What is financial planning?
In the area personal finance, financial planning is the process of managing your financial life in a way that supports your financial and lifestyle goals. It covers items such as budgeting, spending, saving, tax planning, retirement and estate planning, credit and debt, education planning and insurance, all of which are interdependent. It’s also known as wealth management.
Why should I have a personal financial plan?
Financial planning enables you to see exactly where your money is going and make better decisions about how you spend. When you consciously make a personal financial plan, you gain a lot more control of how you spend your money.
What is the significance of financial planning for expats?
The international nature of expat life means we’re faced with many more financial decisions than had we simply remained at home. Personal finances become more complicated, with considerations such as education costs, pensions, international life insurance, international tax, etc., that we just may not have back home.
Lack of understanding (or visibility) of our financial situation in the short and medium-term can lead to overspending and debt, not to mention it makes financial planning for the future more difficult. Hoxton Capital Management’s own research here in the UAE has revealed that around 85 per cent of expatriates based in the Middle East are not saving for their retirement.
In addition, our research suggests that almost half (47 percent) of expats feel they can’t afford to save appropriately, with up to two-thirds returning home less wealthy than when they arrived. This is a huge proportion.
Who can benefit from assistance with financial planning?
Because every financial plan is unique to the individual’s needs, goals, personal and financial situation, everyone can benefit from professional financial planning services. A financial planner will assist you to identify your net worth and evaluate your finances, and then analyze and recommend strategies to maximize the chances of success of your financial plan.
With regards to financial planning of savings and retirement, it’s particularly useful to turn to an investment adviser who can help with planning strategies that support your overall financial plan, and identifying suitable and affordable savings products or vehicles, or cutting your investment costs. Your investment adviser is there to help expats protect your wealth, and improve returns on your investments.
Financial planning services can be extremely valuable, especially if you’re new to financial planning and need expert guidance. But even if you’re nearing retirement it’s worth “health checking” your personal financial plan to test your assumptions and plug any gaps identified. And with so many options for wealth management, it’s never too late to start your personal financial plan.
Are you seeking the services of a financial planner?
Our wealth management advisers based in the UAE are experts in all areas of expat personal financial planning, at all stages of the process. Get in touch with us to discuss , whether you want to get started on your personal financial plan, or want financial advice on your current wealth management strategy.