Recommendations for IFA, and list of questions for sorting finances out
Jan 27th 2022, 11:11 pm
#31
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,188
Re: Recommendations for IFA, and list of questions for sorting finances out
Yes, you are so right. Taxes are taxes, and we will just budget based on post-tax income and ignore how our taxes are allocated.
Yes, thanks for mentioning the voluntary NICs, there was one year I saw on my NI system that hadn't counted fully! Definitely will top that up because I'm nearly past the 6 year mark. But why would I not need to make them if moving back to the UK? As in, moving back implies we would hit 35 years working in the future so we don't need these 6 years? Because I hope not to work for 41 years so I might have to use these 6 up to get the 35 years qualification, if the US SS does not count towards the 35.
Yes, thanks for mentioning the voluntary NICs, there was one year I saw on my NI system that hadn't counted fully! Definitely will top that up because I'm nearly past the 6 year mark. But why would I not need to make them if moving back to the UK? As in, moving back implies we would hit 35 years working in the future so we don't need these 6 years? Because I hope not to work for 41 years so I might have to use these 6 up to get the 35 years qualification, if the US SS does not count towards the 35.
Jan 28th 2022, 3:06 am
#32
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,599
Re: Recommendations for IFA, and list of questions for sorting finances out
It's all a bit of a gamble. If you pay voluntary NI while working in the USA it is a mere £3.05/week because you can pay at the Class 2 rate. If you wait until you have moved back and then decide you need to pay some voluntary NI contributions they will be at the Class rate of £15.40/week.
Jan 28th 2022, 9:58 pm
#33
Just Joined
Thread Starter
Joined: Jan 2022
Posts: 14
Re: Recommendations for IFA, and list of questions for sorting finances out
So after a brief call with an IFA, it turns out that PFIC reporting has a $25k per person minimum as long as there are no excess distributions. Because we are fairly young and have less that this, for the foreseeable future we will invest our funds in the UK ISA in ETFs and not sell whilst in the USA. We don't have to report the PFIc form as long as the the investment doesn't distribute, which cant happen for ETFs. For mutual funds etc. That reinvest dividends it can get complicated so we will stay clear.
If we do happen to move to the USA long term then we will minimise capital gains by selling when the funds are in a downturn and rebuying after then in shares bonds to keep ourselves below the 25k limit, or 50k if filing jointly.
FYI Charles Stanley was happy to let me switch, as is Hargreaves Lansdown for a couple of years. I have heard that IBRK is another provider but is aimed at day traders mainly rather than for buy and hold investors.
If we do happen to move to the USA long term then we will minimise capital gains by selling when the funds are in a downturn and rebuying after then in shares bonds to keep ourselves below the 25k limit, or 50k if filing jointly.
FYI Charles Stanley was happy to let me switch, as is Hargreaves Lansdown for a couple of years. I have heard that IBRK is another provider but is aimed at day traders mainly rather than for buy and hold investors.
Jan 29th 2022, 2:27 am
#34
Furby
Joined: Apr 2016
Location: St. Louis, MO.
Posts: 893
Re: Recommendations for IFA, and list of questions for sorting finances out
That sounds like a good plan. Plus, if you are reinvesting in ETFs this year before you get here you reset the baseline for the profit calculation should you ever end up selling while your are here, and will help to reduce a potential tax hit.
