Finance
Please note that some of the information on the page might not be compliant with the law or policies of certain banks and other institutions. Proceed at your own risk. The information on this website is by no means intended to be legal or accounting advice. Consult with your own attorney, accountant or financial advisors before doing any of this!
Start preparations at least 3- 6 months in advance
If pushed a minimum of 3 months is needed to put things in place so you have time to test and verify or have to rely on family members or friends to maneuver trough some sensitive information and decision making.
Finance
Credit Cards
Keep your credit card(s), investment accounts linked to your current bank accounts. Establish the connections to transfer money between accounts well in advance so you have all options ready to go in case you need to switch banks.
Bank account(s)
Most US banks do not allow foreigners to have an account. That is why it’s so crucial to keep a well maintained virtual presence. Keep multiple accounts open so you have a backup in case a bank kicks you out. You might want to open a Checking account with Charles Schwab from your current address and later start updating the mailing address to the virtual one. They are less critical like a Wells Fargo, with as bonus that they do not charge ATM fees in case you have to use their debit card abroad. Keep in mind that you might need a US bank account to receive any benefits / insurance claims etc. But also to move funds from and to retirement - savings and investments accounts.
Currency exchange
In case you need to exchange US$ for other currencies you might want to consider using a specialized service that not only can give you much better rates at considerably lower cost but also can prevent a lot of drama and money held up for weeks to pass a review process where you might have to provide lots documentation. Great for larger fund transfers.
We use:
Wise debit card
Another great service for holding multiple currencies and moving funds. Better for smaller fund transfers and ‘travel’ kinds of expenses. (They also have a great business account option for those who are wanting to create a new business in their new country). You will receive a Debit card in the mail prior to leaving the US. Most transactions are completed virtually, but if you ever need cash it’s great to have this ATM card option when needed. (It knows which currency to pull from automatically, so you don’t incur exchange fees, but double check which ATMs don’t charge an ATM fee)
Apple Credit Card
If you have an iPhone you can easily apply for Apple Credit card (Master Card backed by Goldman Sachs). Beside their excellent customer service and no fee policy. Request their physical card. This card has the big advance of being a “virtual credit card” meaning that when fraud has been detected they will update the card number remotely eliminating the need to mail a physical card to you. (You will most likely not use it once you are living outside the country, but a great card to have IF you still plan on making US-based purchased or for any return trips)
They also offer a savings account with a great interest rate right now, which something you will not be able to find abroad ;-)
IRS State & Federal Taxes
The United States is the only country in the world that requires their citizens and green card holders to file taxes no matter where you live in the world! (You might not have to pay, but you always have to file) Many countries have a treaty with the US to avoid double taxation, which also means that they (can) exchange information with the tax authorities of the country you are living. Therefore, it’s critical that you have a good accountant in each county who has experience in these matters
Accounting
Verify that your accountant has experience with Americans living abroad!