Financial planning for expats: The following article is an excerpt from our whitepaper “Top 5 Financial Tips to Help Expats Prosper Amidst Economic Uncertainties”. In this whitepaper, we discuss the key points expats must be aware of to maximize their financial opportunity while living and working overseas. You can find the full version of the paper here
“One of the largest attractions for heading overseas to work as an expat is for the lucrative opportunity such an assignment will bring, which means understanding how to invest while living abroad will help you to enjoy the best returns.”
Savings sitting in a bank account is an underutilised asset. Money needs to go to work to create more money. Being in a momentarily favourable position on an expat assignment means pragmatically assessing what you need to live well while allotting a specific saved amount towards professionally directed investment opportunities.
The attractiveness of the situation is doubled, too, if you can put your money to work in both the home and guest countries. A split income can logically direct financial resources to long-term home opportunities while giving you the flexibility to explore the excitement of more novel opportunities within overseas economic sectors that differ wholly from your home country.
Options can be onshore or offshore to explore favourable tax benefits, while certain home-based investments may be developed solely for non-resident citizens working overseas. There is any number of specifically formulated investment plans that tailor to varying fund amounts, in differing currency splits, and over set periods that take into account either continued residence in your country of work or a return to your home country.
Structured notes, for example, enable short-term, high-yield fixed investments to be made that tally with needs, so a 4-6-year payout could coincide with a move home. The attraction is being in a position to put solid funds from an expat package to work in an investment normally reserved for high-net-worth investors. This is possible when using a financial planner, as they often meet the business criteria to invest on behalf of their client base.
The key here is to also conceive how a relatively short window of expat working opportunity may provide maximum returns through investment opportunity access that wouldn’t feature in your home country
Equally, the visibility into overseas markets that comes with expat life provides the ideal opportunity to jump on property investments that can reap impressive short or longer term returns depending upon the economic development curve in those markets.
Financial planning for expats is critical. Download the full report here.