With the popularity of YOLO (You Only Live Once) especially among the younger generations, the desire for countless travels has been greater than ever. Life as an Expat could initially give us that.
Relocating to a foreign country can sound so fun and exciting. Living abroad is something most of us find ideal. However, it’s not all about that green pasteur. Expats can have life challenges of their own. Life doesn’t always revolve around a white beach, sand, sun, and cocktails.
Life doesn’t always go as planned, not even if you’re an Expat. This is why it is similarly important to think about how and where to put your money even if you’re away living abroad. Learning a different language and adapting to a new culture is something that seems to be easy. But knowing procedures and bureaucracy guidelines is a different story. Economic stability in your assigned residence can be stable, or it can also be volatile. Being wise with your money while you’re still able to make good money can spell out the future for you.
Video interview – wealth manager in Vietnam
To digest all the important topics an expat may be aware about taking care of his investment journey while living and working overseas, here is a recent interview made with a portfolio and wealth manager based in Asia.
This video is in French with English subtitles so if you want to learn more about it, you can subscribe to this channel to check the next video in english that will be released in a couple of days on related subjects.
Planning out your retirement
We all think about our retirement plans even at the onset of diving into building our careers. If you start being wise with your money, living abroad can be a step closer to building your retirement plan.
So you’ve been away from home for quite a while, suddenly you ask yourself, “Do I have enough to go on retirement?”
When planning out a retirement, there are so many things you should take into consideration: funds, pension, health care, property, and investment to name a few. While abroad, you have to consider where you will finally settle down. If you plan to live in a specific country, chances are you might want to buy your dream house. However, you might need to ask yourself the following:
- Is the purchase going to dent your savings?
- Do you plan to travel constantly? Renting might be more practical instead of maintaining homes. This will give you more flexibility and a lesser headache. Think: taxes, maintenance cost, overhead, security, property appreciation, cash liquidity, and the cost of frequent visits to your homeland by immediate family and friends, and vice versa.
- Do you have access to health care services? This varies from country to country, and your status as a resident or foreign visitor will be crucial. This is important because you need to secure yourself acceptable health care services just in case you might need one in the future.
- How will I provide for my daily needs?
- Do I need to source for another income source? Can I live on interest? How do I stay liquid?
- How much do I need to say I’m ready for retirement?
Retirement saving plans
Retirement saving plans are always great forms of investment. Retirement accounts are usually tax-sheltered and it can be funded through automatic payroll deductions. It’s one of the best ways you can easily save up money over time. Over the years, you allow interest to accumulate until your money grows.
There is no pressure in this type of investment as it can allow you to go at your own pace. You can also choose to top up more funds whenever you can. You can keep all your money until it’s time for you to pull it out and make use of it. You may also use a part of it to be invested in other things such as real estate or stocks.
Real estate overseas
Investing in real estate especially those overseas is a great way to protect your money. It has many benefits, and people usually get higher returns on these types of investments. German and UK properties are seen as stable and reliable forms of investment. Additionally, you can enjoy some tax benefits from it. There are no restrictions on foreigners when buying properties in Germany regardless if you’re a member of the EU or not. Just keep in mind that when buying a property there, you should also register the property to complete the process.
Meanwhile, the UK is also an attractive place for investment. It’s pretty straightforward and you can get an overseas Expat property loan to help you out. There are 2 types of mortgages available for Expats: Residential and Buy-To-Let mortgages. Each has its purpose and strengths, so it’s best to know your financial goals and keep everything aligned.
Investing in the stock market to grow your savings
Investing in stocks can seem daunting. It’s intimidating for some. Unlike bank deposits, savings or money market, it puts higher risk for your money. Learning the basics is very important.
Before investing in any stock, it’s best to put aside some emergency cash fund just in case something goes wrong. It will act as your temporary income during an emergency . It will also keep you from panicking when stock investments extremely drop, as you are still technically liquid. An emergency fund can be equal to at least 3 to 6 months of your living expenses.
Before diving into stock markets, you may want to get in touch with a stockbroker and heed some advice. There are Robo-advisors and online stock brokers available for your utilization. However, you would still need to trade on your own such as strategies digest in this in-depth guide from Movetoasia. This means you do the research, buying and selling of stocks on your own, and other related activities. If you’re a beginner in this complicated ball game, you may opt for a stockbroker. You may ask your bank about it. What’s great about stockbrokers is that they can do calculated risks. They can simplify things for you in exchange for a small commission or broker fee. That’s why many expatriates and investors choose to rely on investment firms to implement efficient strategies like the one digest in this article.
Saving for retirement is tough. According to the Business Insider, only one out of four could say that they are ready for retirement. There are many things to account for when saving for retirement. It takes wise use of your time and money. Best is to identify first your goals so you can properly plot out the best ways to make your money grow.
When in doubt, there is always an option to seek a professional to help you out. Wealth managers or financial planners are best to help you out in situations such as this. Movetoasia is currently providing advice and help expats to rely on legit investment firms to help them grow their wealth. If you are interested in those subjects, get in touch with us.