Personal Investments • European moving to the US for studies: Continue investing in VWCE or start a Roth IRA?

This is my situation.

I am European, 24-years old. My investment goals are long-term (40-50 years; for retirement).

I have been investing in VWCE on a monthly-basis for the past year using IBKR.

I will be moving to the US this month to start my PhD. I will be on a F-1 visa. I will be receiving a stipend also.

I understand that maintaining European domiciled ETFs during my stay in the US is not ideal due to PFIC. However, I will be classified as a "nonresident for tax purposes" for the first five calendar years. Therefore, I think I can keep investing in VWCE if I would like to. Once those five years are up, PFIC will start to "kick in".

If I do want to keep investing in VWCE during my PhD, currency conversion fees (Dollars to Euros) should not be an issue (I have Revolut).

I am also aware that I am eligible for Roth IRAs. Luckily, my home country recognises the tax-free nature of Roth IRA.

I am not convinced that I will be staying in the US post-PhD.

Therefore, I am not sure what is the "smart thing" to do at this point. Should I keep investing in VWCE? Or should I make use of the tax advantages stemming from Roth IRA (which would also make sense if I do stay in the US)?

Statistics: Posted by wendru — Sat Aug 03, 2024 2:48 am — Replies 0 — Views 59

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