Of course, few people consciously bank on winning the lottery to fund their retirement. However, many have a subconscious lottery mentality that prevents them from doing what is likely to be in their best long-term financial interests: that is, sitting down with a wealth manager or independent financial advisor to develop a regular savings plan and retirement strategy that will work towards a set of financial goals.
Quite simply, those who don’t plan for their retirements as soon as possible are unwittingly entering a kind of lottery in which their future and that of their dependents are placed entirely in the lap of the gods. The same can be said for those who bring a scattergun, uneducated or myopic approach to retirement investment: without a well-diversified and intelligently researched portfolio of retirement investments, you are engaged in a game of chance in which the odds of a favourable outcome are not stacked in your favour.
Regular Savings – a First Step?
A regular savings plan is often the first step towards successful expat retirement planning. By simply saving money on a monthly basis and investing into a vehicle that offers the potential for growth, expats can increase their chances of reaching their financial goals.
Inevitably, it is a better idea to put money into a regular savings vehicle than any kind of lottery. For example, if you spent £10 each week (two tickets twice a week on the Euromillions draw) over the course of 30 years this would amount to an outlay of £15,600 with, probably, little to no return.
If you instead put the money into a modest savings account, you will still receive some return, but by making a slightly larger regular contribution to a savings account or investment vehicle – for example, two hundred pounds a month – you greatly increase your chances of having your money work for you and, if you invest early, of also enjoying all the benefits of compound gains.
But time is of the essence – it is never too early to sit down with your wealth manager to develop a regular savings plan for your retirement – you certainly don’t want to be one of the 15% of millennials who consider the lottery to be part of their retirement plan.**
Expat Retirement Planning with Blacktower FM
Blacktower FM is committed to helping clients develop a regular savings plan that aligns with their expat retirement planning goals.
We work across the UK, Europe and the Caribbean to help our clients confidently plan their long-term futures. For more information contact us today.
* https://www.lottery.co.uk/euromillions/odds
** https://myirionline.org
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Time may be running out for British retirees to move to Portugal in order to take advantage of its valuable Non-Habitual Resident tax programme. Currently, talk abounds that the scheme will come to an end in 2018 and be replaced with a 10% net expat tax regime from the first day of the New Year. Luckily, for those who feel they may be tempted by a move to Portugal, any move before this cut-off date will ensure that they are able to enjoy the benefits of NHR status as they currently stand.
When an expat is faced with the question of what to do with their pension, there are several options available to them. And it’s important to understand everything that could be beneficial for your pension pot because very few countries offer their citizens high standard pension systems, as shown by the latest Melbourne Mercer Global Pension Index, which ranks the pensions provided by the governments of 30 countries.