Many expats living and working abroad do so to improve their quality of life and build wealth for retirement. Sound financial advice is crucial to having a well-rounded, diversified portfolio. Finding an international financial adviser who is knowledgeable about cross-border finance can be challenging.
Here are some questions you need to ask yourself first.
If you answered yes to some of the questions below, then you probably need to get in touch with a financial adviser to assist you with getting these things in place.
International financial advice refers to professional guidance on managing money, investments, taxes, and financial planning across different countries rather than within just one. It is vital to find a financial adviser who is regulated and qualified across multiple jurisdictions.
· Investing globally
Advice on buying assets like international stocks, bonds, or funds, and understanding foreign markets.
· Tax planning across borders
Navigating how taxes work when you earn, invest, or live in more than one country (to avoid double taxation, for example).
· Currency management
Handling exchange rates, foreign bank accounts, and protecting against currency fluctuations.
· Retirement planning abroad
Structuring pensions or savings if you plan to retire in a different country.
· Estate and inheritance planning
Managing how assets are passed on when laws differ between countries.
· Expatriate (expat) financial planning
Helping people who live or work outside their home country manage finances effectively.
Who needs international financial planning?
People working abroad (expats)
Digital nomads
Investors with international assets
Businesses operating in multiple countries
Retirees planning to live overseas
There are global implications to your financial assets. Your life just got complicated because now, you must adhere to tax and finance laws from two countries. Where you are from, and where you now live.
Search for well-established companies that are globally regulated, transparent, and offer international cross-border investment strategies that aim to provide clients with a comprehensive picture of the global economy and provide regular updates on current stock market and fixed income trends, to assist in making informed investment decisions.
Remember that advisers may come and go, but your financial consultancy will be with you through every step of your financial journey. Consistency and reliability are very important. Make sure you choose a trusted name in the industry.
Most people are not experts or educated in financial advice, and emotions often guide financial decisions. You wouldn’t ask your local grocer to give you medical advice; instead, you would go to your doctor, someone you trust to have the right skill set to help you. Just so with your finances.
A financial adviser has the qualifications, expertise, knowledge, and experience to help you decide what is best for your situation and plan steps, not just for now, but also for you and your family’s future needs.
Financial rules, taxes, and regulations vary widely between countries. Without proper advice, you could:
If you’re living in Portugal but earning income from the UK, international financial advice would help you:
A local adviser helps you in one country. An international adviser helps you connect the dots between countries.
Having an international financial adviser can make a big difference if your money, work, or life spans more than one country.
Different countries tax income, investments, and property in different ways. A good adviser helps you:
If you earn or invest in multiple currencies, exchange rates can quietly eat your money.
Instead of being limited to one country, you can:
If you live abroad or move frequently:
Retiring in another country isn’t simple:
Financial regulations can be complex and strict internationally.
If you have assets in different countries
An adviser can help with international life cover and an education savings plan.
Probably the most underrated benefit
Diversification is the attempt to reduce risk by investing in more than one nation, sector or asset class. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns.
In the past, assets were invested in the main economic markets such as the UK, the EU and the US, etc. Not all global markets are affected by what happens to these heavyweights.
By spreading your investment over other global economic markets, sectors and asset classes as well, you are decreasing your risk. For example, if you are invested in three markets and one doesn’t do so well, then you have a 1/3 loss as opposed to investing in 7 markets where your loss is only1/7.
It’s the proverbial saying ‘don’t carry all your eggs in one basket’.
Benefits of global diversification
The chart below shows a typical long-term balanced portfolio based around 60% global equities and 40% global bonds.
It is important when getting financial planning and investment advice that you deal with reputable and professional advisory firms that have a high standard of work ethic and a favourable reputation.
Look for an international financial advisory firm that has a hands-on approach where they actively manage your assets to ensure that you receive tailor-made administration and asset management services that maximise your investment portfolio. When you leave, make sure they will look after your portfolio wherever you relocate to, ensuring the continuity and consistency of your assets.
Being international, they must be able to give you the correct financial advice no matter which country you move to.
This article is provided for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
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