rodiy2k
Recycles dryer sheets
I'm aware this forum does not necessarily have a lot of expatriates and there are other forums that might be a better place but in the interest of "you never know", I am posing the question: If anyone happens to be in a similar situation or thinks they may be affected by the new FATCA rules, I am looking for any and all advice, suggestions, comments or whatever may help me make an educated decision on how best to handle this entirely illegal act that the IRS has now imposed on every country on Planet Earth.
Fidelity has just announced they have begun prohibiting Americans whose account addresses are foreign from trading ALL U.S. mutual funds rather than attempt to comply with FACTA rules that just took effect. The new rules would require extra record-keeping and specialized reporting for every single red dime held outside of the United States by its citizens; Apparently mutual funds have the strictest rules regarding disclosure so I guess they have targeted them. Unfortunately, most everyone I know wants to spend their retirement enjoying themselves instead of trying to pick individual stocks or even ETF's; not to mention the cost savings of being a self-directed investor that prefers no transaction fee funds from a discount broker.
This has me in a bit of panic mode; long story short; We are expatriating to Penang, Malaysia next year and thus applying for an "MM2H" social visit pass on April 15, 2015 as soon as I turn 50. (the equivalent of a residency visa). I was laid off last year and my odds of finding similar work are slim to none as I worked in financial services. Therefore we are selling the house which is almost paid of and retiring 5 to 7 years earlier than planned.
We have about $750k in securities. Half is in Fidelity (in tax sheltered accounts: my wife will continue to work until next year). The other half is in TD Ameritrade in IRA Rollovers ROTHs and one taxable account).
While we plan on keeping the house proceeds out of the market to live on for about 15 years (which is easy in Southeast Asia), the investments MUST stay fully invested so that they can hopefully grow to an ample amount when we both run out of liquid cash and will be in our mid 60s. We intend to keep the house proceeds liquid, mostly in CDs and equivalents (yes, rate suck but we want to ensure a guaranteed lifestyle that includes travel while young and healthy)
Last time I spoke both TD and Fidelity told me the foreign address will pose NO restrictions. Yes, I understand I can just change our address to an Earth Class mailing service address but that is technically not legal as that is not a residence. Besides, since I am not one to not play legally our tax returns will show a Malaysian address starting next year anyway. As we will only have small taxable incomes there would be no reason to trigger any suspicions with IRS but I'm scared that Fidelity (and TD) will find out and close our accounts since we never disclosed our foreign adreess. Or worse off , liquidate the accounts though I believe that is illegal
I have heard Charles Schwab can be an alternative as they have no foreign branches that would need to spend money complying but I hate to sever 20 year relationships with my brokerage firms.
Is anyone in a similar situation and can anyone please provide suggestions, advice or alternatives? It's SO unfair and the entire act is illegal under international law yet every bank is subservient to the empire since they have all been caught and fined for something illegal and don't want regulatory issues even at the expense of losing high net worth clients. The brokerages are obviously too cheap to hire ample staff and upgrade systems that would allow them to comply so their decision is to blow off all their self-directed clients even at the expense of losing millions in assets under management.
Insane and ridiculous. Ideas?
Fidelity has just announced they have begun prohibiting Americans whose account addresses are foreign from trading ALL U.S. mutual funds rather than attempt to comply with FACTA rules that just took effect. The new rules would require extra record-keeping and specialized reporting for every single red dime held outside of the United States by its citizens; Apparently mutual funds have the strictest rules regarding disclosure so I guess they have targeted them. Unfortunately, most everyone I know wants to spend their retirement enjoying themselves instead of trying to pick individual stocks or even ETF's; not to mention the cost savings of being a self-directed investor that prefers no transaction fee funds from a discount broker.
This has me in a bit of panic mode; long story short; We are expatriating to Penang, Malaysia next year and thus applying for an "MM2H" social visit pass on April 15, 2015 as soon as I turn 50. (the equivalent of a residency visa). I was laid off last year and my odds of finding similar work are slim to none as I worked in financial services. Therefore we are selling the house which is almost paid of and retiring 5 to 7 years earlier than planned.
We have about $750k in securities. Half is in Fidelity (in tax sheltered accounts: my wife will continue to work until next year). The other half is in TD Ameritrade in IRA Rollovers ROTHs and one taxable account).
While we plan on keeping the house proceeds out of the market to live on for about 15 years (which is easy in Southeast Asia), the investments MUST stay fully invested so that they can hopefully grow to an ample amount when we both run out of liquid cash and will be in our mid 60s. We intend to keep the house proceeds liquid, mostly in CDs and equivalents (yes, rate suck but we want to ensure a guaranteed lifestyle that includes travel while young and healthy)
Last time I spoke both TD and Fidelity told me the foreign address will pose NO restrictions. Yes, I understand I can just change our address to an Earth Class mailing service address but that is technically not legal as that is not a residence. Besides, since I am not one to not play legally our tax returns will show a Malaysian address starting next year anyway. As we will only have small taxable incomes there would be no reason to trigger any suspicions with IRS but I'm scared that Fidelity (and TD) will find out and close our accounts since we never disclosed our foreign adreess. Or worse off , liquidate the accounts though I believe that is illegal
I have heard Charles Schwab can be an alternative as they have no foreign branches that would need to spend money complying but I hate to sever 20 year relationships with my brokerage firms.
Is anyone in a similar situation and can anyone please provide suggestions, advice or alternatives? It's SO unfair and the entire act is illegal under international law yet every bank is subservient to the empire since they have all been caught and fined for something illegal and don't want regulatory issues even at the expense of losing high net worth clients. The brokerages are obviously too cheap to hire ample staff and upgrade systems that would allow them to comply so their decision is to blow off all their self-directed clients even at the expense of losing millions in assets under management.
Insane and ridiculous. Ideas?