Author Topic: Investment Quandries for higher earner  (Read 568 times)

Britinboston

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Investment Quandries for higher earner
« on: April 24, 2017, 08:04:05 PM »
I am a Brit who moved to the US 5 years ago, still own a house in the UK that I rent, bought a house in the US (on 15yr fixed term), got engaged and recently discovered mr. money mustache via a friend. Now taking the principles to heart, i am looking at my investments and retirement planning and getting confused.  I do not qualify for the criteria for a Roth IRA so just weighing up my options and could do with some advice.  My financee would qualify under the current limits.

Have taken a look at vanguard VSTAX (something my friend uses) and read about some of the backdoor Roth IRAs I could work but find it all a bit bamboozling when havent got alot of time to do the research this really needs so thought Id pick your lovely brains for a kick start.

Any thoughts/suggestions etc would be greatly appreciated as we navigate our way through this.

MDM

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Re: Investment Quandries for higher earner
« Reply #1 on: April 24, 2017, 08:16:00 PM »
Britinboston, welcome to the forum.

Might be helpful for you to look through How To: Write a "Case Study" Topic, and structure your question around that.

For general "getting started" advice, consider Getting started - Bogleheads.

Scandium

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Re: Investment Quandries for higher earner
« Reply #2 on: April 25, 2017, 07:59:04 AM »
Need more info. What is your immigration status? H1B, I-511, other? Do you plan to move back? This will largely determine where you put your money.

What do you mean you "don't qualify" for a Roth? Because of immigration (I think you just need to work/tax here to qualify?), or because of income? For the latter you can just do a backdoor Roth like you said, takes an extra 5 min. But with high income you'll be better of with a 401k, if you have one and plan to stay in the US.   

dividendman

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Re: Investment Quandries for higher earner
« Reply #3 on: April 25, 2017, 10:33:57 AM »
But with high income you'll be better of with a 401k, if you have one and plan to stay in the US.
You're better off with a 401k regardless of if you want to stay in the US or leave.

There is usually a reciprocal agreement between the US and other countries on retirement accounts, so it is likely (though check to make sure) that the 401k can be treated as whatever the British equivalent is for tas purposes if you do move back.