Category: investments
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US Expat Finance 101
Living abroad as a US citizen involves complex financial considerations. Global taxation requires citizens to report and pay taxes on worldwide income. The Foreign Account Tax Compliance Act (FATCA) enforces reporting of foreign financial accounts. To navigate these challenges, it’s advised to maintain a US bank account, manage investments through a US broker, and stay…
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What happens to US retirements accounts when living abroad
US citizens’ retirement planning often involves 401(k)s, Traditional IRAs, and Roth IRAs. This post discusses managing these accounts while residing abroad. Retaining these accounts is feasible, and rolling over 401(k)s to Traditional IRAs is recommended. Contributing to Traditional IRAs while abroad may have tax implications, but Roth IRAs may still be a viable option. Withdrawals…
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How US investments are taxed in Italy
US citizens residing abroad should be aware of the taxation of earnings from a US broker in Italy. Capital gains are taxed only in Italy under the tax treaty, with different rates for stocks, government bonds, and US ETFs. Dividend income is taxed in both countries, entailing complexities and potential double taxation. Understanding these factors…
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Demystifying Direct indexing
In recent years, direct indexing has gained momentum, particularly with the rise of FinTech companies. It represents a newer approach to investing compared to traditional ETFs and mutual funds, offering increased customization and the potential for higher returns. What is Direct Indexing? ETFs and mutual funds typically hold a portfolio of stocks that mirror an…
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How to invest as US Citizen living in Italy
US citizens living in Italy face investing challenges. Italian banks struggle with FATCA compliance, while US brokers require a US address. US ETFs also incur unfavorable taxation. Solutions include investing in individual stocks through US brokers or establishing a US Trust in Italy, though the latter is costly and suitable for wealthier individuals.
Spaghetti Finance 