<prompt> Human: Hey PF, I could really use some advice. Ive already done some research but Im not finding helpful information. Also, I know that there is an rexpatfinance but its a very small community so I figured Id have better luck here. I am a 26yo US citizen that moved to the Netherlands in February for work. I consider myself an expat because I intend to move back to the States, but there is no plan for when that will be. It could be three years or ten or more; Im kind of winging it. I had spoken to some other US expats about how they invest and manage finances before I made the move, but Im learning that its much more complex than I had understood it to be.Looking at the PF Prime Directive chart Im at Step 4. I have an emergency fund and by living frugally Ive been able to pay off all my debts. Now, Ive got a steady stream of cash and I want to start investing it. When I moved, my original plan was to max out my 401k, then a personal IRA and then get into Mutual Funds. Well. There are the problems with that plan.The problems: I no longer qualify for IRA contributions. Apparently expats can only make IRA contributions on income that is above the amount excluded by the Foreign Earned Income Exclusion FEIE and the Foreign Housing Exclusion FHE. Basically, the limit is 100,000, so if I made 110,000 a year, I could use 10,000 to contribute to an IRA. But I dont make more than 100k, so an IRA is not an option. I can no longer contribute to the 401k I had in the states. When I called the bank about it, they said that neither I nor my employer can pay into this account, and unless I want to pay a penalty I also cant move the funds anywhere. 401ks can only be funded by US earned income, and it can only be rolled over such as into an IRA if I switch employers. I transferred offices within my company to move abroad, so: same employer, but no US earned or taxed income. The money that is there will grow and shrink with the market, but otherwise its just going to sit there. I am not permitted to invest in mutual funds. For example, from this article: Fidelity, Schwab, and other brokerage houses announced that they will no longer allow U.S. persons living outside the United States to invest in U.S. mutual funds. This one frustrates me the most. From all the research Ive done, mutual funds seem to be the right kind of investment vehicle for me, and I actually feel like I understand them as opposed to ETFs or other choices. Every US expat I spoke to before moving said that they put their money into mutual funds, and even the article linked above says to just do it anyway by using a US address on all the paperwork. Ive seen many resources online that recommend the same. But...wouldnt that be considered fraud? Realistically, I cant invest in foreign mutual funds. Apparently most non-US financial institutions wont sell mutual funds to a US citizen because of the hassle of doing the reporting and the consequences of getting it wrong. Ive heard that its possible but not worth it. When I set up a bank account in the Netherlands, their direct advice was that if I intend to move back to the States, dont invest abroad. I dont want to rely on my Netherlands retirement pension. My employer is required by Dutch law to set up a pension for me, but my understanding is that the system here ramps up the contributions over time and really only starts earning me money after Ive been in the Dutch workforce or a while like 10-20 years. I cant say with confidence that Ill be here that long, and I cant manage how much is put in while I am here. For that and other reasons, I want to keep the pension as my retirement Plan B instead of Plan A. So. Reddit. Please help. Im at a loss here, I dont know what options are left to me. I have a brokerage account with Charles Schwab with a very small amount invested in mutual funds from before moving and their advice was to invest in ETFs. Ive read up on ETFs, but to be honest I dont feel like I understand them well enough yet to put my money there. What I liked about mutual funds is that they seem like a very low-maintenance approach to investing. Buy them, let them sit and grow, sell them 10 years later when the time comes. Thats my comfort level with investing, at the moment. Other options Ive seen are to create my own mutual fund by going out and buying individual stocks or to invest in property. Creating a mutual fund seems way over my head and investment experience level. Also, Ive considered property, but Im hesitant given the uncertainty around how long Im going to live in any one place my company could always send me to another country in a year or something, and Id need to save for a while for a down payment anyway. In short, I would really appreciate any answers to these questions: What options are left to me for long term investments? What would be the consequences of investing in US mutual funds anyway? Im not asking you to advise me to do something I shouldnt, but I want to feel fully informed about this issue. Some info on my finances:After taxes, I bring home 3270 per month with some variation. - 30On average, I have 700ish left over each month that I can investput to savings. I think it will get closer to 1000month once Im done with setting up costs, such as buying furniture.Savings:Discover bank - 20k in a high interest savings account for my emergency fund.Netherlands bank - 3000 in savings so I have euros on hand for emergencies. At the end of each month, I take whatever I didnt spend from that months paycheck and transfer it to dollars in my US accounts.Debt:None. I use credit cards to pay for most expenses to get airplane miles, but I pay it off every month. I think for someone in their 20s, Im in a pretty stable financial situation. Its been a mix of good habits and good luck to get here and I want to make the best of the situation Im in to prepare for the future and some large costs I know Im going to have eventually. The idea that I dont know what to do now has been really stressing me out. tl;dr What can an investing noob do with their money when they cant invest in a 401k, IRA, mutual funds of any kind, or property?Assistant: Am US expat. Probably a couple of things that I have learned throughout the years expatriated over a decade ago. When you get paid by an international company you are an expat and can no longer do 401k. Your finances also will get a lot more complicated. When you debate strategies, keep in mind whose rules you are breaking. If its the mutual fund companys rules, as long as you remain US citizen and you have a US address and you file your taxes, you are not breaking any laws. They just dont want your money because the legal compliance costs for them are high. My recommendation, keep your mouth shut, never show a trace of your international activities, and basically keep the US affairs strictly US based. Continue to invest. Try wiring all money and not bring in cash, even if you bring in something like 6k it can be deemed as structuring. Second part of the story is IRS. IRS not only can take everything you have, they also just got the power to let state department refuse a passport renewal if you owe taxes to a large amount. So declare your FATCA FBAR and all accounts, track all your days in the US more than 30 and you cannot use the presence test, and really watch out for records keeping. Its easy to lose stock purchase basis price when you are an expat for example. As for what you can invest in, if its in the US you should be all good at least from a legal perspective. You just need to wire the money back to the US. If its overseas, you always have to declare it. The only investment that is not required to be declared, is property. But of course rental income needs to be declared. All other traditional ways of investment are pretty broadly defined in FATCA to require declaration. The first year you are an expat, its worth paying a professional to do your taxes. Just word to the wise, well known accountants like KPMG will charge easily 5000 for a relatively straightforward US expat tax return, because its complex and they are taking responsibility for you. Taxes are definitely a pain for expats, but all in all, a fair price to pay for living and working overseas and building a family and life in interesting places. Have fun! Human: Thank you for the response. This is definitely the kind of information I was hoping to hear about. Could you expand a little more on what you mean by this: really watch out for records keeping. Its easy to lose stock purchase basis price when you are an expat for example.I havent heard anything about needing to record basis prices, so Im definitely curious to learn more.  <response>: Recordkeeping includes keeping track for physical presence purposes. Like for example I keep records of all my flights so I can prove if necessary that I was out of the country. 