The International Schools Review Forum

Hello,

My wife is French and Swiss and I am American. Neither of us is investment savvy and have been putting our money in a savings account for the last few years. It's stupid. Because of the options available to us between U.S., EU and Swiss institutions/opportunities, we don't know exactly where to start. Can anyone recommend an investment group or individual that specializes in investment for people in our unusual situation? Also, any personal recommendations/advice that you can pass along would be appreciated.

First of all, if you are not going to get a regular pension, you need to invest in something that will pay you a monthly income, so that all your spending money is not coming out of your investments, which then generate less each year.

We own a house, it is rented and we have a monthly revenue stream which is part of our retirement plan. Property in a good location can never be a bad cal. However, having a good property manager is a must.

I am looking into a Roth IRA at the moment, but many companies won't do this unless you have an APO (U.S. address of some sort for tax purposes) or are a resident. However, maybe European options have better returns. Also, I am investment stupid so I have a friend who is an investment advisor helping me out. If you are unsure, seek help, because you don't want to go into anything and unwittingly be committing tax fraud, etc.

Roth IRAS are not designed for foreign income. They are pretax dollars put away with taxes deferred until withdrawal. That is basically inviting taxation on money that is now tax free.

One investment guy told us you are not even allowed to buy Rothschild with money not earned in US. That is probably why they want a US address.

Owning a home outright is one of the best plans for retirement. Really reduces the amount of income needed to get by. Find an advisor who works primarily with overseas educators; they are out there.

Roth IRAs are not pretax. All of the money that is contributed by you to a Roth IRA has to have already been taxed. I think that is one of the reasons why it is somewhat better for retirement because you are not taxed when you start drawing.

I stand corrected but that would explain why overseas earnings are in eligible.

Vanguard

I second the recommendation for Vanguard. Just make sure you give them a U.S. address.

Vanguard

If you want to be lazy just find a no cost diverse item portfolio that tracks and index of funds. Vanguard is popular, and i would endorse it, but there are other funds as well.

Another option is a retirement date portfolio and annuity.

Thanks for the tips everyone. I have a 401K through TIAA-CREFF and will look into some things with them, as well as Vanguard. Still, if anyone knows of some specific advisors with experience working with couples with multiple passports, I'd love to hear about it.

Happy vacation everyone!

Read poor Teacher by Andrew Hallam. He will teach you everything you need to know.

I'm reading Andrew Hallam's book too. Makes for a great read and also makes a lot of sense.