[USER]

Hi – looking for advice on what to do with my investments while living abroad. my coworkers don’t know my plans to quit both my job and this country…

I have saved up over a year’s expenses in cash and am planning to move abroad with my family.

My spouse is a dual citizen in an EU country and I could get a spousal visa to work.

We will either return after a year or stay for 3 years, or potentially longer, largely based on if I can find a job in my field in the EU (more likely than in the US due to the current political climate).

I plan to quit my current job in a few months and ideally would like to roll over my 401K to an IRA.

I have about $650K invested between taxable and retirement accounts, which is safely in the “Coast Fi” zone for us but I’m wondering, what can I do or not do from abroad?

I feel like all the advanced tax strategies won’t do me much good (Roth conversions, using HSAs etc).

Can I literally just leave the money it in my Vanguard account and let it grow while I’m gone? What if I don’t come back? Is it hard to access US accounts from abroad?

We will maintain dual citizenship and will still own a house in the US, but I’m not sure this matters.

I know with all the travelers in this group, someone has encountered this scenario before!

Hit me with your tips and tricks!

[Cris]

I live abroad full time. The key for easy banking is keeping a brick and mortar residential address in the U.S. as your residency. Plus, you’ll use it for your DL, voting and taxes.

Don’t forget to keep a U.S. phone number for 2FA.

I do not have dual citizenship and am not seeking that any time soon. I’m retired now but when I left the U.S., I worked online.

I had a business registered in Arizona that functioned by email so I could manage it from anywhere in the world.

I live off of a brokerage account right now and don’t plan to touch my old employer 401K or Traditional IRA until my 60s, at the earliest.

I turn 46 this year.

[Emeline]

There is a chooseFi expat group you could join/ask.
Dual EU/US citizen here and plan on doing something similar.

Plan is to leave all investments in the US and let them grow.

Ideally would find a job there to “coast”. I also plan on using the roth IRA ladder strategy while abroad.

[Wendy]

It’s not just tax issues, either. If you’re relocating please make sure to check inheritance laws.

Some countries have ones that really wouldn’t work for us.

[Matt]

If you were keeping a foot in the door in the US, keep your American investments in Fidelity or Schwab, for lower foreign transaction fees.

[Christina]

Be sure to do your research on the tax implications, as they will vary significantly depending on which country you move to.

For example, my understanding (and I really hope I am wrong about this) is that Denmark taxes the unrealized gains in Roth accounts every year at a rate of app.

42 percent, even when the account holder is too young to withdraw the gains without also having to pay US income tax and a (10 percent?) penalty on the withdrawal to the IRS.

[Author]

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