Investing For US Expats
We help US expats and American citizens living in New Zealand navigate the complexity of investing across borders, with financial planning and investment advice designed to account for the investment landscape, tax rules and reporting requirements of two countries.
Specialist Expertise
Investments Across Borders
The United States is one of the few countries that bases tax obligations on citizenship status rather than residency. This creates unique financial challenges for American expats, green card holders and other US-connected investors. We specialise in helping clients understand the planning considerations, tax implications and investment options associated with managing wealth across two tax jurisdictions.
Cambridge Partners has been in business since 1994 and has over 15 years of experience working with American citizens living in New Zealand and overseas. Our goal is to make your financial transition to New Zealand as smooth as possible, giving you clarity, confidence and peace of mind about your financial future.
Creating Certainty
How We Help
Our first step is to develop a personalised financial plan that provides recommendations for efficiently structuring and managing your financial affairs. We then partner with you to implement those recommendations, provide ongoing financial advice and review your plan regularly as your circumstances, country of residence and long-term goals evolve.
We also work alongside other professionals, including tax accountants and lawyers, where required, so your cross-border financial planning is considered in the context of your broader legal and tax obligations.
Cambridge Partners does not provide NZ or US tax advice or file NZ or US tax returns. Where required, we work in partnership with our network of US-NZ accountants and US-NZ legal advisers to help ensure our clients’ holistic requirements are met.
Common pain points for US citizens include:
- Access to investment accounts after leaving the United States, including where local banks or platforms restrict services for US citizens.
- Access to, and ongoing management of, US retirement accounts, including 401(k)s and Individual Retirement Accounts (IRAs).
- Optimal draw-down strategies for retirement savings.
- How to invest without being captured by the punitive US Passive Foreign Investment Company (PFIC) rules.
- Avoiding foreign mutual fund structures that may be treated as Passive Foreign Investment Companies (PFICs) for US account tax and reporting purposes.
- Managing investing taxes, capital gains, exchange rates, tax rates and the risk of double taxation across New Zealand and the United States.
- Understanding the interaction between US Social Security and NZ Super and how to maximise lifetime benefits.
- Estate planning considerations for families with assets, beneficiaries or obligations in more than one country.
- The implications of joining KiwiSaver as a US citizen and the options available to minimise tax and compliance costs.
Tailored Solutions
Evidence-Based, Tax-Efficient Investment Options
Our investment solutions for US citizens and expat investors incorporate:
Asset allocation approach
We assess each client’s risk and return objectives to determine the most appropriate balance between growth assets and defensive assets across suitable investment accounts and custodial platforms.
Tax-efficient portfolios
Our US client portfolios are designed to manage the US PFIC and capital gains regimes, while also managing NZ tax obligations, particularly with regard to NZ FIFs (Foreign Investment Funds).
Investment tax awareness
We consider the interaction between US tax laws, NZ tax rules, tax advantaged accounts and foreign investment reporting requirements so your portfolio is structured with both countries in mind.
ESG investing
We offer portfolio options that consider Environmental, Social, and Governance (ESG) factors so clients can invest in line with their values and preferences.
We can also provide advice on, and where appropriate manage, US retirement accounts on your behalf.
Navigating Complexity
Ongoing Portfolio Management And Support
Cambridge Partners provides a premium wealth management service for US clients who want ongoing advice, disciplined portfolio management and confidence that their cross-border financial affairs are being actively reviewed.
Meetings can be conducted in person or by video call using Microsoft Teams or Zoom, making it easy to work with a US expat financial adviser wherever you are based.
As an American living in New Zealand, you cannot simply ‘set and forget’ your financial affairs. Each stage of life can bring events that add layers of complexity to financial planning and require careful consideration.
Common examples include:
- Purchasing property and understanding the tax implications in both your home country and country of residence.
- Saving for children’s education.
- Inheriting assets in the US.
- Involvement in a NZ company or Trust.
- Green card implications, including whether you are required to file ongoing US tax returns or meet other tax reporting obligations.
- Green Card implications.
Collaborative Approach
Professional Network
Our US expat financial adviser team works closely with our well-established network of US-NZ accountants and US-NZ legal advisers to help deliver coordinated advice for clients with cross-border financial needs.
This collaborative approach helps address your unique financial circumstances, from investment advice and retirement accounts through to estate planning, tax reporting and long-term wealth management, so you can move forward with confidence.
