Why I Love Having Assets in Both the U.S. and Japan
This summer, I’ll be heading back to the U.S. for a three-week vacation. I’m excited to see family, visit familiar places, and enjoy a change of pace. But one thing I won’t be doing? Worrying about the exchange rate.
That’s a huge shift from what many expats face. With the yen weaker than ever, plenty of Japan-based Americans are anxious about how expensive everything feels back home. Some delay their trips. Others stress about when to convert yen to dollars. But for me, that’s no longer part of the equation.
Why? Because I’ve spent the last several years building a financial system that spans both the U.S. and Japan. My life in Japan is funded by yen, and my time in the U.S. is funded by dollars. It’s not magic—it’s just a structure I’ve built over time that now allows me to live (and travel) without financial friction.
The Expat Currency Crunch
If you’ve lived in Japan for more than a few months, you know the pain of watching the yen weaken while your U.S. expenses remain fixed—or rise. Every meal, every hotel, every gift for family back home starts to feel 30–50% more expensive than it would’ve been a few years ago.
And when your entire income is in yen, that reality hits hard. You’re stuck trying to time conversions, watching rates, and feeling like your money just doesn’t go as far as it should.
That used to be me, too. But not anymore.
What My System Looks Like Today
These days, my U.S. rental properties generate enough income to cover everything I need while I’m in the States—flights, accommodation, transportation, meals, even entertainment. That income stays in dollars and is deposited directly into my U.S. bank accounts.
At the same time, all of my day-to-day life in Japan—mortgage-free housing, living expenses, savings, and investing—is handled entirely in yen. My university salary covers our needs, and I’ve set up Japanese brokerage accounts and tax-advantaged accounts for long-term investing.
Because of this, I no longer have to move money between countries. When I’m in Japan, I live in yen. When I’m in the U.S., I spend in dollars. And that separation has brought a surprising amount of peace of mind.
It Wasn’t Always This Easy
Getting to this point didn’t happen overnight. I had to put in the work: buying real estate in the U.S. from overseas, navigating international tax rules, keeping a valid U.S. address to maintain my brokerage accounts, and staying compliant on both sides.
There were some headaches. There still are sometimes. But looking back, the payoff in flexibility has made every challenge worth it.
Why I Recommend This to Other Expats
I think every American living abroad should consider setting up a financial system like this. Not necessarily with real estate (though it worked for me), but with something—some stream of U.S.-based income that can support you when you're in the States, whether that’s rental income, dividends, or freelance work.
It’s not just about convenience. It’s about diversification. You’re spreading risk across currencies, across economies, and across legal systems. And you’re giving yourself options—something that becomes more valuable the longer you live abroad.
I’ve also found tax benefits in both countries. In Japan, I can take advantage of my wife’s NISA account and contribute to a DC plan through work. In the U.S., real estate offers depreciation, expense deductions, and other ways to manage taxes. The key is not choosing one system over the other—it’s learning how to navigate both.
Living Without Financial Borders
The biggest benefit, though, has been psychological. I don’t feel stuck in one place. If we decided to spend more time in the U.S. or even relocate temporarily, I already have the infrastructure in place to make that transition smooth. No scrambling to open accounts or move money around—just living my life, supported by a financial system that works wherever I am.
It’s easy to get overwhelmed by the complexity of managing finances across borders. But it’s possible. And once it’s in place, it’s incredibly freeing.
Final Thoughts
When I was just starting out, I never imagined I’d be able to live this way—moving fluidly between two countries without worrying about currency swings or logistical headaches. But with time, patience, and a little strategy, I built a system that lets me live life on my own terms.
And if you’re living abroad right now, I hope you’ll consider doing the same. Because financial independence isn’t just about hitting a number—it’s about designing a life that works for you, wherever in the world you are.
– The FI Professor
Disclaimer:
This blog post is for informational and educational purposes only and does not constitute financial, tax, or legal advice. The strategies and experiences shared are based on my personal situation as a U.S. citizen living in Japan and may not be appropriate for everyone. Always consult with a qualified financial advisor, tax professional, or legal expert before making decisions related to cross-border investing, real estate, or tax planning. Laws and regulations can change and vary based on your residency status, citizenship, and personal financial goals.
