Recent Insights

We're thrilled to announce that Bryan Kirk's insightful article, "Tax Planning for the Modern Digital Nomad," has been honored as a "Best of 2023" article by the esteemed Journal of Financial Planning.

Most everyone would agree that owning international investments through a managed investment vehicle (e.g. ETF/Mutual Fund) within your U.S.-based portfolio can be a good way for investors to diversify their holdings and take advantage of global opportunities.

Stock awards provide corporations a way to pay their executives based on company performance so their compensation aligns with the expectations of the shareholders.

US citizens and U.S. permanent residents (green card holders) are considered tax residents of the U.S. regardless of whether they physically reside in the U.S. or not. Once a person has entered the U.S. federal tax system, they are obligated to file a U.S. tax return on all worldwide income unless they choose to expatriate from the US—and possibly pay a hefty exit tax.

Many people want to be cross-border citizens—until they realize the tax implications. For US citizens in particular, tax residency rules can turn the excitement of global relocation into a financial nightmare.

Tax residency is a different type of residency than legal residency. To be determined a legal resident, an individual who has relocated to a foreign country needs to apply for citizenship, a visa, or their country’s version of the Permanent Resident Card, also known as a permanent visa.

The US exit tax, which was signed into law by President George W. Bush in 2008 as part of the Heroes Earnings Assistance and Relief Tax (HEART) Act, is a burdensome financial obstacle to US citizens and long-term permanent residents who plan to expatriate from the US for federal tax purposes.

The decision to become a US tax resident or to leave the US tax system is not one that should be taken lightly. Anytime a US citizen or long-term permanent resident chooses to leave the US taxation system, they must be aware of the tax consequences of doing so, especially in light of the US exit tax that was brought into effect in 2008 under the HEART Act.

Citizens and resident aliens who are considered “covered expatriates” (see below) must also be prepared to pay an exit tax to the US as a result of provisions in the HEART Act.

Mixed nationality couples face a much more complex tax situation than couples who share the same nationality. And the decisions they make regarding their tax residency and tax filing status can have enormous lifetime implications for their financial future.

The most common reason mixed nationality couples opt a non-US citizen into the US tax system is to enjoy the benefits of filing taxes jointly as a married couple, which include a larger standard deduction and access to certain tax credits.

As a financial planner advising mixed nationality couples, you may have realized that the planning challenges these couples face are quite different from those experienced by couples of the same nationality.

Mixed nationality couples with one US citizen spouse face tough financial decisions come tax time. As their financial advisor, they may be looking to you for guidance when they’re deciding how to file taxes in the most optimal way for their financial situation.

There are five major weaknesses in the American financial system - tax, healthcare, education, and the retirement system - that expats and their advisors should keep in mind when evaluating the U.S. financial system.

The U.S. financial system offers three distinctive strengths that are key to understanding the benefits of American residency for expats and their advisors.

International and cross-border financial planning is one of the most common yet least understood areas of professional expertise in financial planning.

Whether it’s a non-citizen living in the U.S. or an American taxpayer abroad, there are many layers to financial planning for expatriate clients.

Financial planning for the average client comes with its fair share of challenges—but tax, retirement and estate planning become all the more complicated when working with clients whose financial lives cross borders.

Expatriates living in the U.S. and Americans abroad face different financial challenges from domestic U.S. resident citizens. International individuals, in other words, have specific financial planning needs that do not typically apply to their local counterparts.

The forex market is the largest financial market in the world. It is open 24/7 and as such, exchange rates are constantly changing.

When working with expatriates in particular, conflicting types of residency can be a major source of confusion.