Where to Invest as an American Expat?
As an ex-pat, you will find all kinds of potentially lucrative opportunities to invest offshore in exotic investment schemes. Apart from local pensions, which should be taken advantage of, we recommend keeping your investments with an institution in the States.
As we recommend holding exchange-traded funds in our portfolios, the number of offerings in the US versus many other countries is much more extensive and therefore advantageous if building tactical strategies.
Your accountant will also appreciate receiving 1099’s in which you won’t have to construct the data with or for them. You will also avoid ever having PFICs (Passive Foreign Investment Companies), which can be very costly from a tax vantage point. Your accountant also won’t have to report these accounts on your FBAR as they are held in the US, saving you time and money in filing your annual reporting to the IRS and treasury.
Regulation varies considerably from country to country and while we are used to high standards in the US, and are accustomed to features like FDIC and SIPC, protection in other countries is quite different. Many countries have no qualifications needed to become financial advisors, while this is not the case here in Europe, many advisors cross the border to try to give advice to the affluent people in Europe. You can find an American’s qualifications easily online:
You should also be able to find your advisor's qualifications on their home country's regulatory website. They can then passport (or use the license) throughout the rest of Europe. Your advisor should always be registered both in the country you're investing in (the United States) and your country of residence.
Our skilled advisors will be delighted to assist you in making investments as an ex-pat that will align with your goals and help you achieve your objectives.