By Chad Creveling, CFA, and Peggy Creveling, CFA If you live an expatriate lifestyle, your financial interests and obligations may be international or global. You may be paid in a foreign currency, have a spouse who is a different nationality, and have kids who are at home in places as far flung as Bangkok, Shanghai, London, and Chicago. Your home, assets, and liabilities may be scattered, you pay tax in more than one jurisdiction, and...
By Chad Creveling, CFA, and Peggy Creveling, CFA It's not news that we're facing a retirement crisis. According to a retirement security report by the U.S. Government Accountability Agency, "About half of (U.S.) households age 55 and older have no retirement savings (such as in a 401(k) plan or an IRA)…Many older households without retirement savings have few other resources, such as a defined benefit (DB) plan or nonretirement savings, to draw on in retirement."...
By Peggy Creveling, CFA, and Chad Creveling, CFA As a survey from earlier this year showed, one of the top concerns expats have is how they will finance retirement. We all know that saving for retirement is challenging—just the sheer amount of money required is a barrier for many. Saving for the future goes against human nature. Behavioral economic studies suggest that at a basic level, we're more strongly motivated by short-term concerns than long-term...
By Chad Creveling, CFA and Peggy Creveling, CFA The Wall Street Journal invited Creveling & Creveling to be part of a panel of experts for personal finance on its WSJ Expat site. The following article originally appeared on the WSJ site and has been shared with permission: Individual retirement accounts can be a great tool for those saving for retirement. The combination of tax-deductible contributions and tax deferral often allows funds to compound faster than...
By Peggy Creveling, CFA, and Chad Creveling, CFA Expat Americans married to foreign spouses and who have kids who one day plan to attend college face special challenges (and opportunities) when saving for higher education. One challenge is simply the costs involved. In the U.S., university tuitions have been increasing at above-average inflation rates for years. Although one option to help cut the cost may be to send your kids to a non-U.S. school, universities...
By Chad Creveling, CFA and Peggy Creveling, CFA Nearly every expat who has lived outside their home country for a significant length of time will consider buying a home overseas. This may not be strictly a financial decision. Often, expats are looking to recapture a sense of stability and permanence or to forge a connection with the local community. Sometimes, we’re also hoping to participate in what appears to be a rapidly appreciating property market...
By Chad Creveling, CFA and Peggy Creveling, CFA Living overseas can be filled with adventure, but it can also add complexity to your financial affairs. Even if you’re assisted by your company’s HR department, the complexity can make day-to-day management and long-term financial planning a time-consuming and overwhelming burden. Below are tips to help simplify the management of your finances, save time, and remove stress so that you can focus on the more enjoyable aspects...
By Peggy Creveling, CFA and Chad Creveling, CFA 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. If you're an American working overseas who's a contractor, sole proprietor, or small business owner, you may think that there are few U.S. tax-advantaged choices available to help you save for retirement. Those expats not working for U.S. firms are...
By Peggy Creveling, CFA and Chad Creveling, CFA 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. If you're an American expat with kids who one day plan to attend college or university, you've probably read or heard about how quickly the cost of higher education has been rising. Recent figures bear this out; according to the...
The Chartered Financial Analyst® designation is one of the most respected accreditations in the investment and wealth advisory industries. It is recognized by employers, investment professionals, and investors around the world as the definitive standard by which to measure serious investment professionals. With the first designations awarded in 1963, the CFA Institute now has more than 135,000 charterholders working in over 150 countries and territories across the globe. To become a CFA charterholder, individuals must...
By Chad Creveling, CFA and Peggy Creveling, CFA When it comes to building an investment portfolio, one of the first decisions many expats need to make is selecting an appropriate global custodian. A custodian is a financial institution such as a brokerage, asset management company or bank where you can hold your investment assets and buy and sell various global investment products. It may also provide various banking facilities, such as savings accounts, checking facilities...
By Chad Creveling, CFA and Peggy Creveling, CFA Investors generally claim they value consistent portfolio returns, but in practice often act in ways that increase both volatility and portfolio risk. Why are consistent portfolio returns important? Because strategies that consistently compound modest returns outperform investment strategies that generate more variable returns but also generate the occasional home run. A more subtle reason is that consistent performance makes it psychologically easier for investors to stick with...