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.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.