Investing for Americans Abroad and U.S. Expats | Gimme Some Truth for Expats

Whether it's Reddit, a Facebook group, or any of the other myriad online discussion forums for U.S. expats, whether or not you – a U.S. expat – can contribute to an IRA is typically one of the most discussed topics for Americans living abroad. The simple answer is yes, you can, as long as you have employment income. Outside of that, no one rule prohibits a U.S. expat from contributing to an IRA. But as Keith Poniewaz, Ph.D., puts it so aptly in this episode, "Can you contribute to an IRA as an expat? Yes. Should you? Maybe." Hence the need for this episode – and the corresponding article from Syl Michelin, CFA, who joined Keith on this episode.

Keith and Syl dig more into why an expat might, or might not, want to contribute to an IRA while living abroad. And because of things like Foreign Earned Income Exclusion, which you may have seen abbreviated as FEIE, and foreign tax credits, how much you're able to contribute to an IRA or Roth IRA can be more complicated, especially with a Roth. 

Questions on IRAs, Roth IRAs, or anything else expat-related? Reach out to us using the links section below or send us a voice message on Spotify.

Disclosure: We are not CPAs. Please consult a tax professional if you have any tax questions specific to your own situation.

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You can’t spell ‘expat’ without tax. In all seriousness, and because of the complexities of being an American outside of the U.S., it can feel like life abroad revolves around taxes. While our team of financial advisors, who specialize in working with U.S. expats, have discussed taxes previously – not to mention the myriad acronyms – there are tax experts who specifically focus on tax consulting and preparation for expats. One of those experts is Cross Border Tax Law's Mark Vanderlinden, our featured guest on this episode.

A native of the Netherlands who lives in New York – an expat in the U.S., if you will – Mark’s particular area of expertise is Portugal. Stan Farmer, CFP®, J.D. and Syl Michelin, CFA, cover a lot of ground with Mark, touching on his background, expat taxes, the tax complexities of living in Portugal, digital nomads, and more.

Questions on taxes, financial implications of living in Portugal, or anything else expat-related? Reach out to us using the links section below or send us a voice message on Spotify.

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Not only is Walkner Condon Financial Advisors' Syl Michelin, CFA, a native of France, but he also spent several years living in Switzerland and holds a Swiss passport. His wealth of knowledge on investing and financial planning as an American in Switzerland is perhaps exceeded only by the copious cliches about watches and chocolate (though, surprisingly, there was only one such reference in this episode). But, as Syl, Stan Farmer, and Keith Poniewaz make note of in this introduction to Switzerland – another in our series of episodes about key countries for U.S. expats – there is much more to life in Switzerland, including booming tech and biopharma industries. 

The big pillars that constitute financial life for U.S. expats in Switzerland are the canton system, the 26 member states of the Swiss Confederation, and the – drumroll, please – three-pillar pension system. Because of those cantons, your experience as an expat could be quite different depending on where you live. The good news across the board is the Swiss' treatment of capital gains, but you'll have to listen to the episode for more on that, Switzerland's mysterious fourth official language, and our team's budding idea for a horror novel staged in that region of Switzerland (we'd hate to spoil your audio appetite). If you have any questions about moving to Switzerland, or if you're a U.S. expat already in Switzerland, don't hesitate to reach out to our team.  

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Are you an American seriously contemplating a move abroad? Or maybe you're closer to the early stages of that process, thinking about the possibilities of living somewhere outside of the U.S.? 

Even if you fall into the latter group – and a move might not be imminent in 2022 – this episode seeks to unearth the most favorable destinations for U.S. expats. And while food, culture, and climate are important components to consider, our trio of U.S. expat financial advisors – Stan Farmer, Keith Poniewaz, and Syl Michelin – hones in on these locales from an investing perspective. After all, the financial factors will invariably have an impact on that experience abroad as a U.S. expat. 

The basis for this episode is Stan's piece from Walkner Condon Financial Advisors' 2022 Investment & Market Outlook Guide, in which he goes into more detail about these five destinations. You can find that piece and the entire Investment Guide in the links below.

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After a holiday hiatus, and a lot of time spent on our 2022 Investment & Market Outlook Guide, our team of U.S. expat financial advisors is back with our first installment of Gimme Some Truth for Expats in 2022. Syl Michelin, our resident CFA® (Chartered Financial Analyst), again headlined this year’s guide with his market outlook piece, a comprehensive look at the year that was in 2021 and what may be on the horizon in 2022, along with factors to keep in mind.

Together, Syl; Syan Farmer, CFP®, J.D.; and Keith Poniewaz, Ph.D., dig deeper into Syl’s piece and focus on key elements for Americans abroad – and those investing internationally – to keep in mind as we begin a new year.

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We continue our country-specific journey for U.S. expats with another stop in Western Europe – Germany. Though we haven't dedicated a lot of written content previously to Germany – it's one of our New Year's resolutions to change that! – we know from visitors to our website for U.S. expats that it must be right up there among top destinations. Including the U.S., Germany ranks as our third-highest source of visitors, behind only the U.K, which was our first country-specific destination in our most recent episode. And, several sources back that claim up, listing the number of Americans in Germany as more than 200,000.

In the words of Syl Michelin – Walkner Condon's resident CFA® – Germany is generally a high tax jurisdiction. With that in mind, the journey to Germany centers a lot around the subject of taxation for Americans, whether that's a short-term stay or a long-term stay. Syl is joined on the episode by Stan Farmer, CFP®, J.D., and Keith Poniewaz, Ph.D., as our full team of U.S. expat advisors dives into all things Deutschland when it comes to finances and investing.

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While our first three episodes have focused more broadly on the U.S. expat experience and the hangups that typically complicate life for Americans abroad, this installment seeks to hone in on a specific destination – the United Kingdom. 

America's long, and somewhat tumultuous relationship with the UK – particularly Great Britain (*ahem* 1776) – makes it a logical place to start our journey of the key countries where U.S. expats wind up. And while the UK is more than one country (thanks to Ted Lasso for this phenomenal quip on the often befuddling breakdown of the UK), it's right up there when it comes to top stops for Americans abroad.

Stan Farmer, CFP®, J.D., has written a white paper on moving to the UK as an expat, and we felt the topic deserved some attention on the podcast, as well. Keith Poniewaz, Ph.D., joins Syl Michelin, CFA®, on the episode to delve into the major financial components for consideration for U.S. expats already living in or thinking of moving to the United Kingdom.

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Though this episode originally aired on our main Gimme Some Truth feed prior to the launch of Gimme Some Truth for Expats, the topic of taxes is a vital one when it comes to the U.S. expat experience. That's why we felt it was imperative to include this introduction to U.S. expat taxes as part of the GST for Expats feed. You can read more about the episode below from the original description. 

Walkner Condon international advisors Keith Poniewaz and Stan Farmer bring U.S. expat tax expert Leo Zimny, CPA, on the show to cover the basics of taxes for Americans abroad. While many people would prefer to steer clear of the topic of taxes, they are an integral part of a holistic financial plan, especially for U.S. expats and Americans considering a move abroad. Zimny, who is Tax Director for Expat U.S. Tax, touches on his career, which started with PwC, and his transition to working with international individuals. He also highlights some key areas for U.S. expats or prospective expats to keep in mind during, and after, their move abroad.

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So what's the best brokerage for U.S. expats?

If that's not the question we hear most, then it certainly ranks right up there for the most-asked financial question when it comes to being an American abroad and trying to invest. Like any oft-searched, idiosyncratic inquiry, this question has no one right – or wrong – answer. The best version of a succinct response? "It depends."

Our team of expat advisors – Stan Farmer, CFP®, J.D.; Syl Michelin, CFA®; and Keith Poniewaz, Ph.D. – shed some light on a subject that can be frustrating and nerve-wracking, whether you're already abroad and your current brokerage is closing your accounts, or you're in the early stages of planning a move.

Questions around finding a brokerage as a U.S. expat? Send us an email – [email protected] or see the links section below for information and expat materials.  

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In our first episode of Gimme Some Truth for Expats, Keith Poniewaz (Ph.D.), Stan Farmer (CFP®, J.D.) and Syl Michelin (CFA®) bring their first-hand knowledge as expats to the table to set the stage for the podcast, as they outline the key financial complications for Americans outside of the U.S. 

Unfortunately, being an American and moving abroad doesn't mean smooth sailing when it comes to avoiding Uncle Sam and those U.S. taxes. Keith, Stan, and Syl detail what citizenship-based taxation means, something that makes the U.S. particularly unique on the taxation front. As Stan puts it, you can cut ties physically with the U.S., but not fiscally. They also cover compliance and reporting, touch on Passive Foreign Investment Companies (PFICs), and more. And before you go canceling those relocation plans because of how complex and stressful financial life might seem as a U.S. expat, there's also good news too – things like the Foreign Earned Income Exclusion.

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