Get free expat investment advice from an expert

Investing is one of the best ways to make your money work for you and build long-term wealth. However, knowing the best options for your money can be challenging when living overseas.

A good place to start is by settings goals.

Setting goals

Having a clear understanding of your financial goals is essential. This means short-term, long-term and even medium-term goals.

The advantage of doing this is it allows you to make more informed decisions about where to invest your money.

Let's say you are from the UK, currently living and working in Dubai, where there is no income tax. You may want to use the extra disposable income and put your money into local long-term investments.

However, you may wish to return to the UK at some point, maybe to retire. Even if this is a long way off, it's worth considering now and investing accordingly.

For example, by investing in a UK property, not only can you create a steady income stream, but you will also have a place to live when you return.

Save or Invest?

Investments for expats are a great choice to put their additional savings to work. Of course, it all depends on your goals.

Remember, investing is a long-term strategy. This means it may not suit people with shorter-term goals where savings might be the better option.

You will also need to assess how much risk you are willing to take. Like most things, investments are not a sure thing, and some carry more risk than others. It's essential, maybe with the help of a wealth manager, to make sensible investment decisions that align with your risk profile and, ultimately, to meet your financial goals.

With the threat of inflation eating away at low-interest bank accounts, your motivation may be more towards investing. However , in most cases, the right answer is to have a mixture of both savings and investments. Using some savings to generate more income would be a breathe of fresh air, or simply protecting your partner's income if the worst were to happen. Savings that you plan to spend in the near future should always stay in the bank, the same for your emergency money, ensuring quick and easy access. For substantial savings, having catered for the short term, you may be prudent to look to invest, protecting against the rising cost of living and increasing your wealth.

There are numerous ways to invest, you can be as cautious or as adventurous as your like. Your adviser will explain the options available to you as an expat for you to compare and choose your own terms.

What are my investment options?

An Individual Savings Account (ISA) is an excellent solution for people looking to invest in the UK.

Not only is an ISA safe and straightforward, but they are also tax efficient.

Unfortunately, ISAs are only available to UK residents. Most expats, especially those who have been abroad for an extended period, won't be classed as UK residents.

So, if you are looking to get started, what are your options? Below are some for expats to consider.

Pensions

Like an ISA, a pension scheme is a tax-efficient way of saving and a fundamental component of your overall retirement planning strategy.

The term 'pension' is pretty broad. There are numerous products on the market, but the two that expats can really take advantage of are QROPS and SIPPs.

A Qualifying Recognised Overseas Pension Scheme (QROPS) is a pension wrapper. These HMRC approved schemes allow you to transfer a UK pension. This offers more flexibility and financial benefits.

There are Self-Invested Personal Pensions (SIPPs) for those who want a more hands-on approach.

SIPPs allow you to make investment decisions yourself. Ultimately, you control where to invest your money.

With either option, seeking independent advice from a professional is advised.

Property

Property investment has long been viewed as a secure addition to any portfolio.

The UK property market is booming right now, and it's showing no signs of slowing down.

According to ONS data, the average house price in the UK is around £277,000. The figures represent a £27,000 year-on-year increase.

An investment in property has multiple benefits. It can produce a regular source of income if you rent it out. Also, you will own an asset that has the potential to increase in value over time.

Even if you decide not to sell, you will have a place to live if you return to the UK.

Be aware that as an expat, investing in property is not as straightforward.

Offshore investment bonds

An offshore investment bond is basically a life insurance policy that acts as a tax wrapper. The bond can hold numerous investment funds that are held outside of the UK.

Offshore bonds are a tax-efficient option for expats as they typically avoid capital gains tax and deferred income tax.

As long as the correct bonds are in place, the investment will remain tax-free, even if you return to the UK.

Stocks and shares

When you invest in the stock market, you are buying and selling shares in a company. You can buy individual shares in a company. However, there are other options.

For example, mutual funds are managed investment funds that expose you to different assets and classes.

These funds can help you easily build a diverse investment portfolio, allowing you to spread and lower the risk.

Your returns are often based on the performance of the company. The better it performs, the more your share increase in value.

One thing to consider as an expat investor is currency risk. If you are living abroad but hold investments in your country of origin, exchange rates can have an impact.

Sustainable investments

The sustainable investing sector has gained a lot of traction in recent years.

These types of investments focus on sustainability and positively impact the world. Ultimately, they provide individual investors with a way to invest in an area that aligns with their beliefs.

Sustainable investment solutions work the same as other types of investment. The key difference is that they have to meet specific standards to be considered.

ESG funds are probably the most recognised within the sector. They look at a company's environmental impact and wider effects on society. If they meet the criteria, they can become part of an ESG fund.

Not only have they grown in popularity, but they have also grown in profitability, providing attractive returns for investors who are looking for responsible investments.

Funds

Funds are ready-made investments. The types of investments included will differ between funds, but typically, they will consist of a mix of assets.

Although funds do not give you the same level of control as picking individual investments, they will be better suited to some clients as they can save them time, hence the term ready-made investments.

Another benefit of investing in a fund is that they allow you to spread your money across various investments. This is known as diversification, and it's a strategy that can help spread the investment risk. This is one of the most attractive features of a ready-made investment.

On the topic of risk, funds allow you to pick one based on the amount of risk you are willing to take.

For example, you may wish to go with high-risk investments that offer higher returns as you have time to make up for losses while you are younger. As you get older, you could move to a lower risk fund that is more weighted towards bonds.

Tax implications

Tax is a complex topic. It's even more complicated as an expat where there are tax rules for multiple countries to consider.

Double taxation agreements may be in place, depending on where you are in the world.

These exist between one country and another to ensure that you are not taxed on the same income twice. Not all countries have a double taxation agreement in place with the UK.

You can use the government website for more information and check if one is in place between the UK and your country of residence.

If you are unsure, seeking financial advice from an expert is strongly advised when it comes to tax. It could help you avoid an unexpected tax bill later down the line. Also understand local tax benefits available to you in your country.

Request your free review

As a member of Expat.com, you can request a free Expat Savings Review with our recommended partner. Working with the world's leading financial institutions they bring you exclusive offers that are unavailable anywhere else. You will gain access to expat-only accounts and the ability to minimise charges - so your money can grow faster than ever before. They will also show you how to take advantage of any tax breaks and other benefits available to you as an expat.

What is included?

An independent review of your current savings and investments, with an overview of your liability to taxation in your country of residence. Understand how to best protect your savings, maximise interest and utilise tax breaks you may be entitled to, for both you and your family. Take peace of mind from a video consultation with a highly qualified adviser, who will quickly examine your affairs and provider a detailed summary of your options.

They specialise in understanding tax efficient savings and investment structures in your country. Topics included within your free consultation - offshore savings and investment vehicles, offshore bank accounts, fixed interest bonds, tax efficient savings plan, mutual fund, retirement abroad and discretionary investment management available for accounts in excess of 250,000 GBP or currency equivalent.

Diversification

There are no certainties with investing, and there are always risks involved. Diversification is a tool used by professional asset managers to reduce risk.

It works by owning assets that are not related. Doing this helps to spread the risk across the whole portfolio. So, if one asset class goes down, another may go up, thus offsetting losses.

You can diversify by asset class, geographical location, sector, or all of the above. Diversification of investments is a great way to reduce risk.

Rebalancing

In life, things change. Your goals or the timeframe of those goals can change, so can the market.

The point of rebalancing your portfolio is to make sure it is still performing in a way that meets your goals and needs. The portfolio manager can also make sure the target asset allocation is still balanced by rebalancing.

Asset allocation

Allocation in the world of investing refers to the mix of assets.

Assets can include equities, cash investments and bonds. Assets can also be alternative investments such as property, hedge funds and private equity.

Having a solid asset allocation plan is essential. The assets you choose will ultimately influence your returns while also spreading the risk. A well balanced investment portfolio will have a diverse collection of asset classes.

The final decision on asset allocation is usually influenced by your risk tolerance. For example, someone with a high-risk profile will have a portfolio more weighted towards volatile investments such as equities. On the other hand, if something wasn't so keen to take risks, their profile may be weighted more towards bonds.

What are the potential benefits?

There is nothing to lose from free expat investment advice. In the worst case scenario, the adviser will tell you that you're already in the best position with nothing to improve your current situation. In most cases however, there will be at least one aspect area of advice to enhance your financial situation. The adviser will provide you verbally with the options available to you, thereafter to provide you with written recommendations and provider documents. This report is provided to you free of charge in collaboration with Expat.com.

  • Learn how best to protect your savings and maximise interest in your country of residence
  • Get access to tax efficient savings & investments available to you, onshore and offshore
  • Reduce charges on existing investments
  • Receive expert advice from someone who understands your local tax regime and saving options
  • No obligation report provide summarising your options in black and white

Who is the service for?

The service is designed for those who have any of the following

  • Savings in excess of 25,000 GBP / EUR / USD
  • Have an existing investment portfolio, held within the EU or Internationally
  • Ability to save 500 GBP / EUR / USD per month

How do I get my free review?

You can request your free review by completing the form below. You will then receive a message from of our recommended financial advisers to schedule a convenient day/time for your appointment. Our financial advisers are award-winning, cross-border financial planners that specialise in expat financial advice for our expatriate members worldwide. You are entitled to up to 2 hours of free consultation, courtesy of Expat.com. Please complete the form below

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