Counting The Days That Matter
Story Time => My first boss out of college, made so much money he can’t live where he grew up.
What happened was he used his financial skills to make a lot of money (for himself, and many other people). While he was making money, he realized he could keep more of that money by shifting his residence from his home country. Thereby, saving quite a bit on future taxes.
This strategy doesn’t work in the US, which has taxation on worldwide income. Still, sophisticated investors (American and other) use many strategies to delay and minimize taxation. It’s a niche industry, quite profitable for the participants and the customers.
Back to my former boss. As a result of moving “offshore” he needed to count his days when he visits his home country. This isn’t unusual.
Canadian retirees, who spend their winters in the warmer parts of the US, need to be careful, lest they stay too long and trigger an obligation to file a US tax return.
Not only Canadian retirees… in my own case, with an American wife, I was filing US taxes before I got my Green Card.
I share the story because many people in The Demographic1 become skilled at managing their residency status and minimizing their tax burden. Having lived “offshore” from 1990-2007, I was one of those people.
I came to see the price I was paying for minimizing my tax bill didn’t make sense. Compared to what it costs to raise a family “offshore,” the US is a bargain.
Settling Down
2008 saw the birth of our first child and my 40th birthday.
Two milestone events.
At the time, we were often in Boulder, but I hadn’t fully committed. My work was international, and we spent most of the year elsewhere.
Flying in from London in June 2008, a border control agent gave me a nudge.
The officer decided I was living in the US (without a visa) and let me know that if I left without “regularizing my status” I wouldn’t be coming back.
A Green Card followed relatively quickly, then citizenship a few years later.
Citizenship
In a way, the stories (above) are about a class of people who enjoy the benefits of citizenship without being citizens. Globally, there are a lot of these folks. It’s a fun way to work, and live.
In my mid-20s, I attended my Dad’s 50th birthday. We were both working in Hong Kong at the time. It was a fun evening, my brother had flown in as a surprise guest.
Roll forward ten years, and I attended Dad’s 60th. This time in London, UK. We went to a restaurant called Rules, that’s older than Canada. I started my Private Equity career (with the boss mentioned at the start) working around the corner. It was 2005, and I was about to get married (for the second time).
Dad and I aren’t far apart in age (about 23 years). He’d just finished his 50s and I was self-aware enough to realize mine would be with me soon enough.
So I asked…
Tell me something useful you could have done in your 50s.
And he replied…
Put down roots.
The seed was planted and, three years later, when the Immigration Officer gave me a nudge… I was ready.
Find Your People
Find A Partner
Build A Life Together
Serve The Community
Dad’s turning 80 next year.
The future will arrive sooner than we realize.
If you feel as if you’re in the wrong place => don’t wait to relocate.
True Wealth will return in June.
The Demographic is a catch-all term for my former peers in finance.