Author Topic: US citizen/non-US resident issue  (Read 1032 times)

jlajr

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US citizen/non-US resident issue
« on: May 29, 2015, 11:52:48 PM »
Hello.

I'm a US citizen permanently living in Israel for more than 18 years.

About a year and a half ago, thanks mostly to MMM, I had my FIRE epiphany and I began saving and investing about half of my take-home salary. At first, I simply invested in a local mutual fund. I soon discovered the PFIC issue, sold my mutual fund holdings, and instead began investing directly in local government bonds and, most recently, a somewhat diversified portfolio of dividend-paying value stocks.

I don't want to open an account with a US brokerage and invest in US instruments because I do not want to expose my portfolio to US dollar-Israeli shekel exchange rate risk. On the other hand, I don't want to invest in local low-fee, broad-based index funds because of the PFIC issue.

If you have any thoughts, suggestions, or ideas, I'd love to read them.

Also, is there an online resource that shows the performance of an index or security in a currency other than its own? Meaning, if I can prove to myself that over long periods of time, it doesn't matter too much whether I invest in low-fee, broad-index-based Israeli securities or in low-fee, broad-index-based US securities, I might change my mind.

Thank you.