The Coronavirus pandemic has turned into a global crisis with significant financial consequences. There are many people, especially those living abroad, who find themselves in uncertain circumstances. Apart from living and employment concerns, finances also pose some complications. And if you’re going to be stuck in a foreign country in the meantime, there are several questions about managing money that you need to consider.
By going over these questions, you can determine whether you’ll need expert assistance. Also, proper planning will help avoid costly mistakes and unnecessary changes. And since the financial market is volatile, evaluating your current finances is essential to make sure things are still in order.
Your residency status and taxes
Depending on where you’re located, the government may offer some leniency, especially when it comes to taxes and residency status. In the UK, ex-pats stuck there are given special treatment because of the exceptional circumstances. In line with this, these individuals don’t need to worry about having to pay taxes while the government allows an extension to their stay. However, as soon as travel protocols change and ex-pats can return to their home country, these special guidelines may change as well.
During this time, it’s best for any ex-pat to assess their taxes. You can determine your exact obligation to your home country, and your current residence. You can always consult a tax expert to answer more complex questions about paying taxes while overseas.
Investments and pensions
If you have investments and pensions for expats, it’s normal to feel uncertain. The volatility and unpredictability of the market do increase the risk of losing money. As such, now is the time to be sensible about making big financial decisions. You’ll need to strike the right balance between your ability to tolerate risks, as well as your current circumstances. If you have a financial advisor, now is the time to actively discuss your situation. An expert is the best person to help you make decisions while under pressure.
If you’ve previously transferred some of your investment into QROPS, now is the time to assess fees and any underlying factors that may impact the investment value. If you’re an ex-pat in the UK, any personal pension invested in QROPS should be evaluated as well. Remember that there are many additional benefits of investing your pension in QROPS, but now is the best time to be wise about any move you want to make.
Apart from assessing your pension and investments, it’s also best to exercise extra caution. Many unscrupulous financial advisors are taking advantage of the panic. You don’t need to stress out about the current situation, and take things in your stride. If you plan to seek the help of a financial advisor, always look for a licensed firm.
There are many other financial concerns to think about including estate planning, currency conversion, and many more. All these require consideration. But, your unique circumstances also come into play when choosing which aspect to consider. In the meantime, don’t panic, and focus your attention on what’s most important when it comes to your finances while living abroad.
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