TOGETHER APART

04.06.2020
BY JENNY JUDD & LOTTIE LEEFE

We are currently faced with threats to our global economy and the safety of our loved ones. Priorities and routines have adjusted, and with a little planning now and a precautionary overview of your current position, you can prepare yourself to take charge of a
situation, which can seem very daunting.

WHAT CAN YOU DO TO PROTECT YOUR FINANCIAL LIFE?

It’s important to have a comfortable level of cash as an ‘emergency’ fund, and money set aside for your short-term plans. At a time when so many people are faced with a reduced income or challenges with their business, it reinforces some of the core requirements of a solid financial plan. You do not want to be forced to sell your investments at the wrong time.

A FEW THINGS TO CONSIDER

  • Hold off on major expenses
  • Adjust your non-essential spending
  • Pay down expensive debt
  • Buffer your savings
  • Review your health and life insurance

LOOKING TO THE FUTURE

Once you have the basics in order, take a look at the full picture of all of your global assets, and consider how your different accounts and investments are serving your future goals. These goals are likely to be centered around your:

  • family
  • career
  • lifestyle
  • property
  • retirement
  • charitable giving and longer-term legacy planning

Regularly review your plans to ensure you are on track.

INVESTING AS AN AMERICAN ABROAD

Investing whilst living abroad can be viewed as a ‘no-no’ for US citizens. But that doesn’t mean you have to sacrifice your sanity, or your wealth. Here are a few tips to help you coordinate your strategy:

  • Ensure your portfolios don’t contain any PFICs (Passive Foreign Investment Company) funds. The biggest investment in the UK for example are ‘funds’ which are punitively taxed by the US
  • On the flip side, if you invest in a non-EU fund not on the UK reporting list, like some US mutual funds, these can be taxed heavily in the UK
  • Track any gains or losses from your portfolios for each US and UK tax year. Remember the tax years are different so this can be complex and time consuming for you and your accountant

HAVING A JOINED-UP APPROACH

We often find that our clients have accounts and investments spread across different jurisdictions. It’s likely that your US accounts are looked after by your US domestic adviser (if you have one) and your global assets by another adviser. Along with issues we’ve  already mentioned, you may find you are taking too much or too little risk overall, as the whole approach has never been considered fully – just  each part of it in isolation. It’s important to take advice from  specialists, who understand the pitfalls and can help you organise your global assets. Providing you with a joined-up approach to managing your wealth – and ultimately achieving your
financial goals.

STAY SAFE AND PLEASE DO GET IN TOUCH IF THERE IS ANYTHING YOU WOULD LIKE TO DISCUSS. WE’RE WORKING REMOTELY BUT IT’S BUSINESS AS USUAL FOR US. WE’RE HERE AND VERY HAPPY TO HELP.

TO DISCUSS ANY OF YOUR WEALTH MANAGEMENT NEEDS, WE’RE HERE.

LONDON & CAPITAL WEALTH ADVISERS
T +44 (0)20 7396 3388


 Disclaimer: the value of investments and any income from them can go down as well as up and investors may not receive back their original investment amount. This communication is for information purposes only. It is not intended as a personal recommendation of particular financial instruments or strategies and it does not provide individually tailored investment advice. This document provides the views of the London & capital investment team examining the fundamental background, economic outlook and possible effect on asset markets. This document is not an invitation to subscribe and is by way of information only. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be solely relied on in making an investment or other decision. If you are considering investing, you should consult your London & capital adviser. The views expressed herein are those at the time of publication and are subject to change. Correct at time of going to press.
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