Opportunities Overseas

Don and Tom dig into international investing — why diversification across borders is essential, why timing international markets is a mistake, and how currency fluctuations affect returns. They revisit Japan’s lost decades, talk emerging markets, discuss John Bogle’s arguments against international investing, and explain why owning all markets all the time makes the most sense. Listener questions cover tax perceptions about California, long-term return comparisons, 401(k) rollover and Rule of 55 withdrawals, and the realities of retiring abroad — including the sticker shock of Guatemala’s healthcare spending.

0:04 Should you invest internationally now that foreign markets are rising?

1:29 Morningstar data shows non-U.S. markets doubling U.S. returns in 2025.

2:38 The dollar’s weakness as a key factor in performance.

3:20 Mexico, Brazil, Japan, and China’s strong year — but should you chase it?

4:02 Market leadership cycles: U.S. vs. international across decades.

4:50 The “1990 Japan” cautionary tale: why timing single markets can disappoint.

6:17 Concentration risk, emerging markets, and why you need global diversification.

7:33 Exposure to global companies you can’t get by owning U.S.-only funds.

8:42 Dimensional’s chart shows no country wins every year — own them all.

9:40 Addressing the John Bogle “you already own international through U.S. firms” argument.

10:21 Nestlé example: why local economy exposure matters.

12:45 Listener Greg challenges Don’s California tax comment — clarification given.

13:45 State tax comparisons, why there’s no perfect tax haven.

14:41 New York vs. California tax burdens — where it’s worst.

15:30 Listener Tim asks about long-term return periods — Don points to IFA data.

17:40 1,700+ episodes milestone and show longevity banter.

18:30 Listener Jeff’s complex retirement accounts and Rule of 55 rollover question.

19:09 Discussion of retiring abroad and health care concerns in Guatemala.

22:20 U.S. health care spending vs. Guatemala — a sobering gap.

23:39 Gallows humor about quick death and end-of-life planning.

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