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Five expat tips on how to avoid bad financial advice

By May 19, 2017June 28th, 2023Financial planning

Five expat tips on how to avoid bad financial advice

May 19, 2017

Expats generally command good salaries and are often in the position where they can save and invest money. The one area where they are vulnerable, particularly if they are living in a new country, is being subjected to bad financial advice. Back in your home country, you will more than likely have your own network of trusted financial advisors. However, in your new country, finding equivalent advice can be difficult, especially if there is very little financial regulation.

Another area of difficulty is finding experts on financial migration. Your trusted financial adviser at home, may have very little knowledge about financial migration or how to unlock your current wealth and make it work for you when you move to your new country. Follow these five tips and avoid common financial pitfalls:

Tips for expats to avoid bad financial advice

Be aware of your new country’s financial regulations

In some countries, people can claim to be financial advisors with very little training behind them. Asia and certain Eastern European countries have very little financial regulation, which leaves you open to bad advice and having large commissions deducted legally from any investment you make. Sometimes these commissions will be so hidden in the small print, you won’t even be aware of them until, in some cases, up to 50% of your assets have been taken as commission!

Look carefully at insurance bonds

In many countries, salespeople who sell insurance policies need fewer qualifications. This can place you at risk if your purchase an investment within an ‘insurance bond’, which are often financially classed as insurance policies – as the advice you receive may not be backed by a great deal of knowledge.

Avoid high-risk assets

The returns on high-risk assets like wine or property may look very attractive, but in many countries these funds are unregulated. If you are not an astute investor, you may find yourself suffering serious losses if you invest in anything too exotic.

Don’t be coerced into long-term saving products

Long-term investments may sound like a good idea, but often these types of savings products require regular monthly investments, which carry heavy commissions and charges, eroding the amount you are investing – and in some cases, half your first year’s premiums will be absorbed by commission payments.

Find the best financial migration advice

Before you leave your home country, speak to an accredited financial migration expert, with a broad base of happy customers, about how to deal with your current financial investments and how to make your money work best in your new country. With thousands of clients in over 105 countries, is widely recognised as South Africa’s leading financial migration brand and the ‘go-to’ people when it comes to unlocking your South African wealth in your new country.

We deal with all South African banks, insurance and investment companies, pension funds and other related financial institutions. Our website and online forms are GeoTrust® SSL Secured to guarantee personal and private information is protected. We comply with the Consumer Protection Act, the Protection of Personal Information Act and are committed members of the Unashamedly Ethical Campaign.

If you’re thinking of immigrating and need expert advice concerning your finances, contact us today. We’re here to put you on the path to financial freedom in your new home.
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