Five mistakes a financial adviser can help expats avoid
Posted by Infinity
on August 3, 2012
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As an expatriate there are many opportunities to make the most of your money; there are also serious but easily avoided financial errors made by some expats. Being aware of the pitfalls, combined with good advice from a professional and independent financial adviser can help to ensure that there are no nasty shocks.
1. Crippling Medical Bills
As an expatriate working abroad, local state hospitals and medical care may be available through social insurance contributions. However, if specialised care or, in extreme cases, repatriation is necessary, local facilities may simply not be suitable.
Expats without adequate health cover can face catastrophic medical bills that can obliterate family savings. Medical insurance
not only provides for treatment costs, but also provides expats with peace of mind that they are covered in the result of unforeseen medical emergencies.
2. Inadequate funds for a comfortable retirement
Surveys disturbingly suggest that only two-thirds of US workers are making savings provisions for retirement. Pensioners in their home countries may be able to fall back on state pensions, but as an expat this is often not an option. Neglecting to put a financial plan in place for retirement
can put you at risk for severe financial struggle later in life.
However, there are excellent opportunities for expatriates to plan for their retirement with great tax advantages. For UK expats, QROPS (Qualifying Recognised Overseas Pension Scheme) can also allow UK Brits to retire abroad and take their pensions with them.
3. No money in the pot for emergencies
Emergencies are unavoidable, but can be more expensive for expats if the situation requires urgent international travel or any number of other complications arising from being abroad. It is essential to know that in an emergency there is access to a contingency fund. Savings plans
should always be made with an emergency pot in mind.
4. Not enough money for your children to go to college
Every parent wants to provide for the best education but education is an area where inflation is rising at a greater rate than the general cost of living. Saving for education fees needs careful planning to avoid unnecessary strains on finances when it is time for children to go to college.
Making provision for future education fees at an early stage in a child’s life can avoid an unwanted burden on savings or income in the future.
5. The taxman taking a chunk of your inheritance
‘Nothing can be said to be certain, except death and taxes’! As truisms go, this is a hard one to ignore. However, what should not be ignored are the advantages available to expats when it comes to managing inheritance tax
. There are many factors to be considered and various solutions available; independent, experienced and professional financial advice is crucial to guarantee any inheritance left is managed correctly.
At Infinty, we are expats ourselves and completely understand the financial needs of others who live and work overseas. Our experience and knowledge of international medical insurance for expats is second to none. As independent financial advisers, we are not tied to any product provider and can offer the most suitable solutions for retirement planning, education fees and tax efficient savings.
Whatever concerns you may have regarding your financial planning, contact us
and speak to one of our financial advisers who are all well placed to give professional and independent guidance and assistance.