The Wealth Management Pitch

📩 1. The Client Brief

Read Carefully

From: Arthur Sterling (arthur.sterling@wealthmail.com)
Subject: Relocation to Germany - Portfolio Review

Dear Partner,

As discussed, I am relocating my tax residence to Munich next month. I need a clear strategy for my global portfolio.

Currently, my primary income is generated via passive income streams. I hold significant positions in US-based REITs and a diversified basket of ETFs. I am concerned that the German tax burden will significantly erode my yield.

Additionally, I have some accumulated losses from a failed venture in 2023. Can we offset these against my future dividend income? I am looking for tax efficiency, not evasion.

I expect a preliminary assessment by Tuesday regarding my liquidity needs.

Best regards,
Arthur Sterling

🔗 2. Terminology Match

Match the financial term to its definition. Correct pairs will disappear.

⚖️ 3. Advisory Strategy

Based on the email, what is the correct advisory approach?

1. How should you handle Mr. Sterling's concern about the "Tax Burden"?

Tell him to keep the money in the US to avoid German tax completely.
Explain the "Abgeltungsteuer" (25% flat rate) and how foreign tax credits apply.
Advise him to buy more crypto to hide the wealth.

2. Can he offset his 2023 losses against future income?

Potentially, but there are strict restrictions on "loss carry-forwards" in Germany.
Yes, Germany allows unlimited loss offsets for all income types.
No, losses can never be deducted in Germany.

3. What is his main goal?

To evade taxes using offshore accounts.
To sell all his assets before moving.
To maintain tax efficiency while remaining compliant.

📝 4. The Partner's Reply

Complete your email response using the correct phrasal verbs.

Word Bank

subject to offset against yield a return wipe out look into

Dear Mr. Sterling,

Welcome to Munich. Regarding your US REITs, please note that these dividends are German withholding tax.

However, we can certainly structuring your portfolio efficiently. It may be possible for your previous losses to be your future capital gains, though rules apply.

Be careful with high-risk assets, as market volatility could your gains. Our goal is to ensure your assets continue to that beats inflation.

Regards,
The Partner

🎉 Lesson Complete

Review the key terminology below. Click to verify definitions.