As the title suggests, I am trying to avoid breaching the PFIC regulation while continuing to invest. Once tax season rolls around I normally max out my Roth IRA, however I am not in a sticky situation where all my earned income in the past year has been made outside the US. Hence, I will most likely be opting for the FTC, so that I can contribute to my Roth IRA.
Unfortunately due to EU and US regulations I am now in a sort of investing purgatory where I cant invest in ETFs/mutual funds in either market without being in tax paperwork hell. So I am now looking at buying individual stocks, but I am a noob and am looking for advice. I would like to purchase stock that is more on the safe side and acts like the S&P500. I am not really looking for dividends, at the moment I am more so in a “set it and forget it” mindset.
So perhaps another way to phrase my question is, **what would you invest in if you wanted to invest in index funds, but were not allowed to?** I will of course do the leg work to figure out what sort of maintenance I need to perform on the stocks (i.e. how often do I need to login and check on my stocks, when do I rearrange my stock allocations). If anyone has links for videos/docs on how to maintain stocks that were particularly helpful to them, that would also be dope.
Some opinions/options I have found through reading reddit include:
* Utility companies
* Chips (e.g. Nvidia)
* Insurance companies (e.g. Allianz)
* Boring services we will almost always need (e.g. Waste Management WM)
* Huge Pharma (e.g. JNJ, Pfizer, P&G)
* Food (e.g. KO, Pepsi, General Mills, Costco)
* Green tech I am weary of, ive read that the renewable sector is stull in flux, companies are not yet stable
A friendly request … please don’t roast me, I am not the most financially savvy person, I am just trying to prepare for retirement and keep my money safe from inflation in a responsible way. If I wrote something that sounds stupid or doesn’t make sense, please teach me so I understand “the way”. Thanks in advance for your help.