How to invest wisely while living abroad

1. The Cutten Group Tokyo Japan MARCH 30 The Cutten Group Tokyo Japan The Cutten Group Tokyo Japan 1

2. How to invest wisely while living abroad How to invest wisely while living abroad Making safe investments may be difficult, regardless of whether you're an expat who lives and works overseas or an expat who is wanting to develop an investment portfolio to support your lifestyle in retirement the cutten group tokyo japan. It's unlikely that you will have sufficient market knowledge to make wise, low-risk investments unless you have been an expat in the new nation for many years. On the other hand, investing in your home country may be too expensive or difficult. Here, we've put up a guide to investing while you're an expat living overseas and included advice on how to invest your money to benefit from better rates of return and lower tax rates. Consider the future. Consider the future. You should think about your long-term goals and decide if you're going to move back to your native country before making investments in the nation where you now reside. In order to provide a steady income stream when you finally move back to the UK, you might want to think about investing in UK real estate or a company if, for example, you now reside in Dubai for work 2

3. but want to go back to the UK in your retirement. The management of currency risk and comparing exchange rates to maximise your assets are two important issues, though. Although Brexit uncertainty may be causing the Pound to be weak right now, the market may have changed significantly in 10 years. Such situations could benefit from you opening a bank account in the nation where you are investing. comprehend taxes comprehend taxes Although there are no taxes on investments in the UAE, if you want to make overseas investments, you need think about the taxes in other countries. Offshore bank accounts can assist in lowering tax rates and decreasing the likelihood of an unexpected bill when it comes to interest and dividends from mutual funds, hedge funds, cash management products, and foreign pension plans that may be taxed when you attempt to bring the money back to your country of residence. Bank investments Bank investments Although while investing with a bank won't provide the same return as doing it on your own, many banks provide services for expats, offering guidance on how to effectively manage their 3

4. assets. You may speak with a financial adviser or wealth manager through the HBSC InvestDirect International Account, for instance, who will go over the best solutions depending on your specific situation. The required minimum investment is £25,000, $35,000, or €25,000, and you'll be paired with a wealth manager who can advise you on investment portfolios based on the degree of risk you are comfortable with and manage the assets on your behalf. The bank is not responsible if they do not create a return or lose your money, so keep in mind that this is not a risk-free investment. Opportunities for native investment Opportunities for native investment Depending on your place of origin, you might be able to benefit from risk-free investing and savings options prior to relocating. One of the best and safest investing alternatives in the UK, for instance, is an ISA, however this option is only available to UK citizens. You can fund an ISA before moving if you are based in the UK. It is a practical choice to take into account before leaving if you're hoping to maintain a lump-sum in a savings account, but you won't be able to contribute more payments from abroad when you depart because you won't be regarded as a UK resident (a UK address will be required). 4

5. Make pension investments. Make pension investments. A private pension is a tax-advantaged savings plan that can be crucial to your larger investing portfolio. Choose the finest pension plan for your financial situation by taking your time to research it. If you're an expat living abroad who is originally from the UK, you could be able to profit from the Qualified Recognized Overseas Pension Plan, which enables non-residents to transfer their pension outside of the nation and provides currency advantages the cutten group tokyo japan. To guarantee compliance, hire a reputable advisor and adhere to any instructions to the letter because offshore pension transfers have recently been the subject of unfavourable headlines. Stocks Stocks Stocks, which enable you to trade the equity of firms doing business in the nation, are one of the most well-liked investment alternatives for foreigners in Dubai. Take the time to study and understand the market before diving in head first, and seek financial advice to lower your risk. While the Securities and Commodities Authority (SCA) strictly regulates the Dubai Financial Market and NASDAQ Dubai enables foreigners to trade 5

6. Real Estate Investment Trusts, neither is risk-free and should be approached with caution. Bonds Bonds Since interest is seen as haram under Islamic law, bonds are sold in Sukuk, making them a less popular investment option for foreigners in Dubai (Islamic financial certificates, similar to a bond distributed by Western financial institutions). Bonds may be bought starting at AED 100 and in multiples of AED 100, and following a 90-day holding period, they can be redeemed at exchange houses. Bonds may be low-risk investments for expatriates, but they aren't the most lucrative. Before investing in bonds, think about the interest rate, offer duration, and maturity date. Greater Greater- -yielding savings accounts yielding savings accounts High-interest savings accounts with fixed deposits for one to 24 months are readily available from several banks in the UAE. Banks including ADCB Bank, Emirates NBD, HSBC, and Mashreq provide e-savers, which are low-risk investing possibilities that pay out more interest than a conventional bank account. The interest you earn on your savings is not subject to taxes in the 6

7. UAE, but you should be aware that certain banks penalise early withdrawals and do not provide bank cards. Never forget to maintain certain resources accessible and free in case they are suddenly needed in an emergency. Property Property The real estate market in the UAE is the last investment option to think about if you're an expat, with the typical three-bedroom home in the city fetching a monthly rental charge of AED 14,442 (about £2,950). Yet, with the typical home costing more than AED 2.78 million, there may be substantial entry barriers that deter some foreigners from deciding to invest in real estate. Even yet, if you're prepared to put money into it, renting out your house might net you an annual income of 6.22%, much more so in desirable areas. To conclude To conclude Although your profits will only be as great as the amount of risk you're prepared to accept, it is still feasible to make wise investments while living overseas as an expat. When making a significant investment choice, always remember to speak with a financial counsellor, look for products with guarantees or 7

8. assurances, and consider the opportunity costs before making a purchase. 8