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-----Original Message-----
From: expat exchange
[<mailto:feedback@expatexchange.com%5D>mailto:feedback@expatexchange.com]
Sent: Friday, March 27, 1998 6:51 AM
To: Recipient list suppressed
Subject: Overseas Digest, March 1998, Vol. II,
Issue 2
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Overseas Digest©
A free newsletter for Americans living abroad,
dispatched monthly from the Middle East.
March 1998, Vol. II, Issue 2
© 1998 MidAmerican-Gulf Publishing Co. (Kuwait
City)
William Beaver, Publisher and Editor
___________________________________________
IN THIS ISSUE
*U.S. State Department Public Announcements
Anti-American "Fatwa" & Middle East
*YOUR TAXES ABROAD By Jane Bruno
Individual Retirement Accounts: Can Americans
Overseas
Benefit from Them?
*Titan Global Communications Card Provides Access
For
Internet Users Who Travel
*LISTENING TO AMERICA By Matt Young
*See More, Spend Less: Travel By Train In Europe
*Five Principles For Investment Success
*ASK THE COACH By Linda Mason-Hahn
The Future of Business Travel
U.S. State Department Public Announcements
Anti-American "Fatwa" - March 3, 1998
In a recently published "fatwa," or religious
ruling, terrorist
financier Osama Bin Ladin and several other
radical figures
openly invited all Muslims to undertake terrorist
attacks
against American civilians and allied interests
worldwide.
The Department of State strongly condemns this and
all such
exhortations to violence. We take this, and all
such threats,
seriously.
We know of no specific threats to U.S. citizens or
interests
overseas in relation to this "fatwa," at this
time. We cannot,
however, discount the possibility of random acts
of anti-
American violence. Therefore, American citizens
traveling
or residing overseas should pay close attention to
their
personal security practices in light of the
published threat.
U.S. citizens planning to travel abroad should
consult the
Department of State's Public Announcements, Travel
Warnings, Consular Information Sheets, and
regional travel
brochures, and refer to the Department's
advisories on
security awareness overseas. American citizens
residing or
traveling abroad are encouraged to contact the
nearest U.S.
embassy or consulate for up-to-date information on
security conditions.
This Public Announcement expires June 3, 1998.
Middle East - March 3, 1998
While the United Nations Secretary General has
reached an
agreement with Iraq on the implementation of UN
Security
Council resolutions, until Iraq's full compliance
with that
agreement has been demonstrated, the United States
and
its coalition allies will continue to keep their
military forces
in the Persian Gulf at a high state of
preparedness. As part
of its military preparations, the Department of
Defense
announced on March 3 that it will begin
inoculating military
and other DOD personnel against anthrax.
The best assessment currently available continues
to be that
there is a low probability of attack by Iraq and
that the
possibility of Iraq resorting to the use of
chemical or
biological weapons is remote, however, neither can
be
excluded.
The U.S. Government is not able to provide
vaccinations
to the American public residing in or traveling to
the region.
There is only a single source for the vaccine and
it is our
understanding that virtually all the vaccine
produced is under
Defense Department contract for primarily military
use and
a small number of other official uses.
We encourage all Americans to remain informed and
to
make their own decisions concerning travel to the
region.
Detailed information on anthrax and other
chemical/biological
agents can be obtained from the Centers for
Disease
Control and Prevention (CDC) either at the CDC
website
(http:\\<http://www.cdc.gov/>www.cdc.gov) or via
its international travelers
hotline
(404-332-4559). Travelers should also consult the
Department
of State's Public Announcements, Travel Warnings,
Consular
Information Sheets, fact sheet on chemical and
biological
warfare, and regional travel brochures, and refer
to the
Department's advisories on security awareness
overseas.
American citizens residing or traveling abroad are
encouraged
to contact the nearest U.S. Embassy or Consulate
for
up-to-date information on security conditions.
The Department of State continues to monitor the
situation
closely and will advise the American community
immediately
if this assessment changes. This Public
Announcement
supplements the February 5 "Worldwide Caution"
Public
Announcement, and the Middle East and South Asia
Announcement issued February 10. This Public
Announcement
expires June 2, 1998.
YOUR TAXES ABROAD
Individual Retirement Accounts:
Can Americans Overseas Benefit from Them?
By Jane Bruno
Basic Concepts
Individual retirement accounts have been around
for a
number of years, both in deductible and
non-deductible form.
As you probably know, an IRA is a personal savings
plan
that offers tax advantages if you set aside money
for retirement.
What is puzzling to many Americans overseas is how
the rules
for determining IRA contributions and deductions
apply to
foreign earned income. The following will shed
some light on
this subject. Note that the new Roth IRA is not
presented here,
but will be the topic of another article.
Contribution Limits
The most any taxpayer can contribute in any tax
year is the
lesser of $2,000 or your compensation for the
year. If you
are married, you and your spouse can each
contribute up to
$2,000, but contributions cannot exceed your
combined income.
This means that if together you only make $3,000,
you can
only contribute a total of $3,000 to you and your
spouse's
IRAs. This also means that the $2,000 per person
contribution
for married couples applies even if one spouse
does not work
at all during the tax year, so long as together
you make at
least $4,000.
As for expats, the rule is very clear that foreign
earned
income and housing cost amounts that are excluded
from
income do not count as "compensation" for IRA
purposes.
This means that if you have $60,000 of foreign
income, it is
all excluded on Form 2555 as foreign earned
income, and
you have no other taxable compensation from salary
or self-
employment income, you may not contribute anything
to an
IRA.
However, suppose you have $80,000 of foreign
earned
income and are able to only exclude $70,000 of
that from
U.S. tax ($72,000 starting in 1998). This means
you will
report $10,000 as taxable compensation, and thus
would be
entitled to contribute $2,000 each to an IRA for
yourself and
your spouse (since your income was at least
$4,000). Moreover,
this is true even though your deductions and
personal
exemptions may reduce your taxable income to
$0-and even
though you may be entitled to take a foreign tax
credit on
the balance of foreign income that is included for
U.S.
tax purposes. The IRS simply requires that the
income be
included as "taxable compensation income". It does
not require
that you actually pay tax on it.
Deduction Limits -Do They Apply to You?
The rules get very complicated when it comes to
deductions of IRA
contributions. It is beyond the scope of this
article to outline
all the details, which are dependent on marital
status, income,
type of retirement plans used and the year in
question. However,
if you are in either of the following situations,
you can forget
all other rules of deductibility. In the first
case, you will not
be able to deduct any IRA contribution at all. In
the second,
you can deduct the full contribution regardless of
income or
other considerations.
(1) No taxable income means no deduction-If your
situation is
similar to the one described above, in which all
the potentially
taxable income is offset by the standard or
itemized deductions,
personal exemptions and the foreign tax credit,
you have no
IRA deduction. This is because the taxable income
has been
reduced to $0 so there is nothing against which to
take a
deduction. Therefore, you won't have to worry
about whether
you meet the income limits for deductibility.
(2) Foreign employer with no qualified retirement
plan means
full deduction - Limitations on the deductibility
of an IRA only
apply if you are covered by a qualified retirement
plan that your
employer has set up for the benefit of its
employees and that
meets Internal Revenue Code requirements. This
means that,
if you work for a foreign employer, you are not
covered by
such a qualified plan (even though your employer
may have its
own retirement plan). Thus, there are no limits on
deductibility
of your IRA. No matter what your income is, your
IRA is
fully deductible, so long as there is income
against which to
deduct it.
If neither of the above situations applies to you
and you are an
active participant in a qualified retirement plan,
you will need
to look at the rules for deductibility. In this
regard, it is
important to keep in mind that your excluded
foreign earned
income must be included back in when you do these
calculations.
Thus, for example, if you have $90,000 of foreign
income and
are able to exclude $70,000 of it, you must still
consider your
income as being the full $90,000 for purposes of
calculating if the IRA is deductible.
Jane Bruno , Overseas Digest contributing editor,
is a tax
attorney who specializes in taxes for American
expatriates.
You can visit her website at
<http://www.expatexchange.com/brunotaxservice/>http://www.expatexchange.com
/brunotaxservice/
______________________________________________
TITAN Global Communications Card Provides Access
For
Internet Users Who Travel
Tempest Telecommunications, a provider of mobile
communications services
(<http://www.tempestcom.com/>http://www.tempestcom.com),
announced expansion of its TITAN Global
Communications
Card service. TITAN (Tempest Internet Telecom
Access
Network) to provide dial-up Internet access for
customers
traveling outside of their local Internet Service
Provider's
coverage area, in 150 countries on 6 continents.
The TITAN Global Communications Card is the
World's only
discount calling card that bundles together
several services in
addition to its toll free voice access service.
These additional
services include "roaming" Internet access for
customers
traveling outside their ISP coverage area,
discounted access at
domestic and International Cyber Cafes and Kiosks,
as well as
discounts on cellular and GSM phone rentals in 100
countries
worldwide.
Customers with ISPs that have local and regional
access numbers
can now access their account when they travel by
dialing into
thousands of local call access numbers world wide
instead of
dialing long distance. By pooling together the
resources of
quality Independent service providers, TITAN card
users can be
assured of reliable access while on the road.
Compare the typical
$1-$3/hr fee of a TITAN card with $7-$100/hr fee
that calling
cards charge for domestic and International calls.
In addition
because there is no recurring monthly or set-up
fee TITAN
customers can keep the card until they need to use
it, opposed
to the cost and hassle of setting up and
maintaining extra
accounts with other ISPs. Customers use their own
ISPs services
through the net and can keep their own email
address.
For those traveling without laptops, having a
TITAN card allows
users to receive discounted access to the Internet
at Cyber Cafes
and Cyber Kiosks around the world. A TITAN
cardholder can
access the Internet and all of its resources on
the road, without
having to bring a computer along. A TITAN
cardholder can also
make discounted long distance telephone calls from
phones in over
50 countries around the world using the same card
number through
TITAN's Toll free access numbers. TITAN's high
quality voice
communications system is routed through the most
reliable
networks insuring clear, reliable conversations at
deeply
discounted prices through out the world. Finally,
TITAN allows
cardholders to get discounts on renting cellular
and GSM phones
and data cards for wireless voice or data
communications in
almost every major city Internationally. TITAN
communications
services are billed to one easy account and use
the same
authorization code making it easy to use. To use
the TITAN card
for Internet access, a user simply sets their
computer to dial
into a TITAN local access number, enters their
card number and
PIN, which takes only a minute.
To get TITAN requires only a valid credit card.
Sign up at the
TITAN web site
<http://www.tempestcom.com/>www.tempestcom.com or
call
1-888-596-8735
for more information.
___________________________________
LISTENING TO AMERICA by Matt Young
I’m an expert on this-- I’ve been married forever,
or at least it
seems like it.
Earth shaking research, recently announced, stated
that
researchers have compiled a study of "What makes
an enduring
marriage?" The new research goes against the
namby-pamby,
feel-good active-listening techniques that
marriage counselor and
book sellers have been preaching for the last
couple decades. In
fact, the researchers made a special point of
disparaging the
active listening technique. The active listening
technique uses
out-of-the-box phrases like, "I understand what
you’re saying,
but how does that make you feel?" The news
research says those
kind of phrases don’t work because they are
artificial, and
difficult for people to use.
So what do these researchers suggest as the answer
to extending
marriage’s average tenure. First let me explain
that according to
them there is nothing a woman can do to extend the
life of a
marriage. All of the researcher's advice is
pointed toward the
husband. Their suggestion is to do whatever your
wife tells you
to do.
I always thought there were only two choices in a
marriage: do
what she asks, or act like you didn’t hear her. I
use the latter
trick all the time. My father taught it to me. If
she starts
bossing me around, I run into another room and
tell her I can’t
hear her.
I’m not sure what this means to the average
married guy. If he
does follow the new advice of the researchers, he
might not make
his marriage last any longer. Or the length of
time his marriage
lasts might feel like an eternity.
Hold on...you’ll have to excuse me...gotta go. The
wife is
calling. I have to run to another room.
When he's not hiding from his wife, Matt listens
to America and
answers your email. Contact him at
heymatt@iwaynet.net
_____________________________________________
See More, Spend Less: Travel By Train In Europe
There's an old saying: "When in Rome, do as the
Romans do." When
it comes to traveling in Europe, Americans should
do what Romans,
Parisians and Londoners all do: use Europe's
modern, high-speed
and convenient passenger rail system.
Rail travel makes sense in Europe for several
reasons:
* Trains take you directly from one city center to
another,
usually near the things you want to see. Trains
are often
available from major airports, too.
* It's usually cheaper, faster and more
comfortable than other
forms of European travel. A trip from London to
Paris, using the
new English Channel tunnel, takes only three
hours.
* Europe's high-speed rail network is new, and
still improving.
* The Eurailpass 17-country and Europass 5-country
rail passes
let Americans travel the European train system at
attractive
prices. Most passes offer discounts for two or
more traveling
together. With Flexipasses you can select just the
number of days
you want to travel. You can even add a car to
combine train and
car travel to get the benefits of both.
* If you're going to Great Britain, there are
attractively-priced
BritRail Passes and their variations, with
discounts for small
groups, seniors and families.
All tickets must be bought before leaving the U.S.
For more
information, see your travel agent or call Rail
Europe at
1-888-382-RAIL (7245) or use the Web at
<http://www.raileurope.com/>www.raileurope.com
___________________________________________
Five Principles For Investment Success
There is a formula every investor can follow to
help them develop
a more successful investing style. According to
Edwin D. Walczak,
the Morningstar 5-star manager of the $200 million
Vontobel U.S.
Value Fund, the essential components of that
formula are
simplicity coupled with tough discipline. These
have the
potential for producing smooth, positive long-term
investment
returns.
According to Walczak, whose 100% no load fund was
up 34.3 percent
in 1997, these five principles are worth noting:
1. Invest. Don't speculate. There is a difference.
2. Try to stay within your circle of competence.
If you can't
understand it, don't invest in it.
3. Buy good businesses with predictable earnings.
Some of the
more important factors are that they have the
elements of a
franchise, high barriers to entry, good returns on
equity and
owner-oriented management.
4. Try to concentrate on companies and analyzing
their
businesses, not on market timing or economic
calls.
5. Concentrate on a limited number of stocks you
know well. It's
really impossible to know 70 to 100 companies
well.
______________________________________________
Ask The Coach!
Passport Please?
by Linda Mason-Hahn, Coach
As expats, we cross many geographic and cultural
boundaries.
At times the geographic boundaries are well
marked, or
delineated in some way that gets our attention;
maybe the
scenery, architecture, atmosphere, environment, or
politics
changes so dramatically that we even take photos
to
commemorate these crossings, to mark them in our
memory as a significant event. As we fly across
the world, we
know we cross many geographic boundaries without
notice, just as
we have at times in autos. But we cross the
boundary just the
same as those presenting with more drama. A client
in Eastern
Europe remarked during a recent coaching session:
"There are
boundaries designed to keep people out, and
boundaries designed
to keep people in". This gave me the perfect
opportunity to share
the importance of our personal and professional
boundaries.
Geographic boundaries were often established
rather arbitrarily,
by hard workor fighting. Fences, moats,
checkpoints, walls, and
PassControllewere established to monitor, and in
some situations,
restrict, those coming and going. The general
purpose was to
protect the inhabitants and what was valuable to
them; along the
way, taxes were imposed and demographics gathered,
providing
revenue to support the area and information on who
came and
went, for what purpose, and where more attention
needed to be
focused to attract different demographic
breakdowns.
Unfriendly persons attempting to breech the
boundary usually
had a fight on their hands. Geographic and
cultural boundaries
have been known to inspire fierce pride,
protection, and judgment
of those not residing within. We see this still
occurring today
in many places around the world. Boundaries work
to keep
something/someone in, and they also work to keep
something or
someone out.
This is also true for our personal and
professional boundaries.
How many battles have you had in your life to
protect or expand
yours? How many checkpoints do you have in place?
What exactly
are *personal boundaries* anyway?
Boundaries are behaviors that you will not allow
others to do TO
you, or around you. Boundaries are a line of
emotional and/or
physical protection that YOU place around you.You
get to decide
where your boundaries are, because you, your soul,
and what is
important to you, are more important to you than
they likely are
to others. And it's healthy that your boundaries
be more
important to you than to anyone else. We all have
that
responsibility to ourselves, personally and
professionally.
You need boundaries, because at times others want
what you have
(support, time, money, physical space or
possessions,
information, solutions, even your physical body)
and you may not
desire or be able to give it to them. Your
boundaries define what
is acceptable and unacceptable to you…what others
can and can not
do to you, or around you.
People who try to talk you into something you've
determined to be
unacceptable to you, and who do things around you
that you find
unacceptable, are being disrespectful to you by
ignoring your
boundaries. You cannot grow without boundaries.
You CAN learn
how to design, implement, and manage them in such
a way that they
become effortless to you and to those around you.
We need
boundaries around us to protect our souls, hearts,
minds, and
bodies from damaging behaviors of others. Those
same boundaries
help us identify those who assist us in nourishing
ourselves, our
growth, our well-being in a healthy, respectful
way.
We’ve all had others cross our boundaries; we’ve
all crossed the
boundaries of others. Just as some geographic
boundaries are
dramatic crossings that get our attention, and
others go
unnoticed, so it is with our personal and
professional boundary
crossings. Sometimes we see signs and signals
that a boundary
exists, and we commemorate it. At other times,
seemingly out of
nowhere, it sneaks up on us. So develop and
utilize your EPC!
Establish your own "Emotional Passport Control"
Picture yourself drawing an imaginary line of your
boundaries
around you. Where is that line? Most people draw
the line close
to themselves, thinking that provides the
protection they need.
In fact, it is recommended you extend your
boundaries at least
two or three times beyond where they now are. If
your boundaries
are "close to you", when others overstep your
boundaries (& they
will!) you are vulnerable, having little, if any,
room to
maneuver to protect yourself. When you extend your
boundaries,
you have time to "see it coming" and room to still
protect
yourself when necessary. Now re-draw that
imaginary line.
Think of your boundaries as the moat around your
castle. Like the
moat in times past, boundaries keep abusive and
needy
people at a reasonable distance from you so that
you are not hurt
or drained.
Sometimes it is important to establish a safe
distance from other
people's needs (notice carefully that says "other
people's
needs"----NOT other people!!). Some folks will
take advantage of
you, particularly if you don't know how to raise
the drawbridge
of your moat! (such as in learning to say "No" or
leaving a
situation before it starts to cost you
emotionally, even
physically).
When a person has healthy boundaries, fear
diminishes
significantly, relationships become healthier and
more
respectful, and more developmental growth is
possible. When one
has boundaries that are weak, they attract needy,
disrespectful
people into their lives, and waste a lot of energy
just keeping
things going.
Issuing Emotional Visas for Long Term Stays
Make a list of 5-10 things that people may no
longer say to you,
do around you, or do to you. Share with those
involved in your
life your process and get their commitment to
support you and honor
your boundaries. Be relentless in educating others
to the location of
your new boundaries, and how to respect them, but
do not be
punitive.
Some action steps are useful when others violate
your boundaries:
Action #1: Inform them. (Do you know that you
sound harsh and
abrasive to me?) Perhaps they forgot, or are
unaware. Give them
the benefit of the doubt.
Action #2: Request they stop. (I request that you
not speak to me
in that tone of voice.)
Action #3: Instruct them. (You know how you joke
about that?
Well, I’ve realized that it’s not OK with me/hurts
me, and I ask
you to respect this and stop doing it. What you
*can* do is ………)
Action #4: Warn them. (It’s not OK that you ever
again use those
words when talking to me.)
Action #5: Leave. (What you are saying is
unacceptable to me. I’m
open to working it out in a reasonable way with
you but am
leaving now to protect myself.)
Now how about making a list of some ways you are
violating the
boundaries of others? Then stop violating the
boundaries on that
list. And thank and congratulate those who are
respecting the
boundaries established by you & others.
Expats cross many boundaries...geographic,
cultural, personal,
professional. Even with all the developmental
benefits the expat
lifestyle brings to us, it also brings times of
stress, feeling
displaced, off balance, disoriented,
hyper-vigilant about safety,
and the need to assess many things and people
quickly. We make
many compromises and adjustment to geographic and
cultural
boundaries. The more clear cut your requirements
for your
personal and professional boundaries, the easier
it will be for
you to make the many ever changing adjustments of
this lifestyle.
You’ll have an inner counterbalance that will
transcend any
geographic boundaries you cross, and will serve
you personally
and professionally as you incorporate the new
experiences that
continue to expand your boundaries.
Your Opportunity to ASK THE COACH:
If you are interested in how coaching can make a
difference in
your business or personal life, please email to
Masonhahn@aol.com. Linda provides expatriation
and
repatriation training, and an action oriented
partnership and
support, & invites you to submit to her your top 3
expat targets or
challenges. Issues representative of the community
will be
addressed in future articles.
One submission each month will be selected to
receive
Linda’s free gift of cyber-coaching (by email) for
one month.
Please address these to: Masonhahn@aol.com
(Subject: "Ask the Coach") Linda is a writer,
speaker, and
personal and business development Coach. She works
with teams, groups, and individuals, and currently
has clients in
the United States, Venezuela, Argentina, England,
Australia,
Germany, Poland, Russia, India, Peru, & Southeast
Asia.
________________________________________________
Runzheimer takes a peek at the future of business
travel
The business traveler of the future will be fully
"wired," tap
into the Internet as the ultimate reference
directory, pay with
electronic funds transfer, use supersonic air
transportation,
stay in hotels in ocean gateway cities, and sleep
while driving,
among other futuristic occurrences,according to
the travel
experts at Runzheimer International, the
Rochester,
Wisconsin-based management consulting firm.
In an article "designed to explore possibilities,
not necessarily
forecast their time of occurrence," published in
Runzheimer
Reports on Travel Management, the monthly
newsletter, the travel
experts pinpointed the following changes:
The wired traveler. Two tools, already quite
common, will be the
business traveler’s constant companions: a
cellular telephone and
a PDA, or Personal Digital Assistant, probably
combined into one
instrument, and powered by solar panels so
efficient that
communication will be possible with headlight
beams as power
sources. Cellular phone service will be available
everywhere,
even in Antarctica. Payphones may disappear.
A modem-equipped PDA will allow the traveler to
use the Internet
as the ultimate reference directory. Who, what,
where, and when
will be answered by this resource. Why and how, as
always, will
be answered by human intellect. Phone numbers,
addresses,
history, geography, language, etc., will be
accessible.
The traveler will be able to change trip plans
instantaneously by
entering needs into a PDA. Because each traveler’s
calendar and
current location through global satellite
positioning (GSP) will
reveal their location relative to their itinerary,
subsequent
segments can be replaced and the cost checked
against available
credit.
Electronic Funds Transfer (EFT). Payment for
travel services will
be by EFT to supplier, with controls built in. If
a traveler
spends $200 for dinner and policy calls for a
maximum of $150, the
system will automatically debit both a corporate
account for $150
and a personal account for $50. A selection of
travel accounts
can be pre-established: meals, lodging, airline,
car rental,
train, ferry, gasoline (or LNG or electric
charges), etc. Account
balances will be real-time; if a traveler lacks
necessary
balances, suppliers will deny service.
You may ask why, with such incredible
communication tools, people
need to travel at all? A similar question could
have been asked
when Alexander Graham Bell introduced the
telephone. Travel’s
capacity to place a person in direct proximity to
another person
generates much more satisfying communication than
all
alternatives. Humankind’s sociality and skeptical
curiosity
demands geographical mobility.
Supersonic Air Transportation. When the traveler
goes to another
continent, he or she will use supersonic air
transportation.
Gateways for SST’s will be oceanfront airports
near ends of capes or
peninsulas. Possible U.S. SST gateway locations
will be Cape
Cod, Cape May, Cape Hatteras, Key Largo, the
Olympic
Peninsula, Point Reyes, Point Concepcion, and
Palos Verdes.
A transpacific flight will take three hours.
Ocean Gateway Hotels. Travelers will use hotels in
ocean gateway
airport cities, but they will plan travel so that
some sleeping
can be accomplished while moving. Both trains and
buses will feature
sleeping accommodations.As automated highways are
introduced,
many will sleep while they proceed by car rental
to a distant
city.
Because all transactions will be posted
automatically except for
cash purchases, a traveler upon return will have
little
obligation to assemble receipts and perform
laborious data entry.
_________________________________________________
Forward to expat friends and colleagues!
Subscribe for
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<http://www.expatexchange.com/>http://www.expatexchange.com
Please contact me directly if you have news
or other information to be included in Overseas
Digest.
editor@overseasdigest.com
William Beaver, Publisher and Editor
KUWAIT CITY, KUWAIT
* NOTICE: In accordance with Title 17 U.S.C.
Section 107, this material is
distributed without profit to those who have
expressed a prior interest in
receiving the included information for research
and educational purposes.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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-- BEGIN included message
- To: rj@freedomlaw.com
- Subject: Overseas Digest, March 1998, Vol. II, Issue 2
- From: "R. J. Tavel, JD" <rj@freedomlaw.com>
- Date: Sat, 28 Mar 1998 10:16:42 -0500
- Resent-Date: Sat, 28 Mar 98 09:18:24 EST
- Resent-From: <Teddy@viper.runningbear.com>
- Resent-To: run4bear@ticmail.net
-----Original Message----- From: expat exchange [<mailto:feedback@expatexchange.com%5D>mailto:feedback@expatexchange.com] Sent: Friday, March 27, 1998 6:51 AM To: Recipient list suppressed Subject: Overseas Digest, March 1998, Vol. II, Issue 2 *************************************************** Visit us online at <http://www.expatexchange.com/>http://www.expatexchange.com Learn how to use our new real-time chat room today! Sessions for tax help, spouses and more begin soon. *************************************************** Overseas Digest© A free newsletter for Americans living abroad, dispatched monthly from the Middle East. March 1998, Vol. II, Issue 2 © 1998 MidAmerican-Gulf Publishing Co. (Kuwait City) William Beaver, Publisher and Editor ___________________________________________ IN THIS ISSUE *U.S. State Department Public Announcements Anti-American "Fatwa" & Middle East *YOUR TAXES ABROAD By Jane Bruno Individual Retirement Accounts: Can Americans Overseas Benefit from Them? *Titan Global Communications Card Provides Access For Internet Users Who Travel *LISTENING TO AMERICA By Matt Young *See More, Spend Less: Travel By Train In Europe *Five Principles For Investment Success *ASK THE COACH By Linda Mason-Hahn The Future of Business Travel U.S. State Department Public Announcements Anti-American "Fatwa" - March 3, 1998 In a recently published "fatwa," or religious ruling, terrorist financier Osama Bin Ladin and several other radical figures openly invited all Muslims to undertake terrorist attacks against American civilians and allied interests worldwide. The Department of State strongly condemns this and all such exhortations to violence. We take this, and all such threats, seriously. We know of no specific threats to U.S. citizens or interests overseas in relation to this "fatwa," at this time. We cannot, however, discount the possibility of random acts of anti- American violence. Therefore, American citizens traveling or residing overseas should pay close attention to their personal security practices in light of the published threat. U.S. citizens planning to travel abroad should consult the Department of State's Public Announcements, Travel Warnings, Consular Information Sheets, and regional travel brochures, and refer to the Department's advisories on security awareness overseas. American citizens residing or traveling abroad are encouraged to contact the nearest U.S. embassy or consulate for up-to-date information on security conditions. This Public Announcement expires June 3, 1998. Middle East - March 3, 1998 While the United Nations Secretary General has reached an agreement with Iraq on the implementation of UN Security Council resolutions, until Iraq's full compliance with that agreement has been demonstrated, the United States and its coalition allies will continue to keep their military forces in the Persian Gulf at a high state of preparedness. As part of its military preparations, the Department of Defense announced on March 3 that it will begin inoculating military and other DOD personnel against anthrax. The best assessment currently available continues to be that there is a low probability of attack by Iraq and that the possibility of Iraq resorting to the use of chemical or biological weapons is remote, however, neither can be excluded. The U.S. Government is not able to provide vaccinations to the American public residing in or traveling to the region. There is only a single source for the vaccine and it is our understanding that virtually all the vaccine produced is under Defense Department contract for primarily military use and a small number of other official uses. We encourage all Americans to remain informed and to make their own decisions concerning travel to the region. Detailed information on anthrax and other chemical/biological agents can be obtained from the Centers for Disease Control and Prevention (CDC) either at the CDC website (http:\\<http://www.cdc.gov/>www.cdc.gov) or via its international travelers hotline (404-332-4559). Travelers should also consult the Department of State's Public Announcements, Travel Warnings, Consular Information Sheets, fact sheet on chemical and biological warfare, and regional travel brochures, and refer to the Department's advisories on security awareness overseas. American citizens residing or traveling abroad are encouraged to contact the nearest U.S. Embassy or Consulate for up-to-date information on security conditions. The Department of State continues to monitor the situation closely and will advise the American community immediately if this assessment changes. This Public Announcement supplements the February 5 "Worldwide Caution" Public Announcement, and the Middle East and South Asia Announcement issued February 10. This Public Announcement expires June 2, 1998. YOUR TAXES ABROAD Individual Retirement Accounts: Can Americans Overseas Benefit from Them? By Jane Bruno Basic Concepts Individual retirement accounts have been around for a number of years, both in deductible and non-deductible form. As you probably know, an IRA is a personal savings plan that offers tax advantages if you set aside money for retirement. What is puzzling to many Americans overseas is how the rules for determining IRA contributions and deductions apply to foreign earned income. The following will shed some light on this subject. Note that the new Roth IRA is not presented here, but will be the topic of another article. Contribution Limits The most any taxpayer can contribute in any tax year is the lesser of $2,000 or your compensation for the year. If you are married, you and your spouse can each contribute up to $2,000, but contributions cannot exceed your combined income. This means that if together you only make $3,000, you can only contribute a total of $3,000 to you and your spouse's IRAs. This also means that the $2,000 per person contribution for married couples applies even if one spouse does not work at all during the tax year, so long as together you make at least $4,000. As for expats, the rule is very clear that foreign earned income and housing cost amounts that are excluded from income do not count as "compensation" for IRA purposes. This means that if you have $60,000 of foreign income, it is all excluded on Form 2555 as foreign earned income, and you have no other taxable compensation from salary or self- employment income, you may not contribute anything to an IRA. However, suppose you have $80,000 of foreign earned income and are able to only exclude $70,000 of that from U.S. tax ($72,000 starting in 1998). This means you will report $10,000 as taxable compensation, and thus would be entitled to contribute $2,000 each to an IRA for yourself and your spouse (since your income was at least $4,000). Moreover, this is true even though your deductions and personal exemptions may reduce your taxable income to $0-and even though you may be entitled to take a foreign tax credit on the balance of foreign income that is included for U.S. tax purposes. The IRS simply requires that the income be included as "taxable compensation income". It does not require that you actually pay tax on it. Deduction Limits -Do They Apply to You? The rules get very complicated when it comes to deductions of IRA contributions. It is beyond the scope of this article to outline all the details, which are dependent on marital status, income, type of retirement plans used and the year in question. However, if you are in either of the following situations, you can forget all other rules of deductibility. In the first case, you will not be able to deduct any IRA contribution at all. In the second, you can deduct the full contribution regardless of income or other considerations. (1) No taxable income means no deduction-If your situation is similar to the one described above, in which all the potentially taxable income is offset by the standard or itemized deductions, personal exemptions and the foreign tax credit, you have no IRA deduction. This is because the taxable income has been reduced to $0 so there is nothing against which to take a deduction. Therefore, you won't have to worry about whether you meet the income limits for deductibility. (2) Foreign employer with no qualified retirement plan means full deduction - Limitations on the deductibility of an IRA only apply if you are covered by a qualified retirement plan that your employer has set up for the benefit of its employees and that meets Internal Revenue Code requirements. This means that, if you work for a foreign employer, you are not covered by such a qualified plan (even though your employer may have its own retirement plan). Thus, there are no limits on deductibility of your IRA. No matter what your income is, your IRA is fully deductible, so long as there is income against which to deduct it. If neither of the above situations applies to you and you are an active participant in a qualified retirement plan, you will need to look at the rules for deductibility. In this regard, it is important to keep in mind that your excluded foreign earned income must be included back in when you do these calculations. Thus, for example, if you have $90,000 of foreign income and are able to exclude $70,000 of it, you must still consider your income as being the full $90,000 for purposes of calculating if the IRA is deductible. Jane Bruno , Overseas Digest contributing editor, is a tax attorney who specializes in taxes for American expatriates. You can visit her website at <http://www.expatexchange.com/brunotaxservice/>http://www.expatexchange.com /brunotaxservice/ ______________________________________________ TITAN Global Communications Card Provides Access For Internet Users Who Travel Tempest Telecommunications, a provider of mobile communications services (<http://www.tempestcom.com/>http://www.tempestcom.com), announced expansion of its TITAN Global Communications Card service. TITAN (Tempest Internet Telecom Access Network) to provide dial-up Internet access for customers traveling outside of their local Internet Service Provider's coverage area, in 150 countries on 6 continents. The TITAN Global Communications Card is the World's only discount calling card that bundles together several services in addition to its toll free voice access service. These additional services include "roaming" Internet access for customers traveling outside their ISP coverage area, discounted access at domestic and International Cyber Cafes and Kiosks, as well as discounts on cellular and GSM phone rentals in 100 countries worldwide. Customers with ISPs that have local and regional access numbers can now access their account when they travel by dialing into thousands of local call access numbers world wide instead of dialing long distance. By pooling together the resources of quality Independent service providers, TITAN card users can be assured of reliable access while on the road. Compare the typical $1-$3/hr fee of a TITAN card with $7-$100/hr fee that calling cards charge for domestic and International calls. In addition because there is no recurring monthly or set-up fee TITAN customers can keep the card until they need to use it, opposed to the cost and hassle of setting up and maintaining extra accounts with other ISPs. Customers use their own ISPs services through the net and can keep their own email address. For those traveling without laptops, having a TITAN card allows users to receive discounted access to the Internet at Cyber Cafes and Cyber Kiosks around the world. A TITAN cardholder can access the Internet and all of its resources on the road, without having to bring a computer along. A TITAN cardholder can also make discounted long distance telephone calls from phones in over 50 countries around the world using the same card number through TITAN's Toll free access numbers. TITAN's high quality voice communications system is routed through the most reliable networks insuring clear, reliable conversations at deeply discounted prices through out the world. Finally, TITAN allows cardholders to get discounts on renting cellular and GSM phones and data cards for wireless voice or data communications in almost every major city Internationally. TITAN communications services are billed to one easy account and use the same authorization code making it easy to use. To use the TITAN card for Internet access, a user simply sets their computer to dial into a TITAN local access number, enters their card number and PIN, which takes only a minute. To get TITAN requires only a valid credit card. Sign up at the TITAN web site <http://www.tempestcom.com/>www.tempestcom.com or call 1-888-596-8735 for more information. ___________________________________ LISTENING TO AMERICA by Matt Young I’m an expert on this-- I’ve been married forever, or at least it seems like it. Earth shaking research, recently announced, stated that researchers have compiled a study of "What makes an enduring marriage?" The new research goes against the namby-pamby, feel-good active-listening techniques that marriage counselor and book sellers have been preaching for the last couple decades. In fact, the researchers made a special point of disparaging the active listening technique. The active listening technique uses out-of-the-box phrases like, "I understand what you’re saying, but how does that make you feel?" The news research says those kind of phrases don’t work because they are artificial, and difficult for people to use. So what do these researchers suggest as the answer to extending marriage’s average tenure. First let me explain that according to them there is nothing a woman can do to extend the life of a marriage. All of the researcher's advice is pointed toward the husband. Their suggestion is to do whatever your wife tells you to do. I always thought there were only two choices in a marriage: do what she asks, or act like you didn’t hear her. I use the latter trick all the time. My father taught it to me. If she starts bossing me around, I run into another room and tell her I can’t hear her. I’m not sure what this means to the average married guy. If he does follow the new advice of the researchers, he might not make his marriage last any longer. Or the length of time his marriage lasts might feel like an eternity. Hold on...you’ll have to excuse me...gotta go. The wife is calling. I have to run to another room. When he's not hiding from his wife, Matt listens to America and answers your email. Contact him at heymatt@iwaynet.net _____________________________________________ See More, Spend Less: Travel By Train In Europe There's an old saying: "When in Rome, do as the Romans do." When it comes to traveling in Europe, Americans should do what Romans, Parisians and Londoners all do: use Europe's modern, high-speed and convenient passenger rail system. Rail travel makes sense in Europe for several reasons: * Trains take you directly from one city center to another, usually near the things you want to see. Trains are often available from major airports, too. * It's usually cheaper, faster and more comfortable than other forms of European travel. A trip from London to Paris, using the new English Channel tunnel, takes only three hours. * Europe's high-speed rail network is new, and still improving. * The Eurailpass 17-country and Europass 5-country rail passes let Americans travel the European train system at attractive prices. Most passes offer discounts for two or more traveling together. With Flexipasses you can select just the number of days you want to travel. You can even add a car to combine train and car travel to get the benefits of both. * If you're going to Great Britain, there are attractively-priced BritRail Passes and their variations, with discounts for small groups, seniors and families. All tickets must be bought before leaving the U.S. For more information, see your travel agent or call Rail Europe at 1-888-382-RAIL (7245) or use the Web at <http://www.raileurope.com/>www.raileurope.com ___________________________________________ Five Principles For Investment Success There is a formula every investor can follow to help them develop a more successful investing style. According to Edwin D. Walczak, the Morningstar 5-star manager of the $200 million Vontobel U.S. Value Fund, the essential components of that formula are simplicity coupled with tough discipline. These have the potential for producing smooth, positive long-term investment returns. According to Walczak, whose 100% no load fund was up 34.3 percent in 1997, these five principles are worth noting: 1. Invest. Don't speculate. There is a difference. 2. Try to stay within your circle of competence. If you can't understand it, don't invest in it. 3. Buy good businesses with predictable earnings. Some of the more important factors are that they have the elements of a franchise, high barriers to entry, good returns on equity and owner-oriented management. 4. Try to concentrate on companies and analyzing their businesses, not on market timing or economic calls. 5. Concentrate on a limited number of stocks you know well. It's really impossible to know 70 to 100 companies well. ______________________________________________ Ask The Coach! Passport Please? by Linda Mason-Hahn, Coach As expats, we cross many geographic and cultural boundaries. At times the geographic boundaries are well marked, or delineated in some way that gets our attention; maybe the scenery, architecture, atmosphere, environment, or politics changes so dramatically that we even take photos to commemorate these crossings, to mark them in our memory as a significant event. As we fly across the world, we know we cross many geographic boundaries without notice, just as we have at times in autos. But we cross the boundary just the same as those presenting with more drama. A client in Eastern Europe remarked during a recent coaching session: "There are boundaries designed to keep people out, and boundaries designed to keep people in". This gave me the perfect opportunity to share the importance of our personal and professional boundaries. Geographic boundaries were often established rather arbitrarily, by hard workor fighting. Fences, moats, checkpoints, walls, and PassControllewere established to monitor, and in some situations, restrict, those coming and going. The general purpose was to protect the inhabitants and what was valuable to them; along the way, taxes were imposed and demographics gathered, providing revenue to support the area and information on who came and went, for what purpose, and where more attention needed to be focused to attract different demographic breakdowns. Unfriendly persons attempting to breech the boundary usually had a fight on their hands. Geographic and cultural boundaries have been known to inspire fierce pride, protection, and judgment of those not residing within. We see this still occurring today in many places around the world. Boundaries work to keep something/someone in, and they also work to keep something or someone out. This is also true for our personal and professional boundaries. How many battles have you had in your life to protect or expand yours? How many checkpoints do you have in place? What exactly are *personal boundaries* anyway? Boundaries are behaviors that you will not allow others to do TO you, or around you. Boundaries are a line of emotional and/or physical protection that YOU place around you.You get to decide where your boundaries are, because you, your soul, and what is important to you, are more important to you than they likely are to others. And it's healthy that your boundaries be more important to you than to anyone else. We all have that responsibility to ourselves, personally and professionally. You need boundaries, because at times others want what you have (support, time, money, physical space or possessions, information, solutions, even your physical body) and you may not desire or be able to give it to them. Your boundaries define what is acceptable and unacceptable to you…what others can and can not do to you, or around you. People who try to talk you into something you've determined to be unacceptable to you, and who do things around you that you find unacceptable, are being disrespectful to you by ignoring your boundaries. You cannot grow without boundaries. You CAN learn how to design, implement, and manage them in such a way that they become effortless to you and to those around you. We need boundaries around us to protect our souls, hearts, minds, and bodies from damaging behaviors of others. Those same boundaries help us identify those who assist us in nourishing ourselves, our growth, our well-being in a healthy, respectful way. We’ve all had others cross our boundaries; we’ve all crossed the boundaries of others. Just as some geographic boundaries are dramatic crossings that get our attention, and others go unnoticed, so it is with our personal and professional boundary crossings. Sometimes we see signs and signals that a boundary exists, and we commemorate it. At other times, seemingly out of nowhere, it sneaks up on us. So develop and utilize your EPC! Establish your own "Emotional Passport Control" Picture yourself drawing an imaginary line of your boundaries around you. Where is that line? Most people draw the line close to themselves, thinking that provides the protection they need. In fact, it is recommended you extend your boundaries at least two or three times beyond where they now are. If your boundaries are "close to you", when others overstep your boundaries (& they will!) you are vulnerable, having little, if any, room to maneuver to protect yourself. When you extend your boundaries, you have time to "see it coming" and room to still protect yourself when necessary. Now re-draw that imaginary line. Think of your boundaries as the moat around your castle. Like the moat in times past, boundaries keep abusive and needy people at a reasonable distance from you so that you are not hurt or drained. Sometimes it is important to establish a safe distance from other people's needs (notice carefully that says "other people's needs"----NOT other people!!). Some folks will take advantage of you, particularly if you don't know how to raise the drawbridge of your moat! (such as in learning to say "No" or leaving a situation before it starts to cost you emotionally, even physically). When a person has healthy boundaries, fear diminishes significantly, relationships become healthier and more respectful, and more developmental growth is possible. When one has boundaries that are weak, they attract needy, disrespectful people into their lives, and waste a lot of energy just keeping things going. Issuing Emotional Visas for Long Term Stays Make a list of 5-10 things that people may no longer say to you, do around you, or do to you. Share with those involved in your life your process and get their commitment to support you and honor your boundaries. Be relentless in educating others to the location of your new boundaries, and how to respect them, but do not be punitive. Some action steps are useful when others violate your boundaries: Action #1: Inform them. (Do you know that you sound harsh and abrasive to me?) Perhaps they forgot, or are unaware. Give them the benefit of the doubt. Action #2: Request they stop. (I request that you not speak to me in that tone of voice.) Action #3: Instruct them. (You know how you joke about that? Well, I’ve realized that it’s not OK with me/hurts me, and I ask you to respect this and stop doing it. What you *can* do is ………) Action #4: Warn them. (It’s not OK that you ever again use those words when talking to me.) Action #5: Leave. (What you are saying is unacceptable to me. I’m open to working it out in a reasonable way with you but am leaving now to protect myself.) Now how about making a list of some ways you are violating the boundaries of others? Then stop violating the boundaries on that list. And thank and congratulate those who are respecting the boundaries established by you & others. Expats cross many boundaries...geographic, cultural, personal, professional. Even with all the developmental benefits the expat lifestyle brings to us, it also brings times of stress, feeling displaced, off balance, disoriented, hyper-vigilant about safety, and the need to assess many things and people quickly. We make many compromises and adjustment to geographic and cultural boundaries. The more clear cut your requirements for your personal and professional boundaries, the easier it will be for you to make the many ever changing adjustments of this lifestyle. You’ll have an inner counterbalance that will transcend any geographic boundaries you cross, and will serve you personally and professionally as you incorporate the new experiences that continue to expand your boundaries. Your Opportunity to ASK THE COACH: If you are interested in how coaching can make a difference in your business or personal life, please email to Masonhahn@aol.com. Linda provides expatriation and repatriation training, and an action oriented partnership and support, & invites you to submit to her your top 3 expat targets or challenges. Issues representative of the community will be addressed in future articles. One submission each month will be selected to receive Linda’s free gift of cyber-coaching (by email) for one month. Please address these to: Masonhahn@aol.com (Subject: "Ask the Coach") Linda is a writer, speaker, and personal and business development Coach. She works with teams, groups, and individuals, and currently has clients in the United States, Venezuela, Argentina, England, Australia, Germany, Poland, Russia, India, Peru, & Southeast Asia. ________________________________________________ Runzheimer takes a peek at the future of business travel The business traveler of the future will be fully "wired," tap into the Internet as the ultimate reference directory, pay with electronic funds transfer, use supersonic air transportation, stay in hotels in ocean gateway cities, and sleep while driving, among other futuristic occurrences,according to the travel experts at Runzheimer International, the Rochester, Wisconsin-based management consulting firm. In an article "designed to explore possibilities, not necessarily forecast their time of occurrence," published in Runzheimer Reports on Travel Management, the monthly newsletter, the travel experts pinpointed the following changes: The wired traveler. Two tools, already quite common, will be the business traveler’s constant companions: a cellular telephone and a PDA, or Personal Digital Assistant, probably combined into one instrument, and powered by solar panels so efficient that communication will be possible with headlight beams as power sources. Cellular phone service will be available everywhere, even in Antarctica. Payphones may disappear. A modem-equipped PDA will allow the traveler to use the Internet as the ultimate reference directory. Who, what, where, and when will be answered by this resource. Why and how, as always, will be answered by human intellect. Phone numbers, addresses, history, geography, language, etc., will be accessible. The traveler will be able to change trip plans instantaneously by entering needs into a PDA. Because each traveler’s calendar and current location through global satellite positioning (GSP) will reveal their location relative to their itinerary, subsequent segments can be replaced and the cost checked against available credit. Electronic Funds Transfer (EFT). Payment for travel services will be by EFT to supplier, with controls built in. If a traveler spends $200 for dinner and policy calls for a maximum of $150, the system will automatically debit both a corporate account for $150 and a personal account for $50. A selection of travel accounts can be pre-established: meals, lodging, airline, car rental, train, ferry, gasoline (or LNG or electric charges), etc. Account balances will be real-time; if a traveler lacks necessary balances, suppliers will deny service. You may ask why, with such incredible communication tools, people need to travel at all? A similar question could have been asked when Alexander Graham Bell introduced the telephone. Travel’s capacity to place a person in direct proximity to another person generates much more satisfying communication than all alternatives. Humankind’s sociality and skeptical curiosity demands geographical mobility. Supersonic Air Transportation. When the traveler goes to another continent, he or she will use supersonic air transportation. Gateways for SST’s will be oceanfront airports near ends of capes or peninsulas. Possible U.S. SST gateway locations will be Cape Cod, Cape May, Cape Hatteras, Key Largo, the Olympic Peninsula, Point Reyes, Point Concepcion, and Palos Verdes. A transpacific flight will take three hours. Ocean Gateway Hotels. Travelers will use hotels in ocean gateway airport cities, but they will plan travel so that some sleeping can be accomplished while moving. Both trains and buses will feature sleeping accommodations.As automated highways are introduced, many will sleep while they proceed by car rental to a distant city. Because all transactions will be posted automatically except for cash purchases, a traveler upon return will have little obligation to assemble receipts and perform laborious data entry. _________________________________________________ Forward to expat friends and colleagues! Subscribe for free e-mail delivery at <http://www.expatexchange.com/>http://www.expatexchange.com Please contact me directly if you have news or other information to be included in Overseas Digest. editor@overseasdigest.com William Beaver, Publisher and Editor KUWAIT CITY, KUWAIT * NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Liberty's Educational Advocacy Forum <http://freedomlaw.com/>http://freedomlaw.com Dr. Tavel's Self Help Clinic and Sovereign Law Library <http://drtavel.com/>http://<http://drtavel.com/>drtavel.com promotes "action that raises the cost of state violence for its perpetrators (and) that lays the basis for institutional change " [Noam Chomsky] Not a high-tech law firm brochure, "because a lawyer is only as smart as you make him" [Max Katz] and "the Law . . . should be accessible to every man and at all times." [Franz Kafka] For Liberty in Our Lifetime, R.J. Tavel, J.D. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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