Author Topic: POST-Fire virtual mail box & investments  (Read 878 times)

movingtobangalore

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POST-Fire virtual mail box & investments
« on: February 22, 2021, 04:12:55 PM »
Hey guys I need some advise related to virtual mailbox and investments.

We are a family of 3 heading towards FIRE by Aug 2021. All are US citizens & will continue to stay as US citizens. We have been NY residents for the past 16 years. We are going to move to India and arbitrage our USD savings and hopefully FIRE in India. We have index mutual funds at Vanguard and Fidelity. We will rollover our 401K & 454b to Traditional IRA when we quit or US jobs.

I plan on getting a virtual mailbox before I move. I will give my CPA's address as physical address and get a NY or NJ virtual mailbox address from Traveling mailbox. Do you guys see any red flags in this strategy.

My questions are

1. Would vanguard or fidelity flag me that I have a physical address in NJ and have a virtual mailbox in NY?
2. Do I need to have both my physical address & virtual mailbox address in the same state?



ixtap

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Re: POST-Fire virtual mail box & investments
« Reply #1 on: February 22, 2021, 04:40:55 PM »
Do you plan to use your virtual mailbox to maintain residency or will you formally be expats? For example, do you plan to keep your NY driving license? Will you be filing taxes as foreign residents or NY residents?

movingtobangalore

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Re: POST-Fire virtual mail box & investments
« Reply #2 on: February 22, 2021, 05:40:15 PM »
I haven't considered submitting or giving up my NY drivers license. I dont know if I should. Any advise is appreciated. What are the considerations?

We will be outside USA and therefore NY for at least 11 months of the year. Therefore we'll file taxes as foreign residents using CPA.

movingtobangalore

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Re: POST-Fire virtual mail box & investments
« Reply #3 on: February 22, 2021, 05:42:14 PM »
We are registered to vote in the state of NY too.

maizefolk

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Re: POST-Fire virtual mail box & investments
« Reply #4 on: February 22, 2021, 06:19:07 PM »
We are registered to vote in the state of NY too.

Once you become an expat you remain eligible to vote in all federal elections in your last state of residence. In some states you can vote continue to in state elections too, in others not.

movingtobangalore

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Re: POST-Fire virtual mail box & investments
« Reply #5 on: February 23, 2021, 10:44:54 AM »
Any advise on my above questions?

1. Would vanguard or fidelity flag me that I have a physical address in NJ and have a virtual mailbox in NY?
2. Do I need to have both my physical address & virtual mailbox address in the same state?

Should I keep my NY drivers license or submit it?

reeshau

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Re: POST-Fire virtual mail box & investments
« Reply #6 on: February 24, 2021, 08:37:50 AM »
The biggest consideration is whether or not you want to keep paying NY state income tax.  Most people leaving the country would want to establish residency in a state without income tax, to remove that cost and hassle.  But to do so, you would not only need to remove your NY residency, but establish in the new state.  (i.e. drivers license, register to vote, etc.)  The only issue I would see in having the two addresses is the two states you have chosen are both "sticky" in terms of income tax.  You might be contested for both.  I would not hand in your NY drivers license unless you were going to get one in another state.  You do have to consider the logistics of renewing it, when the time comes--either time your visit to renewal time, or plan far ahead--likely, farther ahead than their normal process allows.

You say you will be out of country for 11 months of the year.  Where will you be in the US?  Will you always go to New York?  Do you have family there?  Or will it be to visit a variety of places?  If it was always NY, you might get into contention about residency, if you established it elsewhere.

I don't think Vanguard or Fidelity will care.  That's why they have multiple addresses in their database.  Every snowbird ever will have at least 2 addresses, in different states.  It's not uncommon.


Shane

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Re: POST-Fire virtual mail box & investments
« Reply #7 on: February 24, 2021, 09:14:05 AM »
Any advise on my above questions?

1. Would vanguard or fidelity flag me that I have a physical address in NJ and have a virtual mailbox in NY?
2. Do I need to have both my physical address & virtual mailbox address in the same state?

Should I keep my NY drivers license or submit it?

Pretty sure you won't have any problems with your mailing address being in a different state from your legal physical address. Using Traveling Mailbox, it's cheapest, and I've heard mail may get processed more quickly, if you use TM's base in Sanford, NC, as your mailing address. We did that in 2018-2019, and didn't have any problems with any of our financial accounts at Vanguard, Schwab, Capital One, Chase, Citibank, etc., even though our physical address was in two completely different states, hundreds/thousands of miles away from NC. Can't say for sure, though, about Fidelity, as we didn't have any accounts there while we were using TM, but it's hard to imagine they would be any different from the rest. I would definitely hold on to my NY DL, at least until you decide to swap it out for one in another state or country. No sense burning any bridges unnecessarily.

jim555

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Re: POST-Fire virtual mail box & investments
« Reply #8 on: February 24, 2021, 02:08:43 PM »
I haven't considered submitting or giving up my NY drivers license. I dont know if I should. Any advise is appreciated. What are the considerations?

We will be outside USA and therefore NY for at least 11 months of the year. Therefore we'll file taxes as foreign residents using CPA.
Technically NY requires notification of change of address within 10 days for a Driver's License.

MustacheAndaHalf

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Re: POST-Fire virtual mail box & investments
« Reply #9 on: March 03, 2021, 11:08:23 AM »
If you're leaving some things in New York, or own property there, that can be evidence you plan to return.  If you visit New York for a month every year, that might be evidence you have ties and plan to return - the goal of the state tax people is to show you're still resident who will return one day, so they can tax you.

Do you have evidence showing your move is permanent?  Might want to document that, and provide it to your CPA as you move (you may close accounts or end a lease, and those receipts may prove helpful).

trygeek

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Re: POST-Fire virtual mail box & investments
« Reply #10 on: March 03, 2021, 05:19:51 PM »
I think you might have meant 457b retirement plan. Just consider if you roll it over into an IRA if you are under 59.5 and take money out of it there will be penalties. However you can take money out of the 457b without penalties once you leave your current job without penalties. There are no early withdrawl penalties for 457b's as long as you are no longer employed at the job that gave you the 457b. I'm in the same situation.