money matters for overseas retirees

[ladelfina]

I think what bpp might be saying is that he doesn't see a way (on his Japanese taxes) to deduct the Japanese tax component already paid out on his behalf by a US mutual fund holding Japanese investments.

You're right that in the US we have the Foreign Tax Credit but maybe he can't find a Japanese analog.

nun, excellent point on SS. Being retired and thus not working here there's no issue for me personally to have to try and broker payments from two countries, but that could be the case for others. I believe when/if my paltry SS come in I can get it direct-deposited to an Italian bank.

bpp, tough question! I really don't know if I will want to "retire" here* (that is, grow old here). I'll let you know in 10 or 20 years... Health care coming back would be a big cost issue, but on other levels life in the US is easier for oldsters (and everyone else). I still feel somewhat 'on vacation'. My Italian DH has started to fit in better in our new town; he knows the ropes. I miss a sense of 'agency' and give up on things that I might be doing if I were in the US, as here they are "too difficult". Keeps $ in my pocket, though, that way.. Will depend, as well, on what our family situations are further down the road. Just living the Jello life, I guess!*

[Arif]

Quote:

Are you dealing with a bank there for the mortgage? If not, how does an American bank deal with foreign property purchases? Or maybe it so much cheaper you are paying outright!

It is easier (like flying to Moon is easier than the Mars) to use a international bank here in Panama. Scotia Bank is the one we are using after going to what seems like every bank in town to get a mortgage. It's not easy and you will have to provide a lot of information especially if all your assets are in the US and not Panama.

[nun]

Quote:

Originally Posted by Arif It is easier (like flying to Moon is easier than the Mars) to use a international bank here in Panama. Scotia Bank is the one we are using after going to what seems like every bank in town to get a mortgage. It's not easy and you will have to provide a lot of information especially if all your assets are in the US and not Panama.

The situation is similar in the UK, but mortgages are things that generally follow fairly strict rules re income
and assets and if those assets are held offshore I can see there being some problems. My strategy is to be able
to buy a house outright in the UK when I retire and avoid borrowing as much as I can. Then I can live of a greatly reduced income (no housing costs) and keep the tax bill down.

[Red-y]

Quote:

I believe Vanguard told me that once I change my accounts to a Canadian mailing address, I won't be able to make any new purchases or trades, since Vanguard is not a registered investment entity in Canada. All I can do is sell things and distribute cash.

Wrong...I looked again into the possibility of managing Vanguard assets from outside the country after retirement, just to be sure. This may in fact be feasible without the mail-forwarding ruse.

I got the same answer (see below) from two different Vanguard reps, so hopefully it's accurate*

"As an existing Vanguard customer, you may continue to transact on your
Vanguard accounts while living in Canada. Please note, however, that a
United States citizen living in a foreign country must certify that he or
she is a US citizen and the beneficial owner of an IRA by sending Vanguard
a W-9.*

A US citizen living in a foreign country is subject to an automatic
10 percent tax withholding on any distributions from an IRA.* In order to
avoid this automatic withholding, the shareholder would need to provide
Vanguard with a W-9 and a legal United States address to which we would
send the distributions.

Consequently, you can manage your assets by mail, e-mail or by phone
through our 800 number or call collect."*

The Flagship rep I spoke to assured me that "continue to transact" means buy, sell, exchange, and contribute new funds.