Messages

1

Traveling with kids / Re: polyglot nomadic children

« on: May 30, 2018, 10:24:50 PM »

Cool thread.

We live in a Spanish speaking environment. South America. In our house, and everywhere for that matter, I speak 100% English to our children. Been doing it with both since they were in the womb. My wife speaks Spanish, but helps out with the English from time to time when I am not around. But not much because she is afraid of making a mistake and teaching them wrong. In our house we do only TV and movies for the kids in English. All books we read together are English. The kids, currently 3 and 2, know with whom they can speak English (Dad, and Mom a little) and Spanish (everyone else, Grandma, aunts, cousins, etc.).

My way of thinking is they have a million opportunities to learn Spanish all around them. But only I can teach them English. So I do, and I insist on the most perfect, proper, grammatically correct, accent correct American English from them. Just like my parents did from me. It is fun, fun, fun.

I read somewhere the question, "How many languages can a child learn?" And the answer was, "How many are you willing to teach him?"

It is so gratifying to have a conversation with my 3-year-old that I could not have with the 20-somethings that are trying to learn English at the local English language school, because my 3-year-old can and they cannot.

2

Taxes / Re: Moving back to the US after claiming FEIE for years

« on: May 12, 2018, 10:19:58 AM »

If your fianc?e/wife is naturalized as a citizen there is no need to return once a year to maintain her status. As a citizen she is free to roam the world for as long as she wants just like any other citizen.

For legal permanent residents (green card holders) there are restrictions, but not for citizens.

3

Taxes / Re: Converting tIRA to Roth IRA - must you be eligible to contribute to a Roth?

« on: May 12, 2018, 10:15:41 AM »

No, not necessary

There are no income limits for a Roth conversion. This is what makes the "backdoor Roth" possible

Cool. Thanks.

4

Expat life / Re: Living abroad and estate plannin

« on: May 12, 2018, 05:55:02 AM »

Thanks GOFU. Your answer was helpful, but I'm curious how you came up with this method. Did a US lawyer advise to set up a trust in your resident state in the USA or did you do that after googling around? If google helped you, could you throw in a link or two for reference?

We also have a revocable trust (the USA), but perhaps 10% or so of taxable stuff isn't in the trust...being a turtle with this process of moving stocks there, but one day I'll get it done.
Well, in my understanding 401k and IRA's (deferred retirement accounts) cannot be held in a trust. I mean, the trust cannot own them while you're alive. I think the trust can be assigned to the 401k or IRA's as a beneficiary if you don't have a spouse. If there's a spouse, then first he/she inherits your 401k/IRA (it's a law unless the spouse signs an agreement not be the beneficiary of your 401k and IRA) and only when he/she passes away then the residual assets would become part of the trust. Of course, I've just written what I recall from the top of my head and I could well be mistaken...

Thanks

I'm a lawyer so I didn't google it I just did it. I never considered setting up a trust in another country. I see no need to do that and I don't know why any US citizen would. All financial assets are in the USA, so the trust is set up there. All accounts designate the trust as beneficiary.

5

Taxes / Converting tIRA to Roth IRA - must you be eligible to contribute to a Roth?

« on: February 05, 2018, 06:03:27 AM »

Let's say you want to convert as much of your tIRA to a Roth IRA as you can in a given year. In order to do that is it required that you be eligible to contribute to the Roth in the first place?

In my case I am not eligible to contribute to a Roth IRA (or a tIRA) because all of my income is excluded from federal income tax under the FEIE. Does that preclude me from converting part of my tIRA to Roth?

6

Taxes / General tax resource for those covered by the FEIE

« on: February 05, 2018, 05:55:19 AM »

Hey man, thanks for the pdf on harvesting capital gains. 100% of my income is excluded from federal income tax by the FEIE. Do you know a good comprehensiive resource on how that impacts the capital gain harvesting and Roth IRA conversion scenarios you have mastered?

Thank you for sharing these skills with your readers.

7

Expat life / Re: Living abroad and estate plannin

« on: February 05, 2018, 05:41:46 AM »

Here's what I did: I set up a trust in the USA and all financial assets are in the trust or will go to the trust. Taxable accounts, IRAs, 401k, life insurance proceeds, bank accounts, rental property, etc. All of it. We keep no significant financial assets anywhere outside the US. We manage all our stuff by computer and phone (and hardly ever by phone any more).

I see absolutely no need to move your financial assets to another country. In fact the idea of doing so seems completely absurd. If you are not earning enough to live on in the foreign country, you transfer what you need to live for a time from the US and leave the rest where it is according to your investment plan. When you need more money you have it sent over.

As for real property in the foreign country, you could title it in both names as husband and wife, and probably even add your beneficiaries' names to the title also to ensure the benefaction you want. If the place is so lacking in rule of law that you can't do that, then you probably should think twice about investing in real assets there.