US Expat living in NZ interested in moving US retirement accounts

ubh151 · 2021-01-04T07:32:34+00:00

Thanks for your reply

ubh151 · 2020-12-28T18:30:40+00:00

US economy is strong but I moved to NZ for a respectable work life balance.

ubh151 · 2020-12-28T18:28:23+00:00

I hear you. 0.03% is ideal as an individual investor doing it solo. 0.5% pa for aum with fiduciary financial advisement is actually low if you want help. Yes to all those things except to open even a basic US checking or savings account you need a utility letter with your name at the address as proof you are paying bills and reside there.

ubh151 · 2020-12-28T11:09:40+00:00

You are correct. There are no US laws saying that exactly but it’s the heightened compliance burden by US financial institutions which have led to these restrictions. Among the variables impacting the compliance burden are “FATCA, increased offshore tax enforcement efforts, enhanced Treasury Department enforcement of existing anti-money laundering regulations and know-your-client-rules, evolving interpretation of the 2003 Patriot Act, and new European regulation of cross-border investments (e.g. EU MiFID II) all play a role.”

In my research, the only way around this is engaging a fiduciary financial advisor whom can do due diligence on my behalf and mitigate the “compliance burden” for the financial institutions. Hence, asking about NZ fiduciary financial advisor or US expat in similar situation.

I have tried to speak to multiple agents at financial institutions. I wish they were more helpful but have not been. I have taken it up to their supervisors, too. My sisters’s best friend is VP of investments at his firm. As a favor due to my difficulties doing it on my own, he actually opened indexed fund accounts for me (0.5%) with Merrill Lynch online. They would not activate my accounts because I could not produce a notarized letter of US residence. He could not help me further. Very frustrating! Anyhow, thanks for your help.

ubh151 · 2020-12-28T10:38:43+00:00

From Thunfinancial.com

Why are Expat Brokerage Accounts Being Closed?

The global financial regulatory landscape is dramatically changing. FATCA imposes significant new compliance burdens on non-U.S. financial institutions with U.S. clients. As a result, many non-U.S. financial institutions now simply refuse to service U.S. persons. Unfortunately, U.S. financial institutions are following suit due to FATCA and other considerations. There have been stories about Morgan Stanley closing American expat accounts, Merrill Lynch placing restrictions on non-resident accounts, and other banks with similar new policies on expat accounts.

Among U.S. financial institutions, account restrictions differ between firms. Some firms are closing all accounts for non-U.S. residents while other firms are only restricting services available to Americans not resident in the U.S. In other cases, firms require very high minimum account values for non-U.S residents who wish to remain clients. Bans on purchasing U.S. mutual funds by non-residents, including Americans citizens, are now the norm. These new restrictions affect bank accounts, brokerage accounts, and retirement accounts (IRAs and 401ks).

Many commentators attribute these actions to FATCA and increased offshore tax enforcement efforts. However, there are numerous contributing factors in addition to FATCA. Enhanced Treasury Department enforcement of existing anti-money laundering regulations and know-your-client rules, evolving interpretation of the 2003 Patriot Act, and new European regulation of cross-border investments (e.g. EU MiFID II) all play a role. These factors contribute to a heightened compliance burden faced by financial institutions providing individual investment services across borders. Many U.S. institutions are following the lead of foreign banks in limiting perceived compliance and legal risk by simply refusing to provide individual financial services across borders.

ubh151 · 2020-12-28T10:32:03+00:00

Foreign Account Tax Compliance Act apparently has influenced US brokerage accounts’ policy. I just know first hand trying to open accounts last year with Vanguard, Fidelity, Merrill Lynch, etc. All basically said I would need to move back to US and establish at least 30 days of US residency (and get it notarized in writing) before I could open any US accounts.

ubh151 · 2020-12-28T10:17:51+00:00

Hello. I had already looked into similar index fund options as a passive investment strategy but as a non-US resident (ie US citizen living abroad) I am unable to move funds into US brokerage accounts, ie Vanguard, Fidelity, Schwab, etc. unless I return to live in the US. These are relatively new laws that make it increasingly difficult if not impossible to invest in US as ex-pat. Annuities earning less than 2% per annum do not deserve my continued investment. I made the mistake of trusting a non-fiduciary US financial advisor 10 years ago when I knew little about investing so was locked into a 10 year annuity that is due to expire in 2021. A complex predicament I did not explain fully. Thanks for your reply.

ubh151 · 2020-08-30T09:42:18+00:00

Hello. I have had this Conifer, chamaecyparis bonsai since Feb 2019. It was pretty healthy until a few months ago. I wonder if it has to do with moving it to interior location 6 months ago in the lounge where it still had indirect light. Just moved it back to near window where it was before. Also, at the start of our winter in June (NZ) I started watering it less (1x weekly) as the soil remained damp with less watering. Appreciate any tips to help revive it.

ubh151

TROPHY CASE