What is a Brokerage Account?
A taxable brokerage account is more complex for American expats than when investing inside an IRA. The reason is that the account will need to be able to generate a form 1099 and be compliant with the IRS. Since the account is not tax-deferred, the investment options inside the portfolio need to be either individual stocks or US based funds. American expats have more limitations on the types of investments they can buy while being outside the US and most overseas ETFs or mutual funds will be considered Passive Investments and will be taxed at the highest rate in the US.
Why Use a Taxable Brokerage Account?
If you are an American Expat living overseas and have cash to invest, you will need a solution that is made for you. Our taxable brokerage accounts will give you and your tax advisor peace of mind that the securities and funds chosen inside the portfolio will be compliant with the IRS.
Benefits
American Expats have less options to grow their funds while living abroad. Since most investments abroad are considered Passive Investments, it is important for the taxable investments to be managed by a cross-border financial advisor who understands the specific situation and rules in place. It is possible to create a tax-efficient and IRS compliant portfolio that will grow and generate future income especially with a low interest rate environment in most of the world and high inflation rates.
Why Harrison Brook
At Harrison Brook USA, we have the knowledge and experience to give you a holistic financial advice as an American expat. As a team of advisors we have years of experience in Europe and in the USA advising Americans with their investments. We are partnering with multiple Investment managers in Europe that can create a bespoke porfolio that will match your needs. We are not tied to one manager. It differentiate us from the rest of the other firms that are only using their own portfolios.
How to Get a Taxable Brokerage Account
Investing in a taxable brokerage account is easy. We can transfer your funds in the currency of your choice. We can then exchange your currency to the desired currency at a preferential rate. Most of the investments will be in US dollars but we have some portfolios that can be invested in multiple currencies. We can also transfer an existing portfolio in kind and diversify it over time.
