Country of Residence: United States (planning to move back to Nepal within 2 years)
About my Residency: Currently in the US on temporary visa (F1 student, OPT work authorization). No plans to apply for green card/premanent residency in the US. I may get an H1B work visa. Nepal is a developing country in SE Asia and has no tax treaty with the US.
International Lifestyle: Planning to exit the US within 2 years to return to Nepal.
Age: 23 years old
Desired Asset Allocation: Currently uncertain, aiming for a move-resistant portfolio.
Additional Information:
- Currency: Currently operating in USD.
- Emergency Funds: Have sufficient emergency funds for 6 months of expenses.
- Debt: Zero Debt.
- Current Investments: $50,000 available now with an expected addition of $100,000 in the next 2 years.
Strategy for Taxable Brokerage Account:
1. Create an account with an international brokerage (considering Interactive Brokers LLC) to maintain access post-move to Nepal.
2. Purchase US-domiciled ETFs (total US market, total World market, etc.) while in the US.
3. I have contacted tax professionals in Nepal in order to understand the taxation of assets outside of Nepal while being a resident of Nepal.
4a. If the capital gains tax rate in Nepal is less than that of the US, I will then wait for myself to become a non US resident once I move back and then sell my US-domiciled ETFs and purchase equivalent Ireland-domiciled ETFs (reducing my US dividend tax from 30% to 15%, and eliminating the risk of US estate taxes). My understanding is that selling won't be a taxable event for the US if I am a non-resident non-US citizen.
4b. If the capital gains tax rate in Nepal is higher, then I will sell US-domiciled ETFs while a US resident, and purchase equivalent Ireland-domiciled ETFs once I return back home.
I also contribute 5% of my salary in a Roth 401k offered by my employer to get the maximum 4% matching contribution from them. I am thinking of taking out my Roth contributions after leaving my job, but before leaving the US, and put it in my taxable international brokerage account. I believe that should be a tax free event with no early withdrawal penalty.
I plan to roll over the gains and the company contirbution into an IRA and leave it until retirement.
Questions:
1. Does the outlined strategy seem appropriate for building a move-resistant portfolio?
2. Should I seek advice from a financial advisor given my unique situation?
3. Any suggestions or modifications to improve the strategy?
4. Is my understanding of tax implications and investment transitions accurate?
I appreciate any feedback or advice from the community on refining my investment strategy for my upcoming transition back to Nepal. Thank you!
About my Residency: Currently in the US on temporary visa (F1 student, OPT work authorization). No plans to apply for green card/premanent residency in the US. I may get an H1B work visa. Nepal is a developing country in SE Asia and has no tax treaty with the US.
International Lifestyle: Planning to exit the US within 2 years to return to Nepal.
Age: 23 years old
Desired Asset Allocation: Currently uncertain, aiming for a move-resistant portfolio.
Additional Information:
- Currency: Currently operating in USD.
- Emergency Funds: Have sufficient emergency funds for 6 months of expenses.
- Debt: Zero Debt.
- Current Investments: $50,000 available now with an expected addition of $100,000 in the next 2 years.
Strategy for Taxable Brokerage Account:
1. Create an account with an international brokerage (considering Interactive Brokers LLC) to maintain access post-move to Nepal.
2. Purchase US-domiciled ETFs (total US market, total World market, etc.) while in the US.
3. I have contacted tax professionals in Nepal in order to understand the taxation of assets outside of Nepal while being a resident of Nepal.
4a. If the capital gains tax rate in Nepal is less than that of the US, I will then wait for myself to become a non US resident once I move back and then sell my US-domiciled ETFs and purchase equivalent Ireland-domiciled ETFs (reducing my US dividend tax from 30% to 15%, and eliminating the risk of US estate taxes). My understanding is that selling won't be a taxable event for the US if I am a non-resident non-US citizen.
4b. If the capital gains tax rate in Nepal is higher, then I will sell US-domiciled ETFs while a US resident, and purchase equivalent Ireland-domiciled ETFs once I return back home.
I also contribute 5% of my salary in a Roth 401k offered by my employer to get the maximum 4% matching contribution from them. I am thinking of taking out my Roth contributions after leaving my job, but before leaving the US, and put it in my taxable international brokerage account. I believe that should be a tax free event with no early withdrawal penalty.
I plan to roll over the gains and the company contirbution into an IRA and leave it until retirement.
Questions:
1. Does the outlined strategy seem appropriate for building a move-resistant portfolio?
2. Should I seek advice from a financial advisor given my unique situation?
3. Any suggestions or modifications to improve the strategy?
4. Is my understanding of tax implications and investment transitions accurate?
I appreciate any feedback or advice from the community on refining my investment strategy for my upcoming transition back to Nepal. Thank you!
Statistics: Posted by SimpleSaver — Fri May 03, 2024 5:03 pm — Replies 0 — Views 64