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Loan Dusty Road posted:I believe you need a US residence to open US brokerage accounts due to legal restrictions. Curious if hypothetically retiring abroad might, for example, require closing my US brokerage account, with all the issues that would involve
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Oct 27, 2022 20:01
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Ersatz posted:Do you generally need to maintain US residency to maintain an already open US brokerage account? Yes, unless you are very wealthy. I've had friends who moved abroad and as soon as their bank/brokerages caught wind of it their accounts were closed. You must keep the address you reside at up to date as a matter of bank policy that is driven by KYC regulation. If that address is outside of the US you better be bringing in big bucks for the bank to deal with the compliance and tax issues living abroad causes for them.
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Oct 27, 2022 20:52
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Motronic posted:Yes, unless you are very wealthy. Already aware of tax headaches w/respect to many jurisdictions not acknowledging Roth, etc., but I'd assume you could generally keep those specific accounts open.
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Oct 27, 2022 21:08
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Ersatz posted:Well, poo poo. Very much appreciate the heads up. Are retirement accounts (401(k), IRA) different in that respect? I don't know for sure, but my small sample size tells me that so far Fidelity hasn't cared about them leaving their former employer sponsored 401(k) where it is. Perhaps this is because there is no possibility for contributions to it so the tax stuff is pretty static. Neither of the people I'm talking about have actually updated their mailing address with Fidelity, and I'm not about to get into it with them that this is a bad idea - we all have to make our own choices. But in a thread where people are asking for advice I'm gonna give it: don't do this. And don't guess. If you have even an inkling that this might be a thing you want to do (moving abroad semi/permanently) and have meaningful assets you should be asking these questions of your existing banking and brokerage relationships NOW, long before you do it, or even make any real decisions about doing it.
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Oct 27, 2022 22:54
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Motronic posted:I don't know for sure, but my small sample size tells me that so far Fidelity hasn't cared about them leaving their former employer sponsored 401(k) where it is. Perhaps this is because there is no possibility for contributions to it so the tax stuff is pretty static. Neither of the people I'm talking about have actually updated their mailing address with Fidelity, and I'm not about to get into it with them that this is a bad idea - we all have to make our own choices.
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Oct 28, 2022 01:45
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I'm also grateful for these Qs and As, I may be moving overseas in about a year. What should (or can) I do with my 401k?
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Oct 28, 2022 01:48
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One thing to keep in mind in terms of retirement accounts moving abroad from the US even if you don't have problems with having an out of country address is that most countries which are not the US are not going to give you the same tax consideration on those accounts. E: oh you mention the headaches around the roths, assume you're aware then but keeping for other folk. surc fucked around with this message at 03:41 on Oct 28, 2022 |
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Oct 28, 2022 03:32
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tumblr hype man posted:ETA: also, yes it is treasures with extra steps but looking at Vanguards website again there’s only a few 2023 maturity treasuries with quantities less than like $100k, CDs typically trade in $1k increments. I think you must be misunderstanding the website. I bought 2023 maturing treasuries as recently as today at $1000 increments (6 month and 12 month treasury bills, to be specific).
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Oct 28, 2022 03:48
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Eyes Only posted:Never looked at these myself but wouldn't they just be treasuries with extra steps? I can't imagine the rates being much different from treasuries. tumblr hype man posted:Vanguard specifically calls out that all of their brokered CDs are issued by FDIC insured banks that also pass an additional credit quality test. Not sure what that test is but as long as you buy less than $250k you should be covered by the FDIC. yeah i figured they were all FDIC insured.. so what's stopping people from just buying up to 250K of the highest rate in their timeframe (e.g 1 Year Brokered CDs)? the only thing i can think of is they're not familiar with the bank's name and are hesitant. but otherwise how is it treasuries with extra steps if i buy it through fidelity? i'm pretty sure there brokerage CDs are also no fee.
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Oct 28, 2022 04:14
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Strong Sauce posted:the rates are like 1 year for 4.5%.. i don''t really see treasuries with that rate.. also if it requires me to buy from that dumb US treasuries website then that also is a huge net negative for treasuries The rate on 1 year treasuries, as of market close today, is exactly 4.50%. Treasuries can be bought from a brokerage account, no need for treasury direct. edit: 1 small benefit of treasuries vs CDs - treasuries have no state tax, so the tax-equivalent yield is a little higher than it might appear if you are buying them in a taxable account and live in a state with income tax. drk fucked around with this message at 04:54 on Oct 28, 2022 |
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Oct 28, 2022 04:45
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drk posted:The rate on 1 year treasuries, as of market close today, is exactly 4.50%. Treasuries can be bought from a brokerage account, no need for treasury direct. ah thanks. you're right. found them on fidelity. here's what i'm seeing. 4.410 for Treasuries @ 1 yr vs 4.5-4.55/1 year for some banks CDs.   That's interesting about state tax though... gonna have to look up if its going to basically negate the extra ~0.1%
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Oct 28, 2022 05:08
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The market is closed, so you are only seeing the open auctions for treasuries with estimated yields, not secondary market prices (at least, thats what it looks like and that is how Vanguard works). The 4.50% number I quoted was from this treasury.gov site. Not sure exactly how their methodology works, but I'm not surprised there is a small difference between the prices. 4.55% on a CD is good too though
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Oct 28, 2022 05:54
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edit: nevermind, prior posts made the point
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Oct 28, 2022 13:26
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drk posted:I think you must be misunderstanding the website. I bought 2023 maturing treasuries as recently as today at $1000 increments (6 month and 12 month treasury bills, to be specific). Interesting, maybe the min. qty. column is made up? I’m phone posting so screenshotting is out, but it definitely looks like they want $25k minimum orders for a bunch of these, and more for others.
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Oct 28, 2022 15:39
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Apologies if this has already been asked, but does anyone have tips for getting through TreasuryDirect other than "just keep beating your head against the wall and hope it eventually works?" I assume that's all there is to it, but I wouldn't be doing my due diligence if I didn't double-check.
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Oct 28, 2022 19:27
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Unsinkabear posted:Apologies if this has already been asked, but does anyone have tips for getting through TreasuryDirect other than "just keep beating your head against the wall and hope it eventually works?" Wait until it's not the last day of a period and it will work fine. I assume you're trying to buy ibonds. If you don't already have a linked bank account don't bother. If you do then best of luck and keep trying.
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Oct 28, 2022 20:09
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Motronic posted:Wait until it's not the last day of a period and it will work fine. I wasn't aware of the rate until today. Dunno how I missed that news, but I guess it's been a little while since I looked at BFC. Last time I checked I-bonds they were at less than 2%  What makes you say don't bother, do they do the account verification thing where you have to confirm small deposit amounts?
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Oct 28, 2022 20:27
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Unsinkabear posted:What makes you say don't bother, do they do the account verification thing where you have to confirm small deposit amounts? Yes.
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Oct 28, 2022 20:47
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DNK posted:The only reason to not take a risk-free 9% is: How do we fell about I bonds at lower rates? Seeing that the variable component is expected to be 6.47% in the next reset. Is there a point where it's better to look somewhere else? Also, I can't find good information on how the fixed rate is determined - only that it has been at or near zero since 2009. Is it tied to the fed overnight rate in any way?
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Oct 28, 2022 21:08
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Unsinkabear posted:Apologies if this has already been asked, but does anyone have tips for getting through TreasuryDirect other than "just keep beating your head against the wall and hope it eventually works?" You can just keep trying until it worked. Took me about half an hour of resending the form but I finally got through. Of course after all of that they're asking me to send in a notarized letter and promising a 13 week response time, so I'd second the above recommendation to not bother if you haven't already.
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Oct 28, 2022 21:11
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They don't always do that. When I signed up for my treasury direct account it was approved in minutes. It seems to be somewhat random whether they want a medallion etc.
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Oct 28, 2022 21:17
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Yeah I signed up for Treasury Direct accounts for myself and both parents last year and they were approved immediately. They are also permanent green card residents and not even citizens.
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Oct 28, 2022 21:22
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Leperflesh posted:They don't always do that. When I signed up for my treasury direct account it was approved in minutes. It seems to be somewhat random whether they want a medallion etc. I didn't need to confirm deposits to create the account, I needed to confirm them to add a bank account to it, which is what you need to do as a funding source to buy or sell things........ (there are other uses for a TD account that don't require this) Are you saying you were able to add a bank account and immediately buy without any deposit confirmations?
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Oct 28, 2022 21:30
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i just checked my email from back in april. the time between them sending me a 1 time passcode and them confirming my purchase was <10 minutes. didn't have to do any verification w/ money deposits.
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Oct 28, 2022 21:35
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Motronic posted:I didn't need to confirm deposits to create the account, I needed to confirm them to add a bank account to it, which is what you need to do as a funding source to buy or sell things........ (there are other uses for a TD account that don't require this) Nope none of us did any bank confirmations. Though thinking about it now that's probably not safe and they should have done it. Maybe TD implemented it this year.
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Oct 28, 2022 21:43
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My account creation and bank account addition was also pretty much instant a year or two ago.
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Oct 28, 2022 21:45
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Motronic posted:I didn't need to confirm deposits to create the account, I needed to confirm them to add a bank account to it, which is what you need to do as a funding source to buy or sell things........ (there are other uses for a TD account that don't require this) Yes. Not this year though. Maybe things could have changed. It seems to be totally opaque what the criteria are that determine if they demand more or fewer verification steps.
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Oct 28, 2022 22:20
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neurobasalmedium posted:How do we fell about I bonds at lower rates? Seeing that the variable component is expected to be 6.47% in the next reset. Is there a point where it's better to look somewhere else? 6.47% is higher than my effective mortgage rate, which is the opportunity cost I'm bumping up against for my next marginal investment dollars, so I expect to max out before May of next year.
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Oct 28, 2022 22:50
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I've had my account with TD since June and never had to do the 2 small deposits thing, we hammered on the site late last night and this morning and managed to get an account made for the wife and we purchased I-bonds before the deadline so fingers crossed for the 9.62% I did the bookmark trick to get around their bloody awful virtual keyboard thing so maybe if you get real lucky it can still be done. quote:(bookmark trick is to add a bookmark to Firefox/Chrome with this in it and the press it at the login and it'll let you copy and paste your password in the password field) TD is displaying this on their site now so worth a shot if you can get in: quote:Thank you for visiting the TreasuryDirect website.
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Oct 28, 2022 23:12
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Someone make us I Bond gang tags so we can look back fondly. We wont be seeing 9.62% for a while.
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Oct 28, 2022 23:27
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so maybe a dumb question: i decided to try out treasuries @ ~4.5% by buying it on Fidelity... then i realized the accrual date starts on 11/3.. do i have the locked in rate of 4.5% when i bought it or is that rate determined when the order goes through on 11/3? because if its the latter i may as well just cancel and either buy a CD instead.
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Oct 28, 2022 23:35
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CmdrRiker posted:Someone make us I Bond gang tags so we can look back fondly. We wont be seeing 9.62% for a while. Not actually a bad thing.
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Oct 28, 2022 23:41
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pseudanonymous posted:Not actually a bad thing. True.
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Oct 28, 2022 23:44
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withak posted:My account creation and bank account addition was also pretty much instant a year or two ago. My only issue is that I was an idiot and forgot to finish registering my account. I had to spend about 5 hours over the course of a week trying to find a live human but didn't need any additional bank verification. Unsinkabear posted:Apologies if this has already been asked, but does anyone have tips for getting through TreasuryDirect other than "just keep beating your head against the wall and hope it eventually works?" I spent my lunch break refreshing the treasurydirect website until I was finally able to purchase (forgot to buy my ibonds, had bought mrs. adnam's ibonds for the year), but I also already had my bank account set up. I wish you the best of luck, it's a pretty frustrating website, I had to have mrs adnam drop off my personal laptop at work since work networks were too secured to allow for the weird JS keyboard password they want.
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Oct 28, 2022 23:56
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Strong Sauce posted:so maybe a dumb question: i decided to try out treasuries @ ~4.5% by buying it on Fidelity... then i realized the accrual date starts on 11/3.. do i have the locked in rate of 4.5% when i bought it or is that rate determined when the order goes through on 11/3? because if its the latter i may as well just cancel and either buy a CD instead. Does this depend on what you bought and how you bought it (from the treasury auction or secondary market)?
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Oct 29, 2022 00:03
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Motronic posted:Are you saying you were able to add a bank account and immediately buy without any deposit confirmations? That was April 28th-ish, also near the rate change date.
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Oct 29, 2022 00:21
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Strong Sauce posted:so maybe a dumb question: i decided to try out treasuries @ ~4.5% by buying it on Fidelity... then i realized the accrual date starts on 11/3.. do i have the locked in rate of 4.5% when i bought it or is that rate determined when the order goes through on 11/3? because if its the latter i may as well just cancel and either buy a CD instead. I think you bought into the open auction. The rate isnt actually determined until the auction completes. It could be higher or lower than current rates on the secondary market. You can probably cancel your order at any time this weekend if you want since the auction is open until Monday or Tuesday (depending which maturity you bought).
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Oct 29, 2022 01:03
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treasury auction schedule here (pdf)
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Oct 29, 2022 01:04
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pseudanonymous posted:Not actually a bad thing. Not empty quoting
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Oct 29, 2022 01:12
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drk posted:I think you bought into the open auction. The rate isnt actually determined until the auction completes. It could be higher or lower than current rates on the secondary market. thanks that's probably it.
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Oct 29, 2022 01:19
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