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Re: Retirement planning for immigrant

What happens to the retirement plan savings if you move out of US? Nothing happens. They will remain so until you withdraw. Except for a possible US exit tax : Upon expatriation, the covered expatriate is treated as having taken a full distribution of all IRAs. The result is a tax at non-preferred ...
by TedSwippet
Fri Apr 18, 2014 6:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement planning for immigrant
Replies: 6
Views: 691

Re: US-Japan Tax Treaty and W-8BEN

Welcome to the forum. I'm not in Japan, but I am a former green-card holder and now non-resident alien, and I got the same W-8BEN request from Vanguard. The version of this form for entities is now laughably complex thanks to FATCA, but for individuals is mostly unchanged. The answers to your questi...
by TedSwippet
Wed Apr 09, 2014 3:36 am
 
Forum: Investing - Help with Personal Investments
Topic: US-Japan Tax Treaty and W-8BEN
Replies: 3
Views: 285

Re: Question on Form 1042-S

Are you a) non-US resident and non-US citizen , or b) non-US resident but US citizen? If a) then 1042S applies, and you get the treaty rate for your country of residence if you send Vanguard a W-8BEN. For most treaties the US rate is 15%. If you live in Singapore, it has no treaty with the US. In th...
by TedSwippet
Sat Apr 05, 2014 3:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question on Form 1042-S
Replies: 1
Views: 129

Re: Investing Strategy for Future Expats

...In some old notes I made to myself years ago, I read that if you do eventually renounce, any exit tax due would apply on the full retirement account amount rather than just day-before-renouncement capital gains. Maybe true, maybe not. True. From this article : Upon expatriation, the covered expa...
by TedSwippet
Fri Apr 04, 2014 4:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing Strategy for Future Expats
Replies: 14
Views: 738

Re: How to max out take free allowances (UK investor)

iWeb certainly offers Vanguard Lifestrategy funds, for example here . Other platforms probably will too, but it is often a hassle to ferret out which funds a platform does offer. Vanguard ETFs will get you round some of the platform charges for funds, but ETFs spin off dividends, and some of them pa...
by TedSwippet
Thu Mar 27, 2014 7:34 am
 
Forum: Investing - Help with Personal Investments
Topic: How to max out take free allowances (UK investor)
Replies: 3
Views: 207

Re: How to max out take free allowances (UK investor)

Briefly, yes. You need to get round both the £100k minimum for Vanguard direct holdings and the fact that Vanguard are not an ISA provider. The only way to do that currently is to use a platform. The extra charges are a pain, but by using a percentage-fee platform until a flat fee platform becomes c...
by TedSwippet
Wed Mar 26, 2014 6:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to max out take free allowances (UK investor)
Replies: 3
Views: 207

Re: Investing [Non US citizen, Need help with US investments

... since I'm not a citizen, greencard holder or permanent resident, I can file a w8ben form and I don't tax as an American. You might want to check this carefully. Earlier you said that you were living in the US. If you live in the US you quickly become a 'US resident for tax purposes' under the s...
by TedSwippet
Tue Mar 25, 2014 4:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing [Non US citizen, Need help with US investments]
Replies: 25
Views: 1253

Re: Canadian inheritance but living in the USA

I don't know the laws in Canada, but when you inherit money in the US, it is not income. Although, this being the US, there is a tedious, tiresome, and ultimately pointless reporting requirement if you inherit more than $100k. IRS form 3520 . OMB estimated time burden for taxpayers: 54 hr, 34 min (...
by TedSwippet
Tue Mar 11, 2014 5:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Canadian inheritance but living in the USA
Replies: 13
Views: 883

Re: Roth as exit tax shelter?

The general consensus is that Roth accounts are currently safe from the exit tax. While there is -- as you've no doubt already discovered -- scant actual guidance from anyone, including and especially the IRS, the general principle of the exit tax is to bring forwards taxes that would be paid later ...
by TedSwippet
Mon Mar 10, 2014 8:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth as exit tax shelter?
Replies: 2
Views: 503

Re: Fill tax advantaged space if I might leave?

I'm going to disagree. The HEART act would have cost me over $100k in unrecoverable double-tax on my retirement savings. Its effects were entirely retroactive. Congress can wipe out the best laid plans at the stroke of a pen. It has done so in the past, and will again in future. The main defence is ...
by TedSwippet
Sun Mar 09, 2014 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fill tax advantaged space if I might leave?
Replies: 5
Views: 663

Re: Fill tax advantaged space if I might leave?

Do not contribute to any IRA or 401k beyond your company's match, and consider if you want to contribute at all. If a green card holder, investigate switching instead to an alternative work visa such as H1B or L1. Stay vigilant for changes from congress that worsen tax law further for folk in your s...
by TedSwippet
Sun Mar 09, 2014 1:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fill tax advantaged space if I might leave?
Replies: 5
Views: 663

Re: Portfolio planning, Dubai based Non-US citizen, Trading

So I guess a better idea is to use my current broker but buy UK domiciled ETFs that track the same range of Stocks/Bonds thus reducing my exposure to withholding tax, due to FATCA, from 30% down to 15%. In essence, though you're conflating two issues. The 30% non-treaty and 15% treaty US tax liabil...
by TedSwippet
Sun Mar 09, 2014 8:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio planning, Dubai based Non-US citizen, Trading ETFs
Replies: 24
Views: 939

Re: Portfolio planning, Dubai based Non-US citizen, Trading

Vanguard UK requires you be resident in UK. If you want to invest directly with them, then yes. But you can buy Vanguard UK ETFs on the LSE through any broker that give you access to London (or perhaps other EU) exchanges and without being UK resident. Ditto iShares. That's part of the beauty of ET...
by TedSwippet
Sun Mar 09, 2014 7:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio planning, Dubai based Non-US citizen, Trading ETFs
Replies: 24
Views: 939

Re: Portfolio planning, Dubai based Non-US citizen, Trading

AFAIK FATCA only applies to US citizens? A limey, such as myself, should be in the clear? FATCA is a US extraterritorial tax law dragnet that applies to every non-US bank and, by extension, to everyone on the face of the planet. Nobody is immune. Good point. Could you point me in the direction of a...
by TedSwippet
Sun Mar 09, 2014 4:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio planning, Dubai based Non-US citizen, Trading ETFs
Replies: 24
Views: 939

Re: UK portfolio draft, look ok to you?

It is surprisingly hard to put all your eggs in the UK PLC basket. According to this article , 77% of the revenue of FTSE 100 companies comes from outside the UK. That makes a FTSE 100 fund pretty globally diversified, whether you want it to be or not. Likewise FTSE UK all share funds, because 80% o...
by TedSwippet
Sat Mar 08, 2014 3:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: UK portfolio draft, look ok to you?
Replies: 7
Views: 409

Re: Portfolio planning, Dubai based Non-US citizen, Trading

As far as I understand, the 30% witholding tax is on the dividends only, right? Right. No US tax on capital gains, though you would need to watch out for possible FATCA withholding (if it hits, that would be withholding only, not actual tax liability. but still a major PITA and long delay to recove...
by TedSwippet
Sat Mar 08, 2014 6:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio planning, Dubai based Non-US citizen, Trading ETFs
Replies: 24
Views: 939

Re: Portfolio planning, Dubai based Non-US citizen, Trading

Why is that so? Because of the aforementioned US tax issues. May I just add, that your statement that the US will tax you at 30% is not exactly correct. The US IRS will "withhold" 30%. Depending on where you live you should be able to get either partially or even totally your money back. ...
by TedSwippet
Fri Mar 07, 2014 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio planning, Dubai based Non-US citizen, Trading ETFs
Replies: 24
Views: 939

Re: Portfolio planning, Dubai based Non-US citizen, Trading

... I am not a US citizen so I avoid US taxation Not as much as you think. The US will tax your dividends from these holdings at 30%. Your $90k investment is larger than the (massive, whopping, oh-so-generous) $60k estate tax exemption the US allows non-resident aliens. And there is no unlimited ma...
by TedSwippet
Fri Mar 07, 2014 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio planning, Dubai based Non-US citizen, Trading ETFs
Replies: 24
Views: 939

Re: Moving to Australia - what to do about retirement accoun

The ATO is not going to tax your 401k until it becomes income. There doesn't seem to be anything in the US/Australia tax treaty that says this, though. All it says is that Australia has taxing rights, but nothing about when and how it can tax (in contrast to the newer US/UK treaty, which explicitly...
by TedSwippet
Mon Mar 03, 2014 5:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving to Australia - what to do about retirement accounts
Replies: 19
Views: 1911

Re: Moving to Australia - what to do about retirement accoun

I don't understand this paragraph. Can you clarify? What do you mean by "Australia will tax me now on earnings"? Are you talking about the capital gains in your 401(k)? Or dividends in your 401(k)? Or something else? I'm having a hard time following what you think is going to happen and w...
by TedSwippet
Mon Mar 03, 2014 7:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Moving to Australia - what to do about retirement accounts
Replies: 19
Views: 1911

Re: Moving to Australia - what to do about retirement accoun

If you are at Vanguard, they will freeze your account (meaning withdrawals only) if they find out you are outside the country. Well they did to me... Where on the planet are you? A long-festering regulatory spat between Canada and the US has meant that this can happen if you move from the US to Can...
by TedSwippet
Mon Mar 03, 2014 5:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Moving to Australia - what to do about retirement accounts
Replies: 19
Views: 1911

Re: Moving to Australia - what to do about retirement accoun

Have you read the US/Australia tax treaty ? Article 18(1) says Subject to the provisions of Article 19 (Governmental Remuneration), pensions and other similar remuneration paid to an individual who is a resident of one of the Contracting States in consideration of past employment shall be taxable on...
by TedSwippet
Mon Mar 03, 2014 4:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Moving to Australia - what to do about retirement accounts
Replies: 19
Views: 1911

Re: 40Yrs old UK expat in Dubai

Rojj wrote:Any other advice on the stock allocation?

No. It looks perfectly sensible to me. Watch out for ugly percentage-based platform fees if you're holding any of this on one of the main UK platforms (Hargreaves Lansdown, Fidelity, Youinvest, Charles Stanley, Bestinvest, TD Direct Investing, ...).
by TedSwippet
Mon Feb 24, 2014 5:24 am
 
Forum: Investing - Help with Personal Investments
Topic: 40Yrs old UK expat in Dubai
Replies: 9
Views: 855

Re: Open account in which country and in whose name? (UK, re

Welcome to the forum. Unless you plan to move to the US in the immediate future, the best option is likely to be in the UK, and in your wife's name only. As a US citizen you will have huge US tax problems if you buy or hold UK mutual funds. Yet if you hold US funds then your UK taxes can become diff...
by TedSwippet
Sun Feb 23, 2014 5:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Open account in which country and in whose name? (UK, remit)
Replies: 2
Views: 136

Re: 40Yrs old UK expat in Dubai

freebeer wrote:I don't know why anyone would recommend a UK citizen overweight US...

Me neither. Vanguard produced a report on home country bias for a handful of countries. It includes the UK, and makes for interesting reading.
by TedSwippet
Sat Feb 22, 2014 4:46 am
 
Forum: Investing - Help with Personal Investments
Topic: 40Yrs old UK expat in Dubai
Replies: 9
Views: 855

Re: Vanguard All-World FTSE ETF (investing from Europe)

Steve, are you a US citizen? If yes, US tax laws mean you should avoid Vanguard's EU domiciled ETFs like the plague. If no, US tax laws discourage holding Vanguard's US domiciled ETFs. Make certain you know the US govt's view of your tax situation, which may or may not agree with your own view, and ...
by TedSwippet
Tue Feb 18, 2014 10:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard All-World FTSE ETF (investing from Europe)
Replies: 13
Views: 906

Re: New Investor Advice - US Citizen living in Austria

Most Austrian (or European for that matter) brokers can't be bothered with the pain of having a US resident with a brokerage account as the paperwork is a lot of effort for them. Many European brokers will no longer accept any US citizens as customers, even those that are residents and dual EU/US c...
by TedSwippet
Wed Feb 12, 2014 6:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor Advice - US Citizen living in Austria
Replies: 6
Views: 368

Re: International Account => securities & taxes

Frankly, form 8938 seems redundant and pretty much useless to me. Definitely redundant and useless, but for a reason. FBAR is a FinCEN form and not a tax form. This means that if the govt wants to clobber you for not filing this form, it has to go to court and prove willful negligence. That is a lo...
by TedSwippet
Wed Feb 12, 2014 12:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: International Account => securities & taxes
Replies: 11
Views: 630

Re: How to implement the Swensen portfolio in the Euro-zone?

It looks like a bit of wiki update would be handy. Losing 40% of everything you hold over $60k certainly counts as a 'tax-related problem' of holding US domiciled ETFs. And 'In short, US domiciled funds aren't designed for investors from the EU' seems to equivocate. Better put: 'In short, US tax pol...
by TedSwippet
Tue Feb 11, 2014 9:07 am
 
Forum: Investing - Help with Personal Investments
Topic: How to implement the Swensen portfolio in the Euro-zone?
Replies: 16
Views: 979

Re: How to implement the Swensen portfolio in the Euro-zone?

US tax on dividends is 30% absent a treaty, and usually limited to 15% under a tax treaty. This may (or may not) be lower than the home country rate. The real man-eater is the US estate tax, levied on anything above $60k if the other country does not have a 'death tax convention' with the US. A 'dea...
by TedSwippet
Tue Feb 11, 2014 4:58 am
 
Forum: Investing - Help with Personal Investments
Topic: How to implement the Swensen portfolio in the Euro-zone?
Replies: 16
Views: 979

Re: How to implement the Swensen portfolio in the Euro-zone?

I've seen some posts saying that the U.S. based ETFs have lower expense ratio than their local ETFs. Some people use US based ETFs from Vanguard, ishares, SSGA, etc. Non-US investors should generally prefer non-US domiciled ETFs. Typically these would be UCITS funds domiciled either in Ireland or L...
by TedSwippet
Mon Feb 10, 2014 6:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to implement the Swensen portfolio in the Euro-zone?
Replies: 16
Views: 979

Re: Uncertain future, but want to start investing [UK ex-pat

Discussion on 401k/IRA issues for non-US residents here.
by TedSwippet
Tue Feb 04, 2014 5:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Uncertain future, but want to start investing [UK ex-pat]
Replies: 9
Views: 686

Re: beginner euro-investor from Italy

I am not sure what you mean by "synthetic" when describing your ETF's. Again, I am a US based investor. Synthetic ETFs are fairly common in Europe, but rare in the US. There's a good article here that describes how they work. So far no ETF has 'blown up' due to counterparty risk but that ...
by TedSwippet
Fri Jan 24, 2014 5:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: beginner euro-investor from Italy
Replies: 5
Views: 463

Re: US Forex, BSA, FBAR...

Days, hours, minutes, seconds, milliseconds -- doesn't matter. The US treasury demands a full accounting of your every foreign financial move. Since this form is 'information only' put the account down rather than sweat it. In every sense this is useless data for the treasury to collect. The only fo...
by TedSwippet
Wed Jan 22, 2014 10:39 am
 
Forum: Personal Finance (Not Investing)
Topic: US Forex, BSA, FBAR...
Replies: 2
Views: 273

Re: Non-US Investor - Portfolio Review

I'm clueless about the stamp tax. This tax sounds very depressing. It is generally depressing, but fortunately it doesn't apply to ETFs bought on the LSE, only to UK company stocks. Most LSE listed ETFs are domiciled in Ireland or Luxembourg precisely to sidestep this silly UK tax, and you don't pa...
by TedSwippet
Tue Jan 21, 2014 1:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Non-US Investor - Portfolio Review
Replies: 26
Views: 1513

Re: Bond duration UK investments

Yes! Fees changing from £24 per year to over £600 per year in one go. This implies around £135k in your SIPP. That is enough to make flat fee platforms (ATS, Interactive Investor) viable and at the same time let you keep your funds. I am in a similar boat, and am currently trying to decide whether ...
by TedSwippet
Mon Jan 20, 2014 11:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond duration UK investments
Replies: 12
Views: 543

Re: Inheritance from Europe - HowTo pointer

MN Finance wrote:... but otherwise was not any different than any inheritance (on the us side).

IRS form 3520.
http://www.irs.gov/Businesses/Gifts-from-Foreign-Person
by TedSwippet
Sun Jan 12, 2014 5:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Inheritance from Europe - HowTo pointer
Replies: 7
Views: 704

Re: Portfolio split between US & UK retirement accts - any t

Valuethinker wrote:... Does the IRS recognize this principle for UK funds?

No.
by TedSwippet
Thu Jan 02, 2014 2:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio split between US & UK retirement accts - any tips?
Replies: 15
Views: 958

Re: US Treasury Bonds withholding tax?

With the likes of FATCA, can anyone clarify whether as of January 2014 US withholding taxes apply against US treasury bonds? FATCA withholding has been delayed again , this time until July 2014. Treasury cites 'overwhelming interest' in IGAs as the cause of the delay. Pfft. I've seen conflicting re...
by TedSwippet
Wed Jan 01, 2014 7:51 pm
 
Forum: Investing - Theory, News & General
Topic: US Treasury Bonds withholding tax?
Replies: 1
Views: 229

Re: Portfolio split between US & UK retirement accts - any t

Incidentally, I don't plan on returning to the USA at any point. Granted it's quite far off in the future, but at the moment my intention is to remain abroad for retirement. Dual citizen, or able to become one? If so, dropping your US citizenship will open up financial opportunities and retirement ...
by TedSwippet
Mon Dec 30, 2013 7:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio split between US & UK retirement accts - any tips?
Replies: 15
Views: 958

Re: Portfolio split between US & UK retirement accts - any t

If you move back to USA does IRS recognize UK personal pensions? Because that's the acid test. You could leave yourself in a huge mess if you invested in the UK, have the money locked away until 55 (and that may change again in the next 25 years, it was 50), and you have to pay tax on it in the USA...
by TedSwippet
Sun Dec 29, 2013 8:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio split between US & UK retirement accts - any tips?
Replies: 15
Views: 958

Re: As a US citizen- what foreign platforms can we invest in

... Really consider whether the potential gain from a foreign-domiciled investment is going to be worth the frustration and expense. If I didn't live outside the US, I doubt I would have an account anywhere else. It just wouldn't be worth it. And this, of course, is one of the main unstated intents...
by TedSwippet
Wed Dec 18, 2013 5:09 am
 
Forum: Investing - Theory, News & General
Topic: As a US citizen- what foreign platforms can we invest in?
Replies: 12
Views: 975

Re: Online investment out of US

Hello, I'm interested in doing doing investment. I tried E*TRADE but I'm not allowed since I don't have a Social Security Number. Any options as a foreigner for online investments? Unless you have no choice, avoid everything associated with the US tax system and the IRS. Open a brokerage account in...
by TedSwippet
Tue Dec 17, 2013 5:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Online investment out of US
Replies: 3
Views: 278

Re: European Investor: TIPS Question

... I was thinking about a 50/50 mix (of bonds), just because the stock exposure is 50% US + ~40% EU and i dont want to hold EM Bonds. Or should i focus on Europe TIPS, because my expenses will be in EUR ? Currency risk is uncompensated, and tends to dominate bond volatility . Maybe either stick to...
by TedSwippet
Sat Dec 14, 2013 6:15 am
 
Forum: Investing - Help with Personal Investments
Topic: European Investor: TIPS Question
Replies: 2
Views: 207

Re: UK Investor - World ETF or Lifestrategy?

You also have to consider your additional costs if you continue to buy each quarter. Your quarterly trades will now cost £20 for two ETFs, so £80/year. Or still do four trades, just alternate double amounts in VUKE and VWRL. Unlikely to show any visible difference over both the long and probably al...
by TedSwippet
Tue Dec 10, 2013 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: UK Investor - World ETF or Lifestrategy?
Replies: 15
Views: 1127

Re: UK Investor - World ETF or Lifestrategy?

Would it be a good idea then to maybe keep my funds, but anything I buy from now on, I go with ETFs? At the moment, nobody knows for sure. It all very much depends on how the RDR platform fee changes finally shake out, and also to a reasonable extent how much you hold now and how often and how much...
by TedSwippet
Mon Dec 09, 2013 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: UK Investor - World ETF or Lifestrategy?
Replies: 15
Views: 1127

Re: Funds or ETF's

... The reason is that when mutual funds have outflows, they are often forced to realize capital gains and to distribute them among their remaining shareholders. When an ETF has outflows, the fund company can use in kind redemption instead which, so far, has more favorable tax rules. UK mutual fund...
by TedSwippet
Mon Dec 09, 2013 4:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Funds or ETF's
Replies: 4
Views: 482

Re: UK Investor - World ETF or Lifestrategy?

By my calculation, even over three years, the Vanguard investor who paid 0.5% up front is ahead. Thanks, that's interesting. I was purely working off the TER/AMC figures and assumed the underlying investments would perform identically. Clearly not quite the case. We know the TER/AMC isn't the whole...
by TedSwippet
Sat Dec 07, 2013 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: UK Investor - World ETF or Lifestrategy?
Replies: 15
Views: 1127

Re: UK Investor - World ETF or Lifestrategy?

Though I also don't like that whenever I buy funds it seems to take several days for the transaction to complete, so I could lose a lot more than the spread from being out of the market. (Though I suppose it's 50:50 whether I lose or gain, but still the thought of losing is off-putting.) I share yo...
by TedSwippet
Sat Dec 07, 2013 7:18 am
 
Forum: Investing - Help with Personal Investments
Topic: UK Investor - World ETF or Lifestrategy?
Replies: 15
Views: 1127

Re: UK Investor - World ETF or Lifestrategy?

I've been caught out by the change to charge for holding funds. It's probably not worth going out of my way to switch to ETFs because for me the (capped) charge as a percentage of my holding is small enough that I would probably lose more on the spreads from selling/buying than I would from just pa...
by TedSwippet
Fri Dec 06, 2013 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: UK Investor - World ETF or Lifestrategy?
Replies: 15
Views: 1127
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