Your First Meeting With A Financial Adviser – What To Expect

client-meetingIt’s easy to find financial advisers in any major international city; most of us will be happy to spend some time with you in an introductory meeting. Take advantage of this, and meet more than one.

Financial advisers are by no means all the same - we vary in age, experience, qualifications, as well as any specialist areas of knowledge. So ask questions, chat, and see if you feel comfortable with the adviser during the introductory meeting. Can you see yourself working with this person for the long term? Is there rapport? Of course you can always change advisers at any time, but it’s best to get it right from the outset.

During the introduction, the adviser will tell you about his firm, about his own background, and his (or her) approach to working with clients. He’ll also explain how he is remunerated. Most Financial advisers that serve the offshore/expatriate market are remunerated by commissions from the financial institutions, but you may also have the option for a fixed charge, or a fund advisers fee based on assets under management. A blend of these is also possible.

Once you have decided to go ahead and work with an adviser, the next step is the ‘Fact Find’. This is a confidential questionnaire designed to get a snapshot of your current financial situation; this allows the adviser to subsequently make recommendations based on your specific circumstances.

If your spouse or significant other is involved in the financial decisions you make, ideally your adviser should meet you together for the Fact Find.

Finally, your adviser will discuss with you your plans for the future, your priorities and expectations, and may at that stage suggest some specific steps that are appropriate for you. If a particular savings or investment product looks necessary, the adviser may seek your agreement to proceed with the creation of a financial report and recommendation document, which will be presented to you and fully explained a few days later.

Don’t hold back in asking questions at any time and about any area. Your adviser will want you to understand every step of the way, and will fully explain any recommendation made.

Popular Posts

Understanding Compound and Annualised Growth

Image
Across fund manager houses, there is little standardisation of how performance figures are presented on fact sheets. Percentage returns are usually presented as either (i) discrete (or calendar) annual, (ii) cumulative (for example a total return figure for 3 years or 5 years) or (iii) annualised (the equivalent annualised return for a period such as 3 or 5 years, sometimes called compound annual return). This tutorial shows you how to convert from discrete annual performance figures, to cumulative or annualised figures, over a period of your choice. As an example, we’ll look at some USD fund performance data presented in an October 2010 factsheet. The performance data are presented to us in a very clear way, but may not be the complete picture we are looking for. The table directly above shows the discrete annual returns - ie. net of fees the fund delivered 7.46% in 2009, -4.90% in 2008, 9.82% in 2007, etc. But let’s suppose you ask yourself (or your advisor) “What was the total growt
Read more

How to Read a Fund Fact-Sheet

Image
Has your adviser given you a factsheet on a recommended fund, and you need to understand what the terms mean? If so, read on … The fund factsheet is an essential document for the private investor. Unfortunately, the information contained in a factsheet - and the way it is presented - is not controlled in the same way as it is in a fund prospectus (a prospectus is a legal document). In essence a factsheet is marketing literature. Only a tiny fraction of investors ever read the formal prospectus for a fund, that’s why it’s especially important to be able to read a fund factsheet correctly, and if necessary to read between the lines. Key Contents Of A Factsheet Most fund factsheets will contain some or all of the following: Fund Name Many funds are commonly referred to by a short or abbreviated version of the full fund name. Hence it’s important to make use of the identifying codes (see below). Fund Management Company & Domicile The fund management company is structured and reg
Read more

Tax Free Savings Plans for Australians?

Image
Question: How can returning Australians (and expats moving to Australia) make MASSIVE tax savings by using offshore investment bonds and investment-linked life policy wrappers? Answer: Set it up while you’re an expat working abroad, and keep it running at least ten years (even if you go back home) for maximum tax benefits. (Note: this article is relevant to expatriate Australians working in Singapore and other overseas locations, as well as other nationalities who may be moving to Australia in the future.) Click to download a copy of this information in PDF format. Background - Repeal of Foreign Investment Fund legislation For several years the Australian Tax Office (ATO) had very defined, and perhaps harsh, rules for how foreign insurance bonds were treated in respect of capital gains for tax residents in Australia. In effect, these tax wrappers were treated in a ‘look through’ manner and holders were liable for tax on actual gains made or at a deemed rate set by the authorities
Read more

British Expat? Here are the Huge UK Tax Benefits of an Offshore Investment Plan...

Image
Would you like to maximise the tax planning benefits of being a British expat abroad? Read on for a summary of some key reliefs and allowances available from the HMRC tax man… (Note: this article is relevant to British expatriates working in Singapore and other overseas locations, as well as other nationalities who may be moving to UK in the future.) Click to download this information in PDF format. Summary of Tax Benefits of an Offshore Investment Plan Under HMRC tax rules for ‘ foreign ’ investment bonds and investment-linked life policies have additional tax planning benefits compared with their domestic equivalents. The purpose of this article is to briefly highlight the most important. The content is not intended to be specific tax advice of any kind, and rules can change at any time. Everyone’s tax situation is unique and you should consult a qualified tax accountant regarding your own circumstances. 5% withdrawal allowance Time apportionment reduction Top slicing relief
Read more

Mobile Phone Screens Are Getting SMALLER!

Image
If you bought a “6-inch” screen phone this year, it will have a SMALLER screen than the “6-inch” screen phone you bought two years ago.  Here’s why. Call me old-fashioned (or just old), but I spend a lot of time reading stuff – articles, charts, and data – on my phone.  And I mean actually reading it – not ‘skimming’ through an article while my thumb is continually scrolling the page upwards. A ‘Full HD’ screen is 1920 x 1080 pixels – which is nice for movies, and gives an eye-friendly ‘book page’ ratio of 16:9.   This has been the standard screen ratio of mobile phones for several years, up to the last year or so, when suddenly manufacturers have switched to a 18:9 ratio  (which is 2:1 by the way… no idea why they call it 18:9, duh).   For me, 16:9 is perfect for reading text.  2:1 isn’t – it’s too thin and narrow.   Supposedly, manufacturers have switched to this format because phones with skinnier screens fit into our pockets better, and are more easily used with one hand.   They h
Read more

Stroke Victim Trapped in UAE Four YEARS Because of Debts

Image
Malcolm Munroe, from Manchester in UK, built a thriving construction company in Dubai. In 2013, he suffered a stroke, and was hospitalised at Rashid Hospital. He was immobile, and breathing through an oxygen tube. Because he couldn’t work, his business went bust owing debts. The Dubai courts sentenced him to a three-year jail sentence . He didn’t go to prison, because he needed around-the-clock care in hospital. But neither could he service his debt. He was trapped in Dubai . Finally Home The kindness of others led to him finally coming home. A healthcare volunteer in Dubai spent over a year communicating with Mr Munroe’s debtors, to explain his situation and beg for his debts to be forgiven. Another medic from Manchester arranged for Mr Munroe’s return to the UK, and thousands of pounds was donated by well-wishers via a crowdfunding site to cover costs. His family finally welcomed him ‘home’ (the Salford Royal Hospital) in May 2018, where he remains (as at June 2018) under twenty-
Read more

Dollar Cost Averaging

Image
How Regular Savings Create Gains From A Falling Market Dollar Cost Averaging is a strategy in which an investor places a fixed dollar amount (or indeed any other currency) into a given investment such as a unit trust, on a regular basis. The investment generally takes place each and every month regardless of what is occurring in the financial markets. As a result, when the price of a given investment rises, the investor will be able to purchase fewer units. When the price declines, the investor will be able to purchase more units. Millions of investors around the world employ a dollar cost averaging strategy because it offers the following benefits: It’s an attractive option for investors who want to contribute to their investment portfolios on a regular basis. It eliminates the issue of ‘market timing.’ As a result, an investor’s returns will be determined more by the overall trend in a given fund as opposed to the investor’s specific entry price. In addition, it helps investors reduc
Read more

How to Manage Currency Risk in your Investment Portfolio

Image
Introduction To some degree, currency risk is embedded in the portfolios of every international investor. So it’s surprising that such an important topic is often ignored, mismanaged, or misunderstood from both outside and inside the financial planning industry. Given that global currency movements are prominent in the headlines right now, it seems like good timing to have a quick review of currency risk, and safety-check that the currency exposure of our personal investment portfolio is in line with our objectives. What Is Currency Risk and Where Does It Come From? Most people who live and work internationally have experienced first-hand the impact of positive or negative currency movements; this is currency risk (also called exchange rate risk). Maybe you’re sending money home each month to pay your mortgage, and payments are easier than before because you get paid in a stronger currency. Or maybe your child wants to attend university in a country whose currency has appreciated again
Read more

What Can Bitcoin Teach Us About Retirement Planning?

Image
So, you’re in the pub one evening, and a friend tells you about some fancy ‘investment’ called cryptocurrency. It all sounds a bit fishy. “I’ve been getting eight percent growth per month”, he says. You do the maths on your phone… $100 would become $108 after the first month. Then $117 after the second month. Then $126 the third. By the end of a year, it would be $252. That’s an annualised growth rate of 152% per annum. “Ok. Tell me more”, you say. You’re still a bit sceptical, but you drop $100 into the crypto. ~ ~ ~ A month later, you’re back in the pub. “What do you think?”, says your friend. “Not bad, I’m up seventeen bucks”, you say. “Well, I’ve been putting in a thousand a month. I started ten months ago. My investment is now worth $15,650. Make hay while the sun shines, my friend!” ~ ~ ~ You get it. There’s an opportunity here. Your drinking buddy is onto something. That evening you go online and look through all those old bank accounts you’ve forgotten about. You manage to scra
Read more