I was a guest on the Smarter Planner Podcast hosted by Belle. The conversation was so engaging that, with her permission, we're sharing it with you, our audience.

In this guest episode, Belle Osvath, CFP, and I discuss the financial challenges immigrants and foreign nationals on work visas face in the U.S., including navigating different financial systems, tax implications, and retirement planning.

I share insights on the importance of early financial education for immigrants and the need for collaboration among financial advisors.

The conversation also touches on the impact of recent policy changes on immigrants.

Takeaways  

• Financial planning for immigrants requires understanding their cultural backgrounds.

• Many immigrants and planners are unaware of the complexities of the U.S. financial system.

• Early financial education can greatly benefit immigrants before they arrive in the U.S.

• Collaboration among financial advisors is crucial for effective cross-border planning.

• ax implications can vary significantly based on the client's home country. 

• Retirement accounts in the U.S. may not align with foreign tax codes.

• Policy changes can create anxiety and uncertainty for immigrant clients - be prepared to deal with it.

  
  
  Chapters  

• 00:00 Understanding the Immigrant Financial Landscape

• 06:02 Navigating Financial Planning for Non-Immigrants

• 12:04 Cross-Border Financial Challenges

• 17:52 Retirement Planning and Tax Implications

• 23:49 The Impact of Policy Changes on Immigrants

• 25:59 The International Money Cafe Podcast

Episode Links and Resources

• Michael Kitces - Navigating Challenges When Investing For Work visa Holders

• Ep 43: How To Find A Great Cross-border Financial Planner

The IM Café Finance / Tax Roastery  (Store) Is Live


Grab  "the Comprehensive Checklist for Foreign Nationals on Work Visas Leaving the U.S." currently on sale, to celebrate our 50th episode.

If you'd like to work with us on your finances or taxes, check out the process 

In this conversation, we discuss the complexities of Passive Foreign Investment Companies (PFICs) and their implications for U.S. tax residents with overseas investments.

We explain what PFICs are, the tax burdens associated with them, and provide practical steps for identifying whether a foreign fund qualifies as a PFIC.

The discussion emphasizes the importance of consulting tax professionals and understanding the tax implications of foreign investments.

Takeaways 

• PFIC stands for Passive Foreign Investment Company. 

• PFICs are legally permissible for investment, but they come with tax burdens.

• Growth in foreign mutual funds is taxed at income tax rates. 

• IRS Form 8621 can take up to 25 hours to complete.

• Foreign mutual funds and retirement accounts can be PFICs.

• Three ways of identifying if a foreign fund is a PFIC or not.

Chapters  

• 00:00 Understanding PFICs: The Basics

• 02:59 The Tax Implications of PFICs

• 05:28 Identifying PFICs: Practical Steps

Episode Links and Resources

• Ep 26: What Is English For "PFIC?"

• Ep 42: What is English For "Gift & Estate Taxes?"

The IM Café Finance / Tax Roastery  (Store) Is Live


Grab  "the Comprehensive Checklist for Foreign Nationals on Work Visas Leaving the U.S." currently on sale, to celebrate our 50th episode.

If you'd like to work with us on your finances or taxes, check out the process