
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|
Build a Global Portfolio →
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||||||
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</Button>
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</Link>
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||||||
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<Link href="/learn/safe-withdrawal-rate-4-percent-rule">
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<Button size="lg" variant="secondary" className="w-full text-lg">
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Plan Withdrawals →
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||||||
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</Button>
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||||||
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</Link>
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||||||
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</div>
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||||||
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||||||
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<FaqSection faqs={faqs} className="my-12" />
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|
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||||||
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<AuthorBio />
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||||||
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</div>
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||||||
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</article>
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);
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}
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@@ -90,6 +90,50 @@ export default function LearnHubPage() {
|
|||||||
</CardContent>
|
</CardContent>
|
||||||
</Card>
|
</Card>
|
||||||
</Link>
|
</Link>
|
||||||
|
|
||||||
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{/* Article 4 */}
|
||||||
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<Link href="/learn/where-to-park-your-money" className="transition-transform hover:scale-[1.02]">
|
||||||
|
<Card className="hover:border-primary/50 h-full cursor-pointer border-2">
|
||||||
|
<CardHeader>
|
||||||
|
<div className="mb-2">
|
||||||
|
<span className="rounded-full bg-amber-100 px-2.5 py-0.5 text-xs font-medium text-amber-800">
|
||||||
|
Portfolio
|
||||||
|
</span>
|
||||||
|
</div>
|
||||||
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<CardTitle className="text-2xl">Where to Park Your Money</CardTitle>
|
||||||
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<CardDescription>
|
||||||
|
Global, low-cost index strategies, tax wrappers, and broker tips for FIRE.
|
||||||
|
</CardDescription>
|
||||||
|
</CardHeader>
|
||||||
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<CardContent>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
Build a world-allocation portfolio, avoid home bias, and choose the right accounts whether
|
||||||
|
you're in the US, EU, UK, Canada, Australia, or elsewhere.
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
</Link>
|
||||||
|
|
||||||
|
{/* Article 5 */}
|
||||||
|
<Link href="/learn/home-bias-in-investing" className="transition-transform hover:scale-[1.02]">
|
||||||
|
<Card className="hover:border-primary/50 h-full cursor-pointer border-2">
|
||||||
|
<CardHeader>
|
||||||
|
<div className="mb-2">
|
||||||
|
<span className="rounded-full bg-red-100 px-2.5 py-0.5 text-xs font-medium text-red-800">
|
||||||
|
Risk
|
||||||
|
</span>
|
||||||
|
</div>
|
||||||
|
<CardTitle className="text-2xl">Home Bias Explained</CardTitle>
|
||||||
|
<CardDescription>Why country concentration hurts—and how to fix it.</CardDescription>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
Understand the hidden risks of overweighting your domestic market and learn practical steps
|
||||||
|
to diversify globally without creating tax headaches.
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
</Link>
|
||||||
</div>
|
</div>
|
||||||
|
|
||||||
<div className="bg-muted mt-16 rounded-xl p-8 text-center">
|
<div className="bg-muted mt-16 rounded-xl p-8 text-center">
|
||||||
|
|||||||
429
src/app/learn/where-to-park-your-money/page.tsx
Normal file
429
src/app/learn/where-to-park-your-money/page.tsx
Normal file
@@ -0,0 +1,429 @@
|
|||||||
|
import Link from 'next/link';
|
||||||
|
import { Alert, AlertDescription, AlertTitle } from '@/components/ui/alert';
|
||||||
|
import { Card, CardContent, CardHeader, CardTitle } from '@/components/ui/card';
|
||||||
|
import { Button } from '@/components/ui/button';
|
||||||
|
import { Info } from 'lucide-react';
|
||||||
|
import { AuthorBio } from '@/app/components/AuthorBio';
|
||||||
|
import { FaqSection, type FaqItem } from '@/app/components/FaqSection';
|
||||||
|
|
||||||
|
const faqs: FaqItem[] = [
|
||||||
|
{
|
||||||
|
question: 'Is a single world ETF enough?',
|
||||||
|
answer:
|
||||||
|
'For most long-term investors, a single, low-cost global index fund (like VT in the US or VWCE in the EU) paired with a risk-appropriate bond fund is sufficient. Add regional tilts only if you have a clear, deliberate reason.',
|
||||||
|
},
|
||||||
|
{
|
||||||
|
question: 'Should I choose accumulating or distributing share classes?',
|
||||||
|
answer:
|
||||||
|
'If your tax system does not tax unrealized gains and you want simplicity, accumulating share classes can reduce paperwork. In countries that tax deemed distributions or where you need cash flow, distributing classes may make sense.',
|
||||||
|
},
|
||||||
|
{
|
||||||
|
question: 'How often should I rebalance?',
|
||||||
|
answer:
|
||||||
|
'Set simple guardrails: rebalance when an asset class is 5–10 percentage points away from target, or on a set cadence (e.g., annually). Avoid excessive trading to minimize taxes and fees.',
|
||||||
|
},
|
||||||
|
{
|
||||||
|
question: 'Can I mix local pension schemes with global ETFs?',
|
||||||
|
answer:
|
||||||
|
'Yes—use tax-advantaged accounts first (IRA/401k, ISA/SIPP, RRSP/TFSA, ISK/KF, Superannuation, etc.). Align assets to account type: tax-inefficient assets (bonds/REITs) in tax shelters; tax-efficient broad equity ETFs in taxable.',
|
||||||
|
},
|
||||||
|
{
|
||||||
|
question: 'What if my broker doesn’t offer fractional shares?',
|
||||||
|
answer:
|
||||||
|
'Use ETFs with lower share prices, contribute in larger but less frequent batches, or pick brokers that support fractional investing. Always compare FX costs and custody protections before moving.',
|
||||||
|
},
|
||||||
|
];
|
||||||
|
|
||||||
|
export const metadata = {
|
||||||
|
title: `Where to Park Your Money for FIRE (${new Date().getFullYear().toString()})`,
|
||||||
|
description:
|
||||||
|
'Build a globally diversified, low-cost index portfolio, avoid home bias, and use the right tax wrappers—wherever you live. A practical guide for FIRE investors.',
|
||||||
|
openGraph: {
|
||||||
|
title: 'Where to Park Your Money for FIRE',
|
||||||
|
description: 'Global index investing playbook: avoid home bias, cut fees, optimize taxes.',
|
||||||
|
type: 'article',
|
||||||
|
url: 'https://investingfire.com/learn/where-to-park-your-money',
|
||||||
|
},
|
||||||
|
};
|
||||||
|
|
||||||
|
export default function ParkYourMoneyPage() {
|
||||||
|
const jsonLd = {
|
||||||
|
'@context': 'https://schema.org',
|
||||||
|
'@type': 'Article',
|
||||||
|
headline: 'Where to Park Your Money for FIRE',
|
||||||
|
author: {
|
||||||
|
'@type': 'Organization',
|
||||||
|
name: 'InvestingFIRE Team',
|
||||||
|
},
|
||||||
|
publisher: {
|
||||||
|
'@type': 'Organization',
|
||||||
|
name: 'InvestingFIRE',
|
||||||
|
logo: {
|
||||||
|
'@type': 'ImageObject',
|
||||||
|
url: 'https://investingfire.com/apple-icon.png',
|
||||||
|
},
|
||||||
|
},
|
||||||
|
datePublished: '2025-01-24',
|
||||||
|
description:
|
||||||
|
'A global guide to placing your money for FIRE: low-cost index funds, tax wrappers, and avoiding home bias.',
|
||||||
|
};
|
||||||
|
|
||||||
|
return (
|
||||||
|
<article className="container mx-auto max-w-3xl px-4 py-12">
|
||||||
|
<script type="application/ld+json" dangerouslySetInnerHTML={{ __html: JSON.stringify(jsonLd) }} />
|
||||||
|
|
||||||
|
<nav className="text-muted-foreground mb-6 text-sm">
|
||||||
|
<Link href="/" className="hover:text-primary">
|
||||||
|
Home
|
||||||
|
</Link>
|
||||||
|
<span className="mx-2">/</span>
|
||||||
|
<Link href="/learn" className="hover:text-primary">
|
||||||
|
Learn
|
||||||
|
</Link>
|
||||||
|
<span className="mx-2">/</span>
|
||||||
|
<span className="text-foreground">Where to Park Your Money</span>
|
||||||
|
</nav>
|
||||||
|
|
||||||
|
<header className="mb-10">
|
||||||
|
<h1 className="mb-6 text-4xl font-extrabold tracking-tight lg:text-5xl">
|
||||||
|
Where to Park Your Money for FIRE <br />
|
||||||
|
<span className="text-primary">Global, Low-Cost, Tax-Savvy</span>
|
||||||
|
</h1>
|
||||||
|
<p className="text-muted-foreground text-xl leading-relaxed">
|
||||||
|
The right accounts and funds can shave years off your FIRE timeline. This guide shows how to
|
||||||
|
avoid home bias, keep costs low, and use country-specific tax wrappers without overcomplicating
|
||||||
|
your plan.
|
||||||
|
</p>
|
||||||
|
</header>
|
||||||
|
|
||||||
|
<div className="max-w-none">
|
||||||
|
<Alert className="mb-8">
|
||||||
|
<Info className="h-4 w-4" />
|
||||||
|
<AlertTitle>Key Principle</AlertTitle>
|
||||||
|
<AlertDescription>
|
||||||
|
Broad, low-cost diversification beats stock picking. Start with a simple global equity fund,
|
||||||
|
add a bond sleeve matched to your risk tolerance, and automate contributions.
|
||||||
|
</AlertDescription>
|
||||||
|
</Alert>
|
||||||
|
|
||||||
|
<h2>Why Placement Matters</h2>
|
||||||
|
<p>
|
||||||
|
Costs, taxes, and diversification drive long-term returns. Optimizing where you hold assets can
|
||||||
|
add 0.5–1.0% per year—a massive difference over decades.
|
||||||
|
</p>
|
||||||
|
|
||||||
|
<h2 className="mt-16" id="home-bias">
|
||||||
|
Avoiding Home Bias
|
||||||
|
</h2>
|
||||||
|
<p>
|
||||||
|
Home bias is the tendency to overweight your domestic market. This increases concentration risk
|
||||||
|
(currency, regulation, sector tilt). Global market-cap exposure reduces single-country
|
||||||
|
drawdowns and captures growth wherever it occurs.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
Want a deeper dive? Read our{' '}
|
||||||
|
<Link href="/learn/home-bias-in-investing" className="text-primary hover:underline">
|
||||||
|
Home Bias Explained
|
||||||
|
</Link>{' '}
|
||||||
|
guide.
|
||||||
|
</p>
|
||||||
|
|
||||||
|
<h2 className="mt-16">Core Portfolio Recipe (Global First)</h2>
|
||||||
|
<p>Pick one diversified equity base, then pair with a hedged bond fund if you need stability.</p>
|
||||||
|
|
||||||
|
<div className="grid gap-6 md:grid-cols-2">
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle className="text-primary">Global Equity (One-Fund)</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent>
|
||||||
|
<ul className="list-disc space-y-2 pl-4">
|
||||||
|
<li>US: VT (Vanguard Total World), or VTI + VXUS</li>
|
||||||
|
<li>EU/EEA (PRIIPs): VWCE (FTSE All-World UCITS), or IWDA + EMIM</li>
|
||||||
|
<li>UK: VWRA or VUAG</li>
|
||||||
|
<li>Canada: VEQT or XEQT (all-in-one), or VTI+VEA+VEE if allowed</li>
|
||||||
|
<li>Australia/NZ: DHHF, or VGS + VGE</li>
|
||||||
|
<li>Asia (SG/HK): IE-domiciled ACWI/FTSE All-World equivalents where available</li>
|
||||||
|
</ul>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle className="text-green-700">Bonds & Stability</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent>
|
||||||
|
<ul className="list-disc space-y-2 pl-4">
|
||||||
|
<li>US: BNDW (global aggregate) or BND/BNDX mix</li>
|
||||||
|
<li>
|
||||||
|
EU/EEA/UK: AGGH (global agg hedged), or government bond UCITS hedged to home currency
|
||||||
|
</li>
|
||||||
|
<li>Canada: VAB (aggregate) or ZAG</li>
|
||||||
|
<li>Australia: VAF or GOVT; NZ: NZB hedged options if available</li>
|
||||||
|
<li>Cash bucket: 6–12 months in high-yield savings/term deposits for near-term needs</li>
|
||||||
|
</ul>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
</div>
|
||||||
|
|
||||||
|
<h2 className="mt-16">Where to Hold (Tax Wrappers by Region)</h2>
|
||||||
|
<div className="mt-8 grid gap-6 md:grid-cols-2">
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>US</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
401k/403b, Traditional & Roth IRA, HSA. Avoid PFICs if abroad. Use total-market ETFs.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
IRS basics:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.irs.gov/retirement-plans"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
irs.gov/retirement-plans
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>UK</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
ISA for tax-free growth; SIPP for tax relief. Consider accumulating UCITS ETFs for
|
||||||
|
simplicity.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
HMRC ISA guidance:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.gov.uk/individual-savings-accounts"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
gov.uk/individual-savings-accounts
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>Canada</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
RRSP (treaty relief on US ETFs), TFSA (note US withholding not fully relieved), and RESP
|
||||||
|
for kids.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
CRA TFSA rules:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
canada.ca/.../tax-free-savings-account
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>Sweden</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
ISK for simplified tax and automatic reporting; KF when holding US/IE ETFs for better
|
||||||
|
withholding outcomes.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
Skatteverket ISK info:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.skatteverket.se/privat/skatter/vardepapper/investeringssparkontoisk"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
skatteverket.se/.../isk
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>EU / EEA</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
PRIIPs means UCITS ETFs. Choose accumulating share classes if tax-efficient. Mind local
|
||||||
|
deemed-distribution rules.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
EU PRIIPs overview:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://finance.ec.europa.eu/consumer-finance-and-payments/retail-financial-services/key-information-documents-packaged-retail-and-insurance-based-investment-products-priips_en"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
finance.ec.europa.eu/.../priips
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>Australia / NZ</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
Superannuation for tax advantage. Outside super, consider broad ASX/NZX ETFs plus global
|
||||||
|
UCITS/US-listed where permitted.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
ATO super basics:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.ato.gov.au/individuals/super/"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
ato.gov.au/individuals/super
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>Singapore / Hong Kong</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
Use reputable brokers with access to IE-domiciled ETFs (reduced withholding vs US). Watch
|
||||||
|
FX and custody fees.
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
|
||||||
|
<Card>
|
||||||
|
<CardHeader>
|
||||||
|
<CardTitle>India</CardTitle>
|
||||||
|
</CardHeader>
|
||||||
|
<CardContent className="space-y-2">
|
||||||
|
<p>
|
||||||
|
Domestic index funds (Nifty 50/500, Sensex) for core. Overseas ETFs via LRS subject to
|
||||||
|
limits and tax on foreign assets.
|
||||||
|
</p>
|
||||||
|
<p className="text-muted-foreground text-sm">
|
||||||
|
RBI LRS details:{' '}
|
||||||
|
<Link
|
||||||
|
href="https://rbi.org.in/scripts/FAQView.aspx?Id=115"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
rbi.org.in/.../FAQView.aspx?Id=115
|
||||||
|
</Link>
|
||||||
|
</p>
|
||||||
|
</CardContent>
|
||||||
|
</Card>
|
||||||
|
</div>
|
||||||
|
|
||||||
|
<h2 className="mt-16">Broker Checklist</h2>
|
||||||
|
<ul className="mb-6 list-disc space-y-2 pl-5">
|
||||||
|
<li>Regulation and investor protection (SIPC/FSCS/IIROC/etc.)</li>
|
||||||
|
<li>All-in costs: commissions, FX spreads, custody, inactivity, and withdrawal fees</li>
|
||||||
|
<li>Fractional shares and automatic DCA support</li>
|
||||||
|
<li>Access to UCITS/PRIIPs-compliant funds if required</li>
|
||||||
|
<li>Reliable tax documents (1099, T5, annual statements) and easy export</li>
|
||||||
|
</ul>
|
||||||
|
|
||||||
|
<h2 className="mt-16">Execution Playbook</h2>
|
||||||
|
<ol className="list-decimal space-y-2 pl-5">
|
||||||
|
<li>Define your target mix (e.g., 90/10 or 70/30) and write a one-page IPS.</li>
|
||||||
|
<li>Automate monthly contributions; avoid market timing.</li>
|
||||||
|
<li>Rebalance annually or when allocations drift 5–10 points.</li>
|
||||||
|
<li>Keep 6–12 months of expenses in cash to manage withdrawal risk.</li>
|
||||||
|
<li>Review tax changes yearly; wrappers and treaty benefits can shift.</li>
|
||||||
|
</ol>
|
||||||
|
|
||||||
|
<h2 className="mt-16">Further Reading & Evidence</h2>
|
||||||
|
<ul className="mb-6 list-disc space-y-2 pl-5">
|
||||||
|
<li>
|
||||||
|
Vanguard Research, “Global equity investing: The benefits of diversification” —{' '}
|
||||||
|
<Link
|
||||||
|
href="https://corporate.vanguard.com/content/dam/corp/research/pdf/global-equity-investing-benefits-diversification.pdf"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
Vanguard
|
||||||
|
</Link>
|
||||||
|
</li>
|
||||||
|
<li>
|
||||||
|
MSCI, “The Home Bias Effect in Global Portfolios” —{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.msci.com/research-and-insights/quick-take/did-home-bias-help"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
MSCI
|
||||||
|
</Link>
|
||||||
|
</li>
|
||||||
|
<li>
|
||||||
|
SPIVA scorecards (active vs passive) —{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.spglobal.com/spdji/en/research-insights/spiva/"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
S&P Dow Jones Indices
|
||||||
|
</Link>
|
||||||
|
</li>
|
||||||
|
<li>
|
||||||
|
Bogleheads “Three-Fund Portfolio” —{' '}
|
||||||
|
<Link
|
||||||
|
href="https://www.bogleheads.org/wiki/Three-fund_portfolio"
|
||||||
|
className="text-primary hover:underline"
|
||||||
|
target="_blank"
|
||||||
|
rel="noopener noreferrer"
|
||||||
|
>
|
||||||
|
Bogleheads Wiki
|
||||||
|
</Link>
|
||||||
|
</li>
|
||||||
|
</ul>
|
||||||
|
|
||||||
|
<div className="my-10 grid gap-4 sm:grid-cols-2">
|
||||||
|
<Link href="/">
|
||||||
|
<Button size="lg" className="w-full text-lg">
|
||||||
|
Run the FIRE Calculator →
|
||||||
|
</Button>
|
||||||
|
</Link>
|
||||||
|
<Link href="/learn/safe-withdrawal-rate-4-percent-rule">
|
||||||
|
<Button size="lg" variant="secondary" className="w-full text-lg">
|
||||||
|
Learn Safe Withdrawals →
|
||||||
|
</Button>
|
||||||
|
</Link>
|
||||||
|
</div>
|
||||||
|
|
||||||
|
<FaqSection faqs={faqs} className="my-12" />
|
||||||
|
|
||||||
|
<AuthorBio />
|
||||||
|
</div>
|
||||||
|
</article>
|
||||||
|
);
|
||||||
|
}
|
||||||
Reference in New Issue
Block a user