Expat Mexico sold U.S. home, best way to invest money safely for year or two

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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lynneny
Posts: 187
Joined: Sun Apr 15, 2012 10:23 pm

Expat Mexico sold U.S. home, best way to invest money safely for year or two

Post by lynneny » Wed Nov 07, 2018 12:16 am

I just sold my apartment in a HCOL city, and want to put the money somewhere safe for a year or two until I (probably) buy a new home in LCOL area I'm retiring to in Mexico. After paying off the mortgage, I was left with enough to pay cash for next home. Since it's in a foreign country, I want to take time to be sure it's the right place for me, and learn about the local housing market. I'd likely buy CDs, but Schwab tells me I can't buy CDs as an expat. I don't know if this is just Schwab, or true for all U.S. financial groups. In any case, I tried to simplify my financial affairs by consolidating everything at Schwab and Vanguard before leaving U.S., so would rather not shop around elsewhere for CDs.

Should I put the house money in treasuries? I'm only hesitant because I've never invested in them before. And if so, should I buy one-year treasuries, or a shorter period like three or six months, and roll them over, with the idea that interest rates may rise further? Thanks!
Last edited by lynneny on Fri Nov 09, 2018 3:15 pm, edited 1 time in total.

michaeljmroger
Posts: 37
Joined: Fri Sep 21, 2018 10:54 am

Re: Sold home, best way to invest money safely for year or two

Post by michaeljmroger » Wed Nov 07, 2018 12:26 am

I’d just go with VUSXX, or SNSXX if you have a personal preference for Schwab (but keep in mind it’s quite a bit more expensive).

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BL
Posts: 8369
Joined: Sun Mar 01, 2009 2:28 pm

Re: Sold home, best way to invest money safely for year or two

Post by BL » Wed Nov 07, 2018 12:41 am

Not sure V is the right place for an ex-pat, according to what I have read here.

lynneny
Posts: 187
Joined: Sun Apr 15, 2012 10:23 pm

Re: Sold home, best way to invest money safely for year or two

Post by lynneny » Thu Nov 08, 2018 10:46 am

Thanks, but I believe VUSXX and SNSXX are both mutual funds, and expats can't invest in U.S. mutual funds (although Schwab lets expats buy ETFs) so that's part of the reason I was considering buying treasuries, which I can do.

Re comment about being an expat at Vanguard: It's true that as an expat, I can't make new investments at Vanguard. But I can keep my existing account, and can sell holdings. And dividends on existing holdings can be reinvested. I have my retirement savings in a rollover IRA at Vanguard, and also my Roth IRA. Since I'm retired now, I won't be contributing to retirement savings any more, and I can't legally contribute to Roth without earned income. So all I really want to do is sell existing investments as needed to fund my retirement.

Since Schwab has an international division I'm transitioning my U.S. Schwab account to, they're fairly expat friendly within the rules they have to legally follow (like not letting me buy mutual funds). So I have my checking/brokerage/taxable account at Schwab, and now my house money.

I did a lot of research on being an expat in the year before I moved, including long conversations with Vanguard and Schwab, as well as others I moved money away from (don't try to be an expat with Merrill). But I've only been in Mexico a few weeks, so this is all still a work in progress and will be a learning experience. I wish there were more expats on Bogleheads -- I know there are some and always read their posts carefully. Early in my career, I lived and worked for years in Europe and Latin America, but that was long before all the banking restrictions that make it tougher now. Besides, I was young then and didn't have any money!

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BL
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Re: Sold home, best way to invest money safely for year or two

Post by BL » Thu Nov 08, 2018 4:09 pm

You might try adding ex-pat Mexico to your title to find interested parties.

lynneny
Posts: 187
Joined: Sun Apr 15, 2012 10:23 pm

Re: Expat Mexico sold U.S. home, best way to invest money safely for year or two

Post by lynneny » Fri Nov 09, 2018 3:16 pm

Good idea, I added Expat Mexico to title.

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