Search found 74 matches

by wineandplaya
Mon Dec 09, 2019 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: 16 Weeks Paternity Leave
Replies: 92
Views: 4454

Re: 16 Weeks Paternity Leave

Congrats to 16 weeks paternity leave! I was pleased to have gotten four weeks. In my case, I had to take the leave in whole week increments, and decided to use some of the parental leave weeks for our annual vacation to visit family. That freed up my regular vacation PTO (which I can divide up howev...
by wineandplaya
Fri Nov 22, 2019 10:51 pm
Forum: Personal Investments
Topic: How to do after-tax contribution to Prudential Roth 401k?
Replies: 8
Views: 457

Re: How to do after-tax contribution to Prudential Roth 401k?

FWIW, my Prudential 401(k) doesn't support in plan Roth rollover. But I can still do the mega backdoor by calling Prudential and requesting an after tax withdrawal. And, once the check has arrived in the mail, do a 60 day rollover into my Roth IRA.
by wineandplaya
Wed Nov 20, 2019 5:19 am
Forum: Non-US Investing
Topic: EU citizen- US Green card holder - Feedback on my plan for the next 10 years.
Replies: 17
Views: 1347

Re: EU citizen- US Green card holder - Feedback on my plan for the next 10 years.

So I tought about a different plan. I am thinking about maximizing the Roth 401k (above the match), backdoor Roth Ira route for me and spouse and maybe MegaBackdoor roth ira. My reasoning is what if I actually want to apply for/keep a US Citizenship? At least in this method, some tax diversificatio...
by wineandplaya
Fri Nov 15, 2019 8:39 pm
Forum: Non-US Investing
Topic: Non resident Alien considering relocation from US to EU
Replies: 10
Views: 812

Re: Non resident Alien considering relocation from US to EU

I'm thinking of Germany as my primary option, followed by France and Sweden. Germany and France both have usable US estate tax treaties, leaving you safe from US estate tax up to $11m of assets. Sweden does not, so here you would only get the miserly $60k US estate tax exemption. If you move to Swe...
by wineandplaya
Thu Nov 14, 2019 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: End-of-year bonus for nanny with leftover FSA funds?
Replies: 3
Views: 509

Re: End-of-year bonus for nanny with leftover FSA funds?

I don’t know if a bonus would be OK or not. But, since caretakers per hour wage can vary quite a bit, could you just bump her per hour rate for the rest of the year? That is an alternative. But it would sort of ruin the surprise element. And we also don't know in advance how much leftover money we ...
by wineandplaya
Thu Nov 14, 2019 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: End-of-year bonus for nanny with leftover FSA funds?
Replies: 3
Views: 509

End-of-year bonus for nanny with leftover FSA funds?

It looks like we won't be using up all the funds in our dependent care FSA this year. Since the money is use-it-or-lose-it, I thought we might as well give the leftover money (probably around $1000) to our great part-time nanny as an end-of-year bonus. Is this permitted or will it raise red flags? W...
by wineandplaya
Tue Nov 12, 2019 10:16 pm
Forum: Non-US Investing
Topic: European in the US wants to FIRE in 5 years. Questions.
Replies: 44
Views: 3834

Re: European in the US wants to FIRE in 5 years. Questions.

The country is Sweden. Does anyone have experience with this? If you speak Swedish, the forum at www.skatter.se is a good resource for international tax-related questions. You can probably write in English there as well. Realize that Swedish tax rates are much steeper than US ones, especially incom...
by wineandplaya
Tue Nov 12, 2019 2:30 am
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Re: Advantages for US persons abroad

Back on topic ... is there enough material here for a wiki page? While there are a few small niche non-tax benefits, I count only a very few actual US tax advantages , and at least one of these, possibly two, are really just being able to avoid US tax nonresident alien disadvantages . If not a new ...
by wineandplaya
Sun Nov 10, 2019 9:29 pm
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Re: Advantages for US persons abroad

f you also qualify for a non-US pension as a result of working abroad, you do however need to watch out for SSA's 'windfall elimination provision'. https://www.americansabroad.org/windfall-elimination-provision/ I think those are increasingly rare abroad, at least in Europe. I've worked and paid in...
by wineandplaya
Sun Nov 10, 2019 1:16 pm
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Re: Advantages for US persons abroad

The OP said: "Depending on the local taxation, you can slowly roll-over pre-tax IRA/401(k) to Roth, paying little or no income taxes (no state taxes, little federal taxes if foreign income is excluded using the FTC or FEIE." Your understanding is wrong. Here is what the IRS says: "Figuring the tax:...
by wineandplaya
Sun Nov 10, 2019 1:04 pm
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Re: Advantages for US persons abroad

OP, do you plan to retire in the US? Or do you actually plan to live out of the US forever? If the latter, then holding the US citizenship is a huge liability. Your financial life will be ruined. My wife's family all live in the US and my family all live in Europe. I think that the most likely scen...
by wineandplaya
Sun Nov 10, 2019 12:31 pm
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Re: Advantages for US persons abroad

It may depend on how long you work in those countries. I also think it depends *when* you worked in those countries. For Sweden, the old pension system (that could trigger WEP as per the totalization agreement) was replaced with a defined-contribution system in the mid 90'ies. If you worked there t...
by wineandplaya
Sun Nov 10, 2019 10:15 am
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Re: Advantages for US persons abroad

f you also qualify for a non-US pension as a result of working abroad, you do however need to watch out for SSA's 'windfall elimination provision'. https://www.americansabroad.org/windfall-elimination-provision/ I think those are increasingly rare abroad, at least in Europe. I've worked and paid in...
by wineandplaya
Sat Nov 09, 2019 6:19 pm
Forum: Non-US Investing
Topic: Advantages for US persons abroad
Replies: 42
Views: 3524

Advantages for US persons abroad

There are some threads about all the unique tax-disadvantages that US persons (i.e. citizens and green card holders) abroad face. But there are also some unique tax *advantages*, both compared to non-US persons abroad and to US persons living in the US. To make the prospect of being a US person abro...
by wineandplaya
Fri Nov 08, 2019 11:22 pm
Forum: Non-US Investing
Topic: EU citizen- US Green card holder - Feedback on my plan for the next 10 years.
Replies: 17
Views: 1347

Re: EU citizen- US Green card holder - Feedback on my plan for the next 10 years.

Good idea. I have already put some money in a traditional 401k this year. Any possibility of recharacterization of this year's contributions? I doubt you can do that. If you change employer, you could roll it over to a Roth IRA however, and be able to access the money penalty-free five years later....
by wineandplaya
Fri Nov 08, 2019 9:08 pm
Forum: Non-US Investing
Topic: EU citizen- US Green card holder - Feedback on my plan for the next 10 years.
Replies: 17
Views: 1347

Re: EU citizen- US Green card holder - Feedback on my plan for the next 10 years.

You might want to do Roth 401(k) instead of traditional. You can then get your contributions back when quitting your job without tax consequences. Traditional (on top of your pretax employer match) might push you up to a higher tax bracket. Your penalty will be much smaller also since it will only a...
by wineandplaya
Tue Nov 05, 2019 11:17 pm
Forum: Non-US Investing
Topic: [wiki] New page for (potential) US citizens abroad: "US tax pitfalls ..."
Replies: 16
Views: 1103

Re: [wiki] New page for (potential) US citizens abroad: "US tax pitfalls ..."

Maybe mention the risk of local taxation of Roth earnings. While Roth IRA and Roth 401(k) distributions in retirement are free of US tax, whether they'll get hit by local taxes varies from country to country and is sometimes unclear. Solution might be to stick with traditional IRA/401(k) or move the...
by wineandplaya
Fri Nov 01, 2019 8:26 pm
Forum: Non-US Investing
Topic: FTC vs. FEIE in a high-tax country
Replies: 3
Views: 320

Re: FTC vs. FEIE in a high-tax country

TedSwippet, Thank you for a very good overview - definitely a lot to think about and I will probably have to revisit some of it. My wife is American and her family lives here so cutting ties with the US completely isn't really an option for us. We might have to move back to be close to her parents a...
by wineandplaya
Fri Nov 01, 2019 11:49 am
Forum: Non-US Investing
Topic: FTC vs. FEIE in a high-tax country
Replies: 3
Views: 320

FTC vs. FEIE in a high-tax country

I'm trying to understand the implications of the foreign tax credit (FTC) vs. the foreign earned income exclusion (FEIE) once my wife and I decide to move to Europe a couple of years from now. The countries we are considering living in are all countries with significantly higher tax rates than the U...
by wineandplaya
Mon Oct 21, 2019 4:55 am
Forum: Investing - Theory, News & General
Topic: Help me think about Pakistani bond
Replies: 55
Views: 5152

Re: Help me think about Pakistani bond

It seems like everyone's answers so far are in terms of what the OP should do. I'm curious as to what OP's Pakistani friend should do. Suppose I'm from Pakistan, with family ties, etc. in Pakistan, but I'm living in the US. Is this still as bad of a deal for me as it would be for the average Americ...
by wineandplaya
Sun Sep 29, 2019 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

And? That is simply more evidence that you might not be as valuable to management as you think you are. BTW, that is not to suggest that you aren't very valuable to the future success of the company, but if they were convinced of that this wouldn't even be a topic of discussion. Exactly! I don't de...
by wineandplaya
Sun Sep 29, 2019 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

Not to beat a dead horse but if you are truly irreplaceable then the best thing for the company to do might be to just cancel your project and do some other sort of business. The problem is that even if they paid you boatloads of money to keep you happy and let you work remotely then there is a sti...
by wineandplaya
Sun Sep 29, 2019 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

Not to beat a dead horse but if you are truly irreplaceable then the best thing for the company to do might be to just cancel your project and do some other sort of business. The problem is that even if they paid you boatloads of money to keep you happy and let you work remotely then there is a sti...
by wineandplaya
Sat Sep 28, 2019 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

I think one of the concerns of management is that if they allow some people to work remotely, others that would consider relocating might demand the same thing. This is really the issue in many of these situations. If they do it for you, they have to do it for your peers. To the extent your situati...
by wineandplaya
Sat Sep 28, 2019 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

Thanks for good suggestions. I'll try to put together a comprehensive plan, in writing, which includes a commitment to travel to the new site. I'll also avoid the topic of irreplaceability since it's clear from this thread that it can backfire. I'll also make sure that I have ample liquidity since i...
by wineandplaya
Sat Sep 28, 2019 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

1) Are you willing to travel and pay for the travel expense if you need to attend on-site meeting at the new location? I would to some extent since I have a small baby at home. The two US-based remotes I know come for maybe 2-3 days every 3 months. That would be acceptable. If I was forced to pay f...
by wineandplaya
Sat Sep 28, 2019 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Re: Employer is relocating - how to be allowed to work remotely

... I also think it's basically impossible for the company to find a replacement for me... That may be the case but they can find a way to get your work done without you. I doubt it. I think it would simply result in a lost opportunity and smaller market share for the company. My position was left ...
by wineandplaya
Sat Sep 28, 2019 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Employer is relocating - how to be allowed to work remotely
Replies: 51
Views: 3919

Employer is relocating - how to be allowed to work remotely

My employer is relocating to another state in about a year and all employees have been given the choice of accepting a generous relocation package or get severance pay. Now, I really like my job, and want to keep it, but moving isn't really an option, for my spouse in particular, in the next three y...
by wineandplaya
Fri Sep 27, 2019 4:37 am
Forum: Non-US Investing
Topic: Investing in Norway for expat
Replies: 26
Views: 2046

Re: Investing in Norway for expat

iShares has two Norway ETFs for US based investors, ENOR and NORW, might make things a lot simpler.
by wineandplaya
Mon Sep 16, 2019 2:27 pm
Forum: Non-US Investing
Topic: Not so happy in Denmark... individual stocks better than index funds? [US ex-pat]
Replies: 43
Views: 4279

Re: Not so happy in Denmark... individual stocks better than index funds? [US ex-pat]

I assume your index funds aren't held in tax-advantaged accounts? Like 401(k)/IRA? If they were, I'd assume that the US-Denmark double taxation treaty and totalization agreement would apply. Double taxation agreement can mean little. If the US doesn't tax the 401(k), that means Denmark can. It won'...
by wineandplaya
Sun Sep 15, 2019 10:10 pm
Forum: Non-US Investing
Topic: Not so happy in Denmark... individual stocks better than index funds? [US ex-pat]
Replies: 43
Views: 4279

Re: Not so happy in Denmark... individual stocks better than index funds? [US ex-pat]

I assume your index funds aren't held in tax-advantaged accounts? Like 401(k)/IRA? If they were, I'd assume that the US-Denmark double taxation treaty and totalization agreement would apply.
by wineandplaya
Sat Sep 14, 2019 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: DIY nanny payroll
Replies: 11
Views: 1104

Re: DIY nanny payroll

Have you registered for state unemployment insurance? That was an online quarterly payment for us. Also have you upped your income tax withholding to cover the amounts you will owe on schedule H? Have you looked into workers comp insurance— I think we ended up with a small policy from our homeowner...
by wineandplaya
Sat Sep 14, 2019 8:30 am
Forum: Personal Finance (Not Investing)
Topic: DIY nanny payroll
Replies: 11
Views: 1104

DIY nanny payroll

We just hired two nannies to care for our infant daughter - in total 25h/week - and I'm trying to figure out how to do the payroll cheaply. I quickly realized that dedicated nanny payroll services (like Homepay by care.com) are quite expensive and more reasonably priced alternatives aren't even offe...
by wineandplaya
Mon Sep 09, 2019 7:24 pm
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 6262

Re: How to beat 2% safely?

There is only savings account (around 2 %), CD ladder (around 2%), MM (currently less than 2), bonds with some risk (around 2 %) and the mortgage (3.5% with the risk of bound capital and illiquidity) None of the above are much work at all... With standard deduction, 3.5 % for mortgage is tax-free s...
by wineandplaya
Mon Sep 09, 2019 8:01 am
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 6262

Re: How to beat 2% safely?

How about paying down or off the mortgage of your current house? That money becomes available exactly when you need it, i.e. when selling your current house to move into a larger one? I don't think that works quite the way you claim. OP has to live somewhere while buying the new house and empty hou...
by wineandplaya
Sun Sep 08, 2019 6:48 pm
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 6262

Re: How to beat 2% safely?

How about paying down or off the mortgage of your current house? That money becomes available exactly when you need it, i.e. when selling your current house to move into a larger one?
by wineandplaya
Sat Aug 31, 2019 11:56 am
Forum: Personal Investments
Topic: FIRE Drawdown Plan
Replies: 62
Views: 6985

Re: FIRE Drawdown Plan

Curious as to what locations you’ve identified that would allow you to live comfortably in $28,000/year, including paying for medical care? I don’t doubt there are some. We're kind of going out on a limb on this one. Some folks do it in the US but we're looking abroad. Currently Portugal, Spain, It...
by wineandplaya
Sat Aug 31, 2019 2:41 am
Forum: Non-US Investing
Topic: Tax treatment for US expats of tax deferred plans in European countries
Replies: 4
Views: 513

Re: Tax treatment for US expats of tax deferred plans in European countries

How old will you and your wife be when you move? Also, is the move at least 5 years away? I think that a big unknown is Roth IRA/401k. My impression is that at least for Spain, it will most likely to be treated the same as a non-deductible traditional IRA/401k. That is, you'll only get taxed on the ...
by wineandplaya
Sat Aug 24, 2019 5:59 am
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 13598

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

Fwiw, in terms of mathematical optimization terminology, the three part portfolio can be called a heuristic to solve a stochastic optimization problem. The stochastic optimization problem itself is intractable, "NP hard".
by wineandplaya
Sat Aug 17, 2019 3:29 pm
Forum: Non-US Investing
Topic: Assets split between US and Europe (Spain) [Spanish ex-pat in US]
Replies: 5
Views: 455

Re: Assets split between US and Europe (Spain) [Spanish ex-pat in US]

Exit tax is not an issue if you plan on applying for citizenship or if you're savings are smaller than $2M (I think). If you move back to Spain, you will probably lose your green card eventually (triggering exit tax), but your citizenship stays with you for life, unless you explicitly renounce it. W...
by wineandplaya
Fri Aug 09, 2019 5:55 pm
Forum: Spain
Topic: Retirement - Spain or Portugal?
Replies: 36
Views: 5498

Re: Retirement - Spain or Portugal?

If you live less than 6 months per year, you will not be taxed in Spain and Portugal. This is incorrect. Spending less than 6 months is a necessary but not sufficient condition for not being taxed. I google it: Anyone residing in Portugal for 183 days or more during a single calendar year must pay ...
by wineandplaya
Fri Aug 09, 2019 5:32 pm
Forum: Spain
Topic: Retirement - Spain or Portugal?
Replies: 36
Views: 5498

Re: Retirement - Spain or Portugal?

WhiteMaxima wrote:
Fri Aug 09, 2019 11:55 am
If you live less than 6 months per year, you will not be taxed in Spain and Portugal.
This is incorrect. Spending less than 6 months is a necessary but not sufficient condition for not being taxed.
by wineandplaya
Fri Aug 09, 2019 11:10 am
Forum: Spain
Topic: Retirement - Spain or Portugal?
Replies: 36
Views: 5498

Re: Retirement - Spain or Portugal?

Any consideration of living in Spain fewer than 183 days each year? I have some questions regarding your plan. As you can only stay in a Schenngen country for 90 days w/o a long stay visa, and you only plan to return to the US for 30-45 days, where will you spend the remaining time? I know that the...
by wineandplaya
Wed Jul 31, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling over after-tax 401(k) withdrawal to Roth IRA
Replies: 16
Views: 1448

Re: Rolling over after-tax 401(k) withdrawal to Roth IRA

Spirit Rider wrote:
Wed Jul 31, 2019 12:05 pm
This was not correct. IRS regulations require 20% withholding on the distribution of taxable 401k assets (the pre-tax earnings).
Weird. I'll ask them about this.
Is suggest you politely refer the 401k plan to IRS regulation 26 CFR § 1.401(a)(31)-1.
I see. Thanks!
by wineandplaya
Wed Jul 31, 2019 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Rolling over after-tax 401(k) withdrawal to Roth IRA
Replies: 16
Views: 1448

Re: Rolling over after-tax 401(k) withdrawal to Roth IRA

Update: I was able to do the rollover successfully. Had to make one phone call to my 401(k) custodian to request the after-tax contributions and earnings be paid out. No taxes were withheld. They sent me a check in the mail which I cashed and then made another phone call to Fidelity to make a 60-day...
by wineandplaya
Thu Jul 25, 2019 1:31 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 241
Views: 23961

Re: What is your allocation to U.S. and International?

We do 100 % international, all equities. Instead of bonds, we opt for aggressively paying down our mortgage (a 3/1 ARM at 3.5 %). After the mortgage is paid off (hopefully within the 3 year intro rate), we'll probably start putting international equities in taxable and US bonds in tax-advantaged. W...
by wineandplaya
Thu Jul 25, 2019 12:56 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 241
Views: 23961

Re: What is your allocation to U.S. and International?

We do 100 % international, all equities. Instead of bonds, we opt for aggressively paying down our mortgage (a 3/1 ARM at 3.5 %). After the mortgage is paid off (hopefully within the 3 year intro rate), we'll probably start putting international equities in taxable and US bonds in tax-advantaged. We...
by wineandplaya
Mon Jul 22, 2019 4:30 pm
Forum: Spain
Topic: Retirement - Spain or Portugal?
Replies: 36
Views: 5498

Re: Retirement - Spain or Portugal?

Have you considered Andorra? Andorra would be a great option. However a somewhat issue is that they don't have an international airport. That means you would need to have the right visa when landing in Spain or France. Barcelona would be the closest big international airport, with good direct fligh...
by wineandplaya
Mon Jul 22, 2019 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Rolling over after-tax 401(k) withdrawal to Roth IRA
Replies: 16
Views: 1448

Re: Rolling over after-tax 401(k) withdrawal to Roth IRA

Why the rush to pay taxes on the earnings? If you wait until you leave the company you should be able to separate just the after-tax contribution portion. https://fairmark.com/retirement/roth-accounts/roth-conversions/isolating-basis-for-a-roth-conversion/ You can separate out the after-tax contrib...
by wineandplaya
Sun Jul 21, 2019 10:24 pm
Forum: Spain
Topic: Retirement - Spain or Portugal?
Replies: 36
Views: 5498

Re: Retirement - Spain or Portugal?

Have you considered Andorra? Beautiful scenery with great skiing in the winter and great hiking in the summer. 3 h by car to Barcelona. Lots of nice places to visit both on the French side and the Spanish side. Much lower taxes than either Spain or Portugal. Language won't be problem if you speak Sp...