Attractive interest rate offerings were slowly beginning to make themselves noticed in the world of offshore savings until the recent series of global crises became such serious issues. Now banks such as HSBC International have pulled back some of their shorter-term deals, and many are saying that despite previous rumours to the contrary, there is too much pressure globally for the Bank of England to even think about putting the base rate up in the near-term.
Global stock markets have taken a hammering too, and anyone invested in Japan has seen a serious impact to their portfolio. Swap rates are also falling back because the general consensus of opinion is that the UK base rate will have to remain unchanged as stated - and so how on earth is it possible for expat savers and investors to make any more from their offshore wealth?
If you haven’t taken the time to review your financial position recently, chances are you’re not getting the best rates on your savings, and your investments may benefit from better diversification too. Despite financial advisers always recommending that their clients take time out at least once a year to go over their financial position and holdings, many don’t – and as a result, they fail to make the most from their money…
When was the last time you reviewed your savings accounts and cash investments to see whether that headline rate of interest you signed up for X number of years ago has now dropped away so that your money isn’t even keeping up with inflation?
When was the last time you asked your financial adviser to review your investment portfolio to see whether it could benefit from a potential whole host of new products and offerings in the offshore investment marketplace?
And when was the last time you thought about revaluating - and adjusting accordingly – your entire financial position to take into account any changes to your personal status in life?
According to the financial advisers we speak to on a regular basis, despite them making it clear to their clients that they need regular reviews, and despite making it as simple as possible for their clients to have access to at least an annual financial revaluation, up to a third of all invested expats fail to heed this advice.
In other words, up to a third of all expats are potentially not making the most of their offshore saved and invested wealth…
It’s true that short-term interest rates on onshore and offshore savings are pretty poor at the moment, and likely to remain so whilst the global economy is battered by the uncertainty in the Middle East and Japan for example – but it’s also true that many savers who signed up for headline rates of interest over a year ago are now receiving next to nothing on their committed cash.
Banks like to lock in clients by offering them a short-term bonus rate – because they also know that most of us are too busy to keep on top of our holdings. Banks know that many customers commit to an account and then fail to notice when that account stops delivering. They’re happy for you not to notice too - but for your financial adviser, because it’s his/her job to help you make more for your money, they want you to know which of your accounts are failing you, and where you can now better invest your wealth.
It’s also a case that most of us are too busy to be able to keep up with the exceptionally fast moving world of offshore investments. Regulations and rules change, offerings become obsolete or there are new to the market, improved products, and you need to know about these.
Furthermore as we progress through life, our situations can change, we may meet a partner, become a parent or a property owner, become a grandparent or rapidly approach retirement! All of these major changes of status can require a different approach to how we manage, save and invest our wealth…
So, when was the last time you sat down with your adviser and took the time to review your financial position? If you haven’t made time in the past year or more, it’s about time you sent an email or made a call and booked in with your preferred expat financial adviser. You really could find that you could be making much more offshore.