Costa Rica has been a retirement destination for Americans for fifty years, long enough that the country has a mature ecosystem of people who make a living advising them. The pensionado and rentista residency categories both require documented income, which means most Costa Rica expats hold their assets in US accounts and draw from them monthly. A portfolio built for monthly withdrawals is a portfolio that fails loudly when a broker fills it with illiquid, high-commission products.
What goes wrong in Costa Rica
Three patterns we see from Costa Rica.
- 01
Income products that cannot produce income
Non-traded REITs, business development companies, and structured notes are routinely sold to retirees as income vehicles. They pay well — for the broker. When distributions are cut or the product cannot be sold, a retiree drawing a fixed monthly amount is forced to liquidate something else at the wrong time. That chain of losses is recoverable when the original recommendation was unsuitable.
- 02
Being asked to leave
US brokerages restricting foreign residents has hit Costa Rica hard because the community is so large. Being pushed out of one firm and into another is a moment of maximum vulnerability, and the transfer itself is where we see many of the worst product swaps.
- 03
The expat-club advisor
Advisors who present at expat associations and residency seminars are not necessarily registered in the United States. If yours is a FINRA member, arbitration is available. If not, we will tell you plainly what your options are.
Working with Birmingham from Costa Rica
Your hours, not ours.
Costa Rica does not observe daylight saving, so it is either the same hour as Birmingham or one hour behind — ordinary business-hours calls all year. FINRA arbitration is a document-driven, national forum. Your claim is filed electronically, discovery is exchanged electronically, and hearings are routinely conducted by video. Richard Frankowski has represented investors in FINRA arbitration from his Birmingham office for over twenty-five years — most of them people he first met by phone.
Costa Rica
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The claims behind the patterns
Each pattern is a recognized FINRA claim.
- 01 “They found out I moved, and now my account is frozen.”
- 02 “I needed income and safety. He sold me something I couldn’t sell.”
- 03 “I was twelve hours away, and the trading never stopped.”
- 04 “I rolled over everything the month I retired. That was the mistake they were waiting for.”
- 05 “He said he specialized in Americans abroad. I never checked who regulated him.”
Guides
Guides for Americans in Costa Rica
- Can I Keep My IRA or 401(k) If I Move Abroad? Yes — Mostly You can generally keep an IRA or 401(k) after moving abroad. What changes is who will hold it — and what brokers get wrong about rollovers and cashing out. 7 min read
- Variable Annuities Sold to Retirees Abroad: What to Know Surrender charges, layered fees, oversold riders, and annuities inside IRAs: how variable annuity claims work for American retirees abroad. 7 min read
- Non-Traded REITs: Why You Cannot Sell Them Why a non-traded REIT cannot be sold, where the distributions really came from, and when the recommendation — not the market — was the problem. 7 min read
- What to Send a Securities Lawyer: A Document Checklist The documents a securities lawyer needs for a free case review — statements, confirmations, the account application, the firm’s letters — from abroad. 6 min read
- The Retirement Rollover Checklist Before You Move Abroad Before you roll a 401(k), TSP, or pension into an IRA and leave the country: what Regulation Best Interest requires, and the questions to ask in writing. 7 min read
- Selling Away: When a Side Deal Is the Firm’s Problem Your broker sold you something that never appeared on a statement. FINRA Rules 3280 and 3110 explain when the brokerage firm is responsible anyway. 7 min read
My broker says the losses were market risk. How do I know if it was misconduct?
The question is not whether the market moved — it is whether the investment was appropriate for you in the first place, whether the risk was disclosed, and whether the account was handled with reasonable care. A free review of your statements usually answers that within a few days.
Can you look at my statements before I decide anything?
Yes. Send us recent statements and the account-opening documents if you have them. The review is free and confidential, and you are under no obligation.