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Early retiree moving from Brazil
Old 03-21-2019, 07:57 AM   #1
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Early retiree moving from Brazil

Hi all,

I am 47, married, 3 kids (20, 12, 6). Retired on 42, after selling my small tech company in Brazil. I have been living on my investments since 2014. I have an NDA and taking care of investments became my "job". I am a computer programmer, specialized in data analysis, machine learning and cyber-security.
For this reason, I love all kind of number crunching that investments and retirement planning brings. I have developed all kind of scripts and spreadsheets for simulating (monte carlo and other stochastic simulations), optimizing, monitoring and calculating/minimizing taxes. Not sure it it helped, but its been fun, and at least my portfolio has been increasing.

Since 2018, I have been living in USA with a green card. This year is my first doing income tax as a resident, and after studying a lot, I have found this fantastic forum.

In Brazil, we dont have FIRE discussions. There is a huge banking industry, with thousands of mutual funds, but barely no ETF, index funds. There is no HSA, IRA, 401k, Roth IRA. So, I have been investing in stocks, reits and treasury/fixed income, all from Brazil. Mostly 32% for each of these asset class in my financial portfolio (which is 55% of my total portfolio).

I would like to create a new "retirement" based in USA assets. My plan is to bring money monthly here and invest/save like any american would do, so when I am 65-70, I could afford my expenses here in USA. I know USA have all of these tax-efficient accounts, health savings account, college saving accounts. I know I could have income from qualified sources (LT capital gains, qualified dividends), which pays less taxes, or even zero taxes, if I keep my ordinary income very low. I have even created an asset allocation optimization script for increasing my net income, taking this into consideration. As you may be aware, I have to pay taxes for my brazilian income. Since taxes in Brazil are kind of different (high production/sales taxes, low income taxes), I am paying a lot of extras taxes here in USA. I have hired some advisors, but they barely understand about brazilian investments and how they are interpreted in USA Income Taxes.

I am not going to have, for now, any earned income. Just investment income, as well as rental and from the company I partnered in my EB5 visa. So, I believe 401k is out of question. What about IRA? Does it worth to have one? What about HSA and health insurance? What about college saving account for my daughters? Should I contribute to Social Security? Does it worth to make my investing activities a business. I already have a LLC since 2014, when I purchased a house here, but since I am now a resident, I dont need to "protect" me from estate taxes in case of my death.

Do you have any reading recommendations (books, sites) which would explain all the tax-efficient account, specially in the perspective of an early retiree?

Tomorrow I m going to meet my accountant in order to discuss these, but I would like to be better prepared to make the right questions.

Thank you
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Old 03-21-2019, 08:16 AM   #2
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Welcome aboard, retiredgeek! Sounds like you will fit in nicely here.

I'm sure other forum members will be along shortly to help answer your many questions. (A possible suggestion...perhaps consider breaking the questions into separate threads by topic, as it would be easier to keep the responses focused and separate.)

omni
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Old 03-21-2019, 08:28 AM   #3
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I'm far from an investment expert, but I am very sure one can't contribute to an IRA either traditional or Roth without earned income. As you noted there can be no 401K contribution without earned income. I am not sure about HSA.

Edit to add: HSA's do not have the earned income requirement to contribute to it like IRA's and 401K do. There may be a possibility to put some money in a Roth without earned income, but I am not sure exactly how it might work. I see you are talking to an accountant about your situation. That's good.
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