I've been traveling and living abroad for the past 25 years .. I've always maintained a US Address and I NEVER tell banks or other financial institutions that I'm living outside of the US .. the less information you give people about your personal business the better off you are... Also I use a VPN with a US based IP address whenever I log into my accounts...
Three things: 1. There is a Schwab International account that allows you trade when you live out of the country. You just can't own US mutual funds. 2. The usual issue in these cases are that mutual funds can only be owned by US residents. This law caused a lot of issues with Schwab and Vanguard closing accounts a few years ago. 3. Alternative: Interactive Brokers. They are expat friendly and Philippines are on their allowed list.
It might be helpful for new guys coming over here to establish residency in a state with zero state tax before they come here. For me it was easy as my last duty station in the Army before I retired was fort hood Texas so I have Texas residency, no state tax. But you don’t have to live in Texas to qualify for Texas residency. Every US citizen has the right to be a resident of a US state even expats. For most people it is the last state you lived in before you became an expat but it doesn’t have to be. You can make the following attestation… “if and when I come back to the US I will choose Texas as my state of residency.” Make an affidavit of undertaking. Then get a drivers license or file a will in Texas or the state of your choosing before you leave the US. You will have established residency in that state.
A couple of years ago, a Schwab representative told me that, once I was settled overseas, I should contact Schwab to have my U.S. account holdings transferred into an international brokerage account. If you don't do the above, you're playing with fire because the account-locking accompanied by a forced sale of your stocks could take place. I'd also suggest never relying on the word of single rep or salesperson as that person could be misinformed. Always best to verify anything stated by a telephone rep with printed materials.
Hi Steve, I have a similar experience to relate to you, and a suggestion for you to consider. Before I moved to Manila, I had my IRA account with UBS in Boston. Because I have been satisfied with them for many years, I wanted to keep it with them. Before I moved, I spoke to the guy who was overseeing my account and told him of my intent. He told me that he could not continue to work with me because his license within UBS was only for US domestic residents, and that my account would need to be transferred to another person who is licensed within their company to service US residents overseas because of the need to comply with SEC and banking rules. So, they transferred my account to a different person and group within UBS who is licensed to service US residents living in Asia. I speak monthly with them, and it works fine. So, I don’t think your problem is at all related to the use of a VPN, or the current administration, or state income taxes. It’s just that sometimes these compliance issues take a while to show up. One thing that may work for you is to inquire about having your account handled by someone in the company who resides in the US and who is is licensed to trade on behalf of US residents who are living in Asia. This potentially means you couldn’t do your own trading at-will online from here, but would need to speak with someone there who would execute the transactions on your behalf. Check this out and see if it works for you.
Never a dull moment in the Philippines! Last year , while living in the Philippines, my US bank merged and cut any access to my account. I had to fly back to the US to straighten this out. When landing in the US I had only $100 in my pocket and no access to my accounts.
It's nobody's business if I'm on an "extended " visit to the Philippines. I keep a Texas mailing address with a virtual mail service and a TX driver's license. I also use NordVPN with a server out of Dallas so no one knows I'm logging in from the Philippines. And I use Mint Mobile with WiFi calling for $15/mo keeping my USA phone number. I can make/receive calls and texts from the USA as long as I have WiFi. Works for me!
Good to know. I am with Schwab and currently still living and working here in the US until I retire in 2026. I invest every month and don't plan on stopping purchasing stocks when I retire even if I am living overseas. Keep us updated.
Thanks for this info, I'm in the process now of opening a Schwab account. What ever you decide, I suggest keep your Schwab bank account if you have one. Opening a U.S. bank account from overseas is a nightmare, I'm sure you probably already know this.
I have had some of the same issues with all banking...We have business accounts in Minnesota and Florida and my personal account is in Indiana...My retirement address is in Germany (HOR for USA Fed taxes) and I vote in Florida (last home I owned in USA was there)...I also have foreign accounts in Germany...In regards to investments I've just left everything as it has been (registered with USA addresses I still use)...Definitely will do some queries quietly...PayPal has been acting up as well for small businesses and sole proprietors...Topsy turvey times we're in...Thanks for the heads up, Steve...Enjoy the weekend...
I am glad you made a video about this. I am also in the middle of all of this, including moving all my holdings from Schwab to interactive brokers. I have had several conversations with Schwab and if the information I have been given is correct is after December 6th your atm cards will stop working, transferring your funds through ach to your us accounts will not work any longer, will need special permission or a wire transfer. There will be no purchasing of shares but you can sell, but they reserve the right to liquidate your account without notice, and all the tax affects that would create on you. If you have a Schwab account, live in the Philippines and have gotten this email you should make sure and take action to best take care of yourself. I worry for some retired people that may not be as tech savy and are not seeing the email possibly. Well thanks for spreading the word on this, help protect some people from being cut off from there money. Again I have found interactive brokers to be a good alternative allowing you to trade without problems from the Philippines as a US citizen.
Bank of America found out we might be moving to the Philippines and promptly told us we would need to close checking account and Investment accounts. At this moment we re still living in the US. However, my wife went to the Philippines for six weeks and used their credit card. When they noticed they called our house and asked if she was still living in the US and would not believe me when I said she was. They insisted on talking with her. Fortunately at that time she was back from er 6 week stay. I will need to find an alternative baking system if we ever move there.
Ok found something we can use a company called IB , then you can invest from anywhere. It is illegal to trade US stocks from here and my research confirms getting a VPN to take care of it is a terrible idea.
Very interesting to me. I am just like you in the enjoyment of trading. Please keep us informed. I use Fidelity. You mentioned using a VPN, what about residence in say Nevada with no state tax? I've subscribed because just found you today and have already seen a lot of good information. Thanks.
Wow...that's crazy Steve?! That's good to know and other expats should definitely look into it and be on alert! I just hope it works out and everything gets worked out. That way you don't have any penalties. God Bless
What flagged your account is accessing your brokerage from the Philippines that’s why you need to open an account in a new brokerage and they will transfer your account in whole. The new brokerage will do it for you. It’s easy. Never acces your new account without a VPN. IVE BEEN THROUGH IT. It’s been two years with new brokerage no problems.
I stumbled onto your channel and just a few minutes in I was going to exit. But it’s 2 hours later and I’m still watching your content. I’m glad I gave you a chance. You tell it like it is, even if it’s not what I wanted to hear. Thank you for shooting straight. Your new Sub 😊
I keep a US address by owning a home which rent out. It has been paid off so I only pay property taxes. Since it's in South Dakota, there's no state tax and the property taxes are EXTREMELY low.
Can only imagine the issues a Canadian will have with an issue such as this. Will have to be sure to have this on my ever growing list. Thank you for sharing this. Hopefully others will now be able to get things fixed up before this happens. Great video Steve, thank you.
Wow, sorry to hear Steve. Please keep us updated. Would be important to know the reason, like you said. Based on where you are logging in from? Or that they did a review and got you on state tax/address issue (even tho they ok’ed it originally). If it was based on login, would that mean, even a one week vacationer couldn’t sell stock when in Philippines? 🤔 That sounds crazy, but who knows.
This burns my biscuits. Aren't YOU their customer? Perhaps I'm naive, but why do the banks, and now private businesses so willing to be stooges of the stinkin' gummit? I really think the whole banking system stinks.
It probably has to do with international money laundering. Of course, the bad guys and Rich always seem to be able to get around it. Like when Russians bought multi-million dollar properties here in the US. I guess it's like the IRS. Easier to audit 1 million small accounts than auditing 1 Billionaire!
The last time I checked US citizens can open brokerage and IRA accounts while living abroad with Interactive Brokers using their foreign address and passport for ID. I was thinking of switching my IRA from Fidelity because they were threatening expats. However I'm pretty sure the minimum to open such an account is quite high. Anyone interested contact them for current policies. Be open about being an expat to them. Another thing is that their platform is geared to experienced investors.
That was some great information. I'd never heard of such issues with brokerage accounts, and I didn't see anything in my documentation from Fidelity on that. Fortunately, I still have few months before I planned on making the move, so this comes in at a great time. Living in a tax free state already, and looking to pick up property in another tax free state, but I may just move my investments over to an international account.
FINRA rules and banking rules are different as Steve just found out. Fidelity might be able to help. The issue of account registration for brokerage firms is that FINRA requires the account registration to be accurate. Some of it is semantics. If you use a US address to register the account, you can't then tell them over the phone "hey, I live overseas ". Foreign accounts are handled differently.
South Dakota is great for establishing residency....I plan on getting a residency there when I'm 62 and get the hell out of California .... I'll spend time between the Philippines and here in the States as a nomad....so South Dakota works....no smog requirements either
That's easy, transfer your account to Merrill Lynch(own by Bank of America which has a branch in the Philippines), Chase Bank investment account (they also have a branch in the Philippines BGC) Citi Bank Investment Account who has a branch in Makati or Morgan Stanley. All offer fee commission trades.
That sucks. Why does Schwab have to know where I physically reside? My Texas mail forwarding service is my mailing address on the account. Since my DL and voting use California I will continue to pay a modest state income tax. BTW I recently voted November election long distance as a California resident via email to fax.
I have an account for over 20 years, where I get my SS every month. Without any warning they suspended my debit card linked to the account. So, now I can't get my SS on an ATM. No one was able to explain to me why.
Like other folks suggest, simply set up a mailing address in a US state that has no income tax. I have several brokerage accounts, (including Charles Schwab, btw), and none of them have any problem with my mail service address, (which is also on my driver's license, as it is my legal address), EXCEPT TD Ameritrade, who could never accept this address as valid. So I simply closed my TD Ameritrade account.
Basically they can dump a huge amount of shares on the market and minipulate prices. I have noticed the no po box rules some companies have as well but that just means they want you to use someone who competes with the post office.
This is happening because the Philippines remains on the FATF GRAY LIST THE Philippines remained on the “gray list” of jurisdictions subjected to increased monitoring for “dirty money” risks, according to the Financial Action Task Force (FATF). Officials are hoping that the Philippines will be removed from the FATF’s gray list by January 2023.
Interesting Steve, I have money in my 401 and am just holding on to it I'm down since Biden took office 28 percent and hoping things turn around. I have my address in Florida I keep my duplex in Clearwater Florida. Not sure how I will be affected if I were to take any money out ? If I take any money from my GE retirement fund I know the penalties are steep and taxes are high but at some point I may take my money out of it. Good video Steve, something to think about that's for sure.
Thanks for the info. Since I am not moving to the Philippines for another 2 years I have some time to figure this out. I contacted my financial guy who handles my brokerage accounts and annuities, and he confirmed what happened to you. Apparently, the brokerage houses have put the Philippines on the prohibited list of countries around the world. You will only be able to sell what is in the account. I am assuming it's because of a lot of scams and fraud in the Philippines. Even when I send money to my wife's kids in the Philippines thru Western Union, they sometimes freeze the transfer and give me the third degree before they will release the money. President Marcos even signed into law that all sim cards in the Philippines have to be registered now because of the scams.
Wow, sorry thats happened to you. I have a CS checking account but have a residence address in the states and when I log into my account, I use a VPN in the states that give me a US ip. Haven't heard anything in 6 months now but will check to make sure I'm not blind sided. Thanks for the head up
I'm with Schwab and about 10 days ago I received the email from them stating my brokerage account will transition to restricted status come December. Due to my residence in the Philippines. Initially I was bummed out... recovering now. Im glad to hear you can sell after December. I'll have to confirm same for me...no sense selling in a down market.
Steve, it is a bit late, but if u would of used a VPN like surf shark when logging in, it may if made a difference…if u have family in the US, u could just keep the investment accounts address in the US…just a thought 🤔🤔🤔
It seems they love to get into financial stuff using everyone's social internet stuff. It sucks to think they got you by the balls. They days of being low key and flying under the radar. I think more of these things will happen as time goes by.
One should consider changing their state of resident to a state with no income tax. Also use a VPN with a US server. The US is of few countries that tax their citizens living outside the US.
I have had no problems with them. I pay federal taxes on my dividends that i receive. I haven't paid state taxes in seven years, since i sold my income properties. I never mentioned to them that i live in the Philippines. My mail forwarding information and US cell phone number is all that i gave them. I don't see why they would do something like that. My Filipina wife just set up a US LLC and got an EIN online from the IRS to do business in the US and open a US business bank account. If you are an accredited investor, you shouldn't have any problems. But thanks for the Information, I'll look into this.
Many financial institutions are making changes right now. Deleting "underused" accounts. When I retired one interesting thing was my pension asked if I were going to live overseas. If so they were going to reduce my pension. I have heard of another stock trading platform called Wible or Weeble? They might have different rules, I do not know really anything about it other than the name. Good Luck Steve.
There are certain federal and provincial pensions here in Canada that you can't get if you're living overseas. Those pensions are for low-income Canadians whose Canada Pension Plan (C.P.P.) and any work pensions they have are below the threshold for what Canada considers a liveable pension for seniors. Any Canadians considering retiring overseas need to look into this before they make the move.
Hey Steve. Interesting info. Thank you. I heard the Schwab Checking acct is one of the best for international travellers. I am going to contact Schwab because I am curious about this whole issue. Take care.
Just checked google , word for word. Please note that most US brokerages will not accept clients internationally and will often freeze or restrict purchases in customer accounts whenever they learn that the account holder has moved abroad.
simply get a PO Box in Texas (no state income tax). you must still pay federal tax. other states include: Alaska, Florida, Nevada, Tennessee, Washington, Wyoming. as far as trading goes, get a VPN and set the server to one of the tax free states.
Maybe it could be for your own protection also. Off- topic here but just a heads up. I messed-up my online-banking password for Capital One and dealing them for a reset from PH was a major pain the ass. They locked my account and flagged it as "suspicious". Had to contact my attorney in DE to give my daughter there a SPOA to bank with them on my behalf.
Changing address can create problems with and confuse trading software. Also, with internatuinal tax treaties in a virtual world, it does not matter where you are on the planet. You might as well be sitting in Nebraska as much as you are in Philippines. The tax man wants your money as long as you are a US citizen...and he will have it. Don't dodge him cuz he has a long arm and a short wick.
Question: when they locked your account, could you still see the charts? I'm wanting to open an IBKR account. IBKR is a real international broker. But I hate their charts, and wanting to use TOS. I'll switch to TV if I need to, but prefer the charting that TOS offers.... What are your thoughts?
Another Vlogger recently posted a video about his Schwab account. He was told by them "If you are living over seas & you Don't have an international account your Schwab account is frozen after 6 month's & you then have to switch to the International account with them in order for it to be unfroze"
😂 Was that you at the mall of Asia ,drinking a milkshake few weeks ago 😮 there was k-pop concert going … just wondering champ! Could of been your evil twin , not sure . Ok take care !
I've been living in Thailand for 20 years. The same thing happened to me with TD Ameritrade and Robinhood. I'm with Charles Schwab now and everything is okay for international clients.
This is a real bummer. I am presently with Schwab. Like many, I would use the dividend income for retirement. I think once this sort of thing is put in place, it stays that way for a while.
I can't figure out if I'm slow, or if I'm stupid. I get a certain amount of money per month for the rest of my life. Why does it feel like I'm the only one who doesn't feel the allure and glamour of investing, as opposed to just saving and allowing my money to stack in the bank? If I was younger, it would make more sense to me. But I'm 50. What future am I planning for? I have a 7 yr old baby, but between my life insurance, and whatever I have in the bank when I pass, she'll be filthy rich. Is it the fun of it, like fantasy football or something? I am RETIRED. That means I don't wanna worry about investments, I don't wanna start a business...nothing. I can go back home and worry.
What you're saying is really strange to me. I'm in Tokyo. Since the year 2000, I've used Charles Schwab to trade stocks, and trade all the time. Never an issue. That said, I do have a CPA and do file (and pay US federal and State taxes, I'm in Arizona). Never had a problem. Got moved to their Schwab International account about a year or two ago. Other than that, it's smooth sailing. Concerned that when I move to Philippines if they will give me a hard time with this.
Back in April, 2021, I withdrew $12,000 from ATM machines here in the Philippines for a downpayment on a car. I have daily $2,000 withdrawal limit on each of my two checking debit cards so took 3 days to do it. A couple of weeks later I received an email from Schwab stating that they believe I am residing overseas and that all my accounts with them would be shut down within 60 days unless I provide proof I still reside in the US. Although Schwab is my primary bank and they could see my mortgage and utility payments were coming out of my checking accounts, I guess that was not proof enough. I was planning to go back to the US the following month, so took care of it then.
When I established my Charles Schwab accounts they told me that I have to have my permanent residency in the U.S. so I use my brother's address. But then I have to pay state taxes and county taxes. And I have to keep updating my accounts with travel dates to the Philippines.
Salamat for another informative video …i was going to open a Schwab brokerage account before i come back to Dumaguete…my plan is to spend winters there half the year ..i have RBC account so need to check i guess before moving
Steve, I have done a fair amount of research on this also. It appears to be a Schwabb only thing. You should be able to open an interactive brokers account or just open a JP Morgan chase account. They have an office righy there in Manila and an online brokerage you can trade from 220 countries their website says. Certainly worth a trip to the Manila office and get information on since it's not that far for you
Thanks, I found this very informative. And rather shocking. One of my ideas was to generate income with my stock holdings while overseas. This puts a real damper on that idea. Please give us updates.
There is a way you can do it legally. You would lose some features & likely still have to pay federal taxes, but not state. On the federal there are ways to mitigate the tax bill so it's not a huge chunk.
it also depends on what the laws are in the Philippines and whether they adhere to banking know your customer laws and agree to report to US on financial transactions. I had a similar issue in Nepal and was told by Fidelity that it was because Nepal is not a signatory to international banking laws.
I saw a video log where the Sims card on the phone has to be registered something the current administration has begun. My thought is the Philippine government may be monitoring its citizens and especially the expat community through the Sims card.
My stock trading days are over, so a non-issue with me. I occasionally have my account flagged and frozen until I contact them to verify my identity. Can be an inconvenience at times. God bless.
Well you can "virtually" move back to the states. Then, move to a VPN in the US to do the trades, then take the VPN with you to the phillippines. The VPN will be the pass through to the trading platform and still appear that you are in the US. Take a look. Also taxes are not that bad in certain states, or if you are in a high tax state, it will not be much if your income is below the threshold for being taxes after all of the tax breaks. Speak to a good accountant in the US, in order to set it up correctly.
Thanks for bringing up another interesting thing we should think about before we move there.. do you think that the new Philippine government headed by bong bong has anything to do with your problem.. maybe the Philippines has passed some kind of hinky law you do not know about under the new administration.. I am anxiously waiting to hear if you find out any more information.. like Paul Harvey says, and now the rest of the story.. thanks 👍
I am an Aussie Expat permenant resident here SRRV and I trade with NABTrade in Ox and they have a rule where I can;t use a Philuppines Phone numner to trade onlime as I cancelled my Oz mobile as I have no need to pay $2.50 a minute in calls to Ox. Howervee the NAB Bank has fianlyy allowed me to use a +63 number but not Nab trade their rules say you have to have an Aussie mobile but I can still trade by calling and using the dealing desk at the same price as online trades... I opened a BPI acct here to get my pension direct here as I am getting ripped off in transfer fees and shit currnecy exchange rate so I use Remitly now but I just wna tot use a local ATM without paying up to $5 to pull out 10K perso using my Aussie Debit card,, what a joke and money grab.. I am alos looking to trade here but BPI has no share trade service but I wll investigate that further..Love Cebu.
why not just move your residence to a USA state that has no income tax, like Nevada or Texas. Many vloggers have. Reekay moved his residence from California to Texas recently before he went back to PH. I wonder why hehehehe
Sorry to hear that I’m a Schwab, brokerage, and bank customer but I haven’t been overseas for over a year just under but not over maybe that made a triggering difference with Aehm. I have a question for you. How do you verify your banking information? Do you still have a US phone number and service carrier?
As a US citizen you are responsible for paying taxes to the IRS regardless of whether you are living in the US or not. If you become a citizen of another country, you will still owe taxes on the money you take out. Expats earing income in another country and paying taxes in that country can get an exemption.
Your not the only 1 mate ! I’m in Aus it’s changed for a couple of us as well I’m thinking , if you put on your tin foil hat it’s all to do with some people (country’s) trying to get around the Forfeit rule for a particular country if you know what I mean? Also some hard Assets were frozen Mauritius as well that belong to some foreigners. Still in the harbour
Actually I’m at TD Ameritrade to Steve been with them since Scottrade but I’m also from Florida and there is no state tax in Florida and I never got rid of that address so I don’t think there will be an issue if you live in a state that doesn’t have state tax
Does anybody worry about the stock market. It seems like big business is more worried about making kids gay them making a profit. The bud light, target, Ford all these big corporations seem to be committing financial suicide. Dosent this affect shareholders especially the people using it as a supplement to retirement?
Steve, I think you need to Speak with An Attorney Like Now. You see, There is a Stipulation in Federal Law, that States that if you are a US Citizen ( Either Born there or Naturalized) ( Naturalized meaning you were the Child of At Least 1 American Parent). You will Owe Taxes to America No Matter Where you Live when you Earn that Money. Example: there was a Family, American Family. They had a Child While Living in America.. once that Child was Born , They Move Immediately to Canada. Now , That Child Grows up in Canada( never Having Lived in, or worked in America) . She gets a Job in Canada, and pays all Her Canadian taxes regularly. Suddenly, At Some Point in Time, She receives a Letter from the IRS. Turns out it's a Tax Bill plus Late Fees, Penalties, and Interest. I don't know if She Won, List or If it's Still going through the Court System , But She Sued because she said she wrote them , explaining she had never lived in America, or Worked there, Yet She is Being Charged American Taxes. Government Didn't care, She is American meaning She Owes taxes for All her Lifetime Earnings.. If you have a Live in Partner in the Philippines, she can Work and Pay taxes in the Philippines and be Fine, But, I believe, The Moment the 2 of you Get Married, Her Earnings will then co Mingle with Your Earnings And the 2 Of You Could Owe Taxes on Her Earnings(Same as a Married Couple living in America Filing Married Filing Separately or Married Filing Together) . Cause Any Money you Earn In America or in the Philippines , Is Subject to American Taxes. Better Get Council to make Certain you Are Not Hit with Any Back Taxes. My Concern is, You Tube.. We become Expats, Start a Vlog on You Tube, It gets Monetized and you Start Earning money. There Could Be Taxes Due in America on Those Earnings. So then I get Social Security , that gets Added together, I may owe even on my Social Security ( not Sure exactly how this All works) . Before I get there, I guess I'm Gonna Need to Consult a Tax Attorney to get this All Straight .
I pay my taxes to both the Philippines and US. It’s not a tax issue that caused this. Also I have an attorney for my Channel and I reported to the US and payed to the Philippines and am all legal here and there tax wise.
Open up a Robinhood account. This is why I mostly stop buying stocks and turned to crypto.. tired of these clowns telling me what I can and can't do with my money
The fact that everything was Ok when I left. And now it’s changed is very strange. They were told upfront about everything.
I've been traveling and living abroad for the past 25 years .. I've always maintained a US Address and I NEVER tell banks or other financial institutions that I'm living outside of the US .. the less information you give people about your personal business the better off you are... Also I use a VPN with a US based IP address whenever I log into my accounts...
Three things:
1. There is a Schwab International account that allows you trade when you live out of the country. You just can't own US mutual funds.
2. The usual issue in these cases are that mutual funds can only be owned by US residents. This law caused a lot of issues with Schwab and Vanguard closing accounts a few years ago.
3. Alternative: Interactive Brokers. They are expat friendly and Philippines are on their allowed list.
It might be helpful for new guys coming over here to establish residency in a state with zero state tax before they come here. For me it was easy as my last duty station in the Army before I retired was fort hood Texas so I have Texas residency, no state tax. But you don’t have to live in Texas to qualify for Texas residency. Every US citizen has the right to be a resident of a US state even expats. For most people it is the last state you lived in before you became an expat but it doesn’t have to be. You can make the following attestation… “if and when I come back to the US I will choose Texas as my state of residency.” Make an affidavit of undertaking. Then get a drivers license or file a will in Texas or the state of your choosing before you leave the US. You will have established residency in that state.
A couple of years ago, a Schwab representative told me that, once I was settled overseas, I should contact Schwab to have my U.S. account holdings transferred into an international brokerage account.
If you don't do the above, you're playing with fire because the account-locking accompanied by a forced sale of your stocks could take place.
I'd also suggest never relying on the word of single rep or salesperson as that person could be misinformed. Always best to verify anything stated by a telephone rep with printed materials.
Hi Steve,
I have a similar experience to relate to you, and a suggestion for you to consider.
Before I moved to Manila, I had my IRA account with UBS in Boston. Because I have been satisfied with them for many years, I wanted to keep it with them. Before I moved, I spoke to the guy who was overseeing my account and told him of my intent. He told me that he could not continue to work with me because his license within UBS was only for US domestic residents, and that my account would need to be transferred to another person who is licensed within their company to service US residents overseas because of the need to comply with SEC and banking rules. So, they transferred my account to a different person and group within UBS who is licensed to service US residents living in Asia. I speak monthly with them, and it works fine.
So, I don’t think your problem is at all related to the use of a VPN, or the current administration, or state income taxes. It’s just that sometimes these compliance issues take a while to show up.
One thing that may work for you is to inquire about having your account handled by someone in the company who resides in the US and who is is licensed to trade on behalf of US residents who are living in Asia. This potentially means you couldn’t do your own trading at-will online from here, but would need to speak with someone there who would execute the transactions on your behalf. Check this out and see if it works for you.
Never a dull moment in the Philippines! Last year , while living in the Philippines, my US bank merged and cut any access to my account. I had to fly back to the US to straighten this out. When landing in the US I had only $100 in my pocket and no access to my accounts.
It's nobody's business if I'm on an "extended " visit to the Philippines. I keep a Texas mailing address with a virtual mail service and a TX driver's license. I also use NordVPN with a server out of Dallas so no one knows I'm logging in from the Philippines. And I use Mint Mobile with WiFi calling for $15/mo keeping my USA phone number. I can make/receive calls and texts from the USA as long as I have WiFi. Works for me!
Good to know. I am with Schwab and currently still living and working here in the US until I retire in 2026. I invest every month and don't plan on stopping purchasing stocks when I retire even if I am living overseas. Keep us updated.
Thanks for this info, I'm in the process now of opening a Schwab account. What ever you decide, I suggest keep your Schwab bank account if you have one. Opening a U.S. bank account from overseas is a nightmare, I'm sure you probably already know this.
I have had some of the same issues with all banking...We have business accounts in Minnesota and Florida and my personal account is in Indiana...My retirement address is in Germany (HOR for USA Fed taxes) and I vote in Florida (last home I owned in USA was there)...I also have foreign accounts in Germany...In regards to investments I've just left everything as it has been (registered with USA addresses I still use)...Definitely will do some queries quietly...PayPal has been acting up as well for small businesses and sole proprietors...Topsy turvey times we're in...Thanks for the heads up, Steve...Enjoy the weekend...
I am glad you made a video about this. I am also in the middle of all of this, including moving all my holdings from Schwab to interactive brokers. I have had several conversations with Schwab and if the information I have been given is correct is after December 6th your atm cards will stop working, transferring your funds through ach to your us accounts will not work any longer, will need special permission or a wire transfer. There will be no purchasing of shares but you can sell, but they reserve the right to liquidate your account without notice, and all the tax affects that would create on you. If you have a Schwab account, live in the Philippines and have gotten this email you should make sure and take action to best take care of yourself. I worry for some retired people that may not be as tech savy and are not seeing the email possibly. Well thanks for spreading the word on this, help protect some people from being cut off from there money. Again I have found interactive brokers to be a good alternative allowing you to trade without problems from the Philippines as a US citizen.
Bank of America found out we might be moving to the Philippines and promptly told us we would need to close checking account and Investment accounts. At this moment we re still living in the US. However, my wife went to the Philippines for six weeks and used their credit card. When they noticed they called our house and asked if she was still living in the US and would not believe me when I said she was. They insisted on talking with her. Fortunately at that time she was back from er 6 week stay. I will need to find an alternative baking system if we ever move there.
Ok found something we can use a company called IB , then you can invest from anywhere. It is illegal to trade US stocks from here and my research confirms getting a VPN to take care of it is a terrible idea.
Very interesting to me. I am just like you in the enjoyment of trading. Please keep us informed. I use Fidelity. You mentioned using a VPN, what about residence in say Nevada with no state tax? I've subscribed because just found you today and have already seen a lot of good information. Thanks.
Wow...that's crazy Steve?! That's good to know and other expats should definitely look into it and be on alert! I just hope it works out and everything gets worked out. That way you don't have any penalties. God Bless
Would suck to sell stocks now. I didn’t change my address to here with Schwab. No problems yet. But I do pay state tax
What flagged your account is accessing your brokerage from the Philippines that’s why you need to open an account in a new brokerage and they will transfer your account in whole. The new brokerage will do it for you. It’s easy. Never acces your new account without a VPN. IVE BEEN THROUGH IT. It’s been two years with new brokerage no problems.
Good to know
I stumbled onto your channel and just a few minutes in I was going to exit. But it’s 2 hours later and I’m still watching your content. I’m glad I gave you a chance. You tell it like it is, even if it’s not what I wanted to hear. Thank you for shooting straight. Your new Sub 😊
Thanks Angus !!🙏🏻👍
I keep a US address by owning a home which rent out. It has been paid off so I only pay property taxes. Since it's in South Dakota, there's no state tax and the property taxes are EXTREMELY low.
Can only imagine the issues a Canadian will have with an issue such as this. Will have to be sure to have this on my ever growing list. Thank you for sharing this. Hopefully others will now be able to get things fixed up before this happens. Great video Steve, thank you.
Wow, sorry to hear Steve. Please keep us updated. Would be important to know the reason, like you said. Based on where you are logging in from? Or that they did a review and got you on state tax/address issue (even tho they ok’ed it originally).
If it was based on login, would that mean, even a one week vacationer couldn’t sell stock when in Philippines? 🤔 That sounds crazy, but who knows.
This burns my biscuits. Aren't YOU their customer? Perhaps I'm naive, but why do the banks, and now private businesses so willing to be stooges of the stinkin' gummit? I really think the whole banking system stinks.
It probably has to do with international money laundering. Of course, the bad guys and Rich always seem to be able to get around it. Like when Russians bought multi-million dollar properties here in the US. I guess it's like the IRS. Easier to audit 1 million small accounts than auditing 1 Billionaire!
The last time I checked US citizens can open brokerage and IRA accounts while living abroad with Interactive Brokers using their foreign address and passport for ID. I was thinking of switching my IRA from Fidelity because they were threatening expats. However I'm pretty sure the minimum to open such an account is quite high. Anyone interested contact them for current policies. Be open about being an expat to them. Another thing is that their platform is geared to experienced investors.
That was some great information. I'd never heard of such issues with brokerage accounts, and I didn't see anything in my documentation from Fidelity on that. Fortunately, I still have few months before I planned on making the move, so this comes in at a great time. Living in a tax free state already, and looking to pick up property in another tax free state, but I may just move my investments over to an international account.
I appreciate you sharing practical tips. This is a great method for expats to share to survive without extra hangups.
FINRA rules and banking rules are different as Steve just found out. Fidelity might be able to help. The issue of account registration for brokerage firms is that FINRA requires the account registration to be accurate. Some of it is semantics. If you use a US address to register the account, you can't then tell them over the phone "hey, I live overseas ". Foreign accounts are handled differently.
South Dakota is great for establishing residency....I plan on getting a residency there when I'm 62 and get the hell out of California .... I'll spend time between the Philippines and here in the States as a nomad....so South Dakota works....no smog requirements either
That's easy, transfer your account to Merrill Lynch(own by Bank of America which has a branch in the Philippines), Chase Bank investment account (they also have a branch in the Philippines BGC) Citi Bank Investment Account who has a branch in Makati or Morgan Stanley. All offer fee commission trades.
That sucks. Why does Schwab have to know where I physically reside? My Texas mail forwarding service is my mailing address on the account. Since my DL and voting use California I will continue to pay a modest state income tax. BTW I recently voted November election long distance as a California resident via email to fax.
Maybe make your home state one that doesn't have any income taxes. Like Florida. Good luck on this let us know if there are any updates.
I have an account for over 20 years, where I get my SS every month. Without any warning they suspended my debit card linked to the account. So, now I can't get my SS on an ATM. No one was able to explain to me why.
Like other folks suggest, simply set up a mailing address in a US state that has no income tax. I have several brokerage accounts, (including Charles Schwab, btw), and none of them have any problem with my mail service address, (which is also on my driver's license, as it is my legal address), EXCEPT TD Ameritrade, who could never accept this address as valid. So I simply closed my TD Ameritrade account.
Basically they can dump a huge amount of shares on the market and minipulate prices. I have noticed the no po box rules some companies have as well but that just means they want you to use someone who competes with the post office.
This is happening because the Philippines remains on the FATF GRAY LIST THE Philippines remained on the “gray list” of jurisdictions subjected to increased monitoring for “dirty money” risks, according to the Financial Action Task Force (FATF). Officials are hoping that the Philippines will be removed from the FATF’s gray list by January 2023.
Interesting Steve, I have money in my 401 and am just holding on to it I'm down since Biden took office 28 percent and hoping things turn around.
I have my address in Florida I keep my duplex in Clearwater Florida.
Not sure how I will be affected if I were to take any money out ?
If I take any money from my GE retirement fund I know the penalties are steep and taxes are high but at some point I may take my money out of it.
Good video Steve, something to think about that's for sure.
Thanks for the info. Since I am not moving to the Philippines for another 2 years I have some time to figure this out. I contacted my financial guy who handles my brokerage accounts and annuities, and he confirmed what happened to you. Apparently, the brokerage houses have put the Philippines on the prohibited list of countries around the world. You will only be able to sell what is in the account. I am assuming it's because of a lot of scams and fraud in the Philippines. Even when I send money to my wife's kids in the Philippines thru Western Union, they sometimes freeze the transfer and give me the third degree before they will release the money. President Marcos even signed into law that all sim cards in the Philippines have to be registered now because of the scams.
Wow, sorry thats happened to you. I have a CS checking account but have a residence address in the states and when I log into my account, I use a VPN in the states that give me a US ip. Haven't heard anything in 6 months now but will check to make sure I'm not blind sided. Thanks for the head up
I'm with Schwab and about 10 days ago I received the email from them stating my brokerage account will transition to restricted status come December. Due to my residence in the Philippines. Initially I was bummed out... recovering now. Im glad to hear you can sell after December. I'll have to confirm same for me...no sense selling in a down market.
anybody there having any issues with Vanguard? thanks Steve very informative topic. Peace.
Steve, it is a bit late, but if u would of used a VPN like surf shark when logging in, it may if made a difference…if u have family in the US, u could just keep the investment accounts address in the US…just a thought 🤔🤔🤔
I had everything OK’ed by them to be sure and it still happened.
It seems they love to get into financial stuff using everyone's social internet stuff. It sucks to think they got you by the balls. They days of being low key and flying under the radar. I think more of these things will happen as time goes by.
Unfortunately we are in a age where too much information (honesty) cost us.
One should consider changing their state of resident to a state with no income tax. Also use a VPN with a US server. The US is of few countries that tax their citizens living outside the US.
That’s not the issue if you are a resident here you owe no state taxes there.
I have had no problems with them. I pay federal taxes on my dividends that i receive. I haven't paid state taxes in seven years, since i sold my income properties. I never mentioned to them that i live in the Philippines. My mail forwarding information and US cell phone number is all that i gave them. I don't see why they would do something like that. My Filipina wife just set up a US LLC and got an EIN online from the IRS to do business in the US and open a US business bank account. If you are an accredited investor, you shouldn't have any problems. But thanks for the Information, I'll look into this.
Many financial institutions are making changes right now. Deleting "underused" accounts. When I retired one interesting thing was my pension asked if I were going to live overseas. If so they were going to reduce my pension. I have heard of another stock trading platform called Wible or Weeble? They might have different rules, I do not know really anything about it other than the name. Good Luck Steve.
There are certain federal and provincial pensions here in Canada that you can't get if you're living overseas. Those pensions are for low-income Canadians whose Canada Pension Plan (C.P.P.) and any work pensions they have are below the threshold for what Canada considers a liveable pension for seniors. Any Canadians considering retiring overseas need to look into this before they make the move.
I was told rhe opposite. I could close my Schwab checking and link my card to my brokerage. Lol.
Hey Steve. Interesting info. Thank you. I heard the Schwab Checking acct is one of the best for international travellers. I am going to contact Schwab because I am curious about this whole issue. Take care.
File this under, "It always works - until it doesn't"
Just checked google , word for word. Please note that most US brokerages will not accept clients internationally and will often freeze or restrict purchases in customer accounts whenever they learn that the account holder has moved abroad.
Good morning Steve from Canada. 🙋♂️😊
Well I have a Chatles Schwab brokerage account so I'll be contacting them asap. Good information to know Steve thanks for this video 👍
Steve, yet USAA. They have a brokerage and it may be fine for them. And Vanguard as well.
Thanks Steve. Important info.
simply get a PO Box in Texas (no state income tax). you must still pay federal tax. other states include: Alaska, Florida, Nevada, Tennessee, Washington, Wyoming. as far as trading goes, get a VPN and set the server to one of the tax free states.
Not that easy anymore
Change your residency to Florida, Tennessee, or Texas. I’m sure there are a few more to choose from
That’s not the issue
Spoke to a friend he said Fidelity will allow you to live in the Philippines as long as you have a US address. Check with them
Maybe it could be for your own protection also. Off- topic here but just a heads up. I messed-up my online-banking password for Capital One and dealing them for a reset from PH was a major pain the ass. They locked my account and flagged it as "suspicious". Had to contact my attorney in DE to give my daughter there a SPOA to bank with them on my behalf.
Changing address can create problems with and confuse trading software.
Also, with internatuinal tax treaties in a virtual world, it does not matter where you are on the planet. You might as well be sitting in Nebraska as much as you are in Philippines.
The tax man wants your money as long as you are a US citizen...and he will have it.
Don't dodge him cuz he has a long arm and a short wick.
I wasn’t dodging Federal taxes but State taxes that I did not owe.
Oh wow no good, there has to be some overseas firms that can accommodate your needs.
Question: when they locked your account, could you still see the charts? I'm wanting to open an IBKR account. IBKR is a real international broker. But I hate their charts, and wanting to use TOS. I'll switch to TV if I need to, but prefer the charting that TOS offers.... What are your thoughts?
Another Vlogger recently posted a video about his Schwab account. He was told by them "If you are living over seas & you Don't have an international account your Schwab account is frozen after 6 month's & you then have to switch to the International account with them in order for it to be unfroze"
You gotta have a large amount of money for a International account
😂 Was that you at the mall of Asia ,drinking a milkshake few weeks ago 😮 there was k-pop concert going … just wondering champ! Could of been your evil twin , not sure . Ok take care !
That was me !!!
I've been living in Thailand for 20 years. The same thing happened to me with TD Ameritrade and Robinhood. I'm with Charles Schwab now and everything is okay for international clients.
This is a real bummer. I am presently with Schwab. Like many, I would use the dividend income for retirement. I think once this sort of thing is put in place, it stays that way for a while.
I can't figure out if I'm slow, or if I'm stupid. I get a certain amount of money per month for the rest of my life. Why does it feel like I'm the only one who doesn't feel the allure and glamour of investing, as opposed to just saving and allowing my money to stack in the bank? If I was younger, it would make more sense to me. But I'm 50. What future am I planning for? I have a 7 yr old baby, but between my life insurance, and whatever I have in the bank when I pass, she'll be filthy rich. Is it the fun of it, like fantasy football or something? I am RETIRED. That means I don't wanna worry about investments, I don't wanna start a business...nothing. I can go back home and worry.
What you're saying is really strange to me. I'm in Tokyo. Since the year 2000, I've used Charles Schwab to trade stocks, and trade all the time. Never an issue. That said, I do have a CPA and do file (and pay US federal and State taxes, I'm in Arizona). Never had a problem. Got moved to their Schwab International account about a year or two ago. Other than that, it's smooth sailing.
Concerned that when I move to Philippines if they will give me a hard time with this.
Tokyo is not restricted and the Philippines is.
Back in April, 2021, I withdrew $12,000 from ATM machines here in the Philippines for a downpayment on a car. I have daily $2,000 withdrawal limit on each of my two checking debit cards so took 3 days to do it. A couple of weeks later I received an email from Schwab stating that they believe I am residing overseas and that all my accounts with them would be shut down within 60 days unless I provide proof I still reside in the US. Although Schwab is my primary bank and they could see my mortgage and utility payments were coming out of my checking accounts, I guess that was not proof enough. I was planning to go back to the US the following month, so took care of it then.
When I established my Charles Schwab accounts they told me that I have to have my permanent residency in the U.S. so I use my brother's address. But then I have to pay state taxes and county taxes. And I have to keep updating my accounts with travel dates to the Philippines.
Salamat for another informative video …i was going to open a Schwab brokerage account before i come back to Dumaguete…my plan is to spend winters there half the year ..i have RBC account so need to check i guess before moving
Steve, I have done a fair amount of research on this also. It appears to be a Schwabb only thing. You should be able to open an interactive brokers account or just open a JP Morgan chase account. They have an office righy there in Manila and an online brokerage you can trade from 220 countries their website says. Certainly worth a trip to the Manila office and get information on since it's not that far for you
I was thinking Chase might be a way around it.
Thanks, I found this very informative. And rather shocking. One of my ideas was to generate income with my stock holdings while overseas. This puts a real damper on that idea. Please give us updates.
You can do it but have to find a company who will.
Schwab don't allow French or Italian residents either, plus many more, I think it is an administrative thing .
There is a way you can do it legally. You would lose some features & likely still have to pay federal taxes, but not state. On the federal there are ways to mitigate the tax bill so it's not a huge chunk.
it also depends on what the laws are in the Philippines and whether they adhere to banking know your customer laws and agree to report to US on financial transactions. I had a similar issue in Nepal and was told by Fidelity that it was because Nepal is not a signatory to international banking laws.
I saw a video log where the Sims card on the phone has to be registered something the current administration has begun. My thought is the Philippine government may be monitoring its citizens and especially the expat community through the Sims card.
I don’t think that’s the reason from what I heard. It’s more about scams.
Why not open a brokerage account in Singapore or Hong Kong? Also a vpn will solve your location issue.
My stock trading days are over, so a non-issue with me. I occasionally have my account flagged and frozen until I contact them to verify my identity. Can be an inconvenience at times. God bless.
Well you can "virtually" move back to the states. Then, move to a VPN in the US to do the trades, then take the VPN with you to the phillippines. The VPN will be the pass through to the trading platform and still appear that you are in the US. Take a look. Also taxes are not that bad in certain states, or if you are in a high tax state, it will not be much if your income is below the threshold for being taxes after all of the tax breaks. Speak to a good accountant in the US, in order to set it up correctly.
There are always workarounds. I hope you find a solution because it sounds like something you enjoy doing.
I got a drop shipper. And as far as my brokerage account knows I live in north Pole Alaska. Just turn off you location when you log in.
Thanks for bringing up another interesting thing we should think about before we move there.. do you think that the new Philippine government headed by bong bong has anything to do with your problem.. maybe the Philippines has passed some kind of hinky law you do not know about under the new administration.. I am anxiously waiting to hear if you find out any more information.. like Paul Harvey says, and now the rest of the story.. thanks 👍
I am an Aussie Expat permenant resident here SRRV and I trade with NABTrade in Ox and they have a rule where I can;t use a Philuppines Phone numner to trade onlime as I cancelled my Oz mobile as I have no need to pay $2.50 a minute in calls to Ox. Howervee the NAB Bank has fianlyy allowed me to use a +63 number but not Nab trade their rules say you have to have an Aussie mobile but I can still trade by calling and using the dealing desk at the same price as online trades... I opened a BPI acct here to get my pension direct here as I am getting ripped off in transfer fees and shit currnecy exchange rate so I use Remitly now but I just wna tot use a local ATM without paying up to $5 to pull out 10K perso using my Aussie Debit card,, what a joke and money grab.. I am alos looking to trade here but BPI has no share trade service but I wll investigate that further..Love Cebu.
Thank you for the heads up Steve. ⚓⚓
Son of a gun.
But they hire people from other countries to handle the customer support.
Its nuts.
Lol
why not just move your residence to a USA state that has no income tax, like Nevada or Texas. Many vloggers have. Reekay moved his residence from California to Texas recently before he went back to PH. I wonder why hehehehe
Sorry to hear that I’m a Schwab, brokerage, and bank customer but I haven’t been overseas for over a year just under but not over maybe that made a triggering difference with Aehm. I have a question for you. How do you verify your banking information? Do you still have a US phone number and service carrier?
As a US citizen you are responsible for paying taxes to the IRS regardless of whether you are living in the US or not. If you become a citizen of another country, you will still owe taxes on the money you take out. Expats earing income in another country and paying taxes in that country can get an exemption.
We pay are our taxes in both countries. I don’t pay State taxes because I no longer live there.
Hello Steve, curious if you had resolved this by opening a Schwab international account or other option?
Your not the only 1 mate ! I’m in Aus it’s changed for a couple of us as well I’m thinking , if you put on your tin foil hat it’s all to do with some people (country’s) trying to get around the Forfeit rule for a particular country if you know what I mean?
Also some hard Assets were frozen Mauritius as well that belong to some foreigners.
Still in the harbour
So just buy a fund and only sell when you need the stock. Timing the market is a mugs games, according to Buffet
Thanks for the info . How about some investment videos?
I’ve done a few but many don’t understand Long Term investments and get upset on dips.
Actually I’m at TD Ameritrade to Steve been with them since Scottrade but I’m also from Florida and there is no state tax in Florida and I never got rid of that address so I don’t think there will be an issue if you live in a state that doesn’t have state tax
Not all states have income tax. You might want to look into establishing residency in one of the states with no income tax.
Does anybody worry about the stock market. It seems like big business is more worried about making kids gay them making a profit. The bud light, target, Ford all these big corporations seem to be committing financial suicide. Dosent this affect shareholders especially the people using it as a supplement to retirement?
Steve, I think you need to Speak with An Attorney Like Now.
You see, There is a Stipulation in Federal Law, that States that if you are a US Citizen ( Either Born there or Naturalized) ( Naturalized meaning you were the Child of At Least 1 American Parent). You will Owe Taxes to America No Matter Where you Live when you Earn that Money.
Example: there was a Family, American Family. They had a Child While Living in America.. once that Child was Born , They Move Immediately to Canada. Now , That Child Grows up in Canada( never Having Lived in, or worked in America) . She gets a Job in Canada, and pays all Her Canadian taxes regularly. Suddenly, At Some Point in Time, She receives a Letter from the IRS.
Turns out it's a Tax Bill plus Late Fees, Penalties, and Interest.
I don't know if She Won, List or If it's Still going through the Court System , But She Sued because she said she wrote them , explaining she had never lived in America, or Worked there, Yet She is Being Charged American Taxes.
Government Didn't care, She is American meaning She Owes taxes for All her Lifetime Earnings..
If you have a Live in Partner in the Philippines, she can Work and Pay taxes in the Philippines and be Fine, But, I believe, The Moment the 2 of you Get Married, Her Earnings will then co Mingle with Your Earnings And the 2 Of You Could Owe Taxes on Her Earnings(Same as a Married Couple living in America Filing Married Filing Separately or Married Filing Together) . Cause Any Money you Earn In America or in the Philippines , Is Subject to American Taxes.
Better Get Council to make Certain you Are Not Hit with Any Back Taxes.
My Concern is, You Tube..
We become Expats, Start a Vlog on You Tube, It gets Monetized and you Start Earning money. There Could Be Taxes Due in America on Those Earnings. So then I get Social Security , that gets Added together, I may owe even on my Social Security ( not Sure exactly how this All works) . Before I get there, I guess I'm Gonna Need to Consult a Tax Attorney to get this All Straight .
I pay my taxes to both the Philippines and US. It’s not a tax issue that caused this. Also I have an attorney for my Channel and I reported to the US and payed to the Philippines and am all legal here and there tax wise.
Open up a Robinhood account.
This is why I mostly stop buying stocks and turned to crypto.. tired of these clowns telling me what I can and can't do with my money
that sucks man cause i am a futures trader , and make damn good money some months trading. I was hoping to goto PH and trade live on Beach
My broker said it shouldn't have anything to do with your state. Did you file your report with the IRS?
I file here and in the USA
Definitely let us know what you find out