Thanks to a politically hot summer in the UK, Sterling is vulnerable to volatility and electoral uncertainty has gone some way to unsettle investors on home soil.
But what are the big concerns for expats?
Here, we review your top five financial worries:
1. What if the market goes down?
Markets constantly have their ups and down and it’s impossible to predict if and when we’ll face a ‘bear market’. That said, if you have a good financial advisor, turbulent times will be handled with knowledge, strategies and pragmatism – and not panic.
Don’t fear market corrections. These happen about once a year and generally last for about two months. And the silver lining of market slumps is the bull market which quite often follows.
If you’re in the market for a ‘safe’ option, it’s worth asking your advisor about managed and diversified options, such as ÆON. Here you have a platform that reacts with the markets, preserving values when the unexpected happens. Clients enjoy more high value solutions with reduced risk and reduced costs, as well as flexibility and assurance through daily pricing and structures to keep assets liquid.
2. What if I am unable to work?
Not something you need to worry about if you have Income Protection Insurance and an emergency fund.
Income Protection pays you a salary in the event of sickness or serious injury, whilst an emergency fund of three to six months’ salary will give you a buffer zone to cover the ‘waiting period’ for your claim.
Without Income Protection and an emergency fund, job loss can very quickly turn into financial hardship.
3. What if I invest my money in the wrong way?
The right way – indeed the only way you should ever invest your money – is with a regulated financial advisory.
Avoid commission-based financial advisories at all costs. These companies have long since been undermining the work of financial institutions and if they are un-regulated, you may not be able to recover your losses.
If you’re currently invested in a fund or pursuing options, you can check if the advisory is regulated.
4. What if there’s a recession?
Keep calm and carry on.
If job loss is on the cards, tighten your belt and put a little extra thought into budgeting and spending. Again, income protection and an emergency fund sell themselves in times of economic slowdown, by helping you to ride out the storm if your livelihood is at stake.
If you have a UK property, you can also take measures to ensure you have an adjustable mortgage rate. However if your property is overseas, it’s important to take the relevant insurance measures.
5. What if I get ill… or worse?
Life is full of ups and downs, but with the right insurance planning, you can ensure your loved ones will be cared for, should the worst happen.
Term Assurance provides a lump sum payment for your loved ones, in the event of your death. The amount of money they receive depends on the type of cover you choose to invest in, so it is critical to establish the financial needs of your family to help you calculate your policy.
To find out more about planning your financial life and protecting your livelihood, contact your local Globaleye branch and speak to an adviser.