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The Future: You’re Now In Control Whether you’re from the UK, Australia, America, or any other developed nation your Government took the decision to save, and invest, for your retirement away from you. This was either through forced National Insurance contributions, mandatory work place pension contributions, a superannuation or a 401K. All of these vehicles do the same thing… force you to save, and invest, a portion of your monthly pay cheque over the course of your working life, in an account out of reach, so you have a retirement pot waiting for you when you stop working. Why all pension money is invested Your Government invests all of your pension money in an appropriate investment fund. Why? Because you’d never save enough to fund your retirement if they didn’t. The below table demonstrates the drastic impact investing your money, rather than saving it is cash, can make over a normal working career of 40 years, even with a conservative return on investment of 6%. Assumptions: - 6% average annual return - $500 per month contribution How to replace your pension? The biggest mistake you can make: Cash The biggest mistake someone can make is not investing their money in a properly managed portfolio. As this is money that in an ideal world, you won’t be touching for many years inflation is the biggest risk to its value. Essentially, every penny saved in a bank account deteriorates by 2% every year, thus making it much harder to accumulate wealth. The second biggest mistake: Transaction fee’s In a typical retirement fund you invest a small manageable sum every month, often purchasing multiple assets with each deposit. Your typical investment platform charges a fee on every transaction, even if its pennies, these can significantly impact the real return on investment. For this type of investment it’s essential there are no transaction costs. The solution There are many monthly investment vehicles available to Expat’s that act as the perfect retirement investment account. However, choosing the right one can be difficult as some are more tax efficient than others depending on where you plan to retire. Reach out to Kevin to explore the best solution for you.

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