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Automated Stock Trading for Americans Living Abroad

Americans Living Abroad

In this article, we will show how Americans living abroad can make their lives more easy and build up an investment portfolio which trades on Auto Pilot using the free stock trading app from The Money Pouch.

Download the free stock trading app on Google Play

Download the free stock trading app on on iTunes

These apps are only available if you are not a U.S. tax resident. You need to be living abroad on a permanent basis. You can see more about the countries and residents we accept here.

Why are Americans Choosing to Live Overseas?

Tax - you can set up your finances in a way which reduces taxation (see below)
Medical insurance - health insurance costs in the USA are at least double their European counterparts. It can be very, very cheap if you set up a public health insurance card in many countries
Employment opportunities
Seeking a new start
Seeing new friends/partners
Weather
Cheaper cost of living
Broaden your horizons
Challenge yourself
Learn new languages/cultures

Where are Americans Choosing to Live Overseas?

Here is a list of places in Forbes magazine suggested for Americans going to work overseas.

Lisbon, Portugal
Cali, Colombia
Santo Domingo, Dominican Republic
San Pedro, Ambergris Caye, Belize
Saint-Chinian, France
Abruzzo, Italy
Ljubljana, Slovenia
Playa del Carmen, Mexico
Bali, Indonesia
Da Nang, Vietnam

Some noticeable absentees on that list: Thailand, Malaysia, Ecuador, Chile, Cuba, Panama, Greece & Malta

Americans who wish to retire abroad can live in any of these places for $1,000 to $2,000 per month.

More information in this Forbes article and Internations poll.

American Expats by Country

Here is a list of the American Diaspora. Here are the top 10 countries where American expats live abroad. You can see the full list here along with a description of the estimates.

Mexico	<1,000,000
Canada	<1,000,000
Germany	324,000
Philippines	220,000–600,000
Israel	200,000
United Kingdom	<200,000
Puerto Rico	189,000
Costa Rica	130,000
South Korea	120,000
France	100,000
China	71,493

Automated Stock Trading Account for American Citizens Abroad

American citizens living abroad can take advantage of their new overseas residence to set up an automated stock trading account. Download the free apps on The Money Pouch's website to set up a free stock trading account today.

The free personal wealth management app will automatically buy stock, bond & gold ETFs every month on your behalf. The investment portfolio even has the ability to sit in cash if stock markets start falling.

Watch the video below to learn how to set up a free account.

Click here to learn more about automated trading and algorithmic trading.

Tax for American Citizens Living Abroad

There are a number of ways to mitigate tax if your are an American citizen abroad. But, you must be tax resident abroad. You cannot live in the US and just visit another country on holiday. You must be tax resident abroad.

Unfortunately, many American citizens living abroad get many headached from all the paperwork that the IRS make you fill in. Don't fall into that trap, there are a number of cheap services online that can do the job for you (see below).

It can be very challenging to set up a bank account abroad or an international stock trading account, but The Money Pouch can take care of that for you.

American Citizens Abroad - Tax Structures

Here are some simple structures you can use to reduce taxation or eliminate various taxes in the USA.

Set up a US company to hold your investment portfolio
Set up an offshore trust or foundation to hold your investment portfolio

These structures should really only be considered for investment accounts over $100,000 as there are set up costs and annual costs to set up these structures. The cost is usually about $3,000 to set up a trust.

You could consider setting up an offshore trust to protect your assets from U.S. taxes on death. The most efficient way presently, is to set up a Panama trust or foundation.

Why set up a Panama Trust?

A Panama trust or foundation is one of the most effective ways to protect your assets from court seizure and avoid any taxes on death. You can name your heirs and decides who gets what upon death.

You can set up a Panama trust in one day. It will then take a few weeks to issue all the documents and get everything legal.

What are the benefits of a Panama Trust?

• Protect Foreign Spouses/Partners: Foreigners can set up trusts with foreign beneficiaries and assets in other countries. For example, you can set up a Panama trust to hold an Interactive Brokers account to trade US ETFs with The Money Pouch’s automated trading system and upon death, the trust distributes assets tax-free to a spouse or partner.

• Confidential: The law penalizes anyone associated with a Panama trust who discloses confidential information without a court order and is punishable by 6 months imprisonment.

• Privacy: Since trusts are not registered with the government in Panama, the identity of the settlor, beneficiaries and assets are never included in public records.

• No Taxation: All assets located outside of Panama producing income or distributed to beneficiaries are completely tax-free. However, U.S. taxpayers and anyone paying taxes on global income must disclose the income to their governments.

• Estate Planning: Trusts can have perpetual life for generations of heirs to enjoy.

• Asset Protection: All assets are protected from the settlor’s creditors and beneficiaries’ creditors.

• Fast Formation: A trust can be formed in one day.

New Foreign Earned Income Exclusion (FEIE) Law

Now for some good news for US citizens living abroad who still own a home in the USA.

The IRS recently announced (August 24^th) a new law that allows US citizens and resident aliens, notably contractors or employees supporting the US Armed Forces in designated combat zones, to qualify for the Foreign Earned Income Exclusion (FEIE). In February of this year, the Bipartisan Budget Act of 2018, changed the tax home requirement for eligible taxpayers, allowing them to claim the FEIE even if their “adobe, or home, is in the United States.