In the last article on US credit scores for expats, we talked about why you ought to maintain your credit score even while living outside of America. While it’s important to know the purpose, what’s just as crucial is knowing the “how”, both in terms of knowing your credit score and in terms of building it even while living in another country. How do I pull my credit score? A common misconception is that you need to pay in order to receive your credit report. However, you may request a free copy of your credit report from any of the following three major credit agencies: Equifax® Experian® TransUnion® This can be done once a year at websites such as CreditKarma or AnnualCreditReport.com . Note that while you would not be able to use a foreign address for these requests, you may be able to use your most recent stateside address to verify your identity. What should I do with my credit score? It is considered good practice to request a credit report annually and to review it carefully for any errors or unexpected information (e.g. credit cards you unknowingly still have open, whether any have been opened in your name, any negative information, etc.) If you are living abroad and do not intend to apply for credit in the near term, it may also be a good idea to freeze your credit report to prevent new lines of credit from being opened in your name - this can be done by contacting each of the above credit bureaus and notifying them of your desire to do so, and they will in turn issue you a special PIN needed for viewing the report. Just remember to reach out to each credit agency to unfreeze it in the future as your needs change over time, as while frozen potential creditors will not be able to view your score without you providing them with the PIN. What if I have no or little previous credit history? As everyone has different circumstances regarding how long they lived in the US or their past spending habits, you may be living abroad with either little or no credit history in the US. This should not dissuade you from building it while living overseas, as you also have the option of applying for a secured credit card, in which you can deposit a set amount which establishes a line of credit for you for the balance. Using this card you'll be able to build your credit just like you would with a normal card, and over time could eventually switch over to an unsecured credit card once you have a sufficiently-established credit history. Feel free to contact us if you have any questions, one of our advisors will be more than happy to help. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

If it does, think of higher inflation, lower economic growth, and global recession. The stock market has been awful through the summer of 2022 – declining in January, February, April, May, and June, with just the month of March recording positive numbers. Naturally, these declines and the accompanying volatility make investors nervous. At the centre of this volatility has been the price of oil. Oil prices have risen steadily since the end of 2020 when WTI Crude was commanding about $40/barrel. But since the early part of 2022, a barrel has consistently remained north of $100/barrel. But what if oil suddenly went to over $200/barrel? After all, US oil prices have already surged 170% since the end of 2020 and a rise to $200 would mean a further increase of about 50%. One well-known hedge fund manager spoke at the Financial Times Commodities Global Summit earlier this year and suggested that we might see $250/barrel this summer. Another analyst from RBC Capital Markets had this to say: "It is not unfathomable for prices to rocket to $200 a barrel by summer, spur a recession and end the year closer to $50 a barrel ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today." The Price of Oil – Supply and Demand Why does the price of oil change so much? The price of oil is affected by so many factors and so many uncertainties. The weather, transportation costs (via ship, truck, pipeline, etc.), and taxes also play a big role in oil prices. The oil market has been uncertain for several reasons. Just a few years ago when the U.S. was ramping up its oil production, the price soon dropped and that was followed by a drop in production. Oil producers – when they make less money – cut back dramatically on drilling and sharply reduce spending on exploration and production. Remember in 2014 and 2015 when many U.S. petroleum companies went bankrupt and thousands of their employees lost their jobs? In its simplest terms, it really is about supply and demand. But the supply side is not as easy to influence. Take the shale oil industry in North America, for example. Even if the entire industry decided they wanted to crank up production to increase the supply in an effort to bring prices down, it is still a 12 -18 month process. And besides the current price of oil, there are very few incentives (and arguably a number of risks given the current political climate) for any producers to take on the expense of trying to speed that process up. International factors also influence the price. Oil producers have been concerned about the Russia/Ukraine conflict, the health of the massive Chinese economy – with its high oil demand – and tensions in the Middle East, among other things. These geopolitical tensions just add to the uncertainty. Russia Does Matter From a research paper published by the Conference Board earlier this year: While Russia’s economy only accounts for 3 percent of global GDP, its crude oil production constitutes 12 percent of the world's total. Russia’s economy is only about the size of the state of New York, but it punches well above its weight in energy production. Russia accounts for 12 percent of global crude oil production. Much of that production is sent overseas, making Russia the second-largest oil exporter after Saudi Arabia. Of the 12 million barrels per day of crude oil that Russia produced in 2019, just 29 percent was consumed domestically. The remaining 8 million barrels per day were exported–primarily to European and Asian markets. In 2021, prior to Russia’s invasion of Ukraine, OECD Europe consumed nearly half of Russian crude oil exports and China consumed one-third. The remaining sixth was consumed in other parts of the world–with the US accounting for just 4 percent. Oil Prices and Gasoline Prices In a more practical sense, how does the price of oil affect the cost of gasoline? Pretty directly. Any change in the price of a barrel of oil directly affects the price of a gallon of gas. Barrel of oil. A barrel of crude oil holds 42 gallons. From this barrel will come about 12 gallons of diesel fuel, 4 gallons of jet fuel, and smaller amounts of propane, asphalt, motor oil, and various lubricants, along with about 19 gallons of gasoline. So it takes a barrel of oil, on average, to come up with about 1.5 tankfuls of gas in your average, non-diesel car. Considering all the oil products, each person in the U.S. consumes an average of about 2.5 gallons of crude oil per day, according to the Department of Energy. As a result, the price of a barrel of oil affects each of us beyond the pump, too. Back in March, analysts cited by National Public Radio projected that if oil hit $200/barrel, then the retail price of gas would average $5.84. That seems like a very low estimate, given that the average price of gas is around $5/gallon with oil hovering just over $100/barrel. If Oil Hits $200 or $250 If the price of oil skyrockets to $200 or $250/barrel, the impact on virtually every aspect of the global economy, global markets, and your investments would be significant. Of course, oil at $200/barrel would add to inflation, but it would have a severe impact on economic growth, likely pushing the global economy into stagflation (high inflation, low growth). Here in the United States, according to Bank of America estimates, oil prices at $100/barrel reduce US GDP growth in the year ahead by 1%, and at $200/barrel, the negative impact on economic growth in the US is estimated at about 2%. Working With Your Advisor The price of oil has been a major economic factor for years. The cost of energy affects virtually every aspect of the economy and the market, including your investments. The price of oil will eventually stabilize, producers and oil-producing countries will change their plans, and alternative energy sources will continue to develop. We continue to monitor all of these developments and welcome you to watch our last economic update for more information. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Despite the past rumours that the Trump administration would do away with the "Fiduciary Rule" from the US Department of Labor, Alexander Acosta the Secretary of the Department finally put it in effect on June 9th of 2017 and the implementation took place on January 1st, 2018. That leaves us with one question, what is this rule? Investopedia defines a "fiduciary" as a person or organization that owes to another the duties of good faith and trust. We would define it as someone that puts the clients' interests before their own. The US system has had the opportunity to register as a fiduciary since the SEC act of 1940 that was put in place by Joseph Kennedy, but it hasn't become popular until the early 90s and 00s. Why? Simple, it was more profitable to not sit on the same side of the table as your clients. So what should you look for in an advisor? I. That he/she is registered as a fiduciary II. That he/she isn't paid commissions from anyone and therefore you know exactly how much they are making from assisting you on your account. III. While past performance is not indicative of future returns, a financial advisor with a clean record on broker check is more likely to be clean going forward. If you're an expat, you should make sure that your advisor is regulated in your resident country as well as the United States. Many US expat experts are only registered in the US which leaves them misadvising you to use a fake address. They sometimes are only registered in limited capacities in their foreign countries such as to sell insurance in Europe instead of investments. While the regulation is improving over the course of time, it is still a buyers' beware environment. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN.

Risk is an integral part of investing. No discussion of returns or performance is meaningful without at least some mention of the risk involved. The trouble for new investors, is identifying where risk lies and how to calculate how much risk to take. What Is Risk? The term “risk” in general means different things to different people. For some, it’s something they want to avoid all together. For many, it’s a natural part of life that they try to find balance with (not too much, not too little). Others see risk as an exciting opportunity. Risk in investing is not much different than taking risks elsewhere in life. It is essentially any form of uncertainty with respect to your investments that has the potential to negatively affect your financial welfare. No matter where you invest your money, there will be some risk. Since we cannot see the future, there is simply no way to avoid or eliminate risk if you want to be an investor, not even by having cash in the bank (inflation risk) . But you can learn to minimize and manage risk well. How much risk is too much risk? As fundamental as risk is to investing, many new investors think that there is a well-defined and quantifiable way to calculate how much risk is involved with a given investment. Unfortunately, there is not, but there are a lot of different ways to manage and deal with risk. Some investors like to pay close attention to market volatility (a concept used in stocks and bonds to determine the number of possible outcomes). Others like to keep a diversified portfolio that can counterbalance risks between different asset classes. Some will purchase various types of asset insurance. But choosing the right level of risk mainly involves understanding your ability to take on risk (your risk tolerance) and your willingness to take more or less risk than is theoretically right for you, i.e. your attitude to risk (or risk preference). Your attitude to risk generally determines the type of investments you will choose to invest in. There are a number of factors that will affect your attitude to risk: Your goals . Having goals is so important in investing because it’s difficult to make decisions without a clear vision of where you want to go. Are you saving for retirement? For a home? A kid's college fund? This will determine how risky you want to be with your money. Knowing your goals will help you measure how much risk you can absorb from a particular investment without compromising the achievement of the ultimate goal. Your age (or “investment horizon” as some call it). Your age is an important metric to understand how much risk you should take. According to investors and experts, the younger you are, generally, the more investing risks you can take because you have a long investment period ahead of you, which means you are able to absorb short-term ups and downs. Your income and future earning capacity . Generally, the higher your income, the greater your ability to cope with risk and respond to events. Your knowledge and experience . The more experience you have with investing, as well as the more knowledge you attain in a particular asset class, the more prepared you are to understand risks associated with a given investment and how to cope with the consequences. Your personality . People naturally respond to risk in various ways. If your personality leads you to worry whenever risk is present, a low-risk investment strategy may be best. On the other hand, if taking risks excites you then you’ll be more comfortable with an aggressive investment strategy. In the end, the best way to decide if a risk is too high, is to picture what it would be like to face the worst-case-scenario consequences. If the consequence of an event happening is unacceptable, it is best reduce your risk. On the other hand, recognizing that risk can be well managed and present the opportunity to make great investments is necessary to achieving wealth through investing. Would you be interested to find out more? Check our YouTube video , get in touch and one of our advisors would be happy to help. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

“Today, it takes more brains and effort to make out the income-tax form than it does to make the income.” - Alfred E. Neuman Double Tax Agreements, or DTAs, also referred to as Bilateral or International Tax Treaties, are intended to help expats avoid double taxation (i.e. being taxed on the same income by two different countries). As Americans living abroad are often liable to both US taxes as US citizens as well as foreign taxes as residents of a foreign country, double taxation is often an issue. However, as you’ll see, the DTAs the US has signed don’t often help expats avoid double taxation after all. In this article, we’ll explain why, as well as when tax treaties can help, how to claim tax treaty benefits if you need to, and talk about social security and estate and gift tax treaties, too. In this section, you’ll learn about: • Does the US have tax treaties? • Do tax treaties benefit Americans living abroad? • When can tax treaties benefit expats? • How can expats claim tax treaty benefits? • How to file Form 8833 • What about social security tax agreements? • What about estate and gift taxes? Does the US have tax treaties? The US has signed tax treaties with numerous countries across the world, from Armenia to Vietnam. Each treaty contains a different set of rules regarding reduced rates and exemptions. Over 60 countries have signed a tax treaty with the US, and each different treaty covers a range of different scenarios and taxes, from corporation taxes to estate taxes. Many foreign governments want to attract American investors, and to make it easier, foreign countries will often include provisions in tax treaties that reduce withholding taxes on dividends, interest and royalties. Do tax treaties benefit Americans living abroad? Tax treaties can help Americans living abroad, but unfortunately only a few expats actually benefit from them. In most cases, the tax treaties that the US has signed include a Savings Clause that allows them to apply US taxation on Americans living abroad as if the treaty didn’t exist. Elazar M. Cole, an American resident in Israel, tested the Savings Clause provision when he reported a capital gain of a stock sale in 2010 but didn’t pay tax on it, stating that the US-Israeli DTA meant he didn’t have to pay. The IRS took him to court in 2016, and the court upheld the notion that the Savings Clause in the treaty meant that he would still have to pay US tax on the capital gain. Instead, most treaties allow Americans living abroad to claim the Foreign Tax Credit when they file their US tax return to avoid double taxation. It’s also worth noting that most US tax treaties contain a provision that allows the two countries to share and exchange tax information. When can tax treaties benefit expats? While rare, tax treaties can benefit expats living abroad. For example, there are some occupations that qualify for exemptions in many US tax treaties, most often for students, teachers, or researchers. Teachers and researchers are usually exempt from taxes for two to three years, while students and trainees often get four to five years under tax treaty benefits. After these periods of time are finished, the US considers you a resident of the foreign country. Other professions that can benefit from DTA provisions are professional athletes and sportsmen who are abroad training or competing, and entertainers who are performing overseas, depending on each treaty. Some tax treaties also have provisions covering the double taxation of dividends, or retirement income, or prevent withholding taxes for independent contractors (including freelancers). To provide an example, Article 17 of the US/UK tax treaty allows contributions to a qualifying UK pension plan to be tax-deferred like a standard US 401k. Distributions also receive exemptions, while UK state pensions are only allowed to be taxed by the country where their recipient is a resident. The way IRAs are treated in DTAs is covered in more detail in a separate article. The first ever tax treaty is thought to be an agreement signed between Great Britain and Switzerland on August 18, 1872 to prevent the double taxation of death (i.e. estate) taxes. The first US tax income tax treaty was signed with France in 1932.There are now over 3000 bilateral international tax treaties signed around the world. How can expats claim tax treaty benefits? Expats can claim tax treaty benefits by filing IRS Form 8833. So if you’re an expat living in a country that has a tax treaty with the US that has a provision that you could benefit from, you should attach this form to your annual American tax return. How to file Form 8833 Filing Form 8833 involves writing a brief description explaining the treaty provision that you want applied to your tax return. An example of when this may be necessary is if you were a resident in one country but carried out work in others, including the US, that may affect your ability to claim foreign tax credits. The statement should include information about your country of tax residence, your travel dates and purpose of travel (if relevant), the treaty provision you are invoking, and the types and amount of income that you believe is exempt from taxes, according to the tax treaty. What about social security tax agreements? Americans living abroad who are self-employed or who work for a US-based employer are still liable to pay US social security taxes. Many other countries require residents to pay social security tax too, which can lead to double social security tax liability for Americans. While double social security taxation isn’t covered in DTAs, the US has signed a separate set of tax treaties with 30 other countries to cover it, known as Totalization Agreements . If you live in a country that has a Totalization Agreement with the US, you will only pay social security taxes to one country, normally dependent on how long you intend to live abroad for. So if you are living abroad for less than typically either 3 or 5 years (depending on the treaty), you can continue making social security contributions to the US, and not in your country of residence. If you’re there (or intend to stay there) for more than 5 years though, you will contribute in your new country of residence. Totalization Agreements also stipulate that contributions made while you’re abroad to either country can be applied to your social security entitlement in either country, depending where you eventually retire. This means that you usually don’t need to get the full number of credits in the country where you retire to qualify to receive social security benefits in retirement. What about estate and gift taxes? While estate and gift taxes aren’t covered in DTAs either, again the US has signed a separate set of international estate and gift tax treaties with 15 other countries to avoid double taxation. These countries are Australia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, South Africa, Switzerland, and the UK. Each treaty is different, with some covering just estate taxes, and others covering gift taxes too. The majority of Americans living abroad don’t need to use tax treaty provisions, as they can avoid double taxation by claiming either the Foreign Earned Income Exclusion or the Foreign Tax Credit. But there are still plenty of situations where a tax treaty may be useful, so it’s always worth consulting your tax advisor. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

Retirement planning in the Western world is mostly based on a three pillar system made up of your government pension, your corporate pensions and personal savings. By maximizing all three of these vehicles, you can live a fruitful life in retirement. Your US government pension also known as social security covers not only retirement but disability income and death benefit. Even to expatriates and non-citizens that have worked in the US system for as little as two days. You would need to be in a special situation of being a high earner for the last day of one year and first day of the next year to get benefits in only two day. While most are under the perception that you need 40 credits to receive Social Security benefits in the US, European countries have reciprocal agreements to receive benefits with as little as 6 credits. It is also important to know that you do not have to be a US citizen to receive Social Security benefits. You should always apply at least four months prior to receiving benefits. We are lucky to have a team in Dublin that supports European residents in our special situations and you can find their contact details here . And if you're an American Expat and you have received benefits from another social security system, the Windfall Elimination provision will most likely decrease your US Social Security benefit. The social security website has a great factsheet . Look at the WEP chart to see how WEP affects Social Security benefits, WEP Online Calculator , or download the Detailed Calculator if you would like to calculate your full benefits. While the Social Security administration is trying to streamline benefits to be accessed online, regretfully, they aren't available in this format for citizens in most European countries. Therefore, you can request your current statement by using form 7004 . For charts and calculators, please see ssa.gov . Don't hesitate contacting us if you have any questions, one of our qualified advisors will assist you. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

If you're a US citizen or US expat, the sheer number of retirement and savings options out there can be overwhelming at times. With members of the public vying for each side as the one stop solution. However as we discuss below, each of these retirement vehicles have their own benefits and drawbacks associated and sometimes may not be the best options available. What is a 401(k)? A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their pay check before taxes are taken out. Taxes aren’t paid until the money is withdrawn from the account. While a 401(k)can help you save, it has plenty of restrictions and caveats. In most cases, you can’t tap into your employer’s contributions immediately. Vesting is the amount of time you must work for your company before gaining access to its payments to your 401(k). (Your payments, on the other hand, vest immediately.) It is an insurance against employees leaving early. On top of that, there are complex rules about when you can withdraw your money and costly penalties for pulling funds out before retirement age. Who is eligible for a 401(k)? You must be 21 years of age You must be a full-time employee, who has served up to a year of service. If you meet this criteria, your employer must allow you to participate in a company-matching qualified retirement plan. Not all employers make employees wait a full year before enrolling (the longest allowable time by law). What are 401(k) contribution limits? 401(k) contributions offer more fiscal freedom than an IRA. The IRS updated the contribution limits for 401(k) plans in 2024, increasing the employee contribution from $22,500 to $23,000. Other important increases that went into effect for 2024: The additional catch-up contribution rose to $7,500. 401(k) distributions tax Contributions to a 401(k) are pre-tax, which means you don't pay taxes until you withdraw money from the plan. This may be attractive for those who expect to be in a lower tax bracket during retirement than during their working years. In addition, your contributions have the potential to grow on a tax-deferred basis. As with IRAs, non qualified withdrawals from a 401(k) before the age of 59½ are subject to a 10% Federal income tax penalty, unless a qualified exception applies. Some employers may also offer a Roth 401(k) option, which allows workers to make Roth IRA-type contributions to their 401(k) plan without the income restrictions and lower contribution limits that apply to Roth IRAs. The contribution limits are the same as for traditional 401(k)s, but salary deferrals to Roth 401(k)s are not tax deductible. Qualified distributions are tax free. #401kPlans #RetirementPlans #TraditionalIRA #RothIRA #USPension DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Most first-time homebuyers in the US use a mortgage to finance their home purchase. In fact, only 30 percent of U.S. home purchases in 2021 were paid entirely with cash. But understanding how mortgages work and what type will work best for you can be challenging. What’s a Mortgage? Put simply, a mortgage is a type of loan used to finance your home purchase. When you obtain a mortgage loan from a lender, they cover the cost of the home upfront to make up the difference between the sale price and your down payment. You must then pay the lender back in small increments over the loan’s term—usually 15 or 30 years. Your monthly mortgage payment doesn’t just go toward the loan’s principal—you’re paying for other expenses as well. The Anatomy of a Conventional Mortgage Payment Can Your Mortgage Payment Change? How consistent your payment remains over the loan’s term is primarily determined by the mortgage rate you choose. If you get a fixed-rate mortgage, then the loan term and interest rate will remain consistent unless you refinance. This means that you may only see payment fluctuations due to changes in property tax rates, homeowners insurance rates, and PMI. If you get an adjustable-rate mortgage, you may see more substantial fluctuations after the first few years of your loan’s term, as the interest rate changes with the markets (typically every six months to a year). You should carefully review the loan terms to see how far up the interest rate can go, since this can substantially change the cost of your mortgage over time. Conventional Loan Jumbo Loan FHA Loan VA Loan Conventional loans follow standards put in place by Fannie Mae and Freddie Mac, the federally backed mortgage companies that set underwriting guidelines for home loans. Conventional loans are lower cost but have a higher barrier of entry than some other kinds of loans Because jumbo loans exceed FHFA borrowing limits, they’re a great option for buyers searching for a home in a high-price market. Since these loans are high risk for the lender, they have more stringent qualifications than other types of loans. FHA loans are insured by the U.S. Federal Housing Administration. They’re designed to help buyers who don’t qualify for a conventional or jumbo loan, so their requirements are more lenient. VA loans are backed by the U.S. Department of Veterans Affairs and are intended for members of the military, veterans, and their surviving spouses that meet the minimum active service requirement detailed on the VA website. Down Payment: Minimum 3% down Down Payment: 5–20% down, depending on the lender Down Payment: Minimum 3.5% down Down Payment: No minimum PMI: Applied if down payment is less than 20% PMI: Applied if down payment is less than 20% PMI: None, but buyers must pay an Upfront Mortgage Insurance Premium (MIP) at closing and an Annual MIP for either 11 years or throughout the loan’s lifetime PMI: None, but must pay a funding fee at closing, or roll into the loan Credit Score: 620 minimum Credit Score: 680 minimum, with some lenders requiring 720 or more Credit Score: 580 minimum for maximum financing, but can be 500 to access loans that finance 90% of the home’s value Credit Score: No minimum DTI Ratio: 50% or lower DTI Ratio: Varies, but generally 40% or lower DTI Ratio: 43% or lower DTI Ratio: 41% or lower, but may be waived if other aspects of borrowing history are strong Conventional loans follow borrowing limits set by the Federal Housing Finance Agency (FHFA) standards. You can find the most recent limits on the Federal Housing Finance Agency website Jumbo loan borrowing limits vary by lender. The borrowing limits for FHA loans follow FHFA standards. The borrowing limits for VA loans follow FHFA standards. No matter which mortgage type sounds best at first glance, you must evaluate your full financial picture before looking at houses or pursuing financing. That means understanding your income, credit score, debt levels, and—most importantly—how a home will further your overall financial goals. Get in touch with our expert advisors to see how they help you navigate the landscape. #FinancialPlanning #RealEstate #Mortgages #HomePurchase DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

“Banking establishments are more dangerous than standing armies” - Thomas Jefferson One of the most important considerations as you plan your move overseas is banking. Should you open new bank accounts abroad? If so, how easy is it to do? What about your American accounts: should you keep them open, or would it be more beneficial to close them? It’s right to ask these questions while planning your move abroad, as in some cases the decisions you make can result in paying more or less tax after you move. With the right advice though, it’s straightforward to make decisions in your best interest. In this article, you’ll learn about: • Should you keep your US bank account when moving abroad? • Should expats open a foreign bank account? • How can expats open a foreign bank account? • Should expats consider a fintech (online-only) bank account? Should you keep your US bank account when moving abroad? When moving abroad, most expats wonder whether it’s worth keeping their bank accounts open back in the states. The main advantages of doing so are that it helps you to maintain your US credit score, it allows you to pay US bills and make transfers to other US bank accounts easily, and it allows you to receive payments from other US accounts without paying bank or currency conversion fees. If your stateside bank won't permit you to use a foreign address on your account, you can use credit unions such as the State Department Federal Credit Union (SDFCU) through organizations like American Citizens Abroad (ACA) to open an account. Having an active American bank account also gives you access to products and services that are only available in the US. Some products are available in the US before the rest of the world, too - such as new iPhones, for example! It often depends on how long you’re moving abroad for, though. If you know that you’ll be back in a year or two, then keeping your US accounts active will save you the hassle of opening new ones when you return. On the other hand, one possible scenario when keeping your US bank accounts active while abroad is that you may still pay state income taxes if the accounts are located in a state such as New York, California, South Carolina, Virginia, and New Mexico. Some expats in fact choose to relocate to a low or no-tax state before moving abroad, so as to be able to keep their US financial accounts without paying state taxes when they move abroad. You might also consider changing your US bank to one that charges less to withdraw and transfer money internationally. Chase Bank is one example of a global banks that caters to expats, and so is worth considering in this respect, in addition to the aforementioned option of opening an account with the SDFCU through the ACA. Citibank also reimburses you for charges incurred when using ATMs out of their network overseas. Should expats open a foreign bank account? Whether expats should open a bank account in the country they’re moving to depends on your circumstances, but if you’ll be based in a single place abroad for a considerable length of time, then you’ll probably need to. If you are going to be working for a foreign employer, or starting a business abroad, a foreign bank account is essential. Furthermore, many basic everyday necessities of living abroad will necessitate having a foreign account, such as renting or buying a home, or paying bills and for services. Having a foreign bank account also means you won’t be charged every time you use your bank card, including fees and currency conversion costs. Many American banks charge fees between 3-5% for each purchase made overseas, for example. How can expats open a foreign bank account? While the rules and requirements vary depending on which country you’re in, more often than not banks abroad are looking for the same information as an American bank. So to open an account as an expat, most foreign banks will want to see proof of ID, such as a driver’s license or passport, and proof of a permanent local address. Some may also ask to see proof of your income, or a local tax identification number. As an example; if you’re an expat living in Seoul and you’re opening a South Korean bank account, you’ll need your passport, your visa, your Alien Registration card, a copy of your address in English and Korean, a certificate of employment and a Korean phone number. While not every country has requirements as stringent as this, the point is that you should always do your research and gather what you need beforehand. Some banks let you open your account online without the need to go to a branch. You can normally check the bank’s requirements on their website. FBAR and FATCA . FBAR and FATCA are reporting requirements for Americans with overseas accounts. Whether you have to file these forms from abroad with your US tax return is based on whether the combined values of all of your non-US financial accounts exceeds the minimum reporting thresholds at any time during a year, which start at $10,000 for FBAR filing. This doesn’t mean having to pay US tax on your overseas bank balances, it’s just a reporting obligation, but an important one to be aware of! Should expats consider a fintech (online-only) bank account? While traditional banks offer a myriad of account types and services, another option for expats is a fintech bank account. Opening an account with a fintech company is often quicker and easier than a traditional retail bank, and the process normally involves just uploading some photos of your ID and other documents in a mobile app. You may also have to go through an identification process where you need to show an ID or passport over live video. Alternatively, some companies ask you to take a selfie in their app to verify that you are the same person as the ID you provide. Two of the most popular fintech banks for expats in Europe are Revolut and Wise . Wise offers international money transfers at an extremely discounted rate compared with traditional banks. Expats often wonder whether fintech banking is as secure as traditional banking. In fact, fintech companies have some of the best security available, by necessity to generate customer trust, and account balances are often guaranteed by local governments if the bank fails for any reason, similarly to traditional banks. Fintech banks are also proponents of enhanced security measures such as two-factor authentication and biometric identification. Another useful security feature that they offer is the ability to turn off your card instantly in the app, in case it’s lost or stolen. Of course, one drawback of using a fintech is that these institutions are not banks, and so while great for sending/receiving funds, those funds would not be protected in the case of bankruptcy. Summary Whether or not you keep your account in the US open depends on a range of factors, including whether you expect to return to live in the US (and, if so, when), whether you’ll be visiting regularly, what state you live in (and so whether having an account could mean paying state taxes from abroad), and whether you’ll need to receive money or pay bills in the US. Whether you keep your US account or not, most expats will also need to open a bank account abroad, either for living expenses or to receive overseas income. Whether you choose a traditional or fintech bank for your overseas banking will depend on your requirements. Many expats choose to use a fintech provider when they first arrive, due to the ease of opening them, then they open an account at a traditional bank later on when they need to access other traditional banking services, such as credit, insurance and mortgages, all three of which often serve a crucial function of helping to minimize costs while building your life in your new host country. Opening a bank account abroad can trigger FBAR and FATCA reporting in the US, however your accountant will be able to take care of these requirements for you along with your tax return. Your financial advisor can help you plan your banking, based on your situation. #Banking #FinancialPlanning #FinancialAdvisor #Expats #FinancialDecisions DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

“The benefits from a world currency would be enormous.” - Robert Mundell Until then though, both when and after moving abroad, most expats need to send money between the US to their new home country from time to time. Transferring money internationally the right way will save you a whole load of time, money, and hassle. What exactly the right way is depends on a variety of factors, including where in the world you are, how regularly you need to transfer, currency movements, and how much money you’re moving. Sending money abroad doesn’t have to be difficult or expensive though. In today’s interconnected world, and with new fintech options springing up all the time, sending money internationally has never been easier. In this article, you’ll learn about: • Considerations when transferring money internationally as an expat • Options for transferring money internationally as an expat • Tax considerations when transferring money internationally Considerations when transferring money internationally as an expat Before deciding on the best way to transfer internationally, it benefits expats to research a several key considerations: Cost The first and often the most important consideration when transferring money internationally is the cost. Depending on how you send the funds, different types of fees may be applied. The most common type of fee is a transaction fee, which is sometimes a fixed price and sometimes applied as a percentage. Transaction fees may be charged by both the sending and receiving institution. Most financial transfer firms, including banks, also charge what are called margin fees or the spread, which means that the currency exchange rate that they offer is higher than the interbank exchange rate. The interbank rate is the exchange rate that banks charge each other for the large or bulk exchange transactions that they do every day. This essentially means that they offer you a higher exchange rate compared to the nominal currency exchange rate. Expats may also be charged ACH (automated clearing house) or wire processing fees, depending on how they are transferring. The best way to ascertain the best rate of an international money transfer is to compare providers according to the total amount of target currency you’ll receive after all fees. This final figure is what you should use to compare different transfer providers to find the best deal. Security No matter which financial institution you choose to transfer with, they should be able to deliver your funds abroad securely. Sending money internationally is heavily regulated by governments around the world, so as long as your provider is recognized and regulated by an official national authority, security shouldn’t be a concern. It’s also worth checking out online reviews to get an idea of customer satisfaction levels. Speed Speed is another important factor, as nobody wants their funds tied up for days, or even sometimes weeks, in transit. To avoid this, always ask in advance how long the transfer will take. Depending on where you are in the world, international transfers should typically take between a few hours and up to several days at most. Convenience Most banks and other transfer solutions have apps now which, once you’ve added payees, can make international transfers incredibly quick and easy. The ability to trace transfers is another important consideration, for instance in the event that they haven’t arrived when expected. Options when transferring money internationally as an expat Some of the most common ways to transfer money internationally are as follows: • Expats can withdraw cash using their US bank cards at foreign ATMs, or spend using their US bank card abroad. While this is an easy option for getting money quickly abroad, for ATM withdrawals, both the US bank and the foreign ATM typically charge a percentage or a fixed fee, so, it can end up being the most expensive way to transfer funds abroad, particularly for small amounts. • Another option is a US bank to foreign bank money wire. While this avoids ATM fees, it incurs transaction and margin fees (or spread), typically up to $35 for the transaction and up to 5% processing fee, so while easy to arrange (normally in your US bank’s online service or app), it’s a relatively expensive option. International money wires normally take 3-5 working days too, so they aren’t the quickest option either. • Western Union is a popular, long-established service provider for sending money internationally. Western Union lets expats send and receive funds more or less anywhere in the world using a US bank card, receiving the funds either into a bank account, or you can collect cash, at a preferable cost compared to international bank transfers. • PayPal offers international money transfers, and is an easy and quick option, but also expensive. Paypal charges a small (max $5) transaction fee, and then between 3.5% and 5% of the balance transferred. • When transferring a larger amount, for example if you’re buying a car or house abroad, expats should look to currency brokers . Brokers offer great currency exchange rates, and they allow you to lock in an exchange rate in advance, protecting your costs against currency fluctuations. By purchasing foreign currencies in bulk, these companies have the ability to sell at much lower rates than other services. • Fintech online providers, such as Revolut and Wise are relatively new options, but among the best for international transfers. Not only are their rates and fees considerably lower than banks, they also send funds quickly and you can arrange and track transfers in an app. They also offer the ability to schedule regular payments. Tax considerations when transferring money internationally Having a bank account overseas also doesn’t in itself incur US taxes or penalties, but it can lead to having to file US reporting forms under FBAR and FATCA rules. This reporting allows the government to know where Americans’ funds are, which in turn helps the IRS prevent international money laundering. There are no taxes on international transfers, although note that the US taxes all American citizens’ global income, as do many other countries once you’re a resident there, so transferring money internationally can alert foreign governments about your income. Always check the rules and seek advice to ensure you’re keeping up with your filing obligations. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

"In investing, what is comfortable is rarely profitable." — Robert Arnott One of the most important financial planning considerations you should address when moving abroad is whether to keep hold of your current investments, investment manager, and retirement plans. In this article, we’ll look at the factors that should influence your decision-making, including which country you’re moving to, and your longer-term plans and financial goals. You should also consider how your estate planning will be affected. There’s no substitute for expert advice though, so it’s always worth consulting a financial advisor who is experienced working with Americans living in the country you’ll be moving to. In this article, you’ll learn about: • Should you keep your current investments and asset manager? • Should you keep your current retirement plans? • Tax considerations in the country you’re moving to • Considerations if you’re moving abroad temporarily Should you keep your current investments and investment manager? Whether you decide to keep your current investments and investment manager is a personal choice, but here are some factors that you should take into account. The main disadvantage to keeping your US investment manager is that they probably won’t have experience working with international clients and the intricacies of cross-border financial planning and investing. The choice may in fact be taken out of your hands, in the sense that you will need to check whether your current investment manager will want (or be able) to continue working with you now that you are moving to a new country, as not all advisors want to manage foreign residents due to the added complexity. The idea of finding a trustworthy expat-specialist financial advisor may be daunting, however it doesn’t have to be. Do some research, find some options, check out their reviews, ask around other expats, and then book a conversation to see how they would help, and you’ll soon get a good idea who you like and trust. If you’re only moving abroad temporarily, such as for a one-year work placement, it sometimes makes sense to leave your investments and manager in place. Conversely, if you are planning to live abroad for longer, it normally makes sense to transfer your investments to an expat financial planning specialist. The US has some of the lowest investment costs in the world, and you can still keep your current investments in the US when you move abroad (although you might change how and what you trade in depending on the country you reside in), so it doesn’t matter where in the world your new advisor is based as long as they are experienced and knowledgeable about working with expats in your country, the ideal being to find someone who is licensed to invest in both places. Should you keep your current retirement plans? If you have US retirement accounts such as IRAs and 401(k) plans, you have several options when you move abroad. Do nothing The first option is to do nothing and leave your US retirement accounts as they are. This may not be possible though, as some providers, particularly IRA providers, won’t let you keep your US plan when you move abroad and stop contributing. Again though, if you’re moving abroad temporarily, this option, if possible, is worth considering. One downside is that if you retire in another country, the tax benefits won’t apply there. This depends on the details of the tax treaty the US has with the country where you retire. There is also a currency risk involved, if the dollar weakens against the currency in the country when you retire when you’re drawing distributions. Move to a different US retirement account This can be a good option if you aren’t able to keep your current retirement plan when you move abroad, as the provider won’t let you, such as moving a 401(k) plan to an IRA plan. The same issues apply though, in terms of currency risk and possible taxation abroad. Cash them in early Another option is to withdraw and distribute your retirement funds early, at the time that you move abroad. This frees up your funds, however the disadvantages are losing the tax benefits, and often high withdrawal fees and penalties, too. Move your retirement accounts to a foreign retirement account It might be possible to transfer your retirement accounts to a similar foreign program, however it’s not normally possible without losing the US tax benefits. Tax-beneficial foreign retirement plans may also not enjoy US tax benefits, so you may find the advantage negated anyway. The best advice is to discuss it with your expat financial advisor. Tax considerations in the country you’re moving to Knowing and understanding the tax rules in the country that you’re moving to is the single most important factor affecting how you organize your current investments when moving abroad. The tax laws and regulations in your new country can be very different. If you choose to just move your investments without proper consultation and homework, there is a good chance that you will find yourself facing unexpected fees and taxes, potentially in both the US and your new country! On the other hand, understanding different countries’ tax rules can help you plan. For example, Belgium doesn’t have capital gains tax, while the UK, France and Canada have tax treaties that reciprocate US retirement plan tax benefits. Professional advice in this regard is highly recommended. Also, don’t forget that US tax laws require you to file an annual US federal tax return after you move abroad, and if you opt to move your investments and assets to your new country, you might have FBAR , Form 8938 , and PFIC reporting and taxation to contend with. In terms of double taxation, as an American abroad you can claim foreign tax credits to ensure you aren’t double taxed when you file your US taxes. There may be a Totalization Agreement with your new country, too. Totalization Agreements prevent double social security taxation, both when making contributions and receiving payments in retirement. Considerations if you’re moving abroad temporarily If your investment advisor is able to continue despite you being a resident abroad temporarily (such as on a temporary work contract abroad), it may be better to save the costs and hassle of changing and leave your current assets alone, assuming that your current advisor is happy to keep working with you while you’re not a US resident. It’s still worthwhile having a conversation with an expat financial planner though, as you may want to do some investing while abroad, and they can always work with you or your existing advisor to ensure you make the best decisions, even if you’re only abroad temporarily. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

With the Sustainable Finance Disclosure Regulation (SFDR) the European Commission has introduced a new system to identify financial products from a sustainability perspective. Investment products are now categorized as one of the following: Products that do not integrate sustainability into their investment process (Art. 6) Products that promote environment or social features while following good governance practices, i.e. excluding companies that do not integrate sustainability (Art. 8) Products that target sustainable objectives and invest in activities that contribute to social or environmental objectives while following good governance practices (Art. 9) With the introduction of this framework, the European Commission is the first regulator to introduce a standardized categorization and process in regard to sustainable investing and sustainability risk management. If you are concerned if the funds in your portfolio meet any of the above criteria, please don't hesitate to reach out to us. #ESG #SFDR #ImpactInvesting #Renewables DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.