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FXF

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« on: April 29, 2016, 02:41:14 AM »
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« Last Edit: April 30, 2018, 12:55:42 PM by FXF »

Seppia

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When to sell if you know you have to sell 'soon'
« Reply #1 on: April 29, 2016, 03:12:22 AM »
I've had the same exact issue, only the other way around.
I used to live in the USA and I just moved back to Europe in January.
What I would recommend is
1- move physically
2- open accounts in the USA
3- once you are set up, sell on one side and buy on the other.
If you don't have a lot of extra cash you will probably have a few days in between, but the change should not be that dramatic.

If you don't have any USA account now, do not underestimate the difficulties of opening one because:

You need a proof of address and a social security number to open a bank account in the USA
Nobody is going to rent you an apartment if you do not have a bank account and a social security number

On top of that, USA banks do not "talk" to European banks, so you will most probably start with ZERO credit even if you are a millionaire somewhere else.

My recommendation is to open an account with Hsbc ASAP in your current country, as it is the ONLY bank that has the different subsidiaries communicate among each other, and they will immediately open you an account anywhere and give you credit.
It was a huge bonus for me when I moved to the USA, as I started with a small but reasonable $12.000 credit, whereas some other expatriates (even people much much wealthier than me) had to struggle for a couple years with $500-1000
If you're mustachian not having credit is certainly not an issue but it will become one the moment you need to buy a house, as the interest rate the banks will charge you depends on it.

Also added bonus with Hsbc is that if you have more than $100.000 with them you have free "Global View", which allows you to move funds between your international accounts completely free of charge.

I am not affiliated with Hsbc at all, but I have been an expatriate for the last 13 years of my life and came to appreciate their advantages.
Plus, other than that as a bank they kinda suck
« Last Edit: April 29, 2016, 03:14:07 AM by Seppia »

Seppia

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When to sell if you know you have to sell 'soon'
« Reply #2 on: April 29, 2016, 04:25:36 AM »
I have no idea what FATCA is.
I'm not 100% sure you absolutely have to tell them you've moved immediately.
You could "forget" to inform them for a month.

Seppia

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Re: When to sell if you know you have to sell 'soon'
« Reply #3 on: April 29, 2016, 04:45:46 AM »
Ok understood.
What matters to the USA is that you do not hold foreign assets without telling them.
You will have to report any foreign holding when doing taxes in Y+1.
So if you move in August you will have to file your taxes by April 15th 2017.
If you sell everything in the USA reasonably quickly (say by September) nobody is going to mess with you.

forummm

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Re: When to sell if you know you have to sell 'soon'
« Reply #4 on: April 29, 2016, 08:33:58 AM »
I'm in the US so maybe I don't understand the problem. Why can't you continue to own your ETFs, move to the US, and just declare your accounts? Then once you have an account established in the US, you could just transfer things then? It might be a hassle, but there has to be an option to do this. The US is very interested in having people with money move here.

You could continue to own EUR denominated EFTs in a brokerage account. I know Interactive Brokers lets you buy EUR with USD and buy EUR denominated assets. I'm pretty sure you could sell the EUR ETFs and then trade your EUR for USD and then buy the USD ETFs if you want to do that.

Seppia

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Re: When to sell if you know you have to sell 'soon'
« Reply #5 on: April 30, 2016, 01:03:31 AM »
Let me insist: why do you have to do that?
Move to the USA
Open a USA bank account
Sell the funds in the German bank
Transfer the money
Buy equivalent American funds.

Veurx is the vanguard Europe fund
Vtsax is the vanguard total stock fund

These should replicate fairly well (probably with a much lower Ter) the funds you have today.

I would not consider it a major crime if you didn't tell your German bank you moved to the USA for a couple weeks (while you open the USA account).
If you don't feel comfortable, just cross your fingers and hope the markets don't go on a massive rally while you're in cash.

It's not that complicated