Financial and Tax Planning in Argentina
This question was posted to the blog a few days ago and I thought it would be a good one to address here on the blog.
What do retirees do with the retirement plans / investments they have back in the US? I'm guessing they keep them invested in the US but are their advisors in B.A. that can help them? I'm a financial advisor and I can't imagine how these people couldn't want little help keeping their portfolio's current.
Also for taxes. I've spoken with an American in Germany who does taxes for Americans there and he charges about 4x normal US rates because of limited supply of US tax professionals in Germany. Just wondering if that is a problem in B.A. I could see a problem with being disconnected enough from US news that keeping up with current tax laws and financial news would be a chore most aren't interested in taking on.
Every expat should be using two accountants -- one in Argentina and another in the United States. Additionally, make sure your U.S. accountant is familiar with filing for the expat tax exception and housing allowances. If not, you may want to change accountants or at least make sure your accountant can get up to speed with these rules.
Your Argentina accountant will take care of your property taxes here (which need to be prepared and filed just like we do income taxes in the U.S., you don't get a bill in the mail). If you're working for an Argentine company, the company accountant will handle your income taxes. The tax will be paid by your company.
It is my recommendation that all expatriates leave their investments in the United States. It is just way too unstable here to put any large amount of money in the banking system. You never know when they're going to confiscate the dollars, restrict withdrawals, or whatever else they can dream up.
Unless you really need face-to-face contact, I think it would probably be easier to continue to use your current financial advisor. With the Internet, fax, phone calls, instant messengers, FedEx, etc., it shouldn't be too hard to keep working with a financial advisor in the United States. If expat advisors really are charging 4X normal U.S. rates, it doesn't make any sense to use them. You might pay a little more for an expat tax return, but you should in no way pay more for financial planning or advice.