We talk about 5 things you shouldn't do if you want to retire early.
As international workers just like you, we know how unbelievably complicated simple financial matters can be. Which is why we've put together this short blog on the four most common financial mistakes expats make. In knowing these, you can make sure to avoid them, and with a little help from our specialist team, we can make sure you make the most out of your money right now and in the future.
So, what are the four most common mistakes?
1.Choosing The Wrong Investment Products
Which products are right for you will completely depend on your specific circumstances. For example, how comfortable you are with risk, how old you are and at what age you plan to retire should all factor into the equation. It is always a good idea to consider a number of products as part of a globally diversified investment portfolio. And choosing an experienced financial adviser to help you explore what options suit you best is of equal importance.
2. Not Researching the Law on Inheritance in the Country You're Moving To
When moving to a new jurisdiction as part of your expat journey, you can be forgiven for not really thinking about what might happen if you were to pass away. However, in many expat hotspots, Sharia Law is often applied to financial affairs. In Sharia Law, wealth from the deceased would be passed onto the nearest living male relative.
We have a four-person family made up of a father and mother, a daughter aged 8 years old, and a son aged 5. The fathers’ parents are still alive and well. The father suddenly passes away with AED 500K in the bank and unfortunately, he has no will arrangement (and assuming no debts to be cleared), his cash will be apportioned as follows:
3. Neglecting Your Pension Contributions
A lot of expats tend to neglect their pension back in their home country. But if you are looking for a low risk, guaranteed lifetime income, a work-based pension is a good shout. If you have concerns over the solvency of your existing UK pension fund, want greater control over your investments and would benefit from the extra capital an increased CETV could bring, a UK pension transfer away from your existing scheme could be the right choice for you. Conversely, It may be the case that a UK Pension Transfer would see a substantial reduction in the value of your benefits.
At Skybound we know that making a decision on whether a UK pension transfer is the right option for you can be daunting, which is why our team of experienced UK pension transfer advisers work in tandem with your Financial Adviser and are always on hand to help you answer the burning questions surrounding UK pension transfers.
4. Impulsively Buying a Property
If you are going to purchase a property in your new home of residence its vitally important to weigh up any risks involved. You also need to think; are you likely to move again in the next few years? If that’s the case, will you need to sell up? What if the resale market isn’t sufficiently developed? Will there be a lot of competition? Buying a home is a huge commitment, but here at Skybound we have access to specialist property investment solutions enabling international workers to investment in property as smoothly as possible.
At Skybound, it’s our responsibility to deliver bespoke financial plans for both the immediate future and for the long-term security of you and your family, meaning you can live for today knowing tomorrow is taken care of.
Our lifestyle financial planning advice covers:
Our team of global wealth planning experts have already helped thousands of international investors just like you to secure their perfect tomorrow.
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