How to invest when you are constantly on the move?

[Pituga]

Hello Moustachians,

I was wondering if any of you is going through (or know anyone that is in) a situation like mine.

I'm from Portugal, where I have a paid for flat that I currently have rented. Other than the flat and the rent, I have no other assets there.

However I've been away from Portugal for a while. I got a job in the UK, where I worked for 5 years and built a small nest through a company sponsored pension. They equalize my payments up to 6%, which is what I currently contribute as well.

4 years ago I was invited by the same company to move temporarily to the US as an expat. This was a great move, as I was able to earn more and spend less, because expenses like renting and car are paid by the company. I also found the love of my life here and wish to stay.

When I finish my 5th year, depending on the Visa I can get, I may stay longer, or move back to the UK or to another office this company has worldwide.

While here I kept my pension in the UK and have a second one in the US. I keep putting money in both pensions: 6% in the UK and 12% here and the company contributes 6% to each pension.

Now on my 40s and with an uncertain future, I'm a bit lost about what I should do. How can I keep investing in the US if there is the risk of me to leave? And I also don't want to keep investing in the UK and in Portugal if I'm to stay here.

How can I consolidate my investments if I'm constantly on the move?

Right now I'm trying to maximize all my investments, but I'm afraid of being penalized if I need to move again and have to cancel one of my pensions.

What do you suggest someone like me to do with so much uncertainty?
P

[Pituga]

Hi Undercover,

That is one of the cards in the deck. If that works (and we are moving in that direction), then part of my problem is solved. However I still have the other pension plan in the UK, that will most probably be cancelled. Maybe Vanguard allows to rollover non-US pensions? This is something I need to think. Also because I don't want to get penalized by closing the UK pension.
Here the company I work for uses Vanguard and in the UK they use Prudential... I just hop I can put it all in just one!

[arebelspy]

How can I consolidate my investments if I'm constantly on the move?

Why do you feel you need to?

[Pituga]

Well, my concern is that if I have small amounts of money invested in different companies of funds around the world, the interest gains will be lower than if I had everything in just one company (like Vanguard for example).
Also, when I retire, I fear I will loose some money in exchange rates.
Does this make sense?

[Kwill]

Sounds like maybe you need to be patient with the situation until you know where you'll be settling. You're saving in each country, and that's good, right?

Transferwise makes transferring money a cheaper than through the bank. I'm sure there are other websites, too, so it'd be worth looking around with Google or something. I just didn't find out until after some very expensive transfers when I was moving from the US to the UK. Anyway, here's a referral link you can use to try it without a fee the first time: https://transferwise.com/u/1af3fe6

Mint.com allows you to add accounts from multiple countries. Everything ends up looking like dollars, but it'd be worth seeing if you can get your different accounts to show up at the same time.

[arebelspy]

Well, my concern is that if I have small amounts of money invested in different companies of funds around the world, the interest gains will be lower than if I had everything in just one company (like Vanguard for example).

Well if all the companies have low fees, no, doesn't matter.

$1MM in one account earning interest would be the same as $1 in 1 million accounts, each earning interest (assuming, again, the same fees).

Also, when I retire, I fear I will loose some money in exchange rates.

Should all even out in the wash, in general.  Some currencies may go up, some down, and probably average net to 0.

I mean, sure, you can work on consolidating each time you move/switch.  That makes sense.  And you can just invest in the eventual country you want to ER to anyways.  But I wouldn't stress about having money in different accounts, as long as you get the expense ratios low.

Probably no way to avoid having pensions in different currencies, unless they have a cash out option.  Having them in different currencies might be a good hedge, anyways.

[Pituga]

Thanks guys.
The more I read your comments and talk to different people, the more I realize I'm probably stressing too much about this issue.
I'm focoused in early retirement and know there is still a bit to get there. Maybe the best I can do right now is to relax and let my money grow.

Thanks again for your help.

[arebelspy]

It is often the case that the less investment activity you do, the better.

Get as low of fees/expense ratios as possible, invest as much as possible, wait.  :)