facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Reconstructing a Financial Plan Thumbnail

Reconstructing a Financial Plan

Ann Marie Regal CFP®

Years ago, my husband and I had just finished renovating an old, small farmhouse in rural New Jersey when I saw an ad for architectural salvage available from an 1870s farmhouse. Out of curiosity, we drove to a town about 20 minutes away and saw a beautiful old home, similar to our existing one but larger, that was being demolished to make room for a mall. Instead of buying pieces of architectural salvage, we bought the whole house! 

We hired a contractor to dismantle the house piece by piece and pack it into two, 45-foot-long trailers delivered to our property. The contractor who dismantled the home was to reassemble it for us, but when the time came, he was unavailable for months, which was too long to wait. We eventually found another contractor who said he would be able to reassemble the house.

My husband was running a small business from home at the time, approximately 400 feet away from the work site, so was available to answer any questions the contractor had. The barrage of questions on day one of the reassemble made my husband decide that he needed to work beside the contractor, so that night he headed to The Home Depot.

Standing in the hand tool aisle of The Home Depot, he picked up what he deemed to be the most professional looking tool belt, analyzed the photos of the tool belt loaded with all of the requisite tools and proceeded to pick up each tool and place it in the cart. Several hundred dollars of tools and a pair of Carhartt insulated coveralls later, he was ready to embark on a house reassembling journey. 

How does this relate to cross-border financial planning?

In cross-border financial planning we often need to dismantle and reassemble plans because what worked well in one location, doesn’t necessarily work in another—just like our elegant, old home! 

Due to the challenges of being a US taxpayer living abroad, we often meet with new clients who are still implementing a plan that was put into place while living in the US or have ignored key components of their financial plan—taxes, investments, estate documents, asset location, insurances—because they weren’t as critical when living in the US. What works for US taxpayers living in the US often doesn’t work for US taxpayers abroad.

After creating a comprehensive financial plan, we may preserve some parts of their original plan, while others may be dismantled and reassembled to align with their new plan as an expat. Using tools from the financial planning toolbelt, we may:

  • Dismantle IRAs and old 401Ks then reassemble them as a consolidated Roth IRA to take advantage of lower tax rates while abroad, for tax-free income in retirement (depending upon where they will retire) or for estate planning purposes if there is a non-US spouse.
  • Dismantle and reassemble beneficiaries for assets and insurances to be left to spouse, children, trusts, or charitable beneficiaries. We use will substitutes and trusts where possible to ease cross-border estate settlement and for estate tax efficiency.
  • Dismantle and reassemble tax returns to reflect correct tax filing status, exclusions, exemptions, interest and dividends, offshore pensions, FBAR, and offshore company reporting (Form 5471).
  • Dismantle mutual funds and reassemble into ETFs for tax-efficiency, align investment currencies to retirement currency, and utilize gifting strategies to non-US spouse.

Each client is unique, so how we take apart their existing plan and implement their new plan is driven by their financial goals, risk profile, time horizon, family circumstances, and tools available for their journey.

Using the tools available for my husband’s journey, he worked through the winter and within seven months we were able to move into our “new” old house. To this day, the house remains a work in progress, just like a good financial plan, but one that we take full enjoyment and pleasure in. As has been said many times and in many ways, it is not the destination that is the most fulfilling, but the path to the destination that is the most fun. 

With cross-border financial planning, the path to the destination may require dismantling and reassembling as lives evolve or tax and estate laws change, but creating a solid, workable plan is something to take pleasure in. By working with Avrio, we are giving you the tools and teaching you how to use them to help you achieve your financial goals.


This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation. The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association. All efforts have been made to report or share true and accurate information. However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third-party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/  and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm's ADV Part 2 Brochure, please contact us at info@avriowealth.com.