Choosing the Best Savings Plan for Expats

Jun 21, 2024 | Advice, Financial Planning, Guides, Investments, Savings, SJB Global, SJB Service

Choosing the Best Savings Plan for Expats

Jun 21, 2024 | Advice, Financial Planning, Guides, Investments, Savings, SJB Global, SJB Service

Living abroad can offer unique financial advantages, including a potentially higher disposable income. However, without a strategic savings plan, this additional income can quickly dissipate. Ensuring that your extra surplus income works harder for you is crucial.

Whether you’re saving for a house, retirement, or future travel plans, it’s essential to make informed decisions about your savings strategy.

Choosing the Right Savings Plan

What Savings Plan is Best for Me? Choosing the right savings plan depends on your specific circumstances and needs. For instance, an individual living in a tax-free country on a one-year contract will have different considerations than someone living permanently in Europe. Therefore, your savings options will vary based on factors like contract length, tax obligations, and long-term financial goals.

Planning Your Savings Timeline

How Long Do I Need to Save For? The duration of your savings plan depends on your objectives. Whether you’re saving to purchase a home, fund your retirement, or return home with substantial savings, the length and amount you save will differ. If you’re offshore for a limited period, maximizing your savings during this time can be advantageous.

Investing Strategically

What is the Average Price Cost? Regular contributions can help smooth out investment volatility. For example, investing $1000 monthly means buying more units when prices are low and fewer when prices are high, potentially lowering your average cost per unit compared to a lump-sum investment.

Flexible and Portable Savings Plans
  • Length of Term Savings plans can be highly flexible, ranging from 0 to 25 years. We assist you in finding a plan that matches your needs and desired term length. Options include limited access plans with higher tax efficiencies or full access plans with lower tax efficiencies.
  • Location Expats often move frequently, making it essential to have portable savings platforms. Our plans ensure you can contribute regardless of your location, partnering only with providers in the safest jurisdictions globally.
Staying Connected to Your Finances

Online Access Having 24/7 online access to your investments allows you to monitor valuations, account balances, and your investment portfolio, ensuring you stay on track with your financial goals.

FAQs
  • What savings plan is best for an expat? The best savings plan for an expat depends on individual circumstances, including location, duration of stay, and financial goals. Consulting with a financial advisor can help tailor a plan to your specific needs.
  • How much should I save each month? The amount you should save monthly depends on your income, expenses, and savings goals. It’s advisable to set aside a portion of your disposable income, ideally around 20%, but this can vary.
  • Are there tax implications for expats saving abroad? Yes, tax implications can vary significantly based on your country of residence and the savings plan chosen. It’s crucial to understand the tax regulations in your host country and seek advice from a tax professional.
  • Can I access my savings if I move to a different country? Most expat savings plans are designed to be portable, allowing you to continue contributing and accessing your funds regardless of your location.
  • What are the benefits of regular contributions? Regular contributions can help average out the cost of investments over time, reducing the impact of market volatility and potentially lowering the overall cost per unit.
  • How can I track my savings progress? With online access to your investment accounts, you can monitor your savings progress, view account balances, and check the performance of your investments anytime.

By selecting the right savings plan, understanding the impact of your location, and making regular contributions, you can ensure a secure and prosperous future. Get started by exploring your options and seeking professional advice to make the most of your expat experience.

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

 

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Schedule an Obligation-free Call With an Adviser

By scheduling an appointment with an adviser they will reach out to you at your requested time. 
Personal advice, whenever it suits you.