Keeping the cost down: fees and taxes
I am struggling with fees and taxes and would like to know what you think.
Question 1) Foreign tax on dividends in IRA accounts.
This one I did not pay attention to, until I bought TEVA and discovered that they took 20% from the dividend. That takes a big byte out of the yield, when compared to dividends from NAT or US stocks. We are in 15% tax bracket, so I got used to no tax on Qualified dividends.
Question 2) Fund of funds like VPDFX charge 0.38% for expenses, but they invest in other fund, that also charge fees. So what is the real cost?
So far I decided to stay away from French companies, like SNY, dividends to us may cost 25% tax (not sure - hard to tell from their Form 20-F, 15 or 25%). Any thoughts on that?
Hard to say what it was, when it isn't.
FIRED in 2005 @ 55