Episode 471: Holy MiFID Quandaries, HGER, And The Desert Portfolio
Dec 10, 2025
Navigating retirement in the EU can be tricky for U.S. citizens due to MiFID regulations blocking U.S.-domiciled ETFs. The hosts offer practical workarounds using Interactive Brokers for a two-sleeve investment strategy. They also delve into the HGER commodity ETF, praising its rules-based approach and performance. The conversation contrasts commodity investments with managed futures and gold, arguing for better diversification. Finally, a critique of the Desert Portfolio provides insights into safe withdrawal rates, helping listeners refine their strategies.
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Listener’s MiFID Dilemma When Retiring To EU
Anonymous is a 40-year-old Mexican naturalized U.S. citizen planning to retire in Portugal or Spain within two years.
He fears MiFID will block buying U.S. ETFs and thus hinder rebalancing and his safe withdrawal plan.
volunteer_activism ADVICE
Only Pursue Professional Client Status If Feasible
Consider applying for professional client status only if you can meet MiFID's trade-frequency and asset thresholds.
Avoid counting on that route unless you complete the required transactions and asset levels first.
volunteer_activism ADVICE
Practical MiFID Workaround For U.S. Expats
Use Interactive Brokers as your primary solution if you plan to retire in the EU and keep U.S. accounts.
Hold U.S. assets for sale-only and buy UCITS equivalents in an EU IBKR account to rebalance without breaching MiFID rules.
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In this episode we answer emails from Anonymous, Pete, and Wilhelm. We discuss how MiFID reshapes investing for U.S. citizens retiring in the EU, the commodities fund HGER and the "Desert Portfolio."
Planning to retire in Europe while keeping a U.S.-style portfolio? The moment you change residency, MiFID rules can block purchases of U.S.-domiciled ETFs, turning routine rebalancing into a headache and putting your safe withdrawal rate at risk. We break down practical steps to keep your plan intact, including using Interactive Brokers to run a two-sleeve setup—sell-only in the U.S. account, buy in an EU account with UCITS equivalents—and how to make rebalancing work without creating a tax and paperwork nightmare. You’ll hear the pros, cons, and tradeoffs of each path so you can navigate regulation with confidence, not guesswork.
We also examine a smarter way to think about commodities. Legacy benchmarks like BCOM haven’t evolved with investor goals, and that’s where HGER’s rules-based design stands out with a quality and carry overlay that often elevates gold. But if you already hold gold, does a gold-tilted commodity fund add diversification or just overlap? We compare HGER to PDBC, highlight correlations with stocks and gold, and explain why managed futures can deliver broader, more resilient diversification across commodities, rates, and currencies. If you’re after true crisis defense, a blend of gold and managed futures may beat a traditional commodity sleeve.
To round it out, we stress-test the “desert portfolio”—high treasuries, modest equities, a touch of gold—and explain when its calm ride helps and when it lowers your long-term sustainable withdrawal. If your real objective is durable retirement income, consider upping equity exposure, adding value tilts, and relying on uncorrelated diversifiers that keep you rebalancing through drawdowns. Subscribe for more DIY-friendly portfolio tactics, share with a friend who’s eyeing an EU move, and leave a review to tell us what cross-border investing questions you want answered next.
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