Retirement Planning

Retirement Planning

For any expatriates living abroad the terms “tax efficient investments and lock-in periods” become an everyday phrase. Some expatriates except them and others do not. It depends on your situation and requirements. Many expatriates just aren’t comfortable not having the choice of accessing their hard earned cash as soon as is needed.

Many medium-to-long term savings plans do require lock-in periods, enabling the consumer to access tax efficient solutions but what many consumers don’t always understand is that an ‘opportunity cost’ has occurred: flexibility has been compromised. You will not be able to access your money for a certain period of time and if you do wish to access your money a surrender charge will apply. Surprisingly, very few people know the alternatives to a savings plan or investment without a lock-in period.

What is the alternative?

As the world moved online so did the world of financial services, leaving an array of electronic brokerages. These are perfect for an expatriate who is looking for flexibility, no entry fees, no exit fees and most importantly no lock-in periods. It is an incredibly cost-efficient alternative.  

So is it tax efficient?

In order for you to access this flexibility an opportunity cost has occurred, tax efficiency has been surrendered to gain flexibility.   

What can I invest into to?

Online electronic brokerages enable consumers direct access to bonds, ETFs, mutual funds, futures & options. You have full access to any and all investments globally.

But I don’t know what to invest into?

Don’t worry, you’re not going into this battle alone. A personal portfolio manager will be provided who will be managing your account. You also have an option to use our model portfolios according to your risk profile and investment appetite.

What should I do next?

Get in touch! We’ll run through what options are available to you and decide the best plan of action.

Written by Nick Joslin
Adviser &  Associate

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