Reflecting on Your Financial Life Plan


The Concept

Many expats are intransigent about the fact that they have changed their lifestyle to that of a foreign land. We often do not make allowances for being visitors where we live, respecting local culture. We must realise that we need to be independent when planning our financial future.

"Failing to plan is actually really planning to fail"

The Challenges

Take a close look at the overall picture in planning your future financial needs. There are many economic and commercial challenges today. 25 and 50 years ago it was similar. Remember the good old days? Well they are actually happening today.

Get to grips with what inflation means for you and how you can combat this with the power of compound growth. Contact us and let us help you calculate the numbers so you can see the real challenges.

Wealth Creation

Start your wealth creation plan now. Some expats feel they have accumulated sufficient wealth but they are often mistaken. A solid base is good to build on but maybe you need to add further to that base.

Wealth Preservation

Once you have some wealth the key is to protect and make it work for you. People view the same assets in different risk categories. Many see blue chip shares as balanced or safe.

We will tell you equities are adventurous. If you disagree look back to almost any share in 2008. Your risk appetite defines your return relative to various asset classes.

Asset Allocation

If you have a lump sum your strategy should be different from pumping new money into investments. Dollar cost averaging into the markets with regular contributions works well in adventurous areas over time.

The Importance of Property

Property is a unique asset. Land supply can hardly be expanded. Property provides our homes and is something we can see and appreciate as well as useful. Once you have realised this you may wish to reach out further adding more property to your portfolio, creating income and capital appreciation.

Asset Diversity

Always take a commercial view of investment assets. Viewing a share subjectively is dangerous to your portfolio. Spread your portfolio over different asset classes diversifying risk. Broadening asset classes to non-correlated areas is a good idea.

Personal Risk Management

Protect yourself against catastrophe. Being disabled makes coping with life difficult. You will become a significant burden on the financial plan. You will stop creating wealth and drain your resources. If you leave loved ones behind with insufficient financial protection they may end up struggling.

Awareness of the Journey

Begin with the end in mind; adjust your plans accordingly as you go. Being ahead of the game will result in achieving early financial independence. No matter what ensure you consider things other expats ignore. Taxation, succession planning and self-protection are some.

Pension Planning

As you journey through, consider your pension and start to plan for what you will need in a practical sense. Review provisions made so far; calculate the retirement shortfall; remember that life expectancy is ever extending.

Succession Planning

Make sure there are provisions for your estate when you die. Probate is often ignored at the expense of your beneficiaries. Inheritance tax can be painful to beneficiaries and some careful planning now, ensures diminished future problems.

The Use of Trusts

Trusts are a good way of planning for inheritance tax, affording great flexibility in succession planning. Trusts also allow you to keep assets away from potential attacks and prying eyes. Confidentiality can be a great relief to your heirs.

The business of living life really is a genuine business, requiring commercial skill and adept thinking. For those who tend to be narrow-minded about their situation there will be future shocks and regret when realising more careful planning would have been prudent. We stress it is never too late to review your situation and make changes to improve the future. 

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