In recent years, investors’ appetite for cheaper, passive ways to diversify has accelerated growth in the global exchange-traded fund (ETF) industry. According to industry data-provider ETFGI, total assets in ETF products surpassed $4 trillion as of May 2017 globally. Growth in ETF assets combined with frothy global markets has spawned an increasing amount of alarming press emerging over the safety of ETFs. The size of the industry, its largely passive investment style, lack of liquidity...
For expats who are considering a home purchase, buying a less expensive house can be difficult—for most of us, costlier homes simply seem more desirable. But you should be aware of the trade-off: By sacrificing a little size and whatever other amenities the more expensive home has, you can add significantly to your retirement savings. As an example, in our case study below we show how additional retirement savings of almost USD 1.2 million may...
This article is for general information purposes only and is not intended as specific tax advice. Please consult your tax advisor for advice relevant to your situation. Buying a home overseas is a significant financial decision for any expatriate. For American taxpayers who are taxed on their global income, it’s important to understand how foreign exchange movements can impact the U.S. tax you may owe when you sell an overseas property. Pay Attention to Currency...
When it comes to currency, there is no shortage of places for expats to hold their savings. Many offshore banks offer multicurrency accounts and market high-yielding forex or dual-currency deposits to their expat clients. Concerns regarding the viability of some currencies as well as recent government interventions can complicate the decision about which currency to hold. Since even a relatively small foreign exchange move can have a significant impact on expats' personal finances, it's important...
Creveling & Creveling protects its clients' privacy. The following is a fictitious example designed to demonstrate the type of financial decision-making required to achieve financial security and does not refer to any specific case. The Situation Craig and Cindy are expatriates from Toronto in their 50s. Their two kids are grown, and the couple has been working to save, hoping to accumulate enough to retire when they reach their mid-60s. They’ve worked out that they...
You hear it all the time: “My portfolio is up 15%!” or “My financial advisor is really clever—he’s getting me a 30% return!” Generally, this is harmless bragging, but it does tend to elicit envy and cause investors to question their own investment performance. Sometimes, it may lead someone to stray from a consistent, disciplined investment strategy appropriate for their unique situation. When someone brags about their investment returns, there’s a good chance you’re not...
Creveling & Creveling protects its clients’ privacy. The following is a fictitious example designed to demonstrate the type of financial decision-making required to achieve financial security and does not refer to any specific case. The Situation John is a single American expatriate, age 45, living and working in Bangkok. Until recently, he has not been in a position to save and has accumulated only $100,000 for future financial goals such as retirement. Now that he...
Expatriate executives working for multinational corporations frequently receive part of their compensation in the form of long-term incentive (LTI) awards linked to their employer’s stock. Often, the expat executive has a choice of receiving restricted stock units (RSUs), nonqualified stock options (NQSOs), or a combination of the two. If you’re an expat executive being offered RSUs or NQSOs, you’ll want to think carefully before making your choice. Your decision to receive your LTI award as...
Creveling & Creveling protects its clients' privacy. The following case study outlines a fictitious example designed to demonstrate the type of financial decision-making required to achieve financial security. It does not refer to any specific case. The Situation To help invest for their retirement, Bill and Emily are considering using their cash savings to purchase a new condo in the Asian city where they live, and then renting it out to other expatriates. Purchasing the...
If you’re an expat who has been abroad for any length of time, you’re no doubt familiar with the various insurance-linked investment schemes (or unit-linked life assurance plans) peddled relentlessly in the offshore markets. We’ve been analyzing these products for years and have written about their pitfalls. The products have evolved over time, however, and unfortunately e xpats continue to get caught up in their aggressive marketing. For an update on what’s being pushed at...
This article is for general information purposes only and is not intended as specific tax advice. Please consult your tax advisor for advice relevant to your situation. As 1099 forms from U.S. banks and brokerages start to roll in, many Americans living overseas are collecting the various documents needed to file their 2016 U.S. taxes. Since there's a number of sometimes obscure U.S. tax forms that U.S. citizens living overseas are required to file, we've...
This article originally appeared in the February 2017 International Investment magazine under the title “Taxes Your American Clients Need to Know About Before Investing Offshore” and has been shared with permission. With the advent of the US Foreign Account Tax Compliance Act (FATCA), most offshore financial intermediaries and expat Americans at last realise, if they didn’t before, that trying to avoid US tax by investing offshore doesn’t work. These days, American citizens and Green Card...