# Afores and Being a US Citizen



## edgomon (Feb 7, 2016)

I received an offer to work for in Mexico City and the company is promoting that they will give me 13% of my salary and match 13% as a big benefit to make up the gap of my asking price.

The questions I have,

1) If I decided to leave Mexico prior to the age of 65 (I'm 44 now), how can I get that money out of the country and to my future residence?
2) is this 13% reduces my tax obligations?
3) Can I manage this investment just like I do my 401K here in the US?
4) what is the historical rate of return for this Afore?

Thank you


----------



## TJGUY (Jan 5, 2016)

The trouble with the afore is they will not give you a lump sum. They will dole it out to you at quantities that they deem fit and you have to get in line and be present every time. This will require you to be present in Mexico. Also what they are offering you is what they have to by law.
No matter what you settle for as a salary these are contributions that they have to make as part of the labor laws. These are called "Prestacionnes" Look into it well before you take a reduced salary.


----------



## edgomon (Feb 7, 2016)

*Afore*

Thanks .. Ihave asked for further explanation. IS this what they call a Fondo de Ahorro?


----------



## TJGUY (Jan 5, 2016)

It can be. There also can exist one that is not part of AFORE


----------



## Masuka (Apr 8, 2016)

Fondo de ahorro is NOT the afore. Fondo de ahorro is a company benefit. Literal translation: savings fund. You contribute from your salary and the company usually matches it. A lump sum is available to withdraw each year. The AFORE is a legal requirement that the company has to pay into a pension fund for you. It is a grey area as to whether expats can withdraw this money when they leave Mexico. Otherwise you would have to wait until you were 65 to get it, and I'm still not sure if it can be a lump sum or if you'd have to receive it in installments like social security payments, and god knows if those payments could be made to a foreign bank. If anyone knows the answer to this, I'd appreciate it. I'm a UK expat living and working in Mexico for 9 years.


----------

