Working as a cross-border professional chances are you are accumulating pension plans and retirement assets all over the world, giving you little control over what happens with those funds once you return home or move away to another country. Most expats have those investments just sit there and have to wait until they eventually become available at retirement.
Cross-border retirement planning can help internationals which have a 401k in the United States.
Most often a 401k left behind is a secondary thought as the cross border professional establishes or re-establishes themselves outside the United States.
The 401k is a staple of the average American’s retirement plan. Money set aside under a 401(k) is often tax-deferred, meaning the employee doesn’t have to pay tax on it until years later when their tax rate might be lower. Earnings from investments in a 401k account in the form of capital gains are not subject to capital gains taxes either, another enticing advantage of the accounts.
Knowing what to do with your 401k is a vital task to cross off your retirement planning list.
When planning for retirement, it’s best to have a realistic take on how your financial plan will achieve your goals and marks. Some may opt for a risk-based retirement plan and others may make their investments more conservatively. Either way, there are factors that may influence the result of your financial plan. Cross border professionals and expats in general need to be aware of multiple country assets.
- South Africa Financial Advisers
- British Citizens Retiring in the EU
- US Expats with UK Pension Schemes
- US QROPS and SIPPS
- Double Taxation Treaties as part of Expat Financial Advice
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