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Aside from irradically sending back money to the states to buy stock, I do plan on doing a Roth IRA this year. - someone on the Ask a Foolish question board warned me that I can only do an IRA if I have *earned income*. I get what I would consider the New Zealand equivalent of a W-2. I do file a US return and allocate all money out so I have no tax liability.

Actually, what you must have in order to fund an IRA is "taxable compensation." Since your earnings are not being taxed in the US because of the earned income exclusion, you cannot make an IRA contribution. See Publication 590.

My question is what other tax deferred ways can I save money? Is the Roth IRA it so I'll be limited to a couple of thousand a year?

I was planning on using my stock purchases in my old age, but I'm guessing this is not the most advantageous from a tax perspective.

Long-term capital gains are taxed at the lowest possible rate under current law. Aside from the fact that you have no other tax-deferred options for saving for retirement, this may actually be better than a traditional IRA, in which all gains are taxed as ordinary income. You don't give a timeframe, but if you have a long enough wait until you're going to be using the money, I think buying and holding stocks you like, even in a taxable account, is a good strategy.

Phil Marti
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