The latest fabulous Expat Explorer Survey from HSBC is out – we love this survey because apart from our own research, it comes closest to getting broad and detailed feedback from as many expatriates as possible. HSBC break their findings down into bite-sized pieces, and their first instalment is all about expatriate economics.
From the survey it’s clear that the east/west divide in terms of expatriate wealth is becoming even more pronounced. Those expats living, working or retired in Europe struggle more nowadays monetarily speaking, whilst those in the likes of Russia, the Middle East and even India and China are getting wealthier and wealthier…
However, the most striking conclusion that can be drawn from this instalment of the survey is that expatriates are still not aware of their offshore advantage, and they are failing to embrace the opportunities legitimately available to them to advance, enhance, protect and effectively manage their wealth. Why is this…? Well, we have a feeling it’s because expats aren’t sure where to get qualified and quality advice.
We receive reader enquiries every single day. People come to us because they want to know if they can save offshore, where the best interest rates are, what QROPS are, whether they should be investing offshore or onshore and whether an offshore bank account is of use to them. Sometimes a straight answer is sufficient – but most of the time these expatriate readers need qualified advice.
At Shelter Offshore our research, articles and guides are based on journalistic research – therefore we are not qualified to give the advice that so many expats clearly need. However, we have robust and professional strategic alliances with expert partners and fortunately we are able to refer readers to the right partners to help them.
We work with those who are regulated, trained, experienced, qualified and professional – who have a proven track record. And this is because we have been in this ‘business’ for many years, we know it inside and out, we know who the legitimate advisories are, who the ones are who reduced their staff to tears (we avoid them!), which companies are independent and which consistently give best advice. But if you’re a newly arrived expatriate, living abroad for the first time, how on earth would you know where to begin sourcing a wealth manager to help you?
You might think your old adviser back home in the UK is the best person to help…in which case you’ll be like many of the expatriate respondents to HSBC’s survey. You will repatriate your wealth back to your country of origin and invest it in taxable savings and investment solutions, property or perhaps even bonds or cash based bank accounts. Far from the best solutions for most people for so many reasons!
Alternatively, you may feel that you have to save your newly acquired wealth onshore in your new nation of residence. You will look around for somewhere to stash your cash, perhaps buying a property and locking in to future capital gains tax and inheritance tax charges in the process. Maybe you will feel that you need to keep your wealth close to hand to pay for your lifestyle, and fail to grasp the fact that expatriates are in a far, far better position to tax effectively save their money and naturally enhance the potential returns on it – even without exposing it to great underlying risk.
Personally, when I first moved abroad (many, many years ago!) I had no clue about the offshore advantages available to me – and I have a background in financial services! I quickly cottoned on to the fact that there were now many more options for me to explore, and this opened my eyes to the potential available. But it really wasn’t until I found a really professional wealth manager, (or financial adviser if you prefer the term), who specialised in helping expats, who was able to explain different tax rules in different countries and who took into account my position from an holistic point of view, that I really discovered the right way to manage my money.
So, whilst it is a great shame that more expatriates don’t seek out a professional and experienced wealth manager to help them make the most of their time abroad from a monetary point of view, we are not surprised. Hopefully the Expat Explorer survey will open more expats’ eyes to the fact that they are in a fabulous position to potentially make more of their financial position – even if they only have a relatively small amount to save each month or to invest.
And hopefully more of our readers will feel they can get in touch with us with their queries, no matter how seemingly complex or even simple they are! Chances are we have a strategic partner we can refer you to, and you can get the advice you deserve to make the most of your non-residency status.
