REASONS YOU NEED A FINANCIAL ADVISER IN EUROPE

1. REASONS YOU NEED
A FINANCIAL ADVISER IN EUROPE
UScitizens living in Europe face many of the same opportunities and
challenges as other expatriates when it comes to financial and investment
management, but unlike other expats face a number of unique challenges,
restrictions, reporting requirements and complexities that require careful decision
making in how finances are managed.
By David Bellingham
FINANCIAL
EDUCATION
www.beaconginancialeducation.org
www.beaconfinancialeducation.org
MARCH 2018
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UPCOMING
EVENTS
28 MARCH 2018
AMSTERDAM
The Netherlands
20 MARCH 2018
THE HAGUE
The Netherlands
4 APRIL 2018
THE HAGUE
The Netherlands
9 MAY 2018
EINDHOVEN
The Netherlands
11 APRIL 2018
FRANKFURT
Germany
View All Events
Why you need a
Financial Advisor in
both the U.S. and
Europe?
The Future of British
Expats Living in
EU Countries after
Brexit
What’s new with
FATCA regulation
laws?

2. Americans living in Europe actually
need two financial guides: one, a US
based accredited financial adviser
to manage their domestic US based
investments including their US pension
assets; and two, a Europe based
International Financial Adviser with
local market expertise and US reporting
knowledge to guide them through the
complexities of their financial planning
and investments in Europe.
Beacon American Advisors has a large
network of US based domestic financial
advisers but we do not recommend
using a US based adviser for your
international needs. This is why:
ĶĶ A US adviser doesn’t necessarily
understand the investment challenges
&opportunities,orthetaximplications
of investments in Europe. They are
US domestic market experts- great
for your US assets and for when you
return home. You need a professional
in the European market, who knows
the market.
ĶĶ A US adviser can’t legally advise
you from overseas, they can only give
you the advice when you’re in the U.S.
This is vital. You need to make sure the
advice you receive is from someone that
is licensed and accredited in that market.
Some Americans simply transfer funds
back to the US as their investment and
financial planning strategy. We believe
there are better options and that this
is not necessarily the best option for
the following reasons:
ĶĶ You can’t invest in mutual funds in
the U.S. while you’re resident overseas.
ĶĶ More and more U.S. banks are
closing brokerage houses to U.S.
citizens with overseas addresses – will
you be next?
ĶĶ The above two point’s mean your
money will likely be stuck in cash. In
this low interest rate environment your
assets will be going backwards by the
rate of inflation. Every year.
ĶĶ Many American(s) have a pension
in Europe. To get the best returns,
you’ll need advice on how to manage
it in the future
ĶĶ Transferring money back to the
US also requires currency exchange
rate consideration. The current
strength of the US dollar against the
Euro and Pound Stirling means an
investor sending money back to the
US is not getting a good deal. Active
exchange rate management can have
a substantial impact, another reason
why it can be preferably to invest
within Europe.
ĶĶ There are very attractive investment
opportunities in Europe however the
structures are complex and more
limited for Americans. Navigating
it properly will produce the return
on investment you seek. These
complexities are typically not widely
known to U.S. advisers
ĶĶ Finally though, as mentioned
above if you don’t have an adviser in
the U.S. – then you need one there too!
HOW TO FIND A GOOD ONE
ĶĶ BeaconAmericanAdvisorshasdone
a lot of the hard work for Americans
in Europe. We carefully assess all firms
that would like to partner with us to
manage the specific and unique needs
of Americans. You can be assured that
if they are working with us, they have
met our stringent criteria to offer you
good, unbiased and relevant financial
advice. Advice for Americans living
in Europe. And we can help them to
collaborate with your US adviser to
align your complete financial planning
needs.
Remember, financial and retirement
planning is some of the most
important and impacting things you
will undertake. But, most people
spend more time planning their annual
holiday every year than they do on
their financial futures. If you invest the
same time into your financial future
with the experts within the markets
you can continue taking holidays for
as long as you want!
If you would like to learn more
or to find an advisor, please
contact Beacon American
Advisorsand we can point you
in the right direction, both at
home and abroad.
service@beaconamericanadvisors.com
www.BeaconAmericanAdvisors.com
www.beaconfinancialeducation.orgMarch 20182

3. Research has attempted to quantify
the value that financial advisors can
provide - they help individuals generate
approximately 1.82% excess return each
year, creating approximately 29% higher
retirement income wealth. If an advisor
is charging a 1% fee per year for the
management of your assets, the financial
advice has significant positive impact
generating additional long-term income.
There are many qualified advisors, however,
some may be better trained and suited
for your unique international needs. Key
things to consider:
ĹĹ Does your advisor understand the
investment challenges, opportunities
and tax implications of investing in
both Europe & the U.S.?
ĹĹ Are you getting “joined up thinking”
on your investments and retirement
assets in both Europe and the U.S.?
ĹĹ Can your U.S. advisor help manage your European investments and
retirement assets if you leave Europe?
ĹĹ Who is helping you transfer money cost effectively between countries?
ĹĹ Does your advisor understand that you can’t invest in U.S. mutual
funds while you’re a resident overseas?
Ifyou need to put your financial house in order but haven’t taken all of the steps yet, you’re not alone! 58% of Americans
believe their planning needs improvement, furthermore, 34% of us have not begun to plan for our futures.
Today’s economy is complex and uncertain and Americans say they need more guidance. Use of financial advisors has
increased significantly in the last five years with people hiring them for better guidance, especially for long-term goals,
such as retirement.
By Robert Rigby-Hall
WHY YOU NEED A FINANCIAL ADVISOR IN BOTH
THE U.S. AND EUROPE?
If you would like to learn more or to find an advisor, please join us at a Beacon Financial Education
seminar by clicking here. Better still request a free consultation.
Survey data from Northwestern Mutual, Certified Financial Planners, IRi, Society of Actuaries, Morninstar, and HSBC.
www.beaconfinancialeducation.orgMarch 20183

4. By Beacon Financial Education
THE FUTURE OF BRITISH EXPATS LIVING IN EU
COUNTRIES AFTER BREXIT
expatriates in a similar manner that EU expatriates
will be treated in Britain. If Theresa May can guarantee
that EU expats in Britain will continue to enjoy their
rights as before, it could also mark the same for the
British expats.
In December, May wrote a letter to British expatriates
in which she sounded delighted. The delight came from
the fact that her government and the EU reached an
agreement in which British expats would be treated well
in EU and vice-versa.
The Withdrawal Agreement guarantees British
expatriates rights in the EU. They will be treated as
residents and they will continue to enjoy the benefits
that they enjoyed before. These rights include pension
TheBritish electorate voted to leave the
European Union in 2016. The departure of
the UK from the EU, known as Brexit, remains a cause
for concern for British expats in the EU. Even with
agreements between the EU and the Prime Minister
of Britain, Theresa May, there is still cause for concern.
British expatriates are still unclear about how their lives
will be affected by Britain’s exit.
Mrs. May has tried to appease her country by making
clear her first priority is to protect the rights of
British expats in the EU and vice versa. Although not
completely substantive, this should give Brits expats
some bit of hope.
The EU is mainly worried about the welfare of its
expatriates in Britain. It is likely to treat British
www.beaconfinancialeducation.orgMarch 20184

5. ThefutureandtheOn-going
Negotiations
The ongoing negotiations will
depend on what the British
will offer the EU. During the
first phase of negotiations,
some of the EU members
believed that Britain was
offering less than what it
wantedtobeofferedinreturn.
The EU negotiators are likely
going to continue with the
same stance. They will only
give British expatriates a
better deal if they feel they
are being treated fairly and
squarely as well.
However, the future looks
promising after May
mentioned that further
negotiations will continue
to be carried out in a way
that will benefit both sides.
She further believes that the
final agreement will reflect a
good relationship between
the UK and the EU. If this
happens, there is hope that
British expats will continue
to enjoy the benefits they
enjoyed before.
and healthcare rights. It was further agreed that even
when the UK has left the EU, British expatriates can
still be visited by:
zz Spouses
zz Civil partners
zz Grandparents
zz Unmarried partners
zz Children
zz Dependent parents
zz Children that were not born or adopted in the
UK any day later than 3 / 29 / 2019
UnsolvedIssues
Although there was great
progress made during
the negotiations, there
are still some few areas
of concern that have not
been finalized. These are
very worrisome because
the EU did not show
interest in discussing
them during the
Withdrawal Agreement.
One such issue is what
happens when British
expatriates move from
one EU member state to
another. The refusal of the
EU to discuss this matter
shows they may take a
hard line on granting
British expats the same
rights as before.
This could be a big bone
of contention as the free
movement of British
from one EU state is
controversial. If they are
restricted to continue
enjoying the movement
benefits that they had
before, it could force
them to make some big
changes and adjustments.
They would have to
weigh what they would
set to lose by leaving
and what they what they
would gain by settling in
a new Euro Zone.
www.beaconfinancialeducation.orgMarch 20185

6. CHANGES AND ADDITIONS TO THE FATCA LAW
WHAT’S NEW WITH FATCA REGULATION LAWS?
TheForeign AccountTax Compliance Act (FACTA)
is a U.S. law enacted in 2010. Its purpose is
to identify foreign assets of U.S. citizens either living at
home or abroad. The main driver of the law was to take
action against tax evasion. The law requires that foreign
banks must detect U.S. citizens and report their assets and
transactions to the Internal Revenue Service.
However, the law is believed to be controversial because of
several reasons. Firstly, foreign banks have been threatened
with a 30% penalty on their transactions that take place in
the U.S. Secondly, the U.S. itself has not kept its end of
the bargain in the FATCA agreement with foreign entities.
The law is to be used as a way to raise funds.
The law did not come into effect immediately. It has
done so gradually. The delay has been primarily due to its
complexity and probably a large number of stakeholders
involved. There have been several delays which have affected
the law. The IRS has been active in providing the direction
over implementation of FATCA. More regulations were
added to the law by the IRS in December 2016.
A new law is commonly amended with
time due to a number of reasons. The
FATCA law is no exception. FATCA
has been amended several times since
it was enacted in 2010. In this article,
we take a look at some of the changes
and additions to the law.
Agreements with foreign
governments and entities
FATCA has seen the United States
signing contractual agreements with at
least 113 countries. These agreements
stipulate that companies operating in
those countries must report FATCA
information to the U.S. government.
The signed agreements are known as
Intergovernmental agreements (IGA).
The role of IGAs is to:
ĹĹ Design and implement a set
of principles and guidelines that
exempts some residents from FATCA
requirements. The guidelines also need
to identify how the exempted residents
will be treated under the law.
ĹĹ Determinethecriteriawhichwould
be used to document or report account
values of U.S. citizens in a foreign land.
ĹĹ Assist U.S. tax payers with
information about the FATCA law.
ĹĹ Extension of FATCA deadlines.
Sponsored entities
Under the FATCA law, a sponsored
entity is one that carries out FATCA
duties on behalf of another. If FATCA
was a tax law, sponsored entities would
be tax preparers. Sponsored entities are
required by law to have their Global
Intermediary Identification Number
(GIIN) by March 31, 2017. Those who
do not comply will be levied a 30%
penalty by withholding agents.
Gross proceeds reporting
The FATCA law was amended to
address gross proceeds and their
payment. Any person selling property
that can result in the U.S. receiving
some income has to pay a portion
of the gross proceeds. The new
amendment was set to be effective
starting from January 1, 2017. Due to a
delay by IRS, the new amendment will
only take effect starting from January
1, 2019.
This is how some terms are
defined under the FATCA law
ĹĹ Gross proceeds – an amount
one receives after selling or disposing
of properties.
ĹĹ Property – it is a property that
earns interest or dividends which the
U.S. can benefit from.
www.beaconfinancialeducation.orgMarch 20186

7. APRIL
WEDNESDAY
4 APRIL 2018
THE HAGUE
The Netherlands
WEDNESDAY
11 APRIL 2018
FRANKFURT
Germany
WEDNESDAY
14 MARCH 2018
EINDHOVEN
The Netherlands
WEDNESDAY
28 MARCH 2018
AMSTERDAM
The Netherlands
TUESDAY
20 MARCH 2018
THE HAGUE
The Netherlands
MARCH
MAY
WEDNESDAY
9 MAY 2018
EINDHOVEN
The Netherlands
TUESDAY
15 MAY 2018
AMSTERDAM
The Netherlands
WEDNESDAY
6 JUNE 2018
THE HAGUE
The Netherlands
JUNE
WEDNESDAY
13 JUNE 2018
FRANKFURT
Germany
SPRING SEMINAR SCHEDULE
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VISIT OUR EVENTS PAGE
MORE DEVELOPMENTS ON WITH HOLDING TAX
A FINAL NOTE ON FATCA AND TAX EVASION
As additional amendment was issued in order to address the
issue of limitation-on-benefits (LOB). A LOB is used by
entities to make lower withholding payments. Withholding
agents are required to have their LOB document ready
when they pick up their new withholding certificates in
2018.
The last decade has seen the coming together of technology
and new tax legislation with the aim of fighting global tax
evasion. The FATCA law is a direct method of identifying
assets and making it difficult for U.S. citizens to dodge
paying their taxes. The U.S. government now relies on the
corporation to foreign entities to enforce the new FATCA law.
Many people will now be forced to pay tax which they would
have otherwise dodged if the FATCA law was not present.
The U.S. government’s treasury is expecting to get a
substantial amount of money from the implementation
of the new law.
www.beaconfinancialeducation.orgMarch 20187

8. Beacon Financial Education does not provide financial, tax or legal advice. None of the information should be considered financial, tax or legal advice.
You should consult your financial, tax or legal advisers for information concerning your own specific tax/legal situation.
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