Sudden windfall, what should I do? [Australia ex-pat in US]

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spsbo1
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Joined: Wed Sep 15, 2010 1:33 pm

Sudden windfall, what should I do? [Australia ex-pat in US]

Post by spsbo1 »

Hi there,
This week I got an unexpected windfall over a bit over $200K net. I need to think what do to with it!
I earn $350K per year. I live in NYC. I am 49 years old.
I am Australian and one day when I plan to retire it will be back there. I have no immediate plans to retire within the next 5 years.
In terms of assets, outside the windfall I have:
- $147K cash in bank.
- $14K FaceBook stock
In Vanguard index funds I have:
- $164K VBTLX
- $52K VTIAX
- $451K VTAX
In a Vanguard Roth IRA I have
- $7K VBTLX
- $22K VTSAX
In my 401K I have
- $50K in PGBOX
- $483K in SGAA
In Australian superannuation I have $28KUSD (MLC)
And in Australian Vanguard I have $125USD in the Vanguard Australian Shares Fund.
So, any ideas what I should do with this money to make it work for me? Any ideas gratefully received.
Thanks!
Barry
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Sandtrap
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Re: Sudden windfall, what should I do?

Post by Sandtrap »

Welcome.
First read this:
MANAGING A WINDFALL
https://www.bogleheads.org/wiki/Managing_a_windfall

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
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LadyGeek
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Re: Sudden windfall, what should I do? [Australia ex-pat in US]

Post by LadyGeek »

This thread is now in the Non-US Investing forum (Australia ex-pat). The expertise needed to answer the OP's questions is better addressed by those with experience outside the US.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
TedSwippet
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Location: UK

Re: Sudden windfall, what should I do? [Australia ex-pat in US]

Post by TedSwippet »

spsbo1 wrote: Sat Jun 19, 2021 12:15 pm In Australian superannuation I have $28KUSD (MLC)
And in Australian Vanguard I have $125USD in the Vanguard Australian Shares Fund.
Two thoughts on the above.

Firstly, be very careful indeed about the US tax consequences of an Australian superannuation fund. The US/Australia treaty does not cover these plans at all well in places. More in this article:
Superannuation – Let's Fix the Australia/US Tax Treaty!

And secondly, it would be very easy indeed when using 'Australian Vanguard' to fall into the US's horrible PFIC tax trap. Extreme caution required in this area:
Passive foreign investment company - Bogleheads
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