If you’re a British expat it’s easy to let the State Pension fall off your radar. In fact, most expats simply accept that periods abroad will result in gaps in their contribution record and write their State Pension off.
Inheritance tax (IHT) is a concern for many expats who retain a connection to the United Kingdom (e.g. domicile), as it can significantly impact the wealth passed down to future generations. However, with proper planning and the right strategies, it is possible to mitigate the burden of inheritance tax.
If there is a possibility that you might receive an inheritance in the future, it is important to be aware of the following four things. Keep them in mind for future reference.
Morgan Housel’s book, “The Psychology of Money,” is one of my favourite books about money and investing. It is a must-read for any expat looking to gain a better understanding of their personal finances. Here are some of the key lessons to take away from it:
Welcome to my comprehensive review of “Millionaire Expat: How to Build Wealth Living Overseas” by Andrew Hallam. He is a staunch advocate for financial independence and international living. In this ground-breaking book, he takes us on a captivating journey that challenges conventional wisdom and explores the possibilities of achieving financial independence while living abroad. Let’s get stuck in!
Retirement might seem like a distant dream or it may seem like an oncoming freight train. Whichever the case, it is never too early or too late to start planning for it. If you are age 50 or older, it is time to buckle up and get serious about saving for the future. But don’t worry, I’m here to guide you through this journey with a sprinkle of good humour and a dollop of practical advice.
When anticipating an annual bonus, it is natural to envision all the things you want to purchase or start planning a lavish vacation. However, it is worth taking the time to step back and contemplate how you intend to use such a windfall before it lands in your bank account. Consider how your bonus can best serve you and your objectives in both the short and long term, regardless of the amount you earned.
Whenever I speak to clients about investing, I always talk about having an emergency fund equivalent to 6 months of expenses first. Sometimes life can present you with a situation where you need quick access to money and without a financial safety net it can threaten your financial well-being and cause a great deal of stress.
Are you looking to retire to Canada from the UK? I recently started working with a client who did so. Here are 5 things he told me that he wished he knew before doing so.
In recent years, as asset prices have marched higher, Inheritance Tax Loss Relief has generally been overlooked. However, at times of volatility in global stock and bond markets, such as we have seen this year, it is definitely a subject that is worth revisiting.
There are more than 500,000 retired Britons overseas, who are losing out as a result of the UK’s “frozen” policy on State Pension payments. In the UK, pensioners benefit from something known as the “triple lock”. As a result of this, State Pension payments increase by the greater of two-and-a-half per cent, price inflation or average wage growth. This means that State Pension payments retain their worth as time goes on.
It has been estimated that there could be about 2.8 million lost or forgotten pension pots in the UK, worth an average of £9,500 each. I.e. over £26.6 billion in total. This is hardly surprising. The days of working for one employer for 40 years and then retiring with a gold carriage clock are over. Research suggests that average workers will now have 11 different jobs during their life. As people move from job to job more and more frequently,…
There has been much chatter in the media recently about Elon Musk’s purchase of Twitter. One of the less-covered aspects of the story is the fact that he is funding a large part of the deal through margin loans. But, what are margin loans and how can we mere mortals use them to our benefit too? Margin loans (also known as lombard loans) are an effective way for individuals to borrow low cost, short term money.
The idea of a pension is relatively straightforward. It is the trading of a lifetime of hard work in return for some degree of security in retirement. At the end of the day, whether in Poland or the UK, what most of us want is to enjoy our retirement years without counting the pennies or groszy. Unfortunately, the reality is that, thanks largely to decades of government meddling, pensions can be incredibly complicated.
This month (October) is cyber security awareness month. What has cyber security got to do with your retirement you may ask? Everything, is the answer. Online scams are everywhere. I read about them all the time. You don’t want your well-thought-out retirement plan being torpedoed due to a lack of online hygiene. With that in mind, here are 8 tips for ensuring that you stay safe from scammers.
You have probably been told on numerous occasions that you should have a Will. Indeed, doing so may have been on your mental to-do list for months or years. However, you haven’t yet gotten around to it. This may just be due to the hustle and bustle of day-to-day expat life. It may be that you aren’t really sure how to get started. Nonetheless, making a Will is one of the most important things we can do.
When it comes to preparing your offshore investments for a return to the UK, the most important thing is to ensure you start planning as early as possible. Most tax specialists recommend that you should ideally give yourself at least a full UK tax year between deciding to move home and actually making the move. Aside from the obvious reason of being well prepared, the reason for starting the planning so far in advance is that things rarely run smoothly.
When we live back in our home country, managing currencies is all pretty straightforward. We are paid in our home currency, we pay your bills in our home currency, and most of our investments are likely in our home currency. In this case, we generally have very little currency risk. The problem we have as expats, however, is that we have too many choices.
A property trust will (also known as a property protection trust, an asset protection trust, a family protection trust or a property preservation trust) keeps your home safe for your loved ones after you die. It does this by placing your share of the property in a trust, so that the people you want to benefit from it can – but without owning it. With a property trust will, your spouse can still live in the home you share after…
Yes, you can live abroad and save into a UK pension scheme. However, there are limits to the tax relief you can claim on your contributions. If you move overseas, for the next 5 tax years you can still make pension contributions of up to £3,600 a year and get tax relief. This assumes you have no earnings taxed in the UK. If you continue to have earnings taxed in the UK, tax relievable contributions can be based on these…
