Expat Community > Philippines

phmx
Joined 2010
Posts: 11

Obstacles for US Expat Investment Management

8 years ago

Before moving overseas, US expats must understand the recent trend by the US government and US financial institutions to erect barriers and inconveniences to US expats wanting to invest their assets.

Already well-known in this Forum is FATCA, the US legislation that requires Foreign Financial Institutions {FFI] to report holdings over $10,000 by US "persons," including Green Card holders. Several banks in the Philippines that accept regular savings and checking accounts from US citizens also have excellent programs to assist their clients in investment and estate management. None will accept US citizens into their wealth management programs. Even Philippine insurance companies with investment grade instruments turn away US clients, including Philippine-American Life Insurance. I know from personal experience that Citibank Wealth Management Philippines, HSBC and the Bank of Singapore will not allow US citizens to open investment accounts.

I once got a tax refund check from IRS. Citibank Philippines refused to accept it, advising me to find a way to deposit it into an American bank. Their reason: excessive IRS steps required before releasing the money to Citibank Philippines.

Even US-based banks and stock brokerages turn away US expats if they do not also have a bonafide US address. In my experience, three US brokerages with online trading facilites refused to accept my business because I did not maintain a residence in the US. I have since made arrangements with my long-time US tax accountant in Florida to allow me to live in his mailbox.

LESSON: Before departing for the Philippines, make sure you have a strong plan to maintain a legal presence in the US. Find a trusted family member who will allow you to use their address as your US residence. Be sure to have a relationship with a US bank and investment brokerage before you leave, and visit them whenever you go back to the US for a visit. I can personally recommend Citibank Wealth Management in the US, which is convenient for both managing investments, holding your cash assets and transferring funds to Citibank Philippines. I think that you must have a minimum deposit of US$ 120,000 to maintain an account.

You will find more advice about these matters in the Nestmann and Tanzen books I have recommended this week. These advisers are particularly good for US expats who really want to move most of their assets overseas. It can be done, but it takes a lot of planning and work to accomplish.

SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
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SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

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SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

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Obstacles for US Expat Investment Management

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