# Social Security Direct Deposit Redux



## dvinton (Mar 8, 2019)

A recent post on Two Expats Mexico (https://qroo.us/) started me thinking about the pluses and minuses of having Social Security deposit our benifit payments direct to our (eventual) Mexican bank account. But, keeping our equity accounts in the US tied to the address of a relative.

First, I've read the thread https://www.expatforum.com/expats/m...o/1432578-social-security-direct-deposit.html. Great information!

I have two follow-up questions:

1. Any notable savings in fees and convenience making SS direct deposit to a Mexican checking account?

2. What's the consensus on bearing a fulltime Mexican address to SSA and a US address to the financial institutions we have accounts with?

Don


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## TundraGreen (Jul 15, 2010)

1. I don't have personal experience with this, but it would save transferring money.
2. The Social Security Administration has my Mexican Address, several US financial institutions have a US address for me. I haven't seen any downside, not sure what it could be.


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## lat19n (Aug 19, 2017)

So why wouldn't you simply be HONEST and declare yourself a resident of Mexico - if in fact YOU ARE a resident of Mexico ?


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## dvinton (Mar 8, 2019)

The short answer is you would (most likely) be forced to close your US-based equity and checking accounts losing a lot of investment flexibility and protection. Big tax consequences if you had to liquidate an IRA.


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## TundraGreen (Jul 15, 2010)

lat19n said:


> So why wouldn't you simply be HONEST and declare yourself a resident of Mexico - if in fact YOU ARE a resident of Mexico ?


What do you mean be honest. I am a resident of Mexico, in fact I have Mexican citizenship. I file US taxes from my Mexican address. I experimented with giving it to the US banks, but their web sites and policy are a pain for accounts with a foreign address. So I give them my son's address. All my US banking is done online. I have no interest in anything they send by snail mail. My son throws it in a box, and when I visit I shred it. If that is dishonesty, I can live with it.


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## TundraGreen (Jul 15, 2010)

dvinton said:


> The short answer is you would (most likely) be forced to close your US-based equity and checking accounts losing a lot of investment flexibility and protection. Big tax consequences if you had to liquidate an IRA.


Actually my investment companies have my Mexican address. It is just the conventional banks that were a pain, and for which I use a US address.


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## lat19n (Aug 19, 2017)

dvinton said:


> The short answer is you would (most likely) be forced to close your US-based equity and checking accounts losing a lot of investment flexibility and protection. Big tax consequences if you had to liquidate an IRA.


For starters, I doubt you would need to liquidate an IRA. If you become a non-resident of the US you may have to liquidate some holdings in an IRA (things like a mutual fund). But those monies would still sit within your existing IRA. The US appears to be VERY eager for both residents and non-residents to invest in US equities, ETFs etc.

Even for residents of the US, 'investment flexibility' CAN be a function of your state of residence. Ever see those notices at the bottom/end of a solicitation that say such things as "Not available in : SD, LA, NJ" (for example). Often (always ?) when someone puts out a financial product it has to be registered in the states in which it will be sold. That is very true of insurance products (like an annuity). 

Here is a heads up for you. Do you have an annuity you are thinking of annuitizing as you enter into retirement and moving to Mexico. Look into that transaction while you are still on the US side of the border.

Here's another heads up. If you do in fact have US financial accounts you need to do a little research BEFORE closing them and moving to Mexico. In this new world of FATCA the longevity of your relationships with those firms is important. We opened our primary US checking/savings account in the 80s. It is a large bank. They have only our Mexican address on file. It took some doing what with the spellings, concepts of things like colonias etc. They have no issues with our living in Mexico. They even overnight us (for free) new debit/credit cards as needed. Our last name is not Rockefeller. 

Wherever you live, you have only one primary residence. If you are dealing with a US firm whose policies aren't to your liking or that do not fit your needs - change it. It is not difficult at all to open new accounts with a US investment company. Those companies offer such things as debit cards and billpay features which likely obviate most of the reasons for dealing with a troublesome US firm.

If you use someone else's address as your primary address, to what risk are you putting them ?

Finally. Direct deposit of social security into our Mexican bank is a great feature. Every 3rd of the month our monies arrive. The exchange rate is exceptional because the US Treasury gives the dollars to the Bank of Mexico which converts the dollars to pesos - at no markup to themselves. There is an office in the US Embassey in Mexico City (Federal Benefits Unit) which sets the whole things up.


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## lat19n (Aug 19, 2017)

My wife's SSA deposit hit earlier today. She received an exchange rate of 19.24.

The range for today's USD/MXN spot rate is 19.15 - 19.56.


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## lat19n (Aug 19, 2017)

And at this very moment the spot rate is : 20.69 !!

The price of oil is down 20% at the moment. 

Tomorrow may be an interesting day.


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