Our Top Tips for Managing Your Wealth as an Expat

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February 3, 2020

The UAE has one of the best career packages in the world for expats. Before making the move, here are some key considerations when it comes to personal finance.

It’s important to manage your wealth to benefit and support your living as well as your family’s

We’re sure that if you’re reading this article, you’re probably thinking about making the move to the UAE. By now you’re sure to be clued up on the many brilliant benefits that come with relocating to the Emirates, but we’ll give you more just incase. 

The UAE was rated one of the top career destinations, due to both its overall earnings potential, and benefits packages on offer from employers. These benefits include return flights home and generous healthcare allowances. 

“The UAE is ranked the fourth best place to work in the world when it comes to personal finance, local economics and career prospects.”

Properly planning for your immediate and long-term financial needs, can be crucial to feeling settled and comfortable in your new surroundings. This wealth management can be a completely different ball game to the UK.

In this article we will be listing some of our top tips for expats moving to the UAE.  

  1. Use Fintech to manage your wealth
  2. Use offshore bank accounts
  3. Get independent financial advice
  4. Planning for retirement
  5. Take advantage of insurance & wills

Use Fintech to manage your wealth

Fintech or ‘financial technology’ is specialised software or modern technology that assists both companies and consumers in managing their everyday finances. 

You can pretty much run your life on your mobile these days, and that applies to managing your money as well. There is a huge range of personal finance or ‘Fintech’ apps designed to help you track your spending and investments, build savings and keep on top of bills. Best of all, most are free.

Fintech provides omni-channel services at our fingertips, traditional procedures and branch-based activities are almost all now digital. Little things like, paying in cheques, setting up standing orders, tracking and logging and paying our taxes are all now readily available to us from the comfort of our own homes.

The Fintech revolution is booming in Dubai, it’s one of the largest growing sectors in the country, and now easier than ever to manage your wealth.

Use Offshore Bank Accounts

It’s important to be aware that, should anything happen while living and working in the UAE, there is a possibility that your bank accounts could be frozen.

It’s important to keep any emergency money in an offshore bank account. In addition, having your earnings from overseas employment paid into an offshore account will mean that you are likely to earn gross interest earlier.

Similarly, if you move any money you already have on deposit with a bank in your home country, you could accumulate tax-free interest even earlier, but it is important to remember that offshore accounts should be closed before returning home so that interest is paid while outside the tax net. 

Expats may also need to prove that they are a non-resident in their home country in order to avoid taxation there while domiciled overseas. 

You can set up your offshore bank account with Ai Investment Group. We use our wide knowledge and niche market information to set you up with the best account for you and your wealth.

Get independent wealth management advice

People often spend their entire life working, paying bills, paying into a pension pot and maybe acquiring some savings. Many people won’t ever use an independent wealth manager to seek professional advice on how to get the most out of their assets.

Whether you’re looking to diversify your capital across different portfolios like real estate investment or are beginning to consider your financial options in retirement and pensions, a wealth management firm can provide you with all the necessary information you need to make a sound decision.

Our wealth management advisors are clued up on all the latest financial news and changes to help you get the most out of your money. 

At Ai Investment Group we work with you to manage your wealth and investment opportunities to maximise your assets. We always keep in mind your long-term objectives, this allows us to steer your portfolio in a direction that serves both your financial ambition and your specific lifestyle choice.

Planning for your retirement

There are many questions you should be asking yourself when it comes to planning your retirement. For example:

  • How much money will I need? 
  • What kind of retirement lifestyle do I want?
  • What are my options?
  • What basic state pension am I entitled to?
  • What’s my tax situation?
  • Can I combine my pensions into one pot?
  • Do I need a will in place if I plan to pass on my wealth?
  • How can I plan for any dependents I may still have when I die?

These are all examples of things that you should be thinking about when it comes to planning for your retirement in the UAE. If one of the questions you’re asking yourself, is when? Then the planning should begin now. 

The majority of companies do not provide pensions further than the gratuity scheme. This means, it’s down to the individual to use their increased income, to maintain any pension accumulation they require.

Living abroad, or working for an employer that is based overseas, should not necessarily limit the amount paid into your home-based pension scheme.

It may be possible to transfer pensions to a pension arrangement overseas if the pension plan in your home country is a Qualifying Recognised Overseas Pension Scheme. This can also be dependent on your intentions to retire and continue living in the UAE.

There are many different types of pension investment schemes to start building your future, read, The Ultimate Guide to Retiring in the UAE here>

Take advantage of insurance & wills

Many insurance policies will not cover you if you move abroad.

Typically, an insurance policy taken out in one jurisdiction e.g. your country of origin, will be void if you become a resident in the UAE. Specific expatriate insurance policies are available, they can be designed to cover financial and other losses incurred by expatriates while living and working overseas. This is important to address before relocating to your new destination.

Insuring and protecting your wealth with insurance isn’t enough when it comes to passing on your wealth. Managing the obtenance of your wealth can and should be put in place through writing a will. 

Inheritance and tax laws differ from country to country, and as different countries have different rules around inheritance, property and tax, the importance of having a valid will in place is priceless.

When putting a will in place, you must understand the implications of your residency status in your country of domicile-This will have an impact on how your will would be executed. It’s advised that expats confirm that their will is recognised in the jurisdiction in which they are living and its advised to have a will in place for every country in which you hold assets.

Ai Investment Group are a UAE based financial planning firm, we’re experts in investment and wealth management for expatriates and UAE nationals. We believe in providing exceptional solutions for individuals, families and businesses.

We pride ourselves on educating you financially to ensure you’re comfortable with all of our recommendations in managing your wealth. Our expert knowledge and advice will help you make the right financial decisions to give you peace of mind and ensure that your financial future is secure for generations to come.