Why UK Expatriates should invest offshore?

It is the tax free element of investing offshore that attracts both investors and providers alike.  It is sensible that if you are allowed to invest offshore that you research the pros and cons at the earliest opportunity.

The UK expatriate has a long tradition of investing offshore and it is commonly known that when a person starts working overseas that his next step is to open an offshore bank account. In general, this is still good advice today even though onshore banks will accept that you have moved abroad and will thereby pay returns gross.

The next step is when you have either a regular income or some capital to invest.  Bank accounts are really for maintenance of your cashflow, a necessity for an employer in order to pay your salary and ideal for holding that rainy day fund of say 3-6 months equivalent outgoings. Above this amount you are not going to grow your capitals' spending power unless you place it as some degree of risk. With inflation above 5% (Dec 2011) a 3% return on your bank account is losing you 2% in real value per year.

Time is of the essence and this is where an offshore adviser and discount broker, can ensure your capital is working as hard for you as you are in your overseas posting.  

Pay attention to charges and fees; open your mind to new types of investments you may be totally unfamiliar with and be realistic about your expectations. If you are earning $8,000 per month then dependent upon your outgoings saving $4,000 a month is not unrealistic, but do ensure you don't sign up to anything that contractually commits you beyond what you could afford if you suddenly lost your job or had an unexpected expense. Commit only money that you can afford to leave untouched for 3-5 years. This fits well with riding out the volaitlity of some markets.

If this all sounds like sensible advice and you want to hear more then please contact us now for further information.