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Re: What AA would you suggest going into early retirement?

I myself am thinking about a risky career change that could, in a bad case, result in no income, which would be equivalent to early retirement. In my situation it could take SEPPs to get me through. I'd retain a level of optionality by splitting tax-deferred into at least two Traditional IRAs. You'...
by nun
Wed Oct 30, 2013 2:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: What AA would you suggest going into early retirement?
Replies: 14
Views: 1208

Re: What AA would you suggest going into early retirement?

So you need $21.6k a year for 6 years? That's $129,600 (ignoring temporarily inflation). You have $230k. Seems like a pretty easy solution for me: - $130k-150k in cash or cash-like vehicles (maybe do some CD laddering, or really anything that is extremely low risk) - Invest the other $80-100k in in...
by nun
Wed Oct 30, 2013 1:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: What AA would you suggest going into early retirement?
Replies: 14
Views: 1208

Re: What AA would you suggest going into early retirement?

AA and how to manage an account that is intended to be at least half depleted in short order are two different issues. The strategy here is to put enough in cash and SV to fund the withdrawal requirement so that the taxable fund can't run out of money before regular withdrawals from other accounts ...
by nun
Wed Oct 30, 2013 1:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: What AA would you suggest going into early retirement?
Replies: 14
Views: 1208

Re: What AA would you suggest going into early retirement?

I would maximize cash and stable value funds, in taxable accounts I would spend down the stock now while it is at record highs. If you do wind up needing to SEPP you can break a portion off into another IRA and just SEPP that IRA. 50/50 is fine for an overall asset allocation, 40/60 and 30/70 can a...
by nun
Tue Oct 29, 2013 11:50 am
 
Forum: Investing - Help with Personal Investments
Topic: What AA would you suggest going into early retirement?
Replies: 14
Views: 1208

What AA would you suggest going into early retirement?

ER is fast approaching for me. I have $750k in tax deferred accounts and $230k in accounts that I can access without penalty before I reach 59.5. I don't want to 72k so my question is how would you arrange the $230 to fund ER from 53.5 to 59.5. The $230k is made up of: After tax accounts $20k cash i...
by nun
Tue Oct 29, 2013 11:08 am
 
Forum: Investing - Help with Personal Investments
Topic: What AA would you suggest going into early retirement?
Replies: 14
Views: 1208

Re: non-resident alien(UK), convert IRA to Roth, tax ?

It sounds as if your advisor thinks there is an income limit for rollovers, there isn't anymore. FYI as an NRA you can play some nice games with personal allowances and exemptions in the US and the UK if your only income is from US IRAs. If you take an income from your IRA (taxable only in the UK) e...
by nun
Tue Sep 24, 2013 9:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

Maybe I am missing something but I still don't understand how the quoted CAA helps with knowing whether a transfer from an IRA to a Roth IRA (which is treated as a distribution for US tax purposes) would be eligible to be considered a "rollover" under the tax treaty. The critical thing is...
by nun
Wed Sep 11, 2013 7:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: Which 457(b) Provider?

You need to find out the fees on the RSA investments so you can compare with Great West. FYI the fees on the funds offered by in a 457b plan through Great West greatly depend on your employer. My 457b at Great West is with Massachusetts and we get a nice range of index funds with SSgA with ERs less ...
by nun
Wed Sep 11, 2013 7:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which 457(b) Provider?
Replies: 4
Views: 348

Re: non-resident alien(UK), convert IRA to Roth, tax ?

that was brilliant, nun ! Looks like that explains it. Thanks a lot ! Thus, using a personal exemption of $3900, if I am willing to go up to 15% tax bracket of say $36,000, I suppose I could move chunks of approx $40,000 at a time and finish this quickly in a few years. My total IRA value is 150K. ...
by nun
Wed Sep 11, 2013 12:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

Nun wrote: I'd love to know why you'd be liable to US tax on the IRA distributions in your situation unless you didn't invoke the treaty Article 17 only talks about "payments" and "remuneration" from a pension. Article 17 is silent about rollover from one pension (IRA) to anothe...
by nun
Wed Sep 11, 2013 10:20 am
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

Taking "small chunks" is to keep your US income low so that your marginal tax rate is also low. If you keep the chunks less than your US deductions, exemptions and credits then there'd be no US tax to pay. Standard US tax practice is to arrange your income to stay within either the 10% or ...
by nun
Tue Sep 10, 2013 9:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: Why can US citizen expats not invest w/Vanguard?

If you are a US citizen living in the UK Vanguard told me that they will continue to service accounts if they were opened when you lived in the US. The bigger issue is that you should not own PFIC investments (ie non-US mutual funds) as they are very US tax inefficient. Also you will probably fall u...
by nun
Mon Sep 02, 2013 11:59 pm
 
Forum: Investing - Theory, News & General
Topic: Why can US citizen expats not invest w/Vanguard?
Replies: 63
Views: 11453

Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

... It is my understanding that as a non-citizen (i.e. after renouncing citizenship or giving up a green card by virtue of non presence) Social Security benefits will not be paid abroad. They continue to be paid to US citizens who live abroad, in most places. I am scrambling to find a reference for...
by nun
Sun Sep 01, 2013 2:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
Replies: 16
Views: 805

Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

As a US/UK dual citizen thinking of moving to the UK I'm seriously considering renouncing US citizenship and moving everything apart from retirement accounts to the UK. When we discussed this a couple of years ago you mentioned SS payments as a reason for holding on to US citizenship regardless. I'...
by nun
Sun Sep 01, 2013 7:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
Replies: 16
Views: 805

Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

The safest thing would be to remove all assets (outside of retirement accounts) from the US ... Or file I-407 and ditch the green card. At this point it might be mostly (or even entirely) albatross. maybe remove taxable assets from US AND and file I-407. As a US/UK dual citizen thinking of moving t...
by nun
Sat Aug 31, 2013 7:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
Replies: 16
Views: 805

Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

Hodgen Law is a great resource! The safest thing would be to remove all assets (outside of retirement accounts) from the US so you don't have to file a US tax return. 8983 for certain NRAs and no FBAR is confirmed by IRS. http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements Fr...
by nun
Sat Aug 31, 2013 4:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
Replies: 16
Views: 805

Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

I am allowed to submit a form 1040NR by making an election of Uk residence for the tax year via form 8833. I believe this should exempt me from submitting the subject forms. If you are not a long term permanent resident and file the 8833 and claim UK residency under the tie breaker rules you can be...
by nun
Sat Aug 31, 2013 10:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
Replies: 16
Views: 805

Re: How to find an advisor for international personal financ

Check out forums like britishexpats.com uk-yankee.com there are Canadian forums too. There are some small companies that specialize in cross-border tax between US/UK or UK/Canada or US/Canada, but once you get into more than two countries finding a one stop shop other than a big accounting firm beco...
by nun
Fri Aug 30, 2013 10:43 am
 
Forum: Personal Finance (Not Investing)
Topic: How to find an advisor for international personal finance?
Replies: 2
Views: 232

Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

If you hold a green card you are US tax resident. You should be filing a 1040. The fact that you live in the UK does not change your US tax residency status as long as you have the green card. Therefore, you must continue to comply with all the regulations for a US tax resident and file FBAR and 893...
by nun
Fri Aug 30, 2013 10:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
Replies: 16
Views: 805

Re: non-resident alien(UK), convert IRA to Roth, tax ?

... bluejeansman's NRA status and him never having been a long term permanent resident (LTR) or US citizen so he didn't have to file an 8854 are critial here. If SamLJ is an LTR he will have to pay tax on his IRAs or give up all treaty benefits before becoming an NRA ... Just to be clear... being a...
by nun
Thu Aug 29, 2013 7:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

My understanding of this was also that the rollover to the Roth was taxable by the US but not the UK. ... I moved back to the UK in 2010 having rolled over my IRA to a Roth It sounds like you rolled over while still a 'US person'. That is, before surrendering the green card. If so, your tax situati...
by nun
Thu Aug 29, 2013 4:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

In the previous US/UK tax treaty there was a loop hole for lump-sum distributions where both US and UK tax could be avoided, that's now been closed. If your distribution is seen as a lump sum it will be taxable in the US. Your tax guy should know that the income limits for IRA to ROTH conversions we...
by nun
Thu Aug 29, 2013 1:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

On return2india forums, there are quite a few non-resident-aliens (from US standpoint) and it appears that they still have to pay US tax when they convert IRA to Roth, so let me explore those threads ... That could well be true. The UK/US tax treaty was updated in 2001 and the pension articles got ...
by nun
Tue Aug 27, 2013 2:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

TedSwippet wrote : At this point I think we need to uncover what makes the rollover taxable to the US. You're probably right that there is something, but how to identify it? Sorry, why the doubt here ? Rollover is taxable for US citizens, so it should be taxable for NRA as well ? Because the US/UK ...
by nun
Tue Aug 27, 2013 12:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

hmm.. its all a bit too technical for me, just a few points : nun, could you please elaborate what you mean by "paid tax on his IRAs" ? This IRA of mine used to be a 401(K), and I rolled it over to an IRA. I have not yet taken any money out, so where is the question of "paid tax on h...
by nun
Tue Aug 27, 2013 10:20 am
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

What you describe with 8854 (and W-8CE for waiving treaty rights) is only for 'covered expatriates' who left after HEART. For everyone else, likely a majority (if that is not too broad a term to cover the few dozen folk on the face of the planet to whom this US/UK dilemma might actually apply!), th...
by nun
Mon Aug 26, 2013 2:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

A "Long Term Resident" for purposes of 8854 is "Long-term resident (LTR) defined. You are an LTR if you were a lawful permanent resident of the United States in at least 8 of the last 15 tax years ending with the year your status as an LTR ends. In determining if you meet the 8-year r...
by nun
Mon Aug 26, 2013 1:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

Now onto the [strike]US[/strike] UK tax treatment of IRA to ROTH rollovers made by a UK resident......they are not UK taxable under Article 18.1 becuase it is a rollover from one qualified plan to another. But for US tax purposes I think a conversion from a tIRA to a Roth IRA is not really a "...
by nun
Mon Aug 26, 2013 1:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: non-resident alien(UK), convert IRA to Roth, tax ?

There is no specific form to declare US retirement accounts to HMRC. The most direction I got was to include a note on your self assessment and include some reference to Article 18 of the tax treaty. I don't think there will be an issue if you have not done this before maling withdrawals though. Now...
by nun
Mon Aug 26, 2013 12:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: non-resident alien(UK), convert IRA to Roth, tax ?
Replies: 36
Views: 2564

Re: TIAA-Traditional payout interest rate

I'm trying to determine the interest rate that will be used when calculating my annuity payment from TIAA Traditional due to contributions made between 1987 and 1991. My payment will be higher than that (as long as I don't choose interest only payments) because of return of principal and will depend...
by nun
Mon Jul 15, 2013 8:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIAA-Traditional payout interest rate
Replies: 4
Views: 432

TIAA-Traditional payout interest rate

I own an TIAA-Traditional annuity that I made payments to between 1987 and 1991. I am now thinking about using it to provide a small amount of guaranteed income in retirement. I've looked at the accumulation and payout rates for various vintages of contributions and am I right in thinking that the i...
by nun
Mon Jul 15, 2013 7:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIAA-Traditional payout interest rate
Replies: 4
Views: 432

Re: Vanguard and Norway

Where do you live? If it's Norway you need to look at their rules governing investing in foreign funds. I know for the UK most foreign funds are taxed as if all gains are income, that includes all US Vanguard mutual funds, but not the ETFs and the only way to buy the ETFs is if you already have a US...
by nun
Sat May 25, 2013 12:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard and Norway
Replies: 15
Views: 1803

Re: Funding from 52.5 to 59.5

I think there is an exception that allows you to withdraw your IRA's without penalty if they are taken in a series of periodic payments over your life expectancy, so you might consider doing that and take less from the 457 accounts. Yes I could 72t, but I'd like to avoid that and I think it will be...
by nun
Fri May 24, 2013 8:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Re: Funding from 52.5 to 59.5

My advice: do not invent a strategy for the $230K in the 457+taxable in isolation. I think you should have a long-term allocation strategy for your combined assets. And maybe you do, but you've hidden it from us. It could be as simple as -- 50/50 equity/fixed income, -- X% of equity in internationa...
by nun
Wed May 22, 2013 6:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Re: Funding from 52.5 to 59.5

I would consider putting the foreign/internation equity allocation into US domestic large cap that pays a good dividend. I doubt you're getting much dividend from your foreign equties, but I could be wrong about that. Anyway, best of luck. It looks like you've considered this thoroughly. Yes that's...
by nun
Wed May 22, 2013 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Re: Funding from 52.5 to 59.5

7 years to get you to 59.5 should be a slam dunk if nothing changes - healthcare taken care of? Yes, right now I will get good insurance through work at a cost of $100/month, but there is a move to change that so just in case I have $500/month of my budget allocated to health insurance which will g...
by nun
Wed May 22, 2013 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Re: Funding from 52.5 to 59.5

Without knowing more about your situation, my back-of-the-envelope guesstimate is you will be cutting it close to make this work out. Are you planning to take SS at age 62? I'd be nervous like a long-tailed cat in a room full of rockin' chairs... I'll be taking SS at 66 or 70. At 59.5 I will begin ...
by nun
Wed May 22, 2013 2:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Re: Funding from 52.5 to 59.5

Is the $1,200 you get in rent, net to you? If you have to pay taxes on rental income, you may need to generate more than $1,800 in monthly income. The $1200 is what I get form the tenant, so I still have to pay taxes and the out goings associate with the rental, but I have accounted for those in my...
by nun
Wed May 22, 2013 1:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Funding from 52.5 to 59.5

Like many potential early retirees I have most of my money tied up in tax deferred retirement accounts that aren't easily accessible until 59.5. So my ER schedule is driven by not wanting to do a 72t and saving enough into accounts that I can get at without penalty before 59.5. Early next year I'm g...
by nun
Wed May 22, 2013 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding from 52.5 to 59.5
Replies: 20
Views: 1642

Re: Need 4% return to retire

I'm looking for recommendations for a fairly lazy Vanguard portfolio Here you go: In tax deferred: $300K Total Bond Market Admiral $200K Total Stock Market Admiral In taxable: $100K Total International Admiral That might be a bit too lazy for me. What about Taxable $25k cash $75k International Admi...
by nun
Fri Oct 14, 2011 8:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Need 4% return to retire
Replies: 20
Views: 3129

Re: Need 4% return to retire

Here are some of the complicating considerations. Firstly, inflation will erode the spending power of that income. You will actually have to find a way to find more than $24,000 per year increasing as each year goes by. To do that without eroding the portfolio, the portfolio will have to grow to ke...
by nun
Thu Oct 13, 2011 7:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need 4% return to retire
Replies: 20
Views: 3129

Need 4% return to retire

My question is pretty open ended. How would you arrange $500k in tax deferred funds and $100k in taxable accounts to generate 4% annual return. I'm 50, my mortgage is paid off, I get $1200 a month from rent, I've done my budgeting, planned for healthcare, decide what I want to do after work and to m...
by nun
Thu Oct 13, 2011 1:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need 4% return to retire
Replies: 20
Views: 3129

Re: What to do with US investments when leaving the country

I have to go back to my country (France) for good before the end of this year. During my stay in the US (9 years), I made investments and I was wondering what I should do with them. I have - a Roth IRA at Vanguard - a Rollover IRA at Vanguard - a 401(k) that I plan to rollover to Vanguard when my c...
by nun
Mon Oct 03, 2011 8:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with US investments when leaving the country
Replies: 26
Views: 3399

I can give you some advice from a UK perspective...so it won't be specific to your situation, but might give you some general pointers. You have to understand how the accounts are treated under the US/Fr tax treaty, but it's probably best to leave your retirement accounts in the US as to get the mon...
by nun
Mon Oct 03, 2011 2:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with US investments when leaving the country
Replies: 26
Views: 3399

...I will also receive both SS and UK state pension at age 66 so I would not renounce US citizenship in case that would endanger my US SS. That may be something you can circumvent. A non-US citizen not living in the US might not be able to claim SS directly, but can use US credits to qualify for UK...
by nun
Wed Sep 07, 2011 7:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax implications for dual citizenship
Replies: 29
Views: 4933

Having US and another citizenship too will complicate your tax life if you live outside the US and will also limit the types of investments that are available to you. ie it's a bad idea to invest in foreign based mutual funds as they are taxed under PFIC regulations which are complicated and nasty. ...
by nun
Tue Sep 06, 2011 11:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax implications for dual citizenship
Replies: 29
Views: 4933

You've obviously made the right decision in not investing in foreign mutual funds to avoid the arcane and draconian PFIC rules. You could always buy individual stocks though. Have you considered a French tax free savings account. It won't be US tax free, but if you use tax credits rather than FEIE y...
by nun
Fri Jul 29, 2011 1:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing from France
Replies: 43
Views: 5594

Re: ROTH contributions when living abroad

Can I still contribute to a ROTH if I live overseas and all of my income is foreign earned? You must have earned income to contribute to the ROTH. So if you use the foreign earned income exclusion you can only use the amount of your earnings above that to calculate your ROTH contribution. But if yo...
by nun
Wed Jul 27, 2011 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH contributions when living abroad
Replies: 8
Views: 1444

Re: ROTH contributions when living abroad

corner559 wrote:Can I still contribute to a ROTH if I live overseas and all of my income is foreign earned?
by nun
Wed Jul 27, 2011 12:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH contributions when living abroad
Replies: 8
Views: 1444

Nun, One other thing I think you are missing is the BIG impact taxes will have on your living expenses in retirement. You talk about your nestegg as if you can spend the whole thing. That is not true. Uncle Sam wants his tax share and will get a good amount of your funds as you withdraw them from y...
by nun
Thu May 26, 2011 9:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio to fund the gap between early retirement and 59.5
Replies: 36
Views: 4129
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