No. of Recommendations: 1
Asking for help deciding where (if anywhere) a high income Californian can place international high dividend stocks or ETFs. These are steady eddies, not high flyers, so just ignoring taxes is not an option.
In tax deferred or after tax retirement accounts, you lose the tax credit for dividend taxes imposed by the foreign country. So Nestle or Roche, for example, are out of the question, as are most developed country ETFs. I do have FLGB FLHK FLLA FLCH FLSA (UK, Hong Kong, Latin America - mostly Mexico and Brazil, mainland China and Saudi Arabia, respectively). These countries have 0-10% dividend taxes.
In taxable accounts, California treats dividends as income. So for the income under-25% Federal tax bracket, it is better, at this time, to buy state-tax-free short duration Treasuries than international stocks, strictly from an income tax perspective. (Not considering diversification advantages, and trading possible growth for safety).
So there doesn't seem to be a good place for these often quality stocks and ETFs from high dividend tax countries.
Any suggestions?
No. of Recommendations: 3
same problem, before early retirement AND when was california resident.
add in a few other earned compensation issues, and i gave up on any complexity put most everything taxable in vanguard CA muni funds.
i recall somewhere that suze orman, who makes mint telling people to put all their money in index funds, had 100% of her taxable investments in such.
