What Happens to Your U.S. Brokerage Account When You Leave America?
By Douglas Goldstein, CFP® - helping olim handle their U.S. investments from Israel
The good news is that if you are an American expat, or you are not a U.S. citizen at all, you can still benefit from having a U.S. brokerage account. (For more information about managing your American brokerage account from abroad, download the Profile Toolkit.)
Why have an American brokerage account?
There are many reasons to keep your investments inside a U.S. brokerage account. These include: transparency and efficiency, lower transaction fees, and an opportunity to profit from worldwide markets in both dollars and foreign currencies. You can diversify your holdings inside a U.S. brokerage account, with CDs (certificates of deposit in a bank), mutual bunds, stocks, bonds, and much more. Additionally, if you are an American expat, keeping your investments inside a U.S. brokerage account will make it easier for you to file your U.S. taxes and fill out the FBAR form.
By keeping some of your investments in a U.S. brokerage account, your portfolio becomes more diverse as you are not relying on the movements of one single economy.
How can you invest in U.S. markets from outside America?
While it is still possible to invest in U.S. markets from overseas, the most cost-efficient way to do so may be through a U.S. brokerage account. To do this, you need to enlist the services of an investment company that specializes in cross-border and international clientele.
The brokerage company you choose should not only be cross-border friendly, but should also specialize in customer service. It should provide you with clear advice and services for custody and clearing, meaning that it can hold securities for you on your behalf and execute your trade orders. Make sure that whatever firm you choose is properly licensed and experienced.
For more about how to open a U.S. brokerage account and invest in U.S. markets from outside America, download the Profile Toolkit.
Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd. www.profile-financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation about handling your U.S. investments from Israel. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates.