Foreword by Tim Kochis, JD, MBA, CFP® xvii Preface xix Acknowledgments xxiii About the Author xxv Part I: Financial Challenges of a Cross-Border Life 1 Chapter 1 Who Are These Cross-Border Families? 3 The Growing Need for a Definitive Guide 4 Who''s Who: Who This Book Is Meant to Serve 6 Examples of Who Might Benefit from This Book 7 Diagramming a Cross-Border Person: Residency and U.S. Income Tax Status 8 How Many Cross-Border Professionals and Families Are There? 10 Unique Challenges Faced by Cross-Border Families Connected to the United States 11 Chapter 2 Unique Challenges and the Regulatory Landscape 12 The Unequal Nature of Tax Regimes and Reach 12 The Unique Worldwide Reach of the U.S. Tax System 13 Complexity in Taxation and Other Regulations 14 Scarcity of Professional Help and Information 15 A Changing Legal, Financial, and Regulatory Landscape 17 The Far Reach of the Foreign Account Tax Compliance Act (FATCA) 19 Recommending Against Secretive Offshore Wealth Strategies 20 Part II: Saving and Investing: Building Your Personal Net Worth 21 Chapter 3 Building a Strong Foundation 23 Retirement Destination Unknown: Invest Globally 23 Spreading It Around 24 Wealth Creation and Accumulation 25 Saving from Earnings 25 Real Estate Ownership 26 Stock-Based Compensation 27 Entrepreneurs and Businesses Ownership 27 Investment Gains and Reinvestment 28 Inheritance 28 Diversification: Protecting and Growing Wealth 28 Considering Your Entire Balance Sheet 29 The Meaning of "Diversification" versus "Asset Allocation" 30 Spreading Thing Around 30 Asset Allocation in Investment Portfolios 30 A Well-Allocated Portfolio Can Still Lack Diversification 32 Allocating Your Net Worth: A Balance Sheet Approach 32 Six Primary Asset Categories 33 Three Additional Items of Importance 33 Cash and Cash Equivalents 33 Personal Residences 34 Income Property 35 Publicly Traded Securities: Stocks and Bonds 36 Bonds and Bond Funds (Fixed Income) 36 Stocks and Stock Funds (Equities) 37 Downsides of Owning Stocks 38 Concentrated Business Ownership 39 Personal Debt 40 Collectibles and Other Hard Assets 41 Other Private Investment Vehicles 41 Conclusion 42 Chapter 4 Investing in the Markets: Stocks and Bonds 43 Three Important Attributes 43 Easy Diversification 43 No Active Involvement 43 Source of Growth and Risk Control 44 Stocks and Bonds Work Better Together 44 Setting a Risk Objective 45 Managing Emotions While Focusing on the Long Term 45 Stock Picking--Maybe Not 46 Investment Advice to Live By 47 Avoiding the Herd Mentality 48 Staying Calm in Times of Change 49 Determining Investment Goals and Objectives 49 Four Common Investor Objectives Defined 50 Fundamental Investment Guidelines 51 Low-Cost Passive Investing 52 Tax Efficiency Is Huge 53 Global Diversification for All 53 Risk Control Through Asset Allocation 54 Regular Rebalancing Adds Value: Don''t Invest and Forget 54 Strategic Versus Tactical Asset Allocation 55 Strategic Asset Allocation (SAA) 55 Tactical Asset Allocation (TAA) 55 Take It Slow 56 A Jurisdictional Review: Where to Hold Investments? 57 Large Foreign Banks in Europe or Asia 58 Have You Earned Your Own Private Banker? 58 Not World-Class Investments 58 Not World-Class Advice 59 Tax Reporting and FATCA 59 Large Offshore Private Banks 60 Smaller Offshore Banks and Insurance Companies 61 U.S. Brokerage Accounts 62 Problems with Maintaining Accounts in the United States 63 Foreign Residents with U.S.

Accounts 64 The Best Choice for Many People 65 Part III: 401(k)s, IRAs, and Other Pensions and Savings Plans 67 Chapter 5 A Global Approach to 401(k)s and IRAs 69 Investing Your Serious Money 69 401(k) Plan Basics 70 Key Benefits of 401(k) Plans 70 Global Investing for a Global Retirement 72 The Location of Underlying Assets Is What Matters 72 401(k) Plans Lack a Global Perspective 74 Inherent Currency Risks 74 Target Date Funds: A Lot to Like and Dislike 76 IRA Rollovers 76 IRAs Offer Distinct Advantages 77 Owning Real Estate Within an IRA 78 Leave It Alone and Let It Grow 78 Chapter 6 Unique Cross-Border 401(k) Issues 80 A Lack of International Tax Agreement 81 Do the Benefits of a 401(k) Follow You? 82 International Tax Law Is Unclear 82 The 401(k) Gets Respect 82 Benefits May Travel with You, but Your Account Stays Put 83 Taking It with You 84 Must I File a U.S. Tax Return Because of a 401(k)? 84 How Are Distributions Taxed? 85 What If You Are Living Abroad When You Draw Out Money? 85 Tax Withholdings on Distributions to Nonresidents 87 Many U.S. Institutions Will Overwithhold Tax on Distributions 87 How Are Foreign Residents Recovering U.S. Withholding Tax? 87 Unreported Income Isn''t Right 88 Contributions to IRA Accounts While Living Abroad--Be Careful 89 Chapter 7 Foreign Retirement Plans, Pensions, and Other Savings Accounts 91 Foreign Retirement Plans 91 U.S.

Tax Treatment of Foreign Retirement Plans Is Often Unclear 92 What Is Really Happening Now? 92 Contributions by U.S. Citizens and Residents to Foreign Plans 93 For U.S. Taxpayers: Foreign Contributions Typically Do Lower Taxes 93 It Is Likely Not Being Reported to the IRS at All 94 Best Planning of All--Save Now and Save Later 94 Existing Foreign Retirement Accounts: The Real World 95 Better International Reporting and Coordination Is Needed 96 Investing Inside a Foreign Retirement Account 96 High Fees and Poor Investments: A Headwind Against Growth 96 Roth IRAs and Roth 401(k)s 97 How to Get Money In 98 Foreign Implications of Roth IRAs and Roth 401(k)s 99 Roth Accounts Don''t Speak Foreign Languages 99 Traditional Pension Income 100 Pensions Paid Across Borders 100 U.S. Taxpayers Abroad with U.S.

Pension Income 101 Not Reporting to Foreign Authorities Is Risky 101 U.S. Taxpayers Abroad with Foreign Pension Income 102 Nonresidents Living Abroad with U.S. Pension Income 102 Don''t Claim to Be a U.S. Tax Resident When You Are Not 103 Proper Tax Treatment 103 Educational Savings: 529 Plans 104 To Maximize Benefit, Start Very Young 105 Foreign Residents Beware 105 Finding Good Advice Is a Challenge 106 Part IV: Real Estate 107 Chapter 8 Renting, Owning, and Investing 109 Crazy for Real Estate 109 Real Estate Appreciation Likely to Slow in Future 109 Primary Residences and Vacation Homes 110 Advantages to Owning Your Home 110 Owning a Vacation Home 111 The Process of Buying a Home in the United States 112 Selling Expenses and Property Taxes 113 Buy or Rent upon Arrival? 113 When You Should Probably Own 115 Real Estate as an Investment 115 Before Even Considering an Investment 115 Benefits (and Some Negatives) to Investing in Real Estate 116 Property Types: Single-Family Homes Versus Commercial 117 Types of Commercial Real Estate Assets 117 Owning Property: Directly or with Other Investors 119 Real Estate Partnerships 119 To Rent Out or Sell a Former Home 120 Why Turn Your Old Home into a Rental Property? 120 Do You Like Fixing Toilets? 121 You Have Three Years to Decide 121 Cross-Border Situations Where a Home Is Left Behind 122 Americans on the Move 122 Foreign Nationals with U.S.

Residency 122 Foreigners Might Sell Before Becoming a U.S. Tax Resident 123 Selling Before Entering the United States, When Gains Are Very Large 124 Sale and Lease Back 124 Chapter 9 Real Estate Taxation and Other Considerations 125 Basic Tax Treatment of Real Estate 125 Taxation of Primary Residences 125 Tax-Free Gain on Sale of a Primary Residence 126 The Treatment of Vacation Homes 127 Taxation of Rentals and Other Investment Property 127 Reducing Income Tax--A Shelter from the Tax Man 128 Selling Investment Property--Calculating Taxable Gains 129 Tax Basis and Accumulated Depreciation--Shifting Income Down 129 Foreign Properties Often Not Reported to the IRS 130 Go Ahead, It Won''t Hurt Too Much 131 It''s Not Really "Forever"--But It Might Be 131 Global Transparency Is Coming 132 Foreign Property Gifted by Family Members 132 Owning Property Inside of an IRA 133 Rules to Be Carefully Followed 133 Be Careful to Read the Fine Print 134 Other Cross-Border Considerations 135 Tax-Free Exchange of Investment Property--Doesn''t Travel Well 135 Sorry, This Only Works for U.S. Properties 136 Avoid Owning Foreign Real Estate Through a Foreign Corporation 136 Unique Currency Risk When Owning Property Abroad 137 Strange Gains and Losses on the Retirement of Debt on Personal Residence 137 Nonresident Aliens: Investing in the United States and the EB-5 Program 139 Nonresident Aliens Investing in U.S. Real Estate 139 Becoming a U.S.

Resident.