Expert financial advice By Andy Oliver, CEO of Private Client Consultancy
Reasons Expats do not seek Advice, and Reasons why they Should
A
s an expat living in Europe, there are several ways of doing things that you need to get used to. This includes, managing your money, your pensions, and investments, and undertaking proper financial advice when planning for your future and the future of your family. As an expat, organising and arranging your finances and retirement plans can become a headache. You’ll likely have several bank accounts (locally and in the UK), as well as several different pension pots that you have accumulated over years of working in the UK and maybe abroad. Factoring in UK state pension eligibility can become even more confusing. How do I access my UK pension? When can I access my UK pension? Should I leave my pension in the UK, or maybe look to transfer? These are all common questions that most expats will ask, and it’s important to make sure you know your options. When we speak with expats abroad, often people will say that seeking financial advice is important, but they haven’t got around to doing it yet. There may be several reasons why expats don’t seek advice so we’ve listed a few on why they should, and how they can go about it. If any of this sounds like you, get in touch. We can help you organise your finances, understand the impact of your decisions, and make sure you’re on track to reach your future goals. When weighing up the cost of financial advice, it’s also important to look at the bigger picture. A study from the UK International Longevity Centre (ILC) published in 2019, found that advised clients accumulated more wealth than non-advised clients. It also found that those that took financial advice between 2001 and 2006 were, on average, £47,706 better off in 2014/16. I can look after my own money, is a common reply. Some people say they don’t take financial advice as they feel confident enough to do it themselves. What we find is that even with the interest and will to self-manage, there is often not the time to commit to managing your investments, which can lead to your investments being neglected and at risk of underperformance. Even when you’re
50
in control of your finances, working with a qualified professional can still add value. Financial advice can help you understand all the opportunities you have and how best to reach your goals. It can also make sure you are taking advantage of tax-efficient options to help make your money go further and the specific issues you may face as an expat in Europe. You will also need to consider the jurisdiction where you are living, as well as any tax and reporting obligations plus investment restrictions you may have. Working with a financial adviser doesn’t have to mean giving up control of your assets, but rather that it provides you with additional and oftentimes much-needed support so you can be confident in the decisions you’re making and the long-term impact they could have. Financial advice isn’t for someone like me You may think that your net worth or a particular asset has to be above a certain figure to make financial advice worthwhile. However, financial planning can help a range of people. In reality, most international professionals living in Europe and away from their home country could really benefit from the structure and direction of a good financial plan. If you’re not sure if financial advice is right for you, please get in touch with us. Whether you’re an experienced investor or just beginning a financial plan, we can help. It isn’t something I’ve thought about. As mentioned in the introduction, with so many things to think about and new ways of living to get used to when you are living in a new county, managing one’s finances often gets pushed down the list. Both the day-today decisions about your finances and the long-term planning are just as important when you are an expat. I don’t like talking about money. Talking about money is still something of a taboo subject for many. Even among family and friends, money is something we rarely talk about, so it’s easy to see why some people may be put off talking to a financial adviser. People will tend to seek expat financial advice when they are looking to increase the income they receive from their assets, either in the short term, or the long term (such as in retirement). Financial advisers are able to help expats
plan and manage your finances to restructure your investments and savings, enabling you to maximise your return on investment as well as minimise any tax which may be due as a result. If you’ve put off seeking financial advice, focus on how a discussion about your finances can help you manage your life as an expat living in Europe. It can help you to define and then reach your most important aspirations and life goals, from retiring early to creating a nest egg for your children and grandchildren. Meeting with a financial adviser isn’t just about discussing how much your assets are worth. While your finances do play a large role, understanding what you want to achieve and how your assets and decisions can help you reach them, are the real focus of discussions. It is therefore important that you find a professional that you are comfortable speaking with. You may feel that you need to speak with a few advisers first before you get that connection. Make sure it is one where you can speak freely and openly with so you can be sure that you are working together on the same page to help you now - and in the long term. Procrastination can be costly. When you get a late start, it may be difficult to make up for lost time. The question we should be asking ourselves is, where will our retirement money come from? If you’re like most people, qualified-retirement plans, Social Security, and personal savings and investments are expected to play a role. Once you have estimated the amount of money you may need for retirement, a sound approach involves taking a close look at your potential retirement-income sources. If you would like to discuss your finances or have any questions about how financial advice could help you and your family, please get in touch with us at info@pccwealth.com
www.eastalgarvemag.com
