Retiring in the United States: What if I’m already retired abroad?

On the Money is a monthly advice column. If you want advice on spending, saving or investing — or any of the mixed emotions that might arise as you prepare to make a big financial decision — you can Submit your questions on this formHere, we answer two questions submitted by Vox readers, edited and condensed.

I have just immigrated to the United States two years ago. I have already retired in my country of origin and have a pension and some savings. However, I feel that this money is not enough to support our future retirement life in the United States. What should I do?

As a personal finance expert, I know that if you don’t have enough money to support yourself into the future, you need to think about how to make more money.

Unfortunately, I am not a qualified immigration expert and cannot advise you on different ways to make more money. Therefore, I contacted Cambridge Immigration Law.

“The first thing you need to understand is whether you have the legal right to work in the United States,” Sullivan told me. “Then you need to see if there are any restrictions on your work permit.”

Sullivan, who has been practicing U.S. immigration law for 19 years, explained that many legal permanent residents have unrestricted work permits that allow them to work anywhere. “Some have work visas that are tied to a specific employer, but many have the ability to work anywhere they choose or wherever they can find work. You can work in an office or you can work at Walmart.”

You may also want to consider other ways to generate income. For example, investment“People can invest in the United States regardless of immigration status,” Sullivan said. “That includes investments in real estate.”

If you have the ability to invest in real estate (which may or may not be an option for you at this time), you can earn extra income by renting out your property. “Being a landlord is seen as an investment, not a job,” Sullivan explains. “This means you don’t need a work permit to be a landlord.”

Regardless of how you choose to earn your income, you’ll need to make sure you comply with all applicable tax laws in both the U.S. and your country of origin. “Any income you earn in the U.S. may be taxed,” Sullivan says, “and you may also be subject to tax requirements in your country of origin.” It may be worthwhile to discuss your potential tax obligations with a tax professional, especially if you don’t have a clear idea of ​​what you may owe.

I also asked Sullivan what immigrants might want to know if they want to work illegally. She explained that there are two different issues involved — the first is the work itself, and the second is the taxes you may have to pay on your earnings. “If you choose to work without permission, or if you choose to ignore your tax obligations, these are both civil and criminal violations,” she said.

Many people earn money through informal, semi-legal work — such as babysitting or tutoring, where they are paid in cash — and many assume that such work does not need to be reported to the IRS. This is a false assumption that could work against you in the long run. You are required to file a tax return with the IRS every year, even if you are Undocumented immigrants working informally.

Another factor to consider when planning the next phase of your life in the U.S. is whether you need to move to an area with a lower cost of living. I don’t know where you live or whether you want to stay put to be closer to family or community, but Move to an area with a lower cost of living It can allow you to live on your pension and savings without having to get another job. That being said, many American adults continue to work in some way after retirement – so your situation is neither rare nor uncommon.

In other words, welcome to America.

I am 65. I would like to know if I will be penalized if I invest in stocks, bonds, or any other type of investment while I am receiving Social Security disability benefits?

From what I understand, if you invest while you’re collecting Social Security disability benefits, you may not be penalized—but again, this is something I’d need to ask an expert about.

“You can definitely invest while you’re on Social Security Disability (SSD),” says Andrew Latham, a certified financial planner who helps run your SSD. Super Currency NetworkInvestment income is generally not considered “earned income,” Latham explained, meaning it won’t affect your SSD benefits.

Still, you need to keep track of your total assets. “If you also receive Supplemental Security Income (SSI), be aware of the strict asset limits: $2,000 for individuals and $3,000 for couples,” Latham told me. “You can still invest, but if you do well and make more than the asset limit, it may Reduce or eliminate your eligibility for SSI benefits”

I asked Latham if putting money into investments will take money out of your total asset pool. For example, if you are an individual with $3,000 in assets, can you invest $1,000 and keep your SSI benefits? Latham said no. “Having too many assets invested generally does not help with SSI because the principal of investments, including stocks, mutual funds, savings bonds, etc., counts as assets.”

I also spoke with Jim Wang, Wallet hackswho I consider my go-to resource for this type of question. “I researched this topic when I was helping my parents collect Social Security benefits,” Wang explained. “The Social Security Administration, On their websitenoting that they include only your employment wages, net self-employment income, bonuses, commissions, and vacation pay. They do not include pensions, annuities, investment income, interest, veterans’ benefits or other government or military retirement benefits.”

So far, it looks like you should be able to invest while collecting Social Security disability benefits without incurring any penalties — but there’s one more detail you may want to be aware of.

“In order to put money into an IRA or Roth IRA, you have to have earned income,” says Marc Barnes, Copper Canyon Tax and Accounting ServicesIf you don’t have earned income (which many people who receive Social Security disability benefits don’t), you can still invest in a brokerage account. However, you may need to prepare for the tax implications.

“Brokerage accounts are not tax deductible, and the earnings, interest and dividends generated will affect your tax return and may result in an increase in taxable income,” Barnes explained. “Brokerage accounts are not bad, but too many advisors use a cookie-cutter investing approach and end up with clients having too much taxable activity affecting their tax return, which is completely unnecessary.”

You must have expected me to stop writing my advice column a few paragraphs ago, right? Unfortunately, things have gotten more complicated.

“If disability is your only income, a few dollars in interest or dividends won’t really affect you. It’s likely taxed at 0% and won’t be enough to make your disability or Social Security taxable,” Barnes told me. “If you’re married and your spouse has income, you’re probably already paying taxes on your disability or Social Security income and should think more about investing.”

65, yes, you can invest; no, you probably won’t be penalized; yes, you should make sure to consider the potential tax implications before making any investment.

And, as I always remind people— Don’t invest money you can’t afford to lose.