US permanent resident / UK citizen. Lives and works in the US. Visits UK to see family.
I currently have a US emergency fund (nearly 6 months of expenses) and a UK emergency fund (£3k – approximately $4k). It’s earning zero interest (not enough in there to even get a penny, so it shouldn’t have any US tax implications (less then $10k). I can’t really invest it in the UK as it’ll complicate my US tax return.
All of my real expenses are in the US. I spend something like £200-400 on each trip (not including flights) and I have no UK expenses other than what I buy when visiting.
I’m very unlikely to move back to the UK any time in the next couple of decades, by which time the money will have depreciated in value. My plan has been to book flights one year with my UK money, but USD prices have always been significantly lower than GBP.
Which option would you pick?
- Leave the £3k in the UK bank just incase.
- Leave £1k and use Wise to transfer £2k to the US for investments (taxable brokerage – TA accounts are maxed).
- Leave the £3k and book flights when costs are approximate.
If anybody knows a way to legally invest in the UK that won’t complicate my US tax return then I’d be glad to know. Vanguard is out the question for a US permanent resident.