Top financial planning tips for expatriates

Every expatriate needs a solid financial plan to both preserve and grow their wealth in the long term. This is because even though living abroad can be an enjoyable experience, it also comes with its own set of financial hurdles. Being well-informed of your financial options early on can help you make the right investment and retirement choices needed to secure your future.

Top financial planning tips for expatriatesWhen it comes to managing wealth as an expat, you must understand that the elements involved in saving and growing could be different than what you’re used to back at home. Depending on your situation and nationality, there may be several things to consider when deciding on a financial plan that works for you. Check out these financial planning tips to make sure you’ve got the basics right.

1. Establish goals

Establish short, medium and long term goals and assign priorities to them so you know what goals are the most important to you. Working with set goals allows for strong planning while helping you to stay focused and productive. Decide on the details of your retirement, set targets for personal accomplishments and plan to provide for family members if you need to.

2. Make projections

Understand the type of lifestyle you can enjoy during your retirement and align your financial calculations in accordance with it. This will help you make smart saving decisions and give you a realistic idea on how you can manage finances to meet those decisions.

3. Plan for taxes

Tax planning while living abroad certainly adds a layer of unwanted complexity into expat life. Your tax situation can be annoyingly affected by the different tax equalisation policies of different employers. Also, tax policies can sometimes be inadequate and be subjected to constant changes, making the planning process even more difficult. Try to use strategies such as tax deferrals during times of high income to keep tax costs as low as possible.

4. Keep reserves

It pays to have several months of fixed expenses (rent, food, medical expenses) in an accessible location, in case of unexpected trouble. You can use these savings to tide you over during rough months while keeping any other financial investments you own intact.

5. Invest wisely

It is important to make sure that all your accounts are integrated and methodically maintained. Your investment portfolio must be routinely monitored for any developments, so you can quickly make any financial decisions you might need to. You can also consider looking into international savings plans, which serve as off-shore investment options for interested expats.

Financial planning for expats – where to find out more

BGA provide financial planning and wealth management advice to expats. We are happy to discuss your situation in further detail at any time so please get in touch if you would like us to help.

Read about our investment management services here.