You're an expat, you're working hard abroad, and you want to save for your future.
You need to know the best way to save, and chances are, you've heard about offshore savings plans.
Some are better than others, some are just downright expensive!
Some used to be the best option that existed...
Nowadays, however, thanks to the evolution of investing, there are lower cost, very flexible and higher returning alternatives to most traditional offshore savings plans.
It you have an offshore savings plan already however, don't worry because...
...perhaps it was right for you at the time - but perhaps better options now exist for you too...
Despite the critical importance of long-term savings - for things like your children's education or your retirement - most long-term savings strategies for expats are terribly bad.
This is because, more often than not, expats fail to research the market and products which are sold to them by an army of offshore financial salespeople.
They trust too much, and do too little due diligence...the results can be devastating.
If you have a long memory, you might recall the Maximum Investment Plan (MIP) from the UK in the 1980s.
The MIP was seen as an exciting new product. But was quickly tarnished by excessively high commission rates, complex charging structures and allegations of mis-selling.
It was associated with high pressure sales techniques and opaque charging - all of which wreaked huge losses onto clients, and reaped big profits for the insurance companies that sold them.
Basically, a MIP is a unit-linked endowment policy. You agree to contribute for a contractually agreed term: part of each premium goes towards life cover, and the balance goes into investments. Being unit-linked, there’s a wide range of funds to choose from.
At the end of the term, the MIP will pay out a tax-free amount, the exact sum a function of the underlying fund performance, the charges and the commission payable.
They were banned in the early 90’s in the UK...
Then the MIP moved offshore and became known as a ‘contractual savings plan’, ‘offshore pension’, ‘offshore savings plan’ and ‘regular savings account’ - that's why you should care!
The question is: how attractive are these plans really?
The answer is:
It largely depends on its point of sale representation, the charges, the asset allocation and the fund performance.
In our view - the world has changed so much there are now far better options for you to consider.
Blackberrys have been replaced by iPhones.
Black cabs have been replaced by Uber.
And MIPs or offshore contractual / offshore savings plans should now be replaced by the more transparent, cheaper, more flexible and better performing options available to the discerning expat who knows where to look.
Know you're not alone...
About 40,000 expats are sold these offshore savings plans every year...still...
Whilst they might once have been the best option, they are now unlikely to be the best option...
Which is why we now offer anyone with £250,000 saved or invested a expert review.
We show you if you can cut costs, increase returns, improve performance, and basically make positive changes to enhance your financial future.