Financial advisor for US citizen in UK

April 17, 2019 12:35 AM

I am a dual US/UK citizen living in the UK. I will soon be selling my house and moving into accommodation provided by my new job for the forseeable future. Therefore I'll have a bit of money to invest but don't know how.

I am seeking a financial advisor who can help me understand what to do with my capital which should be around £150k to start but I have a plan to save another £50k per year. I need to know whether it's best for investment and tax purposes to buy a rental property in the UK or the US or to put the money into a mutual fund or what. It's all very complicated because I pay tax in the UK and am also taxed as a citizen in the US and have to file every year. There are also fbar filings I have to do.

Do you have any recommendations based on experience for an advisor or company who would understand my situation and be able to advise for a reasonable fee? Thank you.

posted by hazyjane to Work & Money (4 answers total)

The Fry Group is a UK financial adviser with experience in the US market. However, they are not cheap.
posted by TheRaven at 12:38 AM on April 17, 2019

I've had a good experience with Thun Financial for this kind of thing (UK-US money advice.) Actually I didn't take their advice and wish now I had!
posted by heavenknows at 3:33 AM on April 17, 2019

150k is not worth going to an advisor for especially one that is boutiquey and expensive and specializes in cross-border things.

1) you are a UK and US citizen but where do you plan on ultimately ending up?
2) What is you tax status in the UK.

Basically you need to optimize for taxes, but other than that the usual vanilla advice is best - cheap passive products from one of the big players for the money you don't want to touch for 10 years plus and then de risking money you think you'll need for something.
posted by JPD at 5:24 AM on April 17, 2019

Best answer: From an anonymous Mefite:

^^^ As a US person with (I hope) somewhat decent financial planning who lives in the EU, I disagree with this advice (I strongly agree that it doesn't require a boutique financial planner though). No matter where you think you might end up, it is the IRS you primarily have to plan defensively around because it is by far the more arbitrary, complex and punitive of the two regimes you are subject to, and IMO you really have to discuss the PFIC rule with a US CPA in order to do passive investments which will end up benefiting you at all.

I did a quick search for US CPAs in London and found a bunch specializing in your tax situation (I chose London as a city without knowing where you are located because it is probably the largest competent concentration and you don't need a CPA who is geographically nearby). My experience is that if they are good, they will give you boring, actionable advice which works in both systems regardless of where you retire, and tell you what to avoid in straightforward terms.

I would avoid boutique financial planners because you could end up with something complex and have to figure out what to do about it multiple times as the two tax regimes you are subject to converge and diverge over the years. For someone in your position, simplicity and the ability to execute your plan yourself is a virtue. Congrats on your good fortune, and good luck with your planning!

posted by LobsterMitten at 8:12 AM on April 17, 2019 [5 favorites]