your passport to expatriate wealth

1 ABBEY WEALTH | Your Passport to Expatriate Wealth www.abbeywealth.com

Your Passport to Expatriate WealthExpert, reliable and informed advice for expatriates around the world

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Whatever reason you have for becoming an expatriate, this report is essential reading to ensure that you do not waste the massive financial opportunity available to you now that you live abroad.

www.abbeywealth.com2 ABBEY WEALTH | Your Passport to Expatriate Wealth


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DisclaimerThis document has been prepared for general information purposes. Individuals will require specialist advice from a suitably qualified professional adviser before making any decision in relation to their eligibility for an offshore or onshore savings or investment vehicle. The information contained in this document does not, nor is it intended to, constitute comprehensive investment advice. Before making an investment or applying for any scheme or contract mentioned in this document you should seek professional financial advice. All of our advisers are qualified to give professional financial advice.

Introduction

Chapter 1. Life as an expatriate

Chapter 2. Basic financial advice: in case of emergency

Chapter 3. Why you and your Abbey Wealth adviser share an international financial perspective

Chapter 4. Understanding financial goals, personal circumstances and investment opportunities

Chapter 5. Increasing returns from your expatriate investments

Chapter 6. Retirement and pension planning

Chapter 7. UK pension transfers and Qualifying Recognised Overseas Pension Schemes (QROPS)

Chapter 8. How to get the help and advice you need

Contents


At Abbey Wealth we focus exclusively on delivering comprehensive financial services to expatriates worldwide.

Our advisers are friendly, professional and highly qualified – we have dedicated specialists for specific areas of financial planning such as pension advice.

Please get in touch to raise any queries you may have, speak to an adviser or to get any assistance or advice relating to your expatriate financial position. We will do all we can to assist you.


Whatever reason you have for becoming an expatriate; to work for a new employer, to transfer to an overseas attachment, to retire, to reduce tax burdens or just to escape the rainy British Isles, this report is essential reading to ensure that you do not waste the massive financial opportunity available to you now that you live abroad.

The information in the report is compiled by our industry experts, and is designed to highlight some of the vast financial opportunities available to you. Hopefully it will be the catalyst for you finding financial solutions for your life abroad: however the information contained herein is generic, and if you have individual questions, please do not hesitate to contact us to receive more detailed information relevant to your personal financial needs.

At Abbey Wealth we focus exclusively on delivering comprehensive financial services to expatriates worldwide. We pride ourselves on our level of customer service to ensure your complete satisfaction.

To that end we make the following promises to every client:

• Your best interests are our priority.

• Communication will be done in a clear and transparent way.

• Any potential charges or fees will always be highlighted in a clear and transparent manner.

• Your data will be secure and confidential.

• Your feedback will be valued ensuring we offer you the best service.

• You will always be in control of your finances.

• Managing your finances will be straightforward.

• We are a privately owned company and remain completely independent from any banks or fund management companies.

Talk to our teamGet in touch for help and advice:

CALL + (34) 952 887 270 [email protected]

Introduction


If you are an expatriate then first and foremost congratulations and welcome to a world of opportunity and adventure.


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The idea of moving abroad and expanding horizons is one that appeals to many, yet it takes a special kind of individual to actually make the move a reality. If you are an expatriate, welcome to a world of opportunity and adventure.

We know it is very easy to fall in to the ‘live for today’ mindset and not plan for the future when you’re living overseas. Thus, we have devised this simple, step by step report to show you how to take your financial future seriously, and avoid being one of those expatriates who returns home with nothing more than a mass of photos and memories - and perhaps even debt!

What does being an expatriate really mean to you financially?

As an expatriate, you may gain a certain fiscal advantage that is of benefit to you in the form of legitimate taxation savings and/or more interesting savings, investment and pension opportunities. It’s all about finding the right savings, investment and pension products for you.

At Abbey Wealth we are independent of any bank or financial institution, and we focus exclusively on our international, expatriate client base.

This means that we not only understand your financial opportunities, but we can enable you to access the most advantageous savings, investment and pension products to ensure your overall financial portfolio suits your expatriate lifestyle and your tax saving entitlements. This includes your attitude to saving and investing, whether you are cautious, looking for the highest or safest returns or like to be more adventurous.

As a premier independent expatriate advisory, we are expert in ensuring expatriates take all their financial advantages, by giving you access to the entire International financial marketplace.

If you would like to receive a complete financial health check to discover how you can make the most of your financial options as an expatriate, take the opportunity to receive a free savings and pension review from Abbey Wealth in which we will thoroughly detail every option available to you.

Life as an expatriate

7 ABBEY WEALTH | Your Passport to Expatriate Wealth

Talk to our teamGet in touch for help

and advice:



Basic financial advice: in case of emergency

Ideally you should make sure that you always have at least three month’s worth of income available on deposit for bills and outgoings if you want basic financial peace of mind. Having an emergency fund is a basic solution to many financial nightmares, and allows you to comfortably look at placing your other savings and/or disposable income into more medium to long-term accounts which can produce greater potential returns over a longer period.

Don’t just leave vast amounts of money, (or even your life savings), in the same instant access bank account as your emergency fund though. There are many low risk or no risk alternatives available if you have money on deposit and know where to look. As a client of Abbey Wealth we can show you how to cut out the middleman and stop making the banks rich - no matter what your attitude to risk is, and no matter how long you want to save or invest for.

Do you really want to bring all of your capital into your new country of residence if you do not have to?

As an expatriate you will usually need to open a local bank account to pay your local bills and meet your day- to-day expenses and income. As a general rule though, if you are able to keep some of your money offshore then there are usually ways to defer any tax liability until a time when it is convenient for you; this often proves to be financially beneficial to most expatriates.

Without tax deducted on a regular basis, your savings will grow a lot quicker. In addition, depending on how you structure your affairs, you may also legitimately only be required to pay tax on the growth that you bring in to your country of residence.

Where should you bank, save and invest your money?

As a client of Abbey Wealth we can show you how to cut out the middleman and stop making the banks rich - no matter what your attitude to risk is, and no matter how long you want to save or invest for.


Some offshore financial centres, especially those within the EU, offer personal and transactional security and tax efficiency within a well-regulated environment. This means offshore financial centres are widely used by qualifying individuals both inside and outside the European Union.

If you choose to retain your wealth outside your new nation of residence you can benefit from the best-regulated offshore financial centres, with the best funds or savings solutions identified as suiting your needs and you can protect your wealth from risks as diverse as excess taxation erosion to wealth grabs by the governments with bankrupt economies.

For the majority of expatriates there can be severe taxation disadvantages to bringing all of your money into the new nation in which you reside, so discuss your individual situation with an Abbey Wealth Adviser to enable you to make an informed decision about how to increase your returns and protect your capital. You can then understand where the best jurisdiction is for you money.


and advice:



Why you and your Abbey Wealth adviser share an international financial perspectiveYour previous UK based financial adviser may not be able to introduce you to the potentially tax saving and financially enhancing opportunities available as you find that their focus and expert knowledge is based in the UK alone. Furthermore, a local adviser in your new nation is highly unlikely to understand your unique expatriate status, how that relates to any tax saving potential in the nation in which you are residing, and how you need to structure your affairs appropriately in case you should ever want to repatriate or relocate elsewhere.

Planned correctly, a move to another country, including back to the UK, can have some very special future tax advantages.

Because you need an adviser who understands how your previous financial affairs were managed, how your current status can benefit you, and how your future requirements may lead you to or from certain courses of action, your Abbey Wealth adviser has all of this expertise.

Although you may speak the language of your new country of residence, seeking advice from a British trained independent international adviser will be far more beneficial when reviewing your finances on an international and not just local level. By using an Abbey Wealth international adviser who specialises in working via the internet,

email and on the telephone, wherever you move to in the world he or she can remain your point of contact, maintaining continuity for your financial affairs. You can of course visit us at any of our offices if you prefer, or perhaps you prefer skype video meetings.


• You will have the reassurance that your Abbey Wealth adviser views your affairs in the same way as you, and provides the best advice for your international outlook.

• Your Abbey Wealth adviser has all of the expertise to understand how your previous financial affairs were managed, how your current status can benefit you, and how your future requirements may lead you to or from certain courses of action.

• You will get an adviser who understands expatriates and the offshore and international world of tax and financial planning. They will not be tied to any financial institution, as independence in terms of advice given is the key to your future financial success.

• Your Abbey Wealth adviser will be qualified, experienced, professional and backed by a brokerage large enough to have influence with the major financial institutions, so that you can access and benefit from the safest accounts and best opportunities available.

With Abbey Wealth you can access a comprehensive range of products which are tailor made for expatriates; they can enable you to maximise any tax saving advantages that your UK non-resident status may give you, whist ensuring that no matter where you live today or plan to live in the future, your wealth will continue to grow securely.

Our goal is to provide you with the knowledge and expertise that you need in order to make the best-informed decisions that you can about the overall management of your wealth.

To discover how you can make the most of your financial options as an expatriate, take the opportunity to receive a free savings design from Abbey Wealth in which we will thoroughly detail every choice you have for your finances.



What you, as an expatriate, will get from Abbey Wealth:


Work with an Abbey Wealth adviser to determine what is possible, realistic and ideal for you – and then allow them to guide you towards the best investment vehicles or savings policies to suit your requirements.

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Understanding financial goals, personal circumstances and investment opportunities

How Much Do You Want to Invest? What Returns Do You Require?

Are you in a position to invest a lump sum? Will you be looking for a regular savings scheme into which you can make monthly/quarterly/annual deposits? Are you paid bonuses sometimes which may result in you being in a position to make ad hoc contributions to your savings?

Your answers to these basic questions will immediately bring up alternative opportunities for you, but what you need to know is that the sooner you begin saving, the longer you will have for your money to grow, with dramatic effects from compounded returns over time.

What are You Saving or Investing For?

Do you want to save for your retirement, towards education fees for your children, for the deposit on a property or for a large purchase?

It’s highly likely that your savings objectives will cover a number of final goals – for example, most people do want to save towards their retirement, whilst at the same time having shorter-term savings targets such as getting the money together to buy a new house perhaps. Therefore, the term over which you’re willing or able to commit your savings will dictate which particular savings path you follow.

Your Abbey Wealth adviser will work with you to determine what is possible and achievable - and then guide you towards the best savings or pension vehicles to suit your requirements.

Prepare Yourself for Investing

You need to make certain decisions and reach various understandings before you are ready to save. You need to be aware of your own risk profile and what you want to achieve through saving – that way you will find it far easier and simpler to recognise the right savings plan when it is presented to you. With the help of an adviser, the ultimate decisions you make about which savings or investments vehicle will depend on your financial circumstances and goals.

Also, remember that decisions made today may need to be revised and reviewed regularly to ensure that your savings are still on track to match your ultimate targets. The good news is that as an Abbey Wealth client, we offer you an ongoing free review service in which we make sure your savings are on track to deliver, performed each quarter.


Increasing returns from your expatriate investments


and advice:


There can be advantages to saving your monies offshore – and there can be further advantages to saving via an EU compliant structure called a portfolio bond. The advantages can include having access to varied funds and bonds which use the best investor protection, using regulatory environments such as the Isle of Man, Guernsey, Jersey or Dublin.

The advantages of saving through a portfolio bond can include usually having access to most of your money without any penalty. In addition to this, a wide variety of these popular types of structure enable you to benefit from institutional bank deposits offering the very best interest rates, as well as achieving security through diversification, i.e., by holding a selection of bank deposits, and mid market exchange rates - meaning you achieve the very best exchange rate possible should you wish to start converting some of your deposits to another currency.

Of course, every expatriate’s situation is different and it would depend on your country of residence and your individual personal situation whether an offshore solution may be perfect for your financial goals, and whether a portfolio bond is right for you.

For most expatriates it can be very advantageous to save in an EU approved vehicle such as a portfolio bond, and your Abbey Wealth adviser will be more than happy to discuss your eligibility before proceeding with any recommendations.

If a portfolio bond is deemed to be an ideal structure for you to utilise, you will be able

to affordably and easily establish such a savings structure that can hold all your deposits, cash, funds and assets under one tax efficient umbrella.

Portfolio bonds are available from leading, well-known financial institutions, all of them household names. Within these secure structures you can hold your bank deposits, currency accounts, equities, bonds, top performing offshore and onshore funds, even premium bonds; virtually any asset that is not physical property.

If you are looking to invest with different fund managers along with finding a home for your cash deposits, allowing you to diversify your holdings even further and monitor performance with your adviser’s guidance, then this sort of structure is definitely worth considering.

Remember, diversification is the key to financial success - never put all your eggs in one basket. With a portfolio bond you can protect all of your eggs...


Confidential – Tax efficientFigure 1. Example of a portfolio bond structure

Lump Sum Invested 100k GBP

15k (£/€/$) Invested in fund (A)

Low risk bond fund

25k (£/€/$) Invested in Fund (B)

Low risk

10k (£/€/$) In fund (C)

Medium risk

Equivalent of £50k (£/€/$) Held on deposit

with banks at 2% p.a

The benefits of QROPS can be huge. They can include the following: Access to the UK freedom of pension regulations in a tax efficient environment.

This means that if you are an expatriate and you have a pension pot which is worth over £70,000 you may be able to release it from the restrictive UK system and it’s ever changing rules entirely. If your pension value is between £30,000 and £70,000 Abbey Wealth now have exclusive access to cost effective products that could mean a transfer is beneficial.


Retirement and pension planningOne of the most fundamental issues for you to think about when deciding on your financial planning options is to make sure that you are preparing for your retirement sufficiently and appropriately. Many expatriates do not get ahead in the retirement race by saving hard as they are scared of this approach encroaching on their standard of living today. However with careful planning it is easy to get ahead without hindering your current lifestyle.

Don’t think that tomorrow will never come as there are so many options open to you today to make your pension planning easier and more effective. Remember that as an expatriate you can benefit from tax

advantages and often defer any tax liability; as a result your capital can grow faster.

It is often hard, when imagining your retirement, to get away from the thought of the pleasure of not having to work anymore, of sipping cocktails in the sun or a beer at the golf course! These dreams are great, but there is also the serious side of retirement: the planning to pay for your enjoyment of it. Careful planning now can avoid a financial disaster leading to an unfulfilled retirement.

Figure 2. Graphic Story of 100 people aged 40 who put off until tomorrow what they could easily plan for today.

Figure 2. Where will you be when you retire?

1 40yr old will be rich in 25 yrs time

4 40yr olds will be financially independent in 25 yrs time

5 40yr olds will still have to work in 25 yrs time

12 of these 40yr olds will be broke

29 of these 40yr olds will be dead in 25yrs time

49 of the 40 yr olds will be dependent on family and friends

Be one of the 5% who are well off and financially independent in retirement – it is easy with the correct planning.


Imagine that you are retiring tomorrow:

No matter what your financial situation is right now, there are plans and solutions available to you to help you do the very best for your retirement. Your expatriate status can give you a significant financial leg up the pension ladder and you will feel much better about your future financial security.

By saving regular amounts, however small, you can make a really significant difference and avoid financial disaster.

For those of you already retired, by carefully investing a lump sum you can maximise your income potential.

The good news is that there are so many more retirement savings options available to you as an expat that give you tax benefits, financial benefits and flexibility benefits.

How much money would you like to or need to write yourself a cheque for to ensure that you will have enough in the bank to last you, your spouse and possibly even your family for one year in retirement?




By transferring your UK pension you are no longer under any obligation to buy an annuity.


UK pension transfers and Qualifying Recognised Overseas Pension Schemes (QROPS)For those of you who already have a UK pension, it is also important to be aware of changes in pension law. In April 2006 it was announced that British expatriates could move their pension benefits to a QROPS (Qualifying Recognised Overseas Pensions Scheme) with HMRC’s approval.

This means that if you are an expatriate and you have a pension pot which is worth over £70,000 you may be able to release it from the restrictive UK system and it’s ever changing rules entirely. If your pension value is between £30,000 and £70,000 Abbey Wealth now have exclusive access to cost effective products that could mean a transfer is beneficial.

The benefits of QROPS can be huge. They can include the following:

• No need to EVER purchase an annuity or pay UK tax charge upon death.

• Once transferred it will be away from UK legislation.

• Leave ALL unused pension funds to your beneficiaries free of UK IHT (Inheritance Tax).

• Much greater investment freedom.

• Tax free lump sum of up to 30%.

• Onshore/offshore funds, highest fixed deposit rates, total diversification.

• Take income from your pension in a much more tax efficient way.

• Take income and benefits in the currency of your choice with no FX costs.

• Protection against possible future creditors (depending on QROPS jurisdiction).

The benefits of being in control of your pension fund are immense for those living abroad. If you don’t have to buy an annuity then it means that when you die, or when your spouse dies, then your pension fund doesn’t die with you. It means that your hard worked for pension can be passed onto beneficiaries in line with your wishes. QROPS pension arrangements will also pass to the intended beneficiaries more easily and more quickly than would be the case with a traditional British pension.

However best advice means not just telling you about the benefits and current transfer values, but also any potential pitfalls you should consider. That’s where our free and unique evaluation service becomes invaluable. We suggest you contact us for a discussion relating to all the points you should consider depending on your personal circumstances.

We will analyse your current pension schemes, any defined benefits, the level of investment you’re making and then compare and contrast with all the QROPS schemes you may be eligible to consider. Where there are transfer benefits these will be clearly identified for you and where there are risks, these will be emphatically defined.

Our advice is that if you have a UK pension and you live overseas, your next step must be to speak in confidence with no obligation to an Abbey Wealth Pension Adviser while this opportunity is still available.


How to get the help and advice you needAt Abbey Wealth we are fully aware that each client’s individual financial situation is unique. What’s more, because of the nature of the global financial landscape, the best options open for any client can change, and are of course dependent on their risk profile, tax status and ultimate fiscal goals - therefore to try and give definitive answers to every financial question possible within this report is of course impossible.

Instead, we would like to invite you to contact us to explore our range of services, and to discover how exactly we can assist you.

Abbey Wealth was originally established in 2007 by a group of leading international financial professionals who identified a growing requirement for greater financial support specifically for expatriates.

At Abbey Wealth we understand that most expatriates lack the time to take full advantage of their enhancedwealthposition. Withourprofessionalfinancial expertise we know that by providing the most comprehensive, streamlined and personalised approach to your finances we can ensure that all of our clients make the very most of their time abroad and maximise their future wealth position.

We deliver you an individualised service designed to optimise your personal wealth status. We focus on your goals and objectives, and work together to deliver you solid and consistent growth, whilst maintaining real security. We offer integrity and continuity through our personalised service, which is personally delivered by our strong team of expert professionals, who are all qualified to the highest international standards.

No matter who you speak to at Abbey Wealth, you will always receive an answer born from expertise and experience – which is why the majority of our business comes from direct referrals and why the majority of those who receive advice from our advisers act upon the advice they receive.

We look forward to hearing from you and welcoming you as our client.


and advice:


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We offer integrity and continuity through our personalised service, which is personally delivered by our strong team of expert professionals.

Talk to our teamGet in touch for help and advice:You can reach us directly by calling us between the hours of 8am and 6pm CET and we will immediately assist you.

EU Head Office+353 154 148 10 (GMT)

EU Residents enquiry line+34 952 887 270 (CET)

Switzerland - Rest of the World+41 22 700 84 75 (CET)

Copyright 2017. For clients in the EU, AFS Wealth Management & Insurance Advisers Limited is regulated by the Central Bank of Ireland, Licence C143069. Registered in Ireland Company no. 561245. Directors:- V. France (British) & J.P. Galligan. AFS Wealth Management & Insurance Advisers Ltd also operates a branch in Spain under freedom of establishment. The company also advises clients in other EU countries under freedom of services.

In Switzerland AWM Advisers S.A. Company number CHE-239.207.553 is a fully regulated asset manager and insurance intermediary, regulated under Swiss law by Polyreg, an appointed SRO recognised by FINMA. Our licence is a reference for professional standards in Switzerland. A copy of our licence is always available upon request.

21 ABBEY WEALTH | Your Passport to Expatriate Wealth

your passport to expatriate wealth

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