• Bank security
  In light of recent turbulence in the banking sector, you need to know if your bank deposits are protected by any government scheme. Each jurisdiction has a different position on this. Some offshore bank accounts are held in Jersey for example, which has no deposit protection at all.

• Start saving early
  The sooner you start to save, the longer your money has to work for you. As companies try to scale back their pension liabilities and entitlement to state pensions are subject to change in later years, making your own provision for retirement is becoming increasingly important. For the expatriate, flexibility and portability is usually a key priority.

• Review existing pension arrangements
  Recent legislation allows people with pensions left in the UK to move their pension overseas into a Qualified Recognised Overseas Pension Scheme (QROPS). This can be tremendously attractive as it offers a more flexible way of taking retirement benefits. It can be complex however and depends on your situation. For more details on  QROPS, read How changes to UK pension law can benefit expats.

• Protection
  Don't overlook your protection needs! The first step in financial planning should be to ensure you and your family is suitably protected against unforeseen events, such as serious illness or early death. Think about how your dependants would cope with the sudden loss of income, for instance think of how this would affect their standard of living, and put proper plans in place.

• Diversify your assets
  This is the golden rule of financial planning. Any investment portfolio should be well-diversified across a range of asset classes, and take a global view. Too many investment plans are centred on one country or one sector, or even based on the fortunes of one company’s share price. As we have seen recently, the share price of even the biggest companies can fall dramatically!

Craig Welsh runs the Amsterdam office of Spectrum IFA Group, a pan-European company which specialises in financial planning for expatriates. Spectrum IFA  is an independent company and so works on the client’s behalf and covers the following areas: Retirement planning for expats, Savings schemes for expats, Investment advice / Portfolio Reviews, Insurances, Tax Planning.

For more information, and to ask Craig Welsh a question (or an IFA Group advisor in another location), visit our Ask the Expert section under the Finance category in your Expatica country of residence.