Did you know that Western workers now have 3-7 careers over their lifetimes, perhaps with 12 or more? Along the way, employees often build up a workplace pension with each employer. This can lead to quite a complicated picture in later life when you start organising your retirement! Dealing with 12 pension pots (maybe more) can be overwhelming and inefficient.
Blog
Loss aversion – how to manage fear as an investor
Humans feel the pain of loss over twice as intensely as the pleasure of reward. Although a useful psychological trait for humans in the wild, it can cause problems in the modern world of investing. In particular, fear of loss can cause investors to miss opportunities that might otherwise have grown their wealth.
Does the 4% Rule still hold for retirement?
How much can you safely withdraw from a pension? The “4% Rule” is a common principle financial planners use to determine a sustainable withdrawal rate. However, the rule is often misunderstood and may not always suit every client’s case.
Will interest rates keep falling in 2024?
The Bank of England (BoE) recently took the significant decision to lower UK interest rates on 31 July 2024. The Monetary Policy Committee (MPC) chose – narrowly, by 5 votes to 4 – to lower the base rate from 5.25% to 5%. Naturally, this has important implications for savers and borrowers. Traditional wisdom states that the former suffer when interest rates decline, whilst the latter (e.g. those with mortgages) benefit.
How a Labour government could affect expats
The arrival of the Labour Party to UK government on 5 Jul 2024 marks an important moment for the economy – and, by extension, British households (both at home and abroad). A new legislative agenda could bring new rules and policies about taxation, spending and borrowing. Below, we discuss how the Labour government could affect British expats.
Care and inheritance: a short guide
In the UK, the cost of care can be staggeringly high. The average cost of residential care stands at average of £1,160 a week. Nursing care is typically more expensive, at £1,410 per week. Homeowners can be especially worried about going to care, fearing that their home may need to be sold to cover the fees.
Financial planning and divorce: an expat guide
Divorce is the second-most stressful event that someone can experience after the death of a spouse (according to the Holmes and Rahe stress scale). However, getting divorced as an expat can be even more challenging. Different citizenships, legal systems and asset locations can further complicate things.
How financial advice helps with wellbeing
A lot has been written about how financial planning can help with wealth building and preservation. However, it can also be valuable from an emotional, relational and psychological perspective – helping to create and sustain lives which (according to the Mental Health Foundation) are “comfortable, healthy or happy.”
Moving to Spain and capital gains tax – be careful
One of the biggest challenges as an expat is navigating taxes. The UK, for instance, will tax income and wealth differently to Spain and other countries. One often overlooked area is capital gains tax (CGT). Below, we explain how CGT works, how expats can inadvertently “trip up” on it when living abroad and how to plan effectively for it.
How should you react to a fall in the stock market?
Many people are interested in investing. Yet, a common fear is losing your money in a market “crash”. What is the best way to prepare for a potential bear market? How should you react if one occurs? Below, our financial advisers at Scottsdale offer some reflections. We hope these insights are useful. If you want to discuss your financial plan with a member of our team, please get in touch to arrange a free, no-obligation financial consultation.