Category Archives: AmeriPREP Financial

All people have a responsibility to themselves and to their families to engage in responsible saving, investing, financial and retirement planning. Generally tax systems are designed to incentivize this. Because of US citizenship-based taxation, Americans abroad have special financial and retirement planning needs. They need specialized knowledge and specialized advisors. These posts identify and describe topics of specific interest to Americans abroad specifically and the expat world generally.

Thinking About Financial And Life Planning For US Citizens Living Outside The United States

Introduction

This week I am giving a (short) presentation on this topic. I created some slides that are designed to provide the categories for discussion. I thought I would share the slides in this blog post.

John Richardson – Follow me on Twitter @Expatrationlaw

Financial And Mobility Planning For “US Persons” With US/Australia Dual @TaxResidency

US citizenship taxation has made US citizens the most heavily regulated individuals in the world and subject to the most penalty laden and complex set of regulations the world has ever known. Those who wish to retain US citizenship or US Green Cards will have to learn how to navigate it.

An industry is slowly growing based on the need for US citizens to have complex and specialized advice. Meet Ashley Murphy:

Tri-citizen of the US, Australia and the UK & Principal of Areté Wealth Strategists Australia, a financial planning firm based in the US.

Better yet… here is a link to his video channel which includes a number of sessions focussing on those who are or who are planning to become US/Australia dual tax residents.

https://www.youtube.com/channel/UCUDWXYRE7IyEb7p3zdToZig

John Richardson – Follow me on Twitter @Expatriationlaw

US Citizens And Divorce: It’s More Complicated For Americans Abroad

Prologue – Divorce And US Citizens Abroad

Panel session – US Expat Tax Conference from Deborah Hicks on Vimeo.

Purpose Of This Post …

Divorce is difficult, traumatic and potentially very costly. What follows are links to three posts – written by David Ellis, CPA – which originally appeared at Tax Connections ins 2022. The point is that US citizens abroad are subject to BOTH US tax rules and the rules in their country of residence. The problem is exacerbated when a US citizen is married to a noncitizen.

The following three posts provide an excellent summary and analysis of how the Internal Revenue Code impacts US citizens living inside the United States or abroad …

Dividing Property In Divorce Tax Traps – Part 1

Dividing Property In Divorce Tax Traps – Part 2

Dividing Property In Divorce Tax Traps – Part 3

Dividing Property In Divorce Tax Traps – Part 4

Dividing Property In Divorce Tax Traps – Part 5

Dividing Property In Divorce Tax Traps – Part 6

Dividing Property In Divorce Tax Traps – Part 7

Dividing Property In Divorce Tax Traps – Part 8

Dividing Property In Divorce Tax Traps – Part 9

Dividing Property In Divorce Tax Traps – Part 10

Dividing Property In Divorce Tax Traps – Part 11

Dividing Property In Divorce Tax Traps – Part 12

Dividing Property In Divorce Tax Traps – Part 13

John Richardson – Follow me on Twitter @Expatriationlaw

US Social Security And Financial Planning With Dan Mazzola

Introduction

For many people (including Americans abroad) Social Security programs (whatever they are called in other countries) are an important component of retirement income and financial planning.

During December 2021 I had the good fortune to host Dan Mazzola on a couple of podcasts. In the first podcast we discuss the inner workings of US Social Security. In the second podcast we discuss financial planning in general.

Here they are …

December 3, 2021 – Smarter Social Security

December 9, 2021 – It’s More About The Investor Than The Investment

Tax me now! Tax me later! Tax me never! Interview with expat financial planner Jimmy Miller

Prologue: In search of a tax haven …

Where to find that tax haven – let’s start with a ROTH IRA

The above tweet from CPA Gary Garter leads to a discussion that includes:

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The Competent Authorities Should Agree That the Canadian TFSA Has The Same Treaty Status As The US Roth IRA

2018 Prologue

In 2018 I wrote a post arguing that it is reasonable to conclude that the text of the Canada US Tax Treaty should be interpreted to mean that a Canadian TFSA is – like a US ROTH IRA – a pension within the meaning of the Canada US Tax Treaty. The 2018 post was arguing for equal treatment without the intervention of the respective Canadian and American Competent Authorities.

The Punitive Taxation Of US Citizens Living Outside The United States Continues

I have previously and repeatedly made the point that:

The United States imposes a separate and more punitive system of taxation on US citizens living outside the United States than on US citizens living in the United States.

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Americans Abroad And Financial Planning In A FATCA And FBAR World – LJ Eiben

The Importance Of Financial And Retirement Planning – It’s Not Easy For Americans Abroad

Americans abroad are severely disabled by the US tax and regulatory regime. As a result they need to plan more carefully and they have fewer options that those who are not US citizens.

I reached out to LJ Eiben of Raymond James to discuss various aspects of the “US Citizenship Dilemma”. Both US Social Security and Canada Pension Plan are part of the equation. I first spoke with LJ in November of 2021 about US Social Security.

Here are three podcasts …

November 11, 2021 – US Social Security For Canadian Residents

January 26, 2022 – Canada Pension Plan And Old Age Security For Canadian Residents

February 4, 2022 – Raymond James: A Permanent Investing Solution For People With Lives And Investments In Both Canada And The US

2022 Financial Planning Facts For Tax Residents Of Canada

Have a look at the following …

2022 Financial Planning Facts ENG

Finally …

Required Disclaimer: The information contained in these slides was obtained from sources RJA and believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views expressed are not necessarily those of Raymond James (USA) Ltd. Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered.

Raymond James (USA) Ltd. is a member of FINRA / SIPC

John Richardson – Follow me on Twitter @Expatriationlaw

A US Social Security Primer: What you didn’t know and didn’t know to ask!

Hat tip to Mr. L.J. Eiben of Raymond James who provided this excellent presentation.

Social Security script and slides

Now a discussion about US Social Security with L.J. …

Mr. L.J. Eiben is a Financial Advisor at Raymond James.

The information in this podcast and contained in these slides was obtained from sources RJA and believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views expressed are not necessarily those of Raymond James (USA) Ltd. Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered.

Raymond James (USA) Ltd. is a member of FINRA / SIPC

Bonus!! Renunciation and US Social Security

Canada U.S. Tax Treaty: Why the 5th protocol of the Canada US Tax Treaty Clarifies that the TFSA is a pension within the meaning of the Canada U.S. Tax Treaty

Article XVIII of the Canada U.S. Tax Treaty Continued – The question of the TFSA

In a previous post I discussed how a U.S. citizen moving to Canada with an existing ROTH will be treated under the Canada U.S. Tax treaty.

The purpose of this post is two-fold:

First, to argue that the the TFSA should be treated as a “pension” within the meaning of Article XVIII of the Canada U.S. Tax Treaty; and

Second, to argue that the 5th protocol (which clarifies that the ROTH IRA) is a pension within the meaning of the Canada U.S. Tax Treaty means that the Canadian TFSA has the same status.

This will be developed in three parts:

Part A – How the Canada U.S. Tax Treaty affects U.S. Taxation of the Canadian TFSA

Part B- Wait just a minute! I heard that the “Savings Clause” means that the treaty would not apply to U.S. citizens?

Part C – The TFSA and Information Returns: To file Form 3520 and 3520A or to not, that is the question

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