10 years ago, I graduated Uni with no debt and about $1,000 net worth.
My first job (engineer) paid $100k/yr. After taxes & expenses, I saved $70k per year for 3 years.
With $200k net worth, I lived on $5k per year and for the past 7 years, I worked only 30% of the time – just enough to cover my expenses without dipping into my savings.
This year I sold bitcoin (bought for $7,000. sold for $1,000,000). My target to retire-retire was $800,000, so I’ve finally reached my goal.
The sell orders executed so fast that I don’t know where to put it. I already stuffed every US bank that I have to the $250k FDIC max, but my last sell order exceeds that. I’ve applied to open bank accounts with maybe 100 banks in the US, and I’ve only succeeded in opening 1. My requirements:
[1] No monthly fees
[2] No inactivity fees
[3] No phone or phone number required
[4] Online Banking with 2FA support (TOTP, Webauthn, or email)
99% of the banks that I’ve tried to open with auto-deny me. My credit is great. When I call and ask why, they say something about the information I gave them not matching their records. The ones that have an appeal process told me “the system” denied me, and there’s nothing they can do – even supervisors.
My long-term plan is to buy a small condo in a city and a lot of land in the country. But it’ll probably take me 6-24 months to find and finish those deals, and in the meantime I want to keep my money somewhere safe.
I’m also a bit worried about the USD tanking. I’ve looked into banks in Europe and Canada, but Canada requires a tax ID and I only speak English. Can anyone recommend a very stable bank abroad (with English language support) that a US American can open remotely that meets the above requirements?
Where would you put your money if you were in my situation?
The $250k FDIC insured amount is per account ownership category. These categories are Single accounts, Joint accounts, certain retirement accounts like IRAs, Trusts, corporate accounts, corporate or partnership accounts, employee benefit plan accounts, and government accounts.
Since you are planning on using most of it for retirement, it would seem like opening an IRA at a couple of the banks you already do business with are the best bet.
https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance#%3A~%3Atext=The+standard+insurance+amount+is%2Caccess+to+their+insured+deposits.
This is true of SIPC too. See my original comment for details.
I’m planning on using most of it to buy land as soon as I can. I do have retirement funds, but I don’t plan to contribute to them from this windfall – other than my usual yearly max Roth IRA contribution.
My only comment on that is that a Roth is great if you’re going to live in the US or a country that acknowledges the Roth as a retirement vessel. If not, it’s a huge liability and may need to be liquidated. I’d check specific countries to see unless you’re sure you’ll be in the US the whole time.
I’m still a US citizen. Even if I live abroad, I have to pay capital gains taxes to the US. That’s why I use the Roth IRA.
Why would it be a liability?
You have to also pay capital gains in the country you live in as if it’s any old investment, if the country doesn’t acknowledge the Roth as a retirement vessel. And a fair few countries don’t.
So in the case of Denmark, annually I’d have to pay the marginal rate I’m at (and can deduct up that as income to the FEIE limit for the US) on the growth of the Roth, even though the US won’t let me take the money out without penalty.
And if that doesn’t seem fair, I totally agree and so do a lot of ex pats lol. It’s total BS but basically the money would cost you a lot every year to keep even if you retired in the US with it. Depending on numbers and age and plan, it may or may not be worth it for someone to keep.
If I had known when I was 22 I never would’ve put a dime into it since I didn’t plan to live in the US forever.
Maybe this isn’t a thing in South America? I’ve never met an expat here who pays taxes here for interest made in accounts abroad. Usually the government here is just happy with what you’re moving into the country and spending on the local economy every month.