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Subject:  Re: Planning to Retire Oversees Date:  2/18/2000  6:51 AM
Author:  galeno Number:  4249 of 877675

Anya wrote:
So the question is, is there any advantage to opening the IBC now and investing through it for the next 10 years or so? Or is it just as sensible to build the wealth in a US brokerage (taxable) account and 401(k), and then transfer the assets (stocks) lump-sum to the IBC when we retire and move to France? Will we have to pay any US taxes to move the stocks to an overseas account? Also, if I sell any stock in an IBC account while I'm still living in the US, will I pay the normal 20% capital gains, or does some other rate apply? I assume that as residents of France, we will have to pay local taxes on our income as well. That's
understandable -- we'll be benefiting from the services. It's just the US tax angle that concerns me. Thanks for bearing with me; I'm having trouble picturing how all this would actually play out.

Anya, these are tough questions. The best way to go is to expatriate you money little by little but their are costs to doing that. A good rule of thumb to follow is that every 1% of assets paid to a money manager or another type of middleman is roughly equivalent to a 10% annual income tax.

What you must remember is you will pay taxes sooner or later. I'm an advocate of paying less sooner vs more later.

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