The UAE continues to remain an attractive destination for a number of expats as it provides them with enticing job opportunities and high salaries. This doubled with a higher standard of living and no tax regime makes the UAE a highly desirable destination for employment as well as investment opportunities. However, as you work and earn, it is also important to work on wealth management to ensure financial security for the future. This is particularly vital for expats and can be achieved by enlisting professional services for asset and wealth management in the UAE.
So what is professional wealth management?
A professional service that manages your wealth and assets while taking care of your financial planning, investment portfolio, retirement planning and a number of aggregated financial services. The service usually incorporates tax optimisation and is delivered by expert wealth managers. High-net-worth individuals are usually offered private wealth management services.
While selecting a wealth manager, ensure that your financial needs are taken care of while considering your personal circumstances and unique preferences. To make this easier, here is a list of financial areas that need to be covered in the scope of the wealth management service you opt for.
– Life insurance
Terms and conditions of life insurance policies differ from country to country which makes it necessary for an expat to have one in the UAE. The primary objective of a life insurance policy is to ensure financial security for your family after your demise. A step towards this is by making sure that the following aspects are taken care of:
• Timely payment of insurance premiums and ensuring that there are no extreme consequences in the event of failure
• An education fund is in place
• Clear credit record with no outstanding loans or debts
– Property and real estate planning
Property investment in the UAE is a lucrative option increasingly considered by many in their wealth management portfolios. You can consider investing in a home, or residential real estate for leasing. Alternately, you can also look to purchase a property for vacations or getaways. Work with your manager to get the best advice when it comes to fulfilling your property needs.
Real estate planning is implemented during the life of a person and works towards making an arrangement for the disposal of the person’s estate to his/her family or loved ones.
This can be achieved by:
• Trust provisions for beneficiaries
• Writing a will
• Distribution of gifts subject to taxes, if any
– Pension Transfers
If you are an expat from the United Kingdom, are living in the UAE and earning a pension, then you can opt for the Qualifying Recognised Overseas Pension Scheme (QROPS) or the Qualifying Non-UK Pension Scheme (QNUPS) for pension transfers. These schemes are becoming increasingly popular because of the tax advantages and currency flexibilities they offer. Similar schemes are available for other countries also. Work with your manager to find out the most beneficial option for you.
– Retirement planning
A process by which you determine the income you need to have in hand at the time of your retirement and also execute actions necessary to achieve that income. Saving earlier in life is preferable as it works towards ensuring a high quality of life after retirement. You need to consider a few aspects while planning for retirement:
• The country you would like to retire in
• Expected lifestyle after retirement
• Pension treatment
• Investing in tax deferred retirement plans
– Savings and Investments
You can opt for automatic savings plans and also invest in various financial instruments. This needs to be done in the most tax efficient manner, preferably with the help of an investment manager.
Due to the strategic location of the UAE, its tax free status and the AED being pegged to the USD there exists a wonderful opportunity to invest in global bonds, equities and funds in private and commercial banks. Investing in the equity market is a great way to get your money to work for you.
– Foreign exchange
Foreign exchange fluctuations are something that affect every expatriate in the UAE. Whether you are sending money abroad or making an international payment, you need to ensure that you’re getting the best rates on all foreign currency transactions. Consult your manager to see if you are getting the following benefits:
• Easy transfer of money and high transfer limits
• Zero or low commission on international payments
• Forward contracts
• Assistance in hedging and risk management
Apart the above, education and health insurance also play an important role in enhancing your wealth management portfolio. So appoint a professional manager and get started with your wealth management today.
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