With the festive season almost in full swing and the holidays right around the corner, keeping the children entertained becomes quite a handful. To keep our little ones entertained this Christmas season, we’ve ranked some of the top activities for them: Pick out a Christmas tree together, or better yet, chop down your own at a local tree farm. Take advantage of cold temperatures and take your kids ice skating. Play Christmas Scavenger Hunt - https://www.playpartyplan.com/christmas-scavenger-hunt/ Donate your kid’s old toys and make room for the new ones. Build a gingerbread house - https://sallysbakingaddiction.com/gingerbread-house/ Write and decorate a letter to Santa. Read Charles Dickens ‘A Christmas Carol’ aloud. It is a powerful reminder of the importance of redemption and empathy. Make a Reindeer out of paper - https://abcdeelearning.com/christmas-activities-for-kids/ Make snowman Spoons for hot cocoa - https://www.womansday.com/life/g2054/christmas- Drive to see Christmas lights. Finally, don’t forget to prepare to answer important questions about whether Santa is real. Here is a little help - https://www.womansday.com/life/a37671573/is-santa-real-how-to-tell-kids/ 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.

Dunhill Financial's expat women's wellness and wellbeing group is going from strength to strength. We run quarterly online events for women living abroad that introduce inspirational speakers who provide insights on personal wellbeing and succeeding professionally. You can see recordings of our previous events here , and you can join our expat women's LinkedIn group here . Our next expat women’s event is coming up soon! Join us on December 7th for a discussion with Adrian Leeds about her incredible journey to a successful life in France. As a real estate expert, she will also discuss the current state of real estate and talk about practical tips for those who are looking to buy property near term. To sign up, click here . During our most recent North American Expats Financial Forum meanwhile, Adrian Leeds and Anya discussed important year-end planning items. Most of the topics discussed apply to expats in all different countries. You can find a replay here . Or, if you are short on time, take a moment to review our end of year checklist.   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.

New Year is traditionally a time for personal reflection and for making resolutions and commitments for the coming months and year. As such, it’s the perfect time to look ahead and make some resolutions that will get your finances on track for the year ahead. For US expats in particular, financial planning can be more complex due to currency and cross-border considerations. So why not start the year as you mean to go on, and use our list of New Year financial resolutions as your guide as you map the months ahead? Consider the following steps: 1. Define your financial goals for 2023. In what ways would you like your financial situation to improve by the end of the year? Paying off debts perhaps, or starting an education saving plan or increasing your retirement contributions or investments. Write them down and put them somewhere safe so you can revert to them during the year. 2. Schedule a consultation with your financial and tax advisors. Arrange a time to meet with your financial advisor and accountant early in the year to review your goals for the year and see how they can amend your financial plans or otherwise assist you in achieving them. Prior to your meeting, discuss them with your spouse or other trusted friends or relatives to get some feedback. 3. Get organized. Gather all your important financial documents early in the year. As an expat, it’s worth gathering everything you need for your tax filing early, including income, bank and investment statements from 2022. 4. Ensure your insurance and estate planning are up to date. Ensure that your insurance and estate planning are up to date by checking your life insurance policies, homeowners insurance, your wills, trusts, and other pertinent financial records. Review your life insurance policies to ensure that your beneficiary designations are appropriate to your current situation, and that all other insurance arrangements are up-to-date. Also, consider repaying any loans you may have against your insurance policies. Organize them so you can access them quickly and easily, and set up reminders for any renewal dates. 5. Keep debt in check. Pay off high interest debt first, especially if the interest isn’t tax deductible. Do your best to avoid the minimum payment trap. By making only the minimum monthly payment, the interest that accumulates over time can make even “bargain” purchases costly in the long run. 6. Establish an emergency fund. You never know what the future will bring, and it always makes sense to have an emergency fund of 3-6 months income. If you don’t have one already, make 2023 the year when you aim to start establishing one. 7. Plan for the long term. If your children plan to attend college and will require financial aid, start saving for it. If it’s close, think about applying for scholarships. The earlier your children apply, the better your chances may be. Think about retirement too, whether it’s just around the corner or decades away, the earlier you start the better, after all. The New Year offers us a fresh beginning. This year, resolve to make your finances a priority. With good planning and appropriate guidance, you can begin to work toward financial independence as well as prepare for life’s uncertainties. 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 © 2022 Dunhill Financial. All rights reserved.

More and more, people want to invest while making a difference. Responsible investing has taken off in recent years, and many Americans now invest in funds called Socially Responsible Investments. These funds do not invest in industries that have a poor social or environmental impact or negatively impact public welfare. For example, SRI funds don’t include investments in the tobacco, arms, or alcohol industries. What is Socially Responsible Investment? Socially responsible investment doesn't simply mean avoiding certain types of industries that have a negative impact but also investing in industries and sectors that do a lot of good. For instance, SRI funds may invest in greener technologies. These funds may invest in companies that are promoting wind or solar power technology, or in companies that have a proven track record for bettering areas in the developing world that they source from or manufacture in. What Kinds of Companies do SRIs Invest in? SRI funds may invest in companies that investors believe have a history of focusing on the public good. That means companies with a good environmental record or a history of protecting consumer rights and upholding civil and human rights. The approach is to invest in those companies and countries that promote these ideas and philosophies while avoiding companies whose products and services contribute to environmental degradation, deterioration of public health, or violations of human rights. Bear in mind also that an SRI fund may invest in companies that are highly diversified. Therefore, you may have one sector of a corporation that invests in industries that may be engaged in activities you find offensive, but because the overall contribution from that sector is so minor, the SRI may go ahead and invest in that company. The most effective and most acceptable way to invest in a socially responsible manner is to invest through mutual funds or ETFs. There are many major funds that now have an SRI format, and these funds are becoming increasingly popular. If you want to make socially conscionable and sustainable investments that are in accordance with your beliefs, speak with a financial adviser who can help guide you in the right direction. Socially responsible investing is a way of making sure that your portfolio not only makes you money but also helps you do your part to make the world just a little bit better. By investing in companies that are contributing to social and environmental good, you will have an effective voice and can ensure that your voice is heard. Our advisors would be happy to help you with investing ethically! 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.

For American citizens holding money in a foreign bank account April 15th is the deadline (with an extension to October 15th) for filing your Foreign Bank Account Report, or FBAR. This report, formerly called the TD F 90-22, must be filed for bank accounts, brokerage accounts, mutual funds, trusts, and any other type of foreign accounts. However, you don’t need to file if the aggregate balance of all of your foreign accounts is less than $10,000. This $10,000 limit exempts many Americans from filing, but it’s important to make sure you’re exempt, as in recent years the authorities are coming down hard on foreign accounts, and failure to report could cause serious ramifications. The $10,000 cap is judged every day of the year, not only at the time of filing. So, if you ever go over $10,000 at any point in the year, you have to report it. Interest earnings are also included in the limit, so keep that in mind when determining whether or not you need to file an FBAR form. If you fail to file when you should, you could face huge penalties. Non-willful violations receive a $10,000 civil penalty, while willful violations receive the greater of $100,000 or 50% of the amount in the account for each violation. Other consequences could include criminal penalties of $250,000 and five years in prison. Many Americans prefer to keep their foreign bank account balances under $10,000 in order to avoid filing FBAR forms. If you would like to store money in Euros in excess of $10,000, another option is using a US bank account. More and more banks, including Interactive Brokers and Pershing, allow non-dollar bank deposits in the US. Keeping money in different currencies allows for greater diversification, and can also act as a shield against declines in the US dollar. Usually, if the US dollar falls, other currencies rise, and having an account of Euros can keep you ahead. Many people use their foreign currency accounts to help save for large purchases, or to make purchases abroad. Of course, there are questions to consider before opening a foreign currency account. Account minimums, currency exchange rates, and whether or not the account is insured and negative interest rates should all be considered. There is also the risk that the Euro could fall dramatically, causing you to lose money if your account is switched back into dollars. Still, holding Euros in a US bank account is a good way to avoid going over $10,000 in a foreign account, while still diversifying. Still not sure? Contact us and one of our qualified 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.

Your US credit score is probably not the first thing you think about as you prepare for a life abroad, but it’s something well worth remembering, especially if you're thinking of returning stateside someday. Maintaining a good credit score can make an eventual transition back to life in the US much easier, whether you’re looking to buy a house or just looking for lower insurance premiums, so it’s an important consideration when planning your overall financial future. Should I cancel my credit cards before moving abroad? Moving to another country doesn’t mean you need to cancel your US credit cards, it simply means you should be staying on top of them (i.e. checking your score once a year, reviewing the details, and acting on any unexpected information in the report, etc.). In fact, canceling a card may mean you inadvertently increase the proportion of available credit you are still using on other cards, unknowingly negatively impacting your credit score. Therefore, as is the case when in the US, it’s important you simply stay aware of how much credit you’re using on a monthly basis and ensure you pay it off regularly. If you intend to cancel one of your cards you ought to take into account how that will affect your overall credit picture. You may also shy away from canceling a card because the fees involved vary but can be high, so it’s important to check what you may be paying by doing so. Why should I keep my US credit cards? A great benefit of credit cards in the US is that they often have better overall rewards programs for using them compared to cards from other countries, meaning retaining an American card can mean better credit rewards (think cash back rewards, bonuses, etc.), so think twice before assuming that a credit card from your host country is automatically more beneficial. Additionally, it’s a general truism that we just never know what the future holds for us. You may find that one day moving back to the US makes sense for your personal plan and/or life goals, and so having a credit score you’ve kept well-maintained and ready to go the second you land can be a huge help in arranging your affairs (new house, new car, etc.) from the moment you touch down stateside. Planning for these potential events now can save you a lot of hassle and stress in the long run, and all it takes is a swipe of the card (even for small purchases) every now and then, and vigilance with timely payments and credit score checks! Our advisors would be glad to help you with any questions you have regarding your Credit Score. 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.

Smart investors don’t try to time the market for long-term success. Investors have been whipsawed during late February and early March. Consider the performance of the Dow Jones Industrial Average from February 27th through March 11th of 2020. Investors saw: The three largest one-day-losses in history – February 27th, March 9th, and March 11th The three largest one-day-gains in history – March 2nd, March 4th and March 10th What are the chances that investors timed those six days perfectly? Pretty slim. The smarter investors will implement a process called dollar-cost averaging, not market timing, for long-term financial success. Dollar-Cost Averaging Dollar-cost averaging is not new and exciting, but many millionaires next door have proven its success. The principle behind it is this: You put the same amount of money into the same investment on the same day each month. Those months when the investment’s price goes up, your set amount does not buy very many shares. But when the investment’s price dips, you get to buy more shares at a cheaper price. Guess what? When the price goes back up, all those shares you bought cheaply make you some money. Those shares you bought when the price was high look good, too. There are a few reasons to invest this way. Reason #1 It takes the guesswork out of trying to predict what the stock market is going to do. It’s easy to lose money seeking to time the market. In fact, it’s almost guaranteed. Even professional investors can be pretty bad at it. As long as you feel good about the investment you buy, and you know that the fundamentals are right, you shouldn’t care what the stock market is doing day to day. In fact, you celebrate when the market is down and you buy, because you get to buy more shares of an investment that you think has great long-term prospects. And you celebrate again when the market rallies because all your shares are more highly valued. You win either way. Also, you won’t have to put so much time and energy into investing. You can focus on your family rather than obsess over your portfolio. Reason #2 It creates a disciplined approach to building wealth. You are now on a path to save and invest regularly, building wealth one month at a time. Yes, we have all read about those hot stocks that made someone rich overnight. But for most of us, it’s going to take a working lifetime to accumulate our wealth. Reason #3 You can do this for as little as $100 per month. In fact, some mutual fund companies set up a DCA for as low as $50 per month. You don’t need thousands of dollars to get started or to continue your dollar-cost averaging plan. So, no excuses. Some Things to Do First, make sure you do your research. Make sure you are picking an investment that you feel has strong long-term growth potential. Go online and read annual reports and analysts’ reports. Dig through historical financials and understand what you’re buying and why. Second, start with a monthly amount that won’t break your bank. This is money you won’t miss on a monthly basis. Third, do work up to a DCA approach into multiple sectors and industries. If you are doing a DCA into a mutual fund, you have diversification built in. But if you are buying an individual stock, you want to eventually own five or more to reduce your dependence on one performer. Fourth, commit to a DCA program of at least 12 months. It takes time to build wealth and see the results of your efforts. Some Things to Not Do Don’t wait for the price to go up or down. The key is consistency. Don’t vary the amount based on how much is in your savings account that day, either. Set it up for the same day, same amount, same investment – good times and bad. Don’t stop it when the market takes a nosedive. If you still believe in the investment, keep investing. Remember, in a down market you are buying more shares of a good investment, cheaply. There are some market pundits who say dollar-cost averaging is dead. They show charts and graphs proving that if you used a DCA over a certain period, instead of putting a lump sum into the market on a certain day, you now have less money. If you started in mid-November 2007 through mid-November 2012, they say, you likely would not have had much of an annual return. That five-year span contained a long bear market. The DCA approach is about building wealth steadily, consistently and with discipline over time. It’s about creating and strengthening good money behavior. When you do this for 10 years and see your accumulated balance, you won’t care that you missed timing the best days in the market in 2020. 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 © 2020 RSW Publishing. All rights reserved. Distributed by Financial Media Exchange.

If you’re an expat with young children, you can't afford to ignore a major expense looming in the future–college education for your kids. Apart from building a home and planning for your retirement, funding a child's education could be the biggest expense you’ll face. Whether your child wants to go back to the United States for college or wants to study elsewhere, the price of universities is rarely inexpensive. Here’s what you can do now to prepare. Contribute to 529 Plans You can make contributions to any state's plan and use it to fund your child’s education. Make sure that you don't go over the gift tax limits in the US (these limits can be compounded for multiple years being saved in one) or your current resident country. You can use your 529 plan at virtually any accredited public, nonprofit postsecondary institution. In fact, you can also fund education at several international facilities on the list. A great resource to find out if a school is on the listed below and if you select FC for the state it will list international facilities: http://www.savingforcollege.com/eligible_institutions/ The tax benefits for 529 plans can be substantial as some offer state tax exemptions, but they always grow tax-free. They can also be used to reduce estate taxes as assets in 529s are not part of your estate. There are several 529 plans available on the market. Look for one that has low administrative costs and offers you several investment options. You will need a dynamic fund mix to help you alter the investments as your child gets closer to needing the funds. Alter the model over time moving to Lower-Risk Investments Keep investments you have made with a view to your child's college education in line with the time the funds are needed. High growth investments should be used while your children are young and you have a long time horizon. As the date gets closer to sending them off to school, eliminate all high-risk investments and ensure that a market crash doesn't impact your child's education. Focus on Currencies When you invest in your child's education, make sure that you consider currency risk. In other words, you don't want to save only in American dollars, considering the volatility of international currencies over time. As the date gets closer, make sure that you manage risk towards the currency in which he or she will study. For instance, if your child is going to study at a French university, your investments should minimize your risk to the Euro. To better understand natural hedges on currencies, check out our youtube video on the subject here. 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.

When working abroad, it’s common to acquire a foreign pension plan. While some Americans will reside outside of the US permanently, many will return home eventually, and in doing so are faced with the question of what to do with their foreign pension plan investment. You might be thinking that you can add your funds into a new US based pension plan like an IRA, but actually, most foreign pension plans are non-transferable because the US Internal Revenue Code does not classify them as a qualified trust. So what to do with your pension? There are a few options: You can choose periodic distribution or take a lump sum payment. The benefit of this option is that you can turn around and invest the money in a US-based account, which could offer a better range of investment choices at lower fees. Again, you will have to pay taxes on the distribution. Try to avoid pushing yourself into a higher tax bracket when you’re making distribution. In some countries you can transfer your pension to a new pension. These transfers can help you manage currency risk or estate planning. You want to make sure that the distribution method isn’t going to create future tax ramifications. You want to make sure you avoid instruments that would be considered PFIC’s, Passive Foreign Investment Companies. You can simply leave the funds in your foreign pension account until you retire. Funds accumulated in foreign pension plans have the benefit of remaining untaxed until they are distributed, so it’s often a good idea to hold off distribution as long as possible. Once you retire and withdraw from the fund, you will have to include the taxable portion on your US tax return. You may want to hedge the currency risk through a natural hedge in the portfolio or using hedging investments as outlined in our articles on currency planning. One thing to remember is that most pension plans, both foreign and in the US, charge a penalty on early distribution. The penalty only applies to the taxable portion of your pension, but it’s still best to avoid if possible. You should wait until you are at retirement age before receiving any distributions from your pension plan (59 ½ in the US, unless you use special provisions in the tax code), and should always make sure your distribution method is in accordance with the allowable methods outlined in IRS Publication 1075. Of course, each country has different rules and different tax treaties with the US, and foreign pension plans can vary. An experienced financial advisor can help you determine which option is best for you, and clarify any questions you may have. If you have any doubts don't hesitate to contact our team, our advisors would be more than happy to clarify them. 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. MArch 5th

Investing in a foreign country can be a dizzying experience. At first glance, it can seem like countries overseas offer plenty of new investment opportunities, some too good to be true. Oftentimes, they are too good to be true, and inexperienced investors can make decisions they’ll regret later. Here are some of the most common investment mistakes that Americans abroad make. 1. Over Investing or Not Investing at All Sometimes, expats get overconfident and may decide to dip their investing fingers in a variety of pies. Don't overdo investments by flipping profits, or investing profits from one market in another. Take it slow, and be cautious. On the other hand, don't fall into a horror-induced stupor. Many Americans get spooked by all of the nightmarish stories they have heard about investments abroad, and simply fail to put their money into anything at all. Take good and sound financial advice, before you invest. Take time to speak to a financial consultant familiar with the country’s laws, as well as those of the United States. When you hire an advisor, they should be both regulated in the country you're residing in and the United States. 2. Buying Foreign Mutual Funds Stay clear of foreign mutual funds. The Internal Revenue Service will consider your foreign mutual fund to be a Passive Foreign Investment Company, and you may find yourself sinking in paperwork when tax season comes around. Passive Foreign Investment Companies (PFICs) are subject to special treatment by the U.S. tax code, meaning they have much higher tax rates. Apart from mutual funds, non-US pensions, insurance policies, and certain hedge fund products are also considered Passive Foreign Investment Companies and may qualify for hefty taxes. 3. Pay fees for non-U.S. Investments If you’re buying a non-U.S. investment, you might assume you have to go through a foreign broker, but often you can actually buy through a U.S. broker for much less. In fact, there are very few investments in the world that can’t be purchased through a U.S. brokerage firm, usually for a cheaper price. Why the price difference? Investment expenses like mutual fund fees, trade commission, and brokerage fees, are lower in the United States than elsewhere. Plus, the range of investments available through U.S. brokers is usually larger than in the rest of the world. So, just because you’re living abroad or investing in foreign assets, doesn’t mean you need to forego U.S. brokers. 4. Failing to Report Taxes Right As an American investing abroad, you are now subject to a number of tax reporting requirements. The Internal Revenue Service requires Americans living abroad to file taxes. There are many reporting requirements and filing forms specifically for Americans investing or banking abroad, so do your research and make sure you’re in compliance. 5. Put Money into a Non-Qualified Foreign Pension Plan Oftentimes, Americans living abroad participate in pension plans sponsored by foreign employers. At first, this seems to make sense, as it’s what you would do at home, and these pension plans usually have beneficial tax treatment locally. But it’s important to look at not only local benefits but how these plans are treated under U.S. tax law. Most of them are not qualified and can actually have negative tax consequences, like double taxation. If you’re planning to retire on these assets, you need to be aware of your obligations to report these assets, as well as the tax treatment of your contributions. If your pension plan is not qualified in the U.S., you probably want to consider other options. Investing abroad can be lucrative and exciting, provided you are cautious, sensible, and willing to understand local culture, laws, and idiosyncrasies before you expect returns. We would be glad to help you with your queries regarding investing as a US Expat and help you plan your finances accordingly. 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.

Our educational cartoon 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: https://brokercheck.finra.org/ 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. 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.

So you want to be an investor - welcome to the club! Investing is not something that is saved for the ultra-rich, those born with an inherent ability to save money, or a fancy education in finance or business. It’s a skill that can be learned, practiced, and mastered by anyone who chooses to be diligent in its course! Here’s how you can get started today on a lifelong journey towards wealth through investing. Step One: Invest in knowledge. Just like learning a new language or playing an instrument, you'll need to study and practice in order to master the skill of investing. Start by reading a few books about money management from some people who know a thing or two about investments. There are millions of books available on the topic of investing, but “Rich Dad, Poor Dad” by Robert Kiyosaki, “Think and Grow Rich” by Napolean Hill, and “Total Money Makeover” by Dave Ramsey are all great places to start. These finance books will give you insight into the money habits you should be practicing and motivate you to stick with money-saving goals so you can work towards eliminating debt and saving to invest. Trust us, once you read these books you will want to keep learning more and more! Step Two: Decide what type of assets you want to own. Once you're on the right path with your money management, it’s time to start thinking about what assets you want to invest in. Assets are anything you purchase that puts money back in your pocket - real estate, business equities, stocks, bonds, notes, and intellectual property (such as copyrights, patents, trademarks, and royalties) are all forms of assets. Each type of asset has its own pros and cons, unique quirks, legal traditions, tax rules, and other relevant details. You might find yourself drawn to one, the other, or some combination of investments based on your existing resources, knowledge, personality, or the opportunities available in one asset class at any given time compared to another. Deciding which avenue is the right one for you might take a bit more research, but once you’ve decided how you want to invest you can clear the way for making proactive goals. Step Three: Save money and eliminate debt. You don’t have to wipe out all your debt in order to invest, nor do you have to save a ton of money just to get started. But it’s important to have a good grip on your finances and free up some cash flow that you can use to invest. The amount of money it will take to start acquiring assets differs depending on which avenue you decide to go down, but a general rule is that you should have a two or three thousand stashed away in emergency savings and have a plan for paying off your debt (and not acquiring more!) before you start investing money in assets. Step Four: Set your goals and get going! Once you feel confident that you’ve got a grasp on your finances and feel knowledgeable about which assets you’d like to pursue, it’s time to set your goals and be proactive about reaching them. Grab a sheet of paper and start planning your short-term and long-term investment goals. If you want to get into real estate, a short-term goal may be to purchase a duplex within two years or a commercial space within five years. If trading stocks and bonds is what you’re after, set a goal to find a broker and save the minimum deposit for your brokerage account by the end of three months and start a portfolio by the end of the year. Talking with your broker, a financial advisor or a trusted mentor can also help you set realistic investment goals for yourself and stay motivated to reach them. This is a very basic outline of the steps needed to get started on investing, there are many many tools at your disposal! As soon as you start investing your time in learning how to make investing a reality and taking proactive steps towards your goals, the money will soon follow. Please feel free to contact us at info@dunhillfinancial.com , we would be happy to help you with any doubts related to investing. 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.