Global investing

As an American citizen epxat, 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 US advisor but live in Spain, your advisor may place too great an emphasis on US investments, thus exposing you to potentially unfavorable currency fluctuations. 

US advisors may have limited access to non-US investment markets and may have to rely only on mutual funds and ADRs to diversify your portfolio internationally, or they may charge much higher commissions to access non-US markets. EAFA is licenced and regulated in both the US and Spain and Portugal, so we design portfolios that better take advantage of global investment opportunities for our clients’ benefit.  

Furthermore, our brokerage partners offer multi-currency investment accounts with excellent exchange rates as well as deposits or withdrawals in most major currencies. 

We offer a customized international investment diversification program and possess the specialized knowledge necessary to manage such a portfolio. At EAFA, we believe there are compelling and ever-growing investment opportunities outside the USA and we recommend a significant allocation to global markets, especially for non-US residents.

Currency fluctuations

If a significant part of your portfolio is in US 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 United States is still by far the largest and most sophisticated market for portfolio investments, therefore an allocation to the US market presents considerable opportunity and should be part of most investors’ portfolios. However, as an American living overseas, it may be beneficial to invest in Spain or Portugal, too.  

Taxation issues

At EAFA, our clients benefit from a complete solution to their financial needs and we work in partnership with cross-border tax advisors who specialize in tax preparation for Americans living abroad. We have a network of tax advisors who do both US and local tax returns and understand the relevant tax treaties and we work with these advisors to optimize your investments from a tax perspective. 

Estate planning issues

A different legal system in other countries may render a US trust invalid or may necessitate having a local will in addition to a US trust. Country-specific inheritance laws may add to this complexity. 

There are important and complex estate tax issues to be considered if you are an American expatriate married to a non-US citizen. A US citizen who is married to a non-US citizen is not allowed the unlimited marital deduction when passing on their estate to their spouse.   

EAFA’s network includes US cross-border estate planning attorneys who can address such issues so that your assets are protected in the event of your death and loved ones are provided for as intended.