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Old 14.01.2020, 12:28
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Investment for a US citizen

I have a small amount of money I'd like to invest somewhere other than my savings account in the bank.

Let's say, about chf 10k. I am a US citizen, but have no US bank accounts, no assets in the US.

If you were me, where would you look? Moderate risk, moderate growth, not short term.

Thanks.
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Old 14.01.2020, 13:27
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Re: Investment for a US citizen

Some US$ stocks.
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Old 14.01.2020, 13:35
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Re: Investment for a US citizen

I suppose this isn't your question, but it's tough as a US citizen living here to get an investment account. Banks both at home and in Switzerland don't want to deal with us. The most lucrative solution I could find was having a balanced mutual fund in the USA, but I've had to use a relative's stateside address to keep it. Good luck. If you find a good solution, add to your thread!
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Old 12.05.2021, 12:30
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Re: Investment for a US citizen

As U.S. citizens and Swiss passport holders we have run into a stumbling block with our investments.

After leavung Switzerland a lifetime ago, we always planned to retire in Switzerland, which is why we have been holding onto our empty house in CH. Gradually a temporary move turned into nose to the grindstone with very few breaks for 21 years.

On return we hoped to supplement our income, before pension kicked n, by living off investments.
Now we learn that not only will we be subject to wealth tax upon return to CH, but will incur tax penalities if we invest in Swiss or UK funds. We are subject to FATCA.

Similarly, in a tit-for-tat, we will be tax penalized by Europeans including Swiss, for investing in U.S. stocks.
Therefore, to remain ccompliant imited to investing in reporting funds, which only yield around 3%-4%.
Double whammy- wealth tax and lower investment returns.
Bang goes our dream? What do we do now, suck it up or give up the Swiss house and live in U.S.?

We are pretty naiive and new to investments, never invested before; apart from 401K.

If we give up U.S. citizenship,.then I think we lose any Social Security contributions including pension.
If anyone has any advice or different info, I would love to hear it.
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Old 12.05.2021, 12:37
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Re: Investment for a US citizen

Quote:
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If we give up U.S. citizenship,.then I think we lose any Social Security contributions including pension.
You don't.

Tom
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Old 12.05.2021, 12:52
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Re: Investment for a US citizen

Hoppy, another 'gotcha' for folks who have worked abroad to be aware of when planning retirement is whether a pension earned in another country (or a US pension on which you did not pay Soc Sec taxes) could affect your US Soc Sec entitlement via the Windfall Elimination Provision (WEP). From the SSA:

https://www.ssa.gov/benefits/retirem...anner/wep.html

Calculator:
https://www.ssa.gov/benefits/retirem...iaWepjs04.html


There are lots of other sites explaning the WEP with a bit more clarity, but I don't want to link a commercial site.


'Tis a bit of a minefield.


ETA:

Glad to see you back!
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Old 12.05.2021, 13:35
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Re: Investment for a US citizen

A few corrections, as Tom and Meloncollie have done.

You don't lose SS as Tom said but if may be diminished by windfall elimination, but as you seem to have spent quite a lot of working years in US as opposed to CH, this might not be a huge impact. Nevertheless, living in CH and trying to live off US SS won't get you far. I consider my future SS pension as coffee money, especially given the way exchange rates go.

The wealth tax, while there, is very low. Unless multimillionaires the impact is quite small, but does vary by canton.

But finding a legal way to invest in CH with the blue passport is near impossible. Ditto on the US side without doing something dodgy. If you are set to stay in CH, consider giving up the blue passport. That unlocks a lot of financial hurdles. Plus as retirees you can't claim the FEIE, making US taxation here more difficult and likely costly.
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Old 13.05.2021, 00:45
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Re: Investment for a US citizen

Wow thanks everyone. I love this forum!
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Old 13.05.2021, 09:59
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Re: Investment for a US citizen

As for investment check out Ameritrade.
https://www.tdameritrade.com/home.html
One can do business with them outside of the USA.

Fidelity is also possible. https://www.fidelity.com/
But once relocated out of the USA funds can only be kept as is. No trading except to sell.
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