How should I manage my US based assets?
Many of our clients here at Extended Investments Limited are US-connected and most of you in that position have some assets back in the States, in the form of 401k or other employment pensions, IRA (traditional or Roth) or investment portfolios that may or may not be managed, overseen or even considered more than once in a blue moon. These assets form an important part of your financial life and shouldn’t be neglected.
We partner with US-licensed teams to offer a seamless service so that your EU-licensed advisors at Extended Investments Limited, working with US-regulated managers and advisors to help you understand and manage your investments worldwide.
Here are three big considerations that we can help with:
1. Retirement Rollovers (401k and IRA)
If you have 401k or similar retirement benefits accounts, you might benefit from rolling these over into an IRA (individual retirement account) in order to reduce cost, take more control of the investments or increase flexibility.
It is very unlikely that your 401k plan will allow you to draw benefits in any currency other than US dollars or have your retirement income paid to a foreign bank account so the more likely you are to retire overseas, the more important this decision becomes.
A traditional IRA, in turn, can be rolled over into a Roth IRA. This can be beneficial in terms of current and future tax liabilities.
We can recommend a qualified professional to advise on whether a rollover is right for you and a team to help with the ongoing management of your diversified pension portfolio.
2. Annual Contributions
In some cases, there may be a benefit to continuing to make annual contributions to your US-based pension plans. We will help you understand the pros and cons of this.
If extra contributions to your retirement accounts in the States are the right thing for you to do, we can help you make those transfers in a cost-effective and tax-efficient way.
3. US-based Investments
If you previously had investments in the USA that are now frozen, dormant or out of your control, we can advise on whether it is best for you to keep them there or relocate the assets closer to where you are now. If your investments will be staying stateside, we can provide a team of licensed professionals who can help you to manage those assets while you are overseas.
Compliance with local regulations and with the regulations where your money is sitting can be difficult, so we will ensure that you have help from properly regulated and qualified professionals who are licensed in each of the jurisdictions that we need to consider to protect you and work towards your financial goals.
If you have any questions about this or you have pensions or investments in the US that you would like some help with, please contact us right away at info@extinvestments.com or speak directly to any one of our team.
