Best ways to invest / pension as American in UK

Thank you Durhamlad. This is an option but the 3% interest rate.. while steady is low for what I would, potentially, get on the stock market. I understand the stock market is risker but im at an age where I can absorb higher risk

However i though US citizens couldnt access ISAs

I'm not aware of any restrictions on USC's having an ISA. However, they're hardly an attractive proposition - the poor rates of interest are made even worse for USC's because the interest, while tax-free in the UK is taxable in the US. 

As @durhamlad says, - look at NS&I - (including Premium Bonds) - just about the safest place for UK Gov't backed savings - although again interest or premium bond winnings are taxable in the US.

I don't earn anything near the threshold so if i earned interest would the interest be taxable in itself or would it be assess in conjunction with my income.

I.e if earn $60,000 and over three years make say... $5,000 in interest would it be taxable as $5,000 or assed as part of my income in that year (that I cash it out).

Don't confuse earned income (which has the FEIE available) with non-earned income (interest) which I believe has no exclusion threshold and therefore is taxable after the first $ - others with experience of the FEIE may offer greater insight and advice.

Unfortunately the FEIE is not available to me so I file form 1116 where income is categorised.

Thanks for that that is clear! 

Thank you Durhamlad. This is an option but the 3% interest rate.. while steady is low for what I would, potentially, get on the stock market. I understand the stock market is risker but im at an age where I can absorb higher risk

I have lots of investments in the USA, in the US stock market, so am familiar with the swings and dips each year.  I have also been in the UK since 2016 when I first started moving money over. In 2015 the exchange rate meant $50k moved to the UK fetched £30k and by 2nd half of 2016 it would fetch £40k, and today it bring £45k. (A 50% return over 7 years).

I am just saying that if you intend to use your money in the UK to buy a house in 5 years, you may or may not earn good returns in the US stock market but they may be wiped out by the pound strengthening against the dollar. Diversity and asset allocation is good.

These are all excellent points. I know myself from yearly holidays to the USA how good things were and how expensive these holidays are getting. Just got back from a holiday and boy was it expensive.

I have a property in Ireland with rental income so I have some diversification in investments. I will consider NS&Is but i do want to try my luck in the stock market. I am no interested in quick fads like bitcoin. However I am something with more ROI than 3%.

These are all excellent points. I know myself from yearly holidays to the USA how good things were and how expensive these holidays are getting. Just got back from a holiday and boy was it expensive.

I have a property in Ireland with rental income so I have some diversification in investments. I will consider NS&Is but i do want to try my luck in the stock market. I am no interested in quick fads like bitcoin. However I am something with more ROI than 3%.

By all means go ahead and invest in the US stock market, I have been doing so since 1995 when I first opened a 401k with my employer and have done really well (9%/year over that long time period but some wild swings). Just be prepared for a roller coaster ride. After the internet companies crash at the turn of the century I had 3 successive losing years, the last one being 11%. In the financial crash of 2008 I  was down 20% and this year I am down 19%. You don’t actually lose money until you sell of course which is why you are correct that you should not invest money that you need within the next 5 - 10 years.

The foreign exchange rates just throw another variable into the equation if you need to move that money at the end of the investing period.

Family member has the same ROI as you over 20/25 years. Down massively this year due to recent events. I just need to find someone who can help me understand how to do it. i.e do I need a USA address/bank account etc.

Family member has the same ROI as you over 20/25 years. Down massively this year due to recent events. I just need to find someone who can help me understand how to do it. i.e do I need a USA address/bank account etc.

Without wanting to be disrespectful (I certainly don't want to insult you  ), you do sound as if you may be just starting out in the investment field. Getting professional advice is great, but there's really no substitute for fully understanding things in a little more depth.

It never ceases to amaze me how many people totally trust their tax advisor (because they got a refund!) without really understanding the mechanics of how taxation works and how tax is calculated - maybe I'm just a boring anorak (I'm a Chartered Accountant btw) - a little or no knowledge can be dangerous (and expensive and painful!).

A great read if you have the time and want to understand a little more is Unshakeable by Tony Robbins https://www.unshakeable.com/ Highly recommended - enjoyable and an easy read also.

No offence taken and thanks for the book recommendation. All I know is that my $50k isn't gonna be worth $50k next year with inflation and saving account interest rates. I need to invest in something and if i wasn't a USA citizen it would be much simpler.

I'm a UK/USC and I have had to move my SIPP 3 times because of the issues UK investment platform have with USC's.

My current SIPP is with IWEB - which is the trading name of Halifax Share Dealing. They use AJ Bell for management. They're a reputable platform, reasonably priced and I believe still accept USC's a clients.

Their website has some useful investment information:

https://www.youinvest.co.uk/

Just read their T&C's - their ISA & Dealing Accounts do not accept USC's!  - their SIPP however has no such restriction (yet!).  What a minefield.

unless I'm misunderstanding something I'm not after a SIPP. I'm after something I can cash out a portion of after 10 years.

You could open a simple 5 year Term Deposit. Paying around 4.5% right now. Safe, secure AND you will benefit from a PSA.

Or you could have invested in a benchmark  S&P 500 fund & probably lost circa 12-15% over the last 12 months

Or held cash in a USD and watch it earn nothing but YTD has grown 20% against the GBP 

It's all a bit like playing poker at the moment.......  Even longer term (5 Years) it hasn't been any easier - it really depends where you sit on the Risk Scale.

The heading from the OP talks about investing for pensions but now we're talking about much shorter term - which typically  plays into a totally different risk profile.