We discuss the FBAR (Foreign Bank Account Report) and why it is important to be aware of it.

It's a FORM that needs to be filed under the Bank Secrecy Act if you have a financial interest or signatory authority over a foreign financial account.

And the aggregate value of these accounts exceeds $10,000 at any time during the reporting year. The FBAR filing requirement applies to all types of financial accounts, not just bank accounts. 

Failure to file the FBAR can result in substantial penalties. 


Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

There has been an uptick in the number of people looking to retire overseas. In Part 1 of this episode, we discuss the essential considerations for the decision. 

We start by grouping those who want to move into the following groups 

• Those like us, who came to the US ages ago and are now retiring.

• Those who have worked overseas and now want to return

• Those who've only visited as tourists.

We explore the motivations behind such a decision, the importance of choosing the correct country, navigating visa and residency requirements, and the practical steps needed to prepare for the move.

Other topics that we cover here, amongst others, are:

• Maintaining connections and communication while living abroad.       

• Safety and political stability are key factors in choosing a country.

• Visa and residency requirements.

• Visiting a country as a tourist for valuable insights before moving.     

• The cost of living to ensure affordability.    

• Maintaining a US address for various logistical reasons. 

• Healthcare access etc.  

In part two of this episode, we'll address the financial and tax aspects of retiring overseas.

Episode Links & Resources

• CNBC: Retiring Abroad Could Lower Your Cost Of Living

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

What happens to you if you lose a job on a work visa?

It's the biggest threat to your financial life in the US. In this short episode, we detail your options based on your specific work visa. 

Generally, you have to leave the country in 60 days or less, depending on your visa type, visa stamp, home country, and where you are in the visa process. However, there are some unique nuances regarding your other options based on the type of this visa.

In this episode, we address the H-1B, L-1, E3, TN, and O visas and the specific repercussions of losing a job.

The 2024 elections are behind us. In this episode, we discuss the aftermath of the US elections, focusing on the concerns of foreign-born clients and US expats.

We explore the uncertainties surrounding immigration laws, visa changes, and the emotional impact of the election results.

Our conversation emphasizes the importance of financial preparedness, including maintaining an emergency fund, being flexible with career plans, and ensuring proper estate planning.

We include practical advice for navigating potential job loss and the complexities of financial planning in uncertain times.

We remind you to lock your credit to protect your identity, especially if you have to leave the U.S. 



Episode Links & Resources

• Ep 29: Stay A Step Ahead of Cyber Criminals. Protecting Your ID and Other Important Matters.

• U.S. Citizenship & Immigration Services  - Become a Student of Your Visa

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

In this solo episode, I discuss the five questions I ask to create the financial planning framework for foreign-born families.

Each question has many nuances and determines which way we go with the plan.

I believe any foreign-born individual should ask themselves these questions as part of the settling process in the US. Money is tied to all aspects of our lives.

• What's your Immigration status?

• What's tax residency status

• What are your long-term residency status?

• What's your home country of citizenship, what other citizenships do you have, and if married, what's your spouse's citizenship?

• What assets do you have in foreign countries?

Yeah, it's not green anymore, but the name has persisted.

Do you know why the Permanent Residency Card is called the Green Card?

We answer this question and provide many more details about this "magic" document, which permits you to live and work permanently in the US if you are foreign-born.

We know quite a bit about it, having previously held this card.

We discuss the tax obligations and financial planning implications of being a green cardholder rather than a US citizen.

It's challenging to get, based on your home country, but once you get it, you must be careful if you want to abandon it to do it right.

Are you a green card holder? What questions do you have?

Assume that your information is already out there. Your goal is to ensure that nobody misuses your data."

In this episode, we discuss the importance of protecting yourself from identity theft.

We provide practical steps and tips for safeguarding your personal information and financial accounts.

 Key takeaways

• Place fraud alerts on your credit and consider extended fraud alerts if your identity has already been stolen.

• Place a credit freeze on your credit to prevent new accounts from being opened in your name.

• Use a password manager to generate strong, unique passwords for each account.

• Enable two-factor authentication on all your financial accounts.

• Create a separate email address for your financial accounts, and be cautious of suspicious emails.

• Monitor your account activities regularly and set up alerts for any unusual transactions.

• Create a social security account to monitor your earnings and prevent unauthorized access.

• Create an IP PIN with the IRS to prevent fraudulent tax filings using your social security number.

Take proactive steps to protect your identity before leaving the country.

In this episode, we discuss the various health insurance options available during open enrollment.

We break down all the different insurance plans - including PPO, HMO, EPO, and HDHP plans.

We discuss the differences in premiums and coverage and the benefits of flexible spending accounts (FSA) and health savings accounts (HSA).

The conversation also touches on the implications of Medicare for those over 65 and considerations for ex-pats and retirees living abroad who are considering the HSA plan.

It's important to check with your provider about using the HSAs abroad. 

It's essential to consider your length of stay in the US when choosing an HSA.

Cue the Confetti.

Today, we celebrate a huge milestone - a year since we started this journey. 

What started as a coffee chat has become a one-year podcast, and there are plans to do more.

In this special episode, we look back on our beginnings, lessons learned, and things we've learned about each other, appreciate those who've been with us on the journey, and plan for the future.

Please tune in to find out what we have in store for you and our big, hairy, audacious goal and vision for the International Money Cafe Podcast.

Let's celebrate!

In this episode, we discuss PFICs (Passive Foreign Investment Companies) and the dangers of investing in them.

We start by defining them with some examples and then discuss the tax compliance requirements and the potential penalties for non-compliance. We include financial planning considerations like foreign exchange and repatriation. 

We explain why we want to get a detailed idea of any PFICs clients may have when we start working with them on financial planning or tax preparation.

Most of our clients /prospects are not aware that they have PFICs in their overseas portfolio.

We discuss ways of dealing with them, how to stay compliant or get rid of them, and also mention the particular case of those with work visas - who may want to keep the PFICs in their portfolio. 

It's a fun discussion.

If you receive a gift or inheritance from a non-US person, you have specific reporting and tax obligations before enjoying your gift.

In this solo episode, Manasa details the thresholds, reporting forms, and tax implications based on the type of gift or inheritance.

Different thresholds apply depending on the type of gift or inheritance, such as $100,000 for gifts from non-US citizens and no threshold for gifts from foreign trusts.

She discusses some forms, like Form 3520, that may need to be filed to report foreign gifts or inheritances.

She also points out possible tax consequences that may arise if the gift is from a covered expatriate—it’s not business as usual.

One thing she points out is to watch out for possible tax obligations in the country where the event occurs – that needs a tax professional (in that country) to figure out.

Tax treaties may help avoid some possible double taxation.

Resources

Ep 22: What Is English For "Covered Expatriate"

Ep 13: Between A Rock And A Hard Place: A Guide To Mitigating Double Taxation

Employees on work visas tend to be very hardworking (mainly in the STEM Space), very determined to pursue their version of the American dream, and with high incomes, anxious to start investing.

When we start working with them on a financial plan, we complete a full SWOT analysis, and without a doubt, one threat stands out like a sore thumb.

In this episode, we address the specific threat—all related to their visa—and suggest different ways of mitigating it. The ideas range from career enhancements to other legal ways of staying in the US.

We draw on our backgrounds as people who were once on work visas and some of the fears and concerns we felt, which apply to many foreign nationals on work visas.

By the end of this episode, you'll walk away with 4 to 5 ideas you can implement or start planning on that will help you shore up your financial plan.

In today's "Shortie" episode, we define the word "Situs." It comes up a lot when discussing investment property and other types of investment.

Situs is heavily used in the cross-border space. We tell you what it is, its importance in the legal, tax, and estate planning arena, and how it affects what happens to property at the end.

We'll also address different types of properties.

Situs is not to be confused with domicile - We defined domicile in Episode 8.

We lightly appreciate the spirit of this statement within certain immigrant communities: "My kids can study anything in college after they get the medical or engineering degrees out of the way."

According to the IFS - Institute of Family Studies research, immigrant parents have even higher expectations that their kids will not only get their undergraduate degrees but will go on to get graduate and professional degrees. 

In other words, the kids are expected to attend college; ideally, it should be an Ivy League school. The question is, how do we pay for this education?

According to migration policy data, the highest number of immigrants are trying to get to the US. For those wanting to become Americans, it's a stressful situation, and the process can last for years.

But then there is another group of people who live outside the US, some of whom have no idea they are Americans, especially because they don't have a US passport. For the record, not having a passport does not determine citizenship.

This group somehow acquired US citizenship because they were born to US citizens outside the country (probably on deployment), were born to non-immigrants in the US, or were born to US parents but left the US at a very young age. They may not be aware of it, but they are "American." in all ways possible.

We call this group "Accidental Americans."

In today's "shortie" episode, we discuss the implications of being an accidental American and the tax and financial implications of being an American overseas and make suggestions on how to deal with them. Ignorance is no defense, and you can't really ignore it.