ETFs, Stock Trading

Automated Stock Trading for Americans Living in Mexico

Americans Abroad Living in Mexico

In this article, you will learn how to set up an automated stock trading account for Americans resident in Mexico. You will learn why Americans are moving to live in Mexico and you will also discover some tax tips to protect your wealth and your heirs.

Why Americans are Moving to Mexico in Retirement

Americans are increasingly looking at options of where to live in retirement to make their pension pots & savings last longer. With healthcare costs ever increasing in the USA, Americans are considering retiring overseas to see out their retirement. Healthcare costs are much lower in Mexico and over 1,000,000 Americans are now thought to be living in Mexico as you can see in the video below.

Healthcare Costs in Mexico for Americans Living Abroad

Here is a statement from an American who just recently moved to Mexico.

“If you’re a legal resident in Mexico, you qualify for national healthcare insurance, which is about US $380 per year for an average retiree aged 55 to 65 years old. This health insurance only covers the public healthcare system in Mexico, but in essence, it is no different to any private clinic because every single doctor working in the national healthcare system also owns his own private office; usually they work at not just one but probably 2 or 3 other private high end clinics. Most doctors in Mexico also have their state job in order to guarantee their pension from the Mexican government. They usually have a private doctor’s office in addition to working in a public hospital or two. The only real difference you are getting with private insurance is the type of hospital where you get treated and the ability to get a private room”.

Even if you opt for private health insurance in Mexico, it is priced between $1,000 – $3,000 and visits to the doctor are very cheap. Many Mexican doctors in private healthcare have completed part of their medical studies abroad, usually in the U.S., Canada or Europe. Doctors’ visits usually run from only around 30 bucks a visit up to $45 or $50 for a specialist.

So, you can see why many Americans are retiring abroad.

Here is a video documenting foreigners using Mexican healthcare and explaining why so many American retirees are moving to Mexico.

Automated Stock Trading for Americans Living in Mexico

You can set up an Interactive Brokers account whilst living in Mexico and have your account managed automatically by The Money Pouch.

The Money Pouch uses an intelligent stock picking algorithm to protect your monies from wild stock market fluctuations, moving your investments into US treasuries, gold or cash in times of falling equity values.

Our momentum strategies will give your investment portfolio a degree of protection.

Click here to download our free stock trading app on iTunes or install our free wealth management app on Google Play.

You can see the latest performance of our strategies in USD here.

US Tax on Interactive Brokers Accounts in Mexico

If you are an American living in Mexico with an Interactive Brokers account or other online stock trading account and you are a resident in Mexico, you may still be liable for U.S. taxes, especially U.S. estate tax.

The U.S. Estate Tax on U.S. Stocks as a Resident in Mexico

Residents of Mexico are only allowed a maximum of 60,000 USD on US situs assets before a 40% estate tax is applied.

The average 55-60 year old American with a retirement account has over 100,000 USD in their account. Multi-million dollar US stock investment accounts aren’t unusual at this age either.

How to Legally Reduce Taxation on Investment Accounts as an American Abroad

  1. Set up a US company to hold your investment portfolio
  2. Set up an offshore trust or foundation to hold your investment portfolio

Neither of these are cheap options, so should only be considered for larger accounts. You could consider setting up an offshore trust to protect your assets from U.S. taxes on death.

How to Set Up a Panama Trust for a Resident in Mexico

As an American resident in Mexico, you could set up a Panama trust to hold your US assets, for example holding your stock portfolio of ETFs.

Why set up a Panama Trust?

Benefits

A Panama Trust provides the following benefits:

• Include Foreign Spouses/Partners: Foreigners can set up trusts with foreign beneficiaries and assets in other countries. For example, you can set up a Panama trust to hold an Interactive Brokers account to trade US ETFs with The Money Pouch’s automated trading system and upon death, the trust distributes assets tax-free to a spouse or partner.

• Confidential: The law penalizes anyone associated with a Panama trust who discloses confidential information without a court order and is punishable by 6 months imprisonment.

• Privacy: Since trusts are not registered with the government in Panama, the identity of the settlor, beneficiaries and assets are never included in public records.

• No Taxation: All assets located outside of Panama producing income or distributed to beneficiaries are completely tax-free. However, U.S. taxpayers and anyone paying taxes on global income must disclose all income to their governments.

• Estate Planning: Trusts can have perpetual life for generations of heirs to enjoy.

• Asset Protection: All assets are protected from the settlor’s creditors and beneficiaries’ creditors.

• Fast Formation: A trust can be formed in one day.

• English: While Panama is a Spanish speaking country, all trust documents can be prepared in English.

Automated Stock Trading Account for American Expats in Mexico

Watch the video below to learn how to set up an automated stock trading account trading US ETFs as a resident in Mexico.

How to Set Up an Account with The Money Pouch from Richard Malpass on Vimeo.