Offshore saving plan

Expats might have various reasons to start offshore saving. An important advantage of offshore saving is that the return is paid gross into the account. Usually the regular savings objectives are short/mid-term. There are some choices the expat has to make to create the tailor-made offshore savings plan.

First the objectives for offshore saving have to be determined. As these are the basis for the offshore savings plan.

There are many different funds an expat can choose from to reach the offshore saving objectives. Which fund fits the wishes of the expat best is dependent on several factors. A factor influencing the choice of investment fund is the amount of risk the expat is willing to take. Each fund has its own risk profile. The expat should choose the combination of funds for which risk profiles suit him/her best.
The next factor that counts is the currency. An expat can choose out of several currencies while planning the offshore saving. Common currencies to use are USD, GBP, Yen and Euro. This is to make sure that the achieved amount isn’t subject to unwelcome exchange rates.

Another choice is a savings account based on interest. There are two types of interest rates for expat savings accounts. The first is the fixed rate accounts. These accounts offer a fixed rate of interest over a certain period of time. The other is variable accounts. In these saving accounts the interest rates change on a periodic basis. The rate is usually tied to the return on the investment.

The next choice an expat has to make is whether or not to use the services of a portfolio manager. Expats don't often have the time to analyse and administrate their investments. A portfolio manager assists the expatriate during the full process of offshore saving.

Need assistance with an offshore savings plan?

H&N Associates is an independent financial advisor specialised in assisting expats with all their financial questions. Fill in the offshore savings enquiry form to be contacted by one of our advisors to receive a tailor-made personal advice.