Are you considering an international move soon? If you are, you need an international financial plan. It will save you from many financial hurdles when you move abroad.
Failure to have an efficient strategy in place can prevent you from enjoying your life abroad and even bankrupt you.
So, if you want to make informed decisions regarding your relocation and finances, you should start planning for your international move as early as possible. Read on to gain insight into an international financial plan.
What Is International Financial Planning?
International financial planning (IFP) is the practice of helping clients plan for and manage their wealth globally and includes both financial planning and investment management. IFP professionals often have specialized knowledge in international markets.
They can help clients make intelligent decisions about where to invest and how to protect their assets if they are affected by global events.
International financial planning requires considering currency exchange rates, investments, tax systems, and inflation.
Do I Need an International Financial Planner?
Of course, you can opt for a DIY approach when tackling this aspect of moving. There are several resources on the internet to help you get started. But in this situation, you are more likely to get a couple of things wrong and waste your money or compromise your security.
So, it’s better to get professional help from experts who can assess your situation and develop an effective strategy for managing your finances. A financial consultant like this can help you prepare for your relocation and send you on your way to a new life abroad with solid finances in place.
It doesn’t have to be about relocation; if you are interested in investing abroad, an international financial planner can also guide you throughout this endeavor.
Many financial advisors who practice international financial planning have studied in multiple countries in different languages and have developed their understanding of the financial markets and other related areas in different countries.
What you need to understand is how to recognize a trustworthy financial consultant. So, if you are planning to relocate to another country or invest abroad, you should seek the services of an experienced international financial planner.
How Do You Choose a Good International Financial Planner?
One of the most crucial qualities your prospective international financial advisor must have is experience. Their experience should extend for at least 3-5 years in the foreign currency markets, investing, taxation planning (including exit taxes), and opening account procedures.
You should also check whether your advisor knows the country’s legal systems, tax structures, and corporate regulations. A multidisciplinary advisor can truly serve your best interests.
Are They Certified?
You should check whether they are certified or hold other relevant qualifications. Find out if they are registered with professional associations such as The Financial Planning Association (FPA), The National Association of Personal Financial Advisors (NAPFA), or The Society of Financial Service Professionals.
A Certified Financial Planner will also be bound by a code of ethics, renew their CFP license every two years, and undergo continuous education (CE) to keep updated with current regulations and best practices.
Your international financial advisor should be fluent in both written and spoken English, the international language of finance.
They should also be able to explain complex financial concepts and express themselves clearly and understandably to clients. Ask for examples or ask for references from their previous clients.
Recommendations from Previous Clients
If you plan to hire a financial advisor, you should request recommendations and get in touch with them to verify the advisor’s quality of services. See whether the references are genuine and verifiable.
Several factors come into play here, including how much time you expect the adviser to invest in you.
In a long-term relationship, it’s not just about how everyone behaves at the start but, more importantly, how they act toward you over an extended period. Advisors’ fees also vary according to their experience, expertise, and quality of service.
Understanding an advisor’s fee structure is critical. You should also consider how this is compatible with your future goals.
International financial planning is creating and maintaining a plan that will allow individuals or organizations to achieve their financial goals while living or operating in more than one country.
This process can be complex and challenging to navigate. But with the help of a professional advisor, it can be an invaluable tool for anyone looking to expand their business or invest in new opportunities abroad.