Last Updated on 6th September 2024
In an increasingly globalised world, the demand for international financial advice has never been greater. However, numerous myths surround this field, often leading to misunderstandings and poor decision-making.
I would like to debunk some of these prevalent myths to better understand the realities of international financial advice.
Myth 1: International Financial Advice is Only for the Wealthy
Reality: While it’s true that high-net-worth individuals often require complex international financial planning, the need for cross-border advice isn’t limited to the wealthy.
Many expatriates, international students, and even travellers face financial decisions that can benefit from professional advice. Currency exchange rates, tax implications, and differing financial regulations are just a few examples where specialised advice can be invaluable, regardless of the individual’s wealth.
Myth 2: Domestic Financial Advisers Can Handle International Issues
Reality: Domestic financial advisers are experts in their own country’s regulations, but international financial advice requires specialised knowledge.
Different countries have unique tax laws, investment regulations, and financial products. For instance, Brexit highlighted this need as UK and EU citizens faced new rules affecting residency, pensions, and investments.
Our advisers can navigate these complexities, ensuring compliance and optimising financial strategies, which domestic advisers might miss, for example most UK advisers cannot advise a client once they move outside the UK.
Myth 3: International Financial Advice is Unnecessary for Short-Term Expats
Reality: Even short-term expatriates can benefit significantly from international financial advice.
Issues such as temporary tax status, foreign bank accounts, and international health insurance need careful consideration.
Proper planning can prevent costly mistakes and ensure compliance with both home and host country regulations. Additionally, short-term expats can take advantage of specific financial opportunities available only to non-residents or temporary residents.
Myth 4: International Financial Advice is Too Expensive
Reality: While specialised advice can come at a premium, it often pays for itself by optimising financial outcomes and avoiding costly errors.
The market for international financial services has grown, leading to more competitive pricing and a range of services tailored to different budgets.
At Chase Buchanan we pride ourselves on clear and transparent pricing, which will always be disclosed up front.
Myth 5: It’s Easy to Manage International Finances with Online Resources
Reality: While the internet provides a wealth of information, navigating international finance through self-research can be overwhelming and risky.
Regulations change frequently, and misinterpretations can lead to severe penalties.
Chase Buchanan advisers stay updated on these changes and have the expertise to interpret and apply them correctly. Relying solely on online resources can lead to incomplete or outdated information, resulting in suboptimal financial decisions.
Myth 6: International Financial Advisers Only Focus on Tax Avoidance
Reality: Ethical international financial advisers prioritise legal compliance and long-term financial health over tax avoidance.
Our role here at Chase Buchanan is comprehensive, encompassing investment strategies, estate planning, risk management, and retirement planning across different jurisdictions.
While tax efficiency is a key component of our services, it is not our sole focus. Our advisers help clients achieve their financial goals while ensuring they adhere to all relevant laws and regulations.
Myth 7: International Financial Advice Involves High Risk
Reality: Like any financial advice, the risk level is tailored to the client’s profile and objectives.
International financial advisers assess individual risk tolerance and design strategies that mitigate risk while aiming for growth. They provide a diversified approach that considers the stability and regulations of different markets, thus managing and often reducing the overall risk.
Myth 8: Language and Cultural Barriers Make International Advice Ineffective
Reality: Professional international financial advisers are well-versed in cross-cultural communication and often multilingual, across the Chase Buchanan team, we have advisers that can speak most languages in Europe.
We work with clients from diverse backgrounds and understand the cultural nuances that affect financial decision-making. Effective communication and understanding of cultural contexts are integral parts of their training and practice, ensuring clients receive relevant and effective advice. For added reassurance all of our transactions are exclusively conducted in English.
The Benefits of International Financial Advice
Hopefully by dispelling some of these myths it reveals that international financial advice is truly accessible, valuable, and essential for a wide range of individuals and not just the wealthy elite.
Whether you’re an expatriate, a global investor, or someone dealing with cross-border financial issues, seeking professional advice can help you navigate the complexities of international finance with confidence and competence. By understanding the realities behind these myths, individuals can make informed decisions that enhance their financial well-being on a global scale.
Chase Buchanan specialises in providing global finance solutions for those with a global lifestyle. Contact us to arrange a time to talk with one of our experienced Private Wealth Managers.
Written by: Darren Fletcher – Head of Global Sales – Chase Buchanan.