UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: baanista One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757466  
Subject: Re: Planning to Retire Oversees Date: 2/18/2000 5:37 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Anya said: We are seriously interested in setting up our new home base in rural France . . .

The standard advice to people planning a move to a new town, state, country, whatever, is RENT FIRST. Lots and lots of transaction costs and other gotchas to buying a place, especially in a new jurisdiction. Test drive your "Peter Mayle" (A Year in Provence) fantasy before taking the plunge.

As far as investments, theoretically, you could start slipping cash out of the country now and invest it through a low/no tax jurisdiction. There are several problems though.

1. If you hide what you are doing from the IRS, you are breaking the law. If you don't hide what you are doing, there will be no tax savings.

2. Investment choices may not be as good and fees are likely to be higher. This is especially true if you are trying to "hide" assets from the IRS, which may result in your working with financial intermediaries who feel that they deserve a "share" of your tax savings. The worst case is you wind up investing through someone with the ethics of Dogbert.

3. You may find your new domicile is less tax friendly that the US. The EU area is not particularly tax friendly, and the future will likely bring "tax harmonization" proposals as the big taxers work diligently to keep their own citizens from avoiding/evading taxes.

4. Tax deferral schemes (IRA's, 401K's, etc.) may not translate well if you become resident in another country. So some extra homework on what is taxable when and where would be advisable.

Au Revoir
Baanista
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement