Author Topic: Investment advice for future ex-pat  (Read 1626 times)

Michael792

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Investment advice for future ex-pat
« on: July 17, 2015, 03:35:13 PM »
I'm moving out of the country in two years and gaining another citizenship five after that. At that point I'll probably rescind US cit. as dual is difficult in Korea. Should I invest now and worry about the tax implications and FATCA later on, or wait to invest until I renounce US citizenship? I've been waiting the past year, but I'd rather invest to let it grow now. I just don't know enough about tax law to figure this one out. Worried that with the laws regarding renunciation and foreign citizen investment any money I gain now would be lost then.

Fuzz

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Re: Investment advice for future ex-pat
« Reply #1 on: July 20, 2015, 10:27:09 AM »
What? No. Invest now. Vanguard doesn't care where you live. You may want to do it in a taxable account.

Also, worrying about where you're going to be in 5 years when you're 22 is not a productive use of your time (but neither are internet forums :) )

StockBeard

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Re: Investment advice for future ex-pat
« Reply #2 on: July 20, 2015, 12:26:54 PM »
Vanguard doesn't care where you live
They do, actually. Depending on the relationship between the US and the country you choose to live in, your bank or any investment institution (including Vanguard) may choose to close your account.
Now, in general, they'd rather not do it, but sometimes the paperwork involved for them is too much, or there might be legal requirements.

I've learned it the hard way when Schwab almost unilaterally decided to close my account, after being one of their customers for 6 years. Nothing had changed in my situation, but *they* had decided that new laws in Japan/US made it too difficult for them to conduct business with people in Japan.
It took many, many phone calls to convince them to keep me as a customer.

With that being said, I'd advise to invest now, with Vanguard or whatever you're confident with. For what happens next, you'll cross that bridge when you get there. In my experience, investing in the US is the most flexible thing to do. If things happen, it would be easier to discuss with a bank/investment company in a language you're familiar with, in a country your familiar with, than somewhere else.

As Fuzz mentioned, you actually have *no* idea where you will be in 7 years. Maybe your citizenship request will get denied, or other stuff will happen in your life that make you change your plans. So just invest now.

Michael792

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Re: Investment advice for future ex-pat
« Reply #3 on: July 20, 2015, 02:21:34 PM »
Pretty direct and to the point. I hadn't thought of it that way. I'll be taking your advice, guys. Thanks for the help :)