Moving to France can be a dream come true, but having a retirement plan based in the US can cast a cloud over your French paradise. Simply accessing your money can be complex and frustrating, but thankfully, SJB Global is on hand to help. We asked them to explain how to manage your US retirement plan from France.
“We provide financial planning to clients worldwide,” explains Jake Barber, Principal of SJB Global. “We have expert advisers who specialize in managing your US retirement plan from France and can offer solutions to each of the challenges you’ll face, from the practicalities of managing US based assets in France and dealing with double taxation and potential issues.”
Praised by clients for trustworthiness, clarity, and outstanding customer service, SJB Global provides financial planning to clients worldwide. They work from the core belief that they can create a better world through ethical trading. They operate on a set fee rather than commission, and their transparent pricing structure means you know exactly what you’re paying. The charges are often 50% cheaper than those of competitors.
US expat taxes in France
Living in France as a US citizen requires particular knowledge to get the most out of your investments. For example, did you know that taxes must be declared even if no tax is due? Or that the assurance vie policies that are so popular in France are not an option for US citizens?
“There are taxation complications at play with an assurance vie,” explains Jake Barber, “and many financial advisors simply don’t have that specialist knowledge. “If US citizens buy non-US-domiciled funds, these are classed as Passive Foreign Investment Company (PFIC), and any gains are taxed at a marginal rate, with a risk of additional penalties. Assurance Vie products generally only allow you to buy UCITS funds which are EU domiciled, so Americans miss out on the tax advantages that these products can offer.
“However, there can also be advantages. Based on the double taxation treaty between the US and France, US retirement accounts are taxed in the US, which can be beneficial when you compare the tax rates between the US and France. It really does require particular knowledge of the systems of both countries to help our clients get the very best results, especially from a tax perspective.”
A tailored, informed approach to managing your finances
SJB Global has advisors with expertise in US retirement planning and international tax laws. These advisors can apply their knowledge to your particular situation to ensure that you avoid potential pitfalls. They can also advise you on how to ensure that your intended beneficiaries can access funds.
US citizens or residents who retire to France can also be subject to US estate tax on their worldwide assets, including those in retirement accounts. SJB Global can identify the best solution for you when it comes to Estate Planning Strategies, although it’s not black and white as you have to comply with the US and French rules, so the cross-border element makes it very complicated.
“When it comes to our finances, we all want to feel informed and clear about our options,” says Jake. “To achieve that, we need solid information from professionals who understand what’s involved and can see the bigger picture as well as the finer details.”
A hand-in-hand approach
Clients of SJB Global praise their personalized approach and their patience, as each advisor is willing to take the time to explain all the options available for an individual’s financial situation. Your retirement funds are a precious resource, so you need to feel completely comfortable and reassured by the professional you’re working with; that’s why choosing a firm with all the expertise required and who will take the time to explain it to you clearly is vital.
Equally important is knowing what fees you’ll pay for financial advice. SJB Global not only offers initial advisor fees that are 50% lower than most competitors, but their tiered, regressive structure ensures that the fees continue to decrease the more you invest. Crucially, they have no ongoing commission costs or hidden charges, so you know exactly what costs are involved from the start.
“Ethical working and transparency are our guiding principles,” says Jake. “It’s important to our clients, but also to us, as independent financial advisors, because it means that we can feel proud about our work. The costs and information are clear, and our family-based fee model means that if you have other funds to invest with us or refer a family or friend at the point of transfer, it may even become cheaper for you overall. The only surprises we like to work with are the nice surprises where you end up with more money than anticipated.”
Get the money sorted, then relax
Your retirement is ideally a time when you can take it easy and enjoy the fruits of your labour. By working with professionals who understand the ins and outs of US tax regulations, financial compliance, and double taxation treaties, you can clarify your financial planning and get on with the really important stuff: enjoying a fabulous, relaxing retirement in France!
How to manage your US retirement plan from France
If you’d like to know how SJB Global can help you, head to their website, SJB-Global.com, where you’ll find details on their philosophy, expertise and advisors. You can also take a free retirement quiz and download free guides to help you feel more informed about your situation and financial options.
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