Gary,... tq for your informative reply.

How abt the dividends that you earn in your super ? IF you do not withdraw the dividends for your usage, do you still need to pay taxes when these dividends are paid out into your super acct ?

Your super is in AUD - the risk in this is if the AUD continues to weaken, then your spending power will continue to drop against the Ringgit when you stay in Msia.

Your USD investments are outside super, hence you get taxed a heavy 37% when you sell any and reap capital gains. How much are you taxed for the dividends, interests and coupons that you earn outside super ? Appreciated your infos here,..

Actually, if you make an losses instead of capital gains, you can carry forward those losses and use them to offset against the dividends that you would be earning in future. But I think you would already know this.

Managing cross border property is never easy as trustworthy re agent is hard to come by.

As long as one is not a politician or family of politician, most privilege or private bank subject to regulations will accept account opening.

So, if earnings inside super is tax free, u would probably not withdraw any funds from it. And you most likely won’t sell investments outside super to avoid CGT or marginal tax which ever. And, you don’t have kids right? So, what happen near end of days? What is the end game?

Inside super, all earnings are taxed at 15% including dividends when you are still working. If the dividend is fully franked, that means 30% company tax has already been paid so you get a refund of 15% inside super. Once i retire, my investment earnings inside super will be taxed at 0% which means if my dividend is fully franked, i will get the full 30% refund.

I do not intend to sell my USD investments as it will be taxed at my current marginal rate (i have a lot of capital gain as i have held them for quite a while). I hold my USD investments as ETF (exchange traded funds) and they do give the dividends as zero-franked so i have to pay the full 37% tax. I cannot avoid paying the tax on the dividends.

Yes - i know you can offset previous loss (which you have accumulated) against your capital gain. I have no losses to offset my capital gain. If i want to sell, i have to wait for one year when my marginal tax is lower and then realise the capital gain in that financial year. I probably will not sell as i do not need the money and foresee that i probably will not sell for a long while.

Inside super, once you retire it is compulsory to withdraw at least 4% (per year) of your super balance. This is LAW. You cannot keep accumulating it inside super. You must withdraw at least 4%.

Because of having to pay CGT, i have to wait until my marginal rate is lower and then you can start to sell. Normally, your marginal tax rate will drop once you stop working as withdrawals from super is not counted as income. So sell only once you retire (when your marginal rate will drop drastically).

From what you have written, you are pretty financial-savvy.

I myself am mostly undecided whether or not I would someday give up being a Malaysian citizen. Myself to get British citizenship would be a fairly straightforward process and viewed it as my "exit plan" if ever things went south here. Something I have to be mindful off due to the nature of politics here.

None of the Hobart properties tripled in value. Not that it matters as I have no plans to sell.
The 1st is a house in Sandy Bay, was brand new when I bought it. Now after years of being lived in by PRC nationals it has mostly become a thrashed dump. Every month I get an email asking if I'm interested to sell and the last offer was 280% from the purchase price. The rental however is another story, when it was new it rented for AU$220 per week with no furniture. Now it rents for AU$780 per week and lived in by 8 PRC nationals. Next month will be its last mortgage.

The 2nd one was a place I initially bought to set up an office as I was captivated by the view. It was a run down colonial era building. I had it stripped to its bare frame and had it restored. After it was completed I decided Tas just wasn't for me and put it up for rent. It has gone up 180% taking into account all the money I had put into it and yes it went over budget by double. Rented it to a barrister who uses the entire upper floor as her office and lives at the lower floor. First started out at AU$250 per week now it is at AU$480 which I suppose isn't too bad. Thankfully unlike the PRCs this cute lil bogan does take care of the place with an element of pride but rent sometimes late and often not paid in full. Oh well at least she does tell me that she is enjoying the view of Mt Wellington and the River Dervent on my behalf.

The lands and buildings, I have no idea what is its worth as no one has ever approached or showed any interest in buying it. In any case as part of the settlement they have a 20+10 lease on it, doubt anyone would buy it as there isn't any provision for the premiums to go up until the 20 years is up. This one is now free of any encumbrance, I don't lose any sleep over it.

How old were your children when you sent them abroad? I take it you are placing them in boarding schools?

Myself, my eldest was supposed to go to an international school when she started primary but it didn't happen. Thankfully their mother decided to give up custody and I will move her to where she was supposed to be all along. The younger one will start out at an international school. It will be as international an exposure I could reasonably provide them with at this moment in time.

Am a bit sceptical on playing with currencies as I am paid an American salary by an American company in US$ though am no longer based in America. Had enough experiences of things going south hence I stick to what I've tried, tested and succeeded in. Not too keen on equities as I don't do short term investing. Prefer buying wrecks and fixing them up as it indirectly does more for my profile than just deliver returns.




Yes one of the latest challenges everywhere is all the restrictions coming into force all over the world. Also becoming a challenging affair to open banking accounts abroad and another challenge is to keep it open.

I would love to be Singapore based rather than on my current arrangement and it would halve my tax bill as I have to pay US Federal income taxes. However I could not bring myself to live long term in Singapore.

When you have overseas property then you will know what to do to manage it.

friends been there done that. Bought foreclosure from bank after subprime crisis, sold after price rise >50%. That's why they advised buy when blood is knee deep on the floor. Not that there isn't anyplace or assets to invest.

Equity may not for you but performed well for many.

This post has been edited by icemanfx: Jul 28 2019, 07:15 PM

Tq share here it is very inspired.

I am otw also. But at the moment love my job and low stress since working at university. Planning to work until 60 and have saving about 2m. At the moment got 500k cash already at age of 35.

Keep sharing here

Well done, you are probably better off than 70% of the workforce worldwide if by 40 you have saved up 1/4 of what you need for retirement.

How do you intend to bring it up to 2m?

Good job there managed to have 500k at 35.

Please share your journey and how manage your daily/monthly expenses. I’m sure it will benefit many people here. Thanks

I must share this with you and i hope not to sound as if i am bragging

My super (epf) balance was around the 500k mark 5 years ago. Over the last 5 years (roughly), my contributions were around 20k/yr (after tax) and my employers contribution around 26k/yr (after tax) and the super was averaging more than 10%/yr (invested in international shares - due to the fact that Aussie dollar was dropping, the performance of International shares look spectacular). My super balance is more than double what i had 5 years ago (but the bloody Aussie dollar is shitty now ).

Don't under-estimate the power of compounding. I am now so tempted to continue working but the thing is my wife and i have no children and we have not much outgoings other than an average lifestyle.

Once again, i hope readers reading this won't perceive i am bragging because at my age, i don't need to prove to anyone anymore.

This post has been edited by Garysydney: Jul 29 2019, 07:47 AM

Tq Gary,... I appreciated your input,....

Tq BC,... I appreciated your input,...

The IRS has the world's most complicated taxation methodology in the world,... their taxation on Worldwide Income is the strictest. Filling-in of FATCA forms when opening accounts everywhere in the world today proves this,...

I just have another suspicion here : am I right is saying, if you are a US Tx Resident, Financial Insts everywhere are quite hesitant in 'doing business' with you,... unless your amt is really huge,...

You are one of the few guys here who are not selfish to share your experience. I like to read your comments very much. Never once sounded bragging at all because can sense they are genuine and with substance. I am sure many here like to read your comments too.

Whereas there are a small number who are real bragger. Wrote like a novel and too idealistic and predictable. Sounded more like their dream instead of what they achieved. It’s good though because they give readers some inspiration and target to chase

3 to you

Thank you for your compliments.

At my age, we have reached maximum capacity and unlikely to get any further ahead. We are no longer young (where the fire is still burning hot for success) and unlikely to achieve any more than we have (esp when we have worked and struggled for more than 30 years).

Yes unfortunately US has one of the craziest taxation systems in the world especially if you have income from offshore sources.

Your suspicions isn't far from the truth especially if it is any investment or any interest bearing accounts. Thankfully am only US resident for tax purposes and not a US citizen else it would be even more difficult to be a joint name on an account of any kind whether it is a priority or premier banking account or not. The pains of having an American citizen as a spouse but that's life.

Just to share here.

Bond in very poor family
But I believe good education can get a better job and better salary

I am believe that I am quite lucky

Brought a property at age 25 at rm120k. Manage to settle home loan on 2017 and
Just dispose it last year 2018 at rm350k

And save 50-60% of the salary and able to get around 150k.

I have sacrificed a lot with a very boring lifestyle.

Very seldom go back to my home town. And until now still ride kapchai moto bike.

Get married at age 31. And have 1 child now.
Wife is fully house wife.

with 25 yrs to go, with RM500k now ....can go to RM2 million with just a 5.7% CAGR investment vehicle alone
http://www.moneychimp.com/calculator/disco..._calculator.htm


This post has been edited by MUM: Jul 30 2019, 12:24 PM

Not many kapchai rider with 500k cash. Respect!

Good effort there, bro,... well done,... you must have great financial mgmt skills. Can support a wife fully and a child too,.... with 500k cash in the bank.