By Aaron Crotty
Business
5 Ways to make your investments count while living abroad
Formulate a financial plan
As expatriates , one of the most appealing aspects of moving to the UAE is the tax-free environment . Although it can be an expensive place to live , the important thing to remember is with the correct financial planning , there is the opportunity to set up a foundation for the future , whether this is for the short , medium or long term .
Identifying financial goals
The starting point has to be identifying what we want to achieve . There are many ways to build a financial plan . However , in order to maintain and achieve our financial goals they have to be identified from the outset .
Designing a financial plan
Like anything in life , you have to make a plan and stick to it in order to fully achieve your financial goals . One of the most difficult things is breaking the habit from a ‘ spender ’ to a ‘ saver ’.
It ’ s great putting money aside each month , however it is difficult to keep track of progress without any form of financial plan .
Diversification
It is important that you don ’ t ‘ place all your eggs in the same basket ’. There are many different types of investments such as property , stocks and shares , etc . When making any form of investment , it is essential to diversify to ‘ spread the risk ’. Certain aspects , such as timescale and expected returns would dictate how diverse a portfolio should be .
Regularly review
As a financial advisor , service is one of the most important aspects of my role . I insist on meeting with my clients every 3 months for a financial review . There are two main reasons for this . The first is to review the portfolios I manage for my clients . When investing into the markets it is important to take an active approach to ensure maximum returns . The second , and equally important , is to review my client ’ s personal circumstances , as the life of an expat can change very suddenly . If my clients change jobs , have a salary increase or even expect life-changing things like another child , it is important to amend and update financial provisions , which can accommodate for such changes .
Commit to your plans
Financial planning is a commitment . If we do not commit to our plan and see it through , the chances of achieving the financial goals will be extremely thin . The cost of delay is something that can have a big impact on the success of our planning , my advice to all our clients is to commit to a plan which is comfortable to begin with , with the options to amend as needed . All the points highlighted in the article are important , when formulating a structured financial plan .
To connect with Aaron , email : aaron . crotty @ arloassociates . com