Moving back to Europe

[FIREd]

Hi, FIREd

Would you explain this process to me? And tell me what a borderless account is?

I need to move some funds to Europe next year and have been looking into low cost ways to do this.

Did you get any Clean Clear certificates or Signature Medallion Guarantees before moving to Europe?

Thank you!

Hi gretah, with a "borderless account", you can hold money in several currencies and move money from one currency to another with the click of a button. I know, the idea of a multi-currency account sounds a bit strange at first, but it is quite easy to use.

For example, I hold dollars and euros in my borderless account. I add dollars to the account from my US bank account (you can use your bank's debit card, or a ACH transfer). Then, I convert the dollars to euros when the exchange rate is favorable. Then I can transfer the euros to my French bank account (or someone else's bank account in the Eurozone). I did not need any certificate or guarantees to get started (but Transferwise did check my identity when I signed up).

I hope it helps.

 

[Alan]

This one I missed. You have a link?

Enjoy!!

http://www.early-retirement.org/forums/f38/best-nosehair-clipper-brand-and-style-34224.html

 

[Alan]

Hi, FIREd

Would you explain this process to me? And tell me what a borderless account is?

I need to move some funds to Europe next year and have been looking into low cost ways to do this.

Did you get any Clean Clear certificates or Signature Medallion Guarantees before moving to Europe?

Thank you!

I also didn’t need any certificates or Medallion signature before moving.

I used to use xe.com to transfer money US to UK but found TransferWise to be cheaper and faster. I don’t use their borderless account but have heard that is easy to use just like FIREd reports.

 

[FIREd]

Last night, I tried to open a US checking account with HSBC (the first -and supposedly easiest- step to transfer my savings to France) and my application was declined. I received an email shortly after stating that they could not verify my identity. Then I remembered that I had put a security freeze on my credit and that they were probably relying on the credit bureaus' information to process my application. So I tried to temporarily lift the freeze online. It worked with TransUnion and Experian. But Equifax could not process my request online. They asked me to write them a letter (!) to provide further information. Never mind that I had to freeze my credit because of their inept data breach last year! Anyway, I crossed my fingers and tried to reapply at HSBC, hoping that they relied on TransUnion or Experian for ID verification but my application was declined again. I called HSBC this morning, and they confirmed that (of course) they use Equifax to verify an applicant's identity. So I had to write a letter to Equifax this morning asking for a temporary lift on the freeze. Who knows how long that's going to take.

 

[braumeister]

So I had to write a letter to Equifax this morning asking for a temporary lift on the freeze. Who knows how long that's going to take.

It should be quick, unless you used one of those envelopes with self-adhesive flaps. Normally I think they get your DNA from the saliva trace left by licking an ordinary envelope and verify your identity that way.

 

[MichaelB]

FIREd, sorry to hear that. I firmly believe the human race would be better off without Equifax.

 

[ivinsfan]

FIREd, sorry to hear that. I firmly believe the human race would be better off without Equifax.

Now that's going to send us totally off-topic if we get to start listing things the human race would be better off without...…!!

 

[MichaelB]

Now that's going to send us totally off-topic if we get to start listing things the human race would be better off without...…!!

You’re right, and I shouldn’t have, but Equifax ...

 

[gretah]

Thank you, FIREd and Alan!

A borderless account sounds like a multi-currency account. I've looking into those a bit and your borderless explanation helps my understanding lots.

The lower fees with TransferWise look appealing. Thanks for the report that transactions were smooth.

 

[FIREd]

The divorce settlement has been finalized. I did pretty well (50/50 split uncontested). I can start to consolidate my accounts and pray that the dollar rises against the euro over the next few months to get a bigger bang for the buck.

Equifax has still not lifted the freeze on my credit so I still cannot open my new HSBC account.

 

[aja8888]

The divorce settlement has been finalized. I did pretty well (50/50 split uncontested). I can start to consolidate my accounts and pray that the dollar rises against the euro over the next few months to get a bigger bang for the buck.

That was fast! Great job and hope the new life works for you and your Ex.

 

[tulak]

That is very good news. I’m glad to hear it’s not a messy a divorce.

I’m curious, is the divorce final or is there a waiting period?

In WA, there’s about a 3.5 month wait after filing for an uncontested divorce before it’s final.

 

[FIREd]

That is very good news. I’m glad to hear it’s not a messy a divorce.

I’m curious, is the divorce final or is there a waiting period?

In WA, there’s about a 3.5 month wait after filing for an uncontested divorce before it’s final.

There is a 30-day waiting period for us (I think it may be 3 months if kids are involved). So the divorce should be final in mid-October.

It was not a messy divorce at all. In fact, the mediator mentioned that she’d be out of business if most divorces went that smoothly. And I have even been allowed to stay in [-]our[/-] her house until my move back to Europe in December.

 

[tulak]

Thanks for letting me know.

Considering how bad a divorce can be, it’s nice to hear when it goes well.

 

[Alan]

Thanks for the update, and I’m pleased to hear that it went so smoothly. Good luck with the move, I’m sure you would like to be relocated before the end of the year to make the start of 2019 the start of your new adventure.

 

[Alan]

When we moved to England from the USA in 2016 we also had failed to set up an HSBC account, probably for the same reason as we also had a credit freeze in place. Once in England we opened a USA HSBC account from our HSBC bank here.

When our son moved to England in 2017 he also had failed to open an HSBC account in the USA because it required him to appear in person at an HSBC branch and they did not have a presence in Texas. After arriving here he opened an HSBC account and almost immediately opened an HSBC account in the USA.

I know it sounds crazy but you might find it easier to open an HSBC account in the USA from France.

 

[FIREd]

When we moved to England from the USA in 2016 we also had failed to set up an HSBC account, probably for the same reason as we also had a credit freeze in place. Once in England we opened a USA HSBC account from our HSBC bank here.

When our son moved to England in 2017 he also had failed to open an HSBC account in the USA because it required him to appear in person at an HSBC branch and they did not have a presence in Texas. After arriving here he opened an HSBC account and almost immediately opened an HSBC account in the USA.

I know it sounds crazy but you might find it easier to open an HSBC account in the USA from France.

Good to know, Alan! Late last night, I tried to re-apply for a HSBC account and this time the application went through (so Equifax seems to have lifted the freeze on my credit, though I did not hear from them). It is currently under review to see if I need to provide further documentation. If I need to appear at a branch, I’ll probably choose a branch in the DC area and make it a trip (I always wanted to visit Mount Vernon and Monticello).

 

[FIREd]

Thanks for the update, and I’m pleased to hear that it went so smoothly. Good luck with the move, I’m sure you would like to be relocated before the end of the year to make the start of 2019 the start of your new adventure.

Before there was any talk of divorce, we had purchased airline tickets to go spend Christmas with my family in France. I plan on making it my relocation trip instead.

 

[Accidental Retiree]

Before there was any talk of divorce, we had purchased airline tickets to go spend Christmas with my family in France. I plan on making it my relocation trip instead.

I wish you both the best and look forward to
reading your FIREd notes from France.

 

[FIREd]

Quick update:

HSBC is still reviewing my application for a US-based checking account. Four days after I applied online, they asked for additional information (copy of driver's license, proof of address, etc... to be sent online). I provided them with that information 6 days ago and then... nothing. So I called them this morning and my call prompted them to (finally) review the information for completeness. Now it has to go to another department to check the information for accuracy. If they are satisfied, then the account opening department will contact me. Wow.

I am also thinking about health insurance. I have to be a French resident for at least 3 months before I can apply for coverage through the French national health system. So I am wondering how to bridge this 3-month gap in coverage. Should I subscribe to a travel health insurance policy (like GeoBlue by BCBS)?

In addition, I might want to keep some exposure to the US dollar and US market after my move. Are there brokerage companies in the US willing to work with non-residents? I have read that Vanguard (where most of my money currently is) is not friendly to customers based outside the US. Are there ways around the 30% withholding on dividends?

I have started converting enough dollars to Euros to buy myself a condo and a car upon my arrival in France. I am targeting an average exchange rate around 1.20 USD/euro overall, so the current exchange rate is decent. With fees, I am currently averaging $1.185, but the Euro is climbing.

Finally, I have done some research on the French tax code. I might post some of my findings here if anyone is interested. But in general, taxes will be going way up for me while health care expenses will be going way down (overall it is a wash).

 

[braumeister]

Should I subscribe to a travel health insurance policy (like GeoBlue by BCBS)?

That would make a lot of sense to me. You should be able to find a number of leads from threads here. World Nomads is another that has been mentioned.

As to the problem of keeping a US brokerage account, that has been problematical since FATCA. I think you can still invest in ETFs, but not mutual funds.

 

[Alan]

Thanks for the update, good luck with HSBC.

To stop institutions from doing the mandatory withdrawal you file W-8BEN

https://www.irs.gov/forms-pubs/about-form-w-8ben

We have been doing just fine with Vanguard as overseas residents. I checked with them before we left. I do have a Skype US phone number registered with them for 2nd level verification, and it works well. However, we are USCs living abroad so I can’t comment on non-USCs living abroad.

While in England we had to come back to the USA for a month in January, 2017 and used World Nomads to cover us for health insurance.

 

[Alan]

As to the problem of keeping a US brokerage account, that has been problematical since FATCA. I think you can still invest in ETFs, but not mutual funds.

You can continue to invest in mutual funds but they may well be viewed as PFICs in France. I converted our MF’s to ETF’s that report into the U.K. tax system HMRC so they are treated as equity funds and attract the much more favorable tax treatment. France may have a similar set up.

https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

 

[NYEXPAT]

Look into a Schwab International account, they are very accommodating.

 

[FIREd]

You can continue to invest in mutual funds but they may well be viewed as PFICs in France. I converted our MF’s to ETF’s that report into the U.K. tax system HMRC so they are treated as equity funds and attract the much more favorable tax treatment. France may have a similar set up.

https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

Based on my research, mutual funds are viewed as PFICs in France as well and taxed punitively.