The Cost of Expat Financial Advice

1
The cost of expat financial advice
2
Financial advice is an invaluable service,
particularly for expatriates navigating the
complexities of living overseas in a country with
a different tax regime, social security system
and currency. However, thousands of expats do not
access professional financial support, often
because of an assumption that a skilled financial
adviser will be unaffordable. One of the many
considerations is that the role and focus of a
financial adviser is to help you make good
judgements, to preserve your wealth and improve
your financial position the fees payable will
typically be a fraction of the amount you may
save by avoiding inadvisable decision-making or
choosing high-risk investments. In this article
we explain how expat financial advice costs vary
and explore some of the reasons hiring a
financial adviser may be the best investment you
can make.
3
Factors That Influence the Costs of Expat Wealth
Management Advice
4
Costs are, of course, important, and a credible
wealth management firm will provide transparent
fee structures and information before undertaking
any work. Many local financial advisory teams
will offer complimentary initial consultations to
help you assess the knowledge on offer and
discuss potential fees related to the advice you
require or tasks youd like a financial adviser
to undertake. Chase Buchanan does not provide
standardised fees for the simple reason that
every client is different and will need
alternative advice and assistance adapted to
their financial goals and aspirations. As a
rough indication, wealth management costs are an
average of between 1 and 2 of the assets under
the supervision and management of a portfolio
manager. There are numerous variables that will
affect the cost of professional expat financial
planning and advice, which we explore below.
5
Scope of Financial Advice
6
Meeting with an adviser as a one-off to seek
guidance about an individual transaction or ad
hoc property purchase will carry different fees
from an ongoing service where you work closely
with your adviser to create a long-term
investment and wealth management strategy.
Most accomplished wealth managers and advisers
collaborate with clients over many years, getting
to know their goals and aspirations and adjusting
their services as their clients wealth grows or
investment markets shift.
7
The Complexity of Your Affairs
Many expats need specific advice about
restructuring assets, transferring pensions to a
new country or establishing tax residency status.
The more complex and intricate your financial
planning needs, the more time an adviser will
spend evaluating options and crafting projections
and outlines to showcase the detail of the
products or approaches they suggest.
Tasks Assigned to a Financial Adviser
Many financial advisers will offer a broad scope
of services, from arranging tailored insurance
coverage and education fee planning to more
in-depth financial planning and tax management.
If an expat hires an adviser for a particular
task, such as facilitating a UK pension transfer
and advising on the best-suited options or
setting up a trust and helping them write a will,
this will carry a different cost than ongoing
estate or succession planning.
8
The Quality and Experience of Your Adviser
9
As in any professional sector, the more capable
and experienced your financial adviser or wealth
manager, the higher their fees may be in relation
to the services provided. However, along with
this level of proficiency comes the assurance
that the advice you receive will be highly
specific, independently assessed and designed to
deliver the best possible outcomes for you. The
variations in regulatory standards around the
world can also mean that local advisers are not
bound by the same codes of conduct as in the UK,
so it is important to research any prospective
advisers and be satisfied they are competent and
qualified. For example, an adviser representing
a bank or lender can only suggest products that
the institution provides, and some businesses
referring to their services as financial
planning may not be subject to regulatory
oversight. Chase Buchanan always advises expats
to work with regulated, independent and
established financial advisers to ensure the
recommendations they receive are tailored to
their requirements and take into account the full
picture of their financial and residency status.
10
Risks of Making Financial Decisions Without
Professional Guidance
11
An HSBC report found that only a tiny proportion
of expats seek help from a professional financial
adviser 91 go it alone and make decisions
based on their own assumptions, personal research
or instincts. The cost of either underpaying
for low-quality advice or making consequential
decisions about your financial affairs can be
extremely high, as demonstrated in the same
report, which shows that expats find their
finances difficult to manage, with 52 of those
saying it was due to their tax situation. Among
the most prevalent goals, 60 of expats surveyed
said retirement planning was one of their primary
objectives. Yet, without bespoke expat financial
advice, it is highly unlikely they will have full
access to the breadth of pension planning and
investment products available, many of which
offer tax efficiencies and other advantages.
12
Assessing the True Value of Expat Financial Advice
13
The value of your expat financial advice and the
fees payable are not always directly linked. It
is vital that any advice you rely on to make
hugely impactful judgements, such as choosing how
to manage your pension funds, understanding tax
obligations, buying a property overseas or
transitioning an investment portfolio, is valid,
relevant and accurate. With more and more
people choosing to relocate to seek better living
standards, a warmer climate and career
opportunities, the knowledge available from
experienced advisers specialising in expat wealth
management can be impossible to quantify.
14
Advisers map out your wealth, assets, income and
tax status, provide detailed suggestions to
explain various options and the pros and cons of
each, and offer advice to ensure any decisions
you make benefit your overall finances and are
consistent with your aims. Our article
Evaluating the Value of Your Financial Adviser
During a Crisis provides further insights. It
explains why your advisers support and
suggestions can be necessary to making sound,
informed decisions about your finances and
wealth, particularly during difficult periods.
For more information about expat financial
advice, our services or the indicative fee
structures linked with portfolio management,
please get in touch with your nearest Chase
Buchanan Wealth Management office at your
convenience.
15
Source
https//chasebuchanan.com/the-cost-of-expat-financ
ial-advice/