Not Eligible for IRA - Advice

[evemarie]

Hi,

I am a 28 year old US citizen living and working in South Korea. I've been here for three years and I'm not sure when I'm leaving. For the past few years I've been working on paying off my student loans (about $30,000). I should be finished paying them off in the next few months, and I am getting really concerned with how I want to save my money.

I think most people I know have Roth IRAs, but my foreign earned income is excluded from my US taxes, therefore it's not eligible for contributions to an IRA. I have a Korean pension, which I'll be withdrawing when I leave the country.

Basically, I'm looking for advice. I know nothing about investing and I'd like to do something that is pretty hands off. I am open to all advice and suggestions.

Thank you!

[MichaelB]

Hi evemarie, welcome to the forum. Not being eligible for an IRA is not a bad thing, because it means your income is not being taxed by the US and you have more of it to save. That's what I tell my son, who also lives overseas. I also tell him he can and should save and invest in a taxable account, which is what I did when living abroad.

[heeyy_joe]

Welcome. There is a very narrow window that can apply in some cases to contribute to IRA. IRAs for Americans Working Abroad if you are excluded, try vanguard or Fidelity - if you are "hands off" look at index funds at both shops and Fidelity has some age based target "fund of funds" that may appeal to you. Good luck!