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Date: Tue, 09 Oct 2007 22:28:11 -0400
X-Mailer: Apple Mail (2.752.2)
Some other aspects to consider:
AHV/AVS
Contributing to AHV is not worth it. Calculate the PV of future
payments and that is a very easy calculation.
For every year not contributing AHV you lose 1/42 of the maximum
amount to be paid out.
PV of annual future loss in AHV payments= ((Future assumed monthly
AHV pay out at retirement age)/42))*12* (assumed discount rate for
the first year you are eligible to receive AHV, i.e. (1/(assumed
inflation rate^years to retirement)) * (period of assumed AHV
payments received in years, i.e. your life expectancy beyond 65, e.g.
30 for optimists ;))
This calculation assumes: 1) There is an AHV when you retire, 2) you
have contributed at some point for the minimum years required, 3) you
enter the AHV system again when you return to CH, 4) simplifies
calculations for Years 65 - 95 at the discount rate of 65 only.
Contrary to what I believed in the past, there is no agreement
between the US and CH on retirement benefits.
401K
Always contribute the max to 401K (tax deferred income is always
good). When you switch employers, always roll your company 401K into
a Roth IRA (i.e. first into a traditional IRA and from there into a
Roth IRA). This will mean you pay income taxes of your current
bracket on the amount rolled into ROTH 401K, but then at 59.5 when
you can take out all the money from A ROTH IRA, the capital gains
accumulated on the amount rolled into ROTH IRA is not taxed and there
are no maximums imposed on payouts (i.e. all the money is available
to you TAX FREE at age 59.5). Of course, this requires you are flush
enough with cash in the years you roll over your 401K into a roth IRA.
As long as you live in the US, you have no tax liabilities in CH,
unless you generate income there.
I would buildup a portfolio in the country you are earning your
income and not transferring amounts back and forth. Also, as a US
resident, you have all kinds of restrictions on investment vehicles
and securities in CH. Uncle Sam will get you.
And last but not least, we all talk about returning at some point in
the future. Although there apparently is a substantial number of
Swiss List alumni in CH, I guess a very big number of people on this
mailing list is only talking about returning, but end up staying.
Regards
Ralf
Received on Tue Oct 09 2007 - 23:10:40 PDT
