Expatriate Issues to Consider:
Americans working in the international oil industry
If you are an American citizen living abroad, you should be especially conscious of diversifying your investments globally. Most brokers and financial advisors focus on investment markets in the region in which they are located, allocating only a small percentage to international investments. For example, if you are dealing with a U.S. advisor but live in Europe, your advisor may place too great an emphasis on U.S. investments, thus exposing you to potentially unfavorable currency fluctuations.
U.S. advisors may not have good access to non-U.S. investment markets and may have to rely only on funds and ADRs to diversify your portfolio internationally. IAM has direct access to U.S. as well as major international markets, therefore we can better take advantage of global investment opportunities for our clients' benefit.
We offer a complete international diversification program and possess the specialized knowledge necessary to manage such a portfolio. At IAM, we believe there are compelling and ever-growing investment opportunities outside the U.S. and we recommend a significant allocation to global markets for non-U.S. residents.
If a significant part of your portfolio is in U.S. investments but you live outside the United States, you should be aware of the effect currency fluctuations can have on your spending power and investment returns.
The U.S. is still by far the largest and most sophisticated market for portfolio investments, therefore an allocation to the U.S. market presents considerable opportunity and should be part of most investors' portfolios. There may also be specific reasons why you need to hold U.S. investments; for example non-liquid assets such as real estate or a concentrated position in your American employer's stock.
It may be to your advantage from time to time to hedge the currency risk of a portion of such holdings; for example, if you are planning to cash out a U.S. investment in the near future for a significant purchase in a non-U.S. currency. Most advisors are not prepared to assist you with hedging your portfolio against a declining U.S. dollar, but at IAM we have the expertise to guide you in this area.
At IAM, we strive to offer our expatriate clients a complete solution to their financial needs and we have on staff an advisor who is an Enrolled Agent with the U.S. Internal Revenue Service and specializes in taxation for U.S. non-residents and non-U.S. citizens with American tax obligations.
We can optimize your portfolio from a tax perspective whether you live in the United States or abroad and we offer U.S. tax preparation services.
There are potentially severe and complex estate tax issues to be considered if you are an American expatriate married to a non-U.S. citizen. For example, A U.S. citizen who is married to a non-U.S. citizen is not allowed the marital deduction when passing on their estate to their spouse. This can have considerable estate tax implications and may significantly reduce the amount that the surviving spouse is left with after tax.
IAM's network includes a U.S. tax attorney who is available for consultation on estate and other taxation matters and who can arrange a trust that will legally protect you in the situation described above and ensure that your spouse would receive the same tax benefits as a U.S. citizen.
Americans working in the international oil industry
IAM has on staff an advisor who spent ten years in the international oil industry and is well aware of the financial planning and investment management issues inherent to this lifestyle. We offer specialized services to expatriates in this industry and make ourselves available for consultation outside regular U.S. office hours.
Expatriates working in the oil industry earn and save a considerable amount of money while they are employed internationally. It is often the case that the money earned during these years may be squandered on high-risk investments or due to lack of asset protection. IAM has a savings and investment program specifically tailored to expatriates in the international oil industry - we can help you build and maintain a nestegg for your future without compromising your lifestyle.