The new year is a good time for reflection and review of your finances. In 2017 make sure this includes your savings and investments, tax planning, pensions and estate planning. As well as considering any global and local developments that may affect you this year, you need a long-term strategy that keeps up with your personal objectives and circumstances.
Savings and investments
With Brexit, US elections and interest rates reaching further historic lows, 2016 was certainly an interesting year. In uncertain times like this, a diversified investment portfolio is more important than ever. Diversification provides the chance to produce positive returns over time without being vulnerable to any single area under-performing.
Many think saving in a bank is the ‘safest’ way to look after their money, while overlooking the risks. Besides low returns, money in the bank gets eaten away by inflation over time. With interest rates lower than ever (and likely to stay there), a reliance on bank deposits could significantly impact your wealth and the legacy you plan to leave for your family.
Instead, your investment portfolio should include a good spread of assets, geographical areas, sectors, companies, currencies, and ideally use a multi-manager approach where you diversify across managers and styles. Our starting point is to obtain a clear and objective assessment of your appetite for risk, to make sure your portfolio is tailor-made for you.
British expatriates also need to consider exchange currency risk in what is currently a volatile time for Turkish Lira. If you are living in North Cyprus and spending Turkish Lira, GBP & Euros in your daily life, it is a good idea to consider investment structures that allow flexibility to choose when you convert your income between currencies. Many expats become overly exposed to Turkish Lira volatility when holding local deposit saving accounts.
Tax planning and more
As ever, it is important to regularly review your finances to ensure you have the most suitable arrangements to minimise tax liabilities and maximise tax efficiency. Another incentive is the global automatic exchange of information regime which is now in force (CRS). The UK are early enforcers of the Common Reporting Standard & in 2018 Turkey will also comply with CRS which will mean the UK tax office can receive information on every UK National who holds TRNC bank accounts without having to ask for it, with potentially serious penalties for those who get it wrong.
At Astute, we have in-depth understanding of cross-border taxation implications for expatriates. Speak to us to ensure your tax planning is up-to-date and designed to legitimately take advantage of tax planning opportunities in North Cyprus. Whether it is your investments, tax, pensions or estate planning, we can advise on what will work best for your personal situation so you are best placed to enjoy a prosperous 2017. Email us today for a free consultation and wealth & taxation health check: