FINANCIAL FOCUS: Happy New Year!

Hopes are high for a globally distributed vaccine meaning 2021 could see us being able to meet and catch up with each other… have Hugs!

2021 – Where in the World would you like to be?

At the time of writing we are told to expect vaccines to make a difference, perhaps by the summer of 2021.  If so, is the UK the best place to be going forward?  It’s been tough but are we any different to the rest of the world? 

Passport time?  I’m not talking of that longed for holiday, but a real, life altering change and there are those who have taken action already during 2020.

“The impact of national lockdowns and travel restrictions has pushed high net worth individuals to seek additional passports as well as overseas residencies”.

According to various citizen and financial advisory firms, demand for residency and citizen services “skyrocketed”, in 2020.

In 2019, the top five countries receiving enquiries were all in emerging markets – India, South Africa, Bangladesh, Pakistan, and Nigeria – this is not the case for 2020.  India retained top spot, but the US shot up to second place from sixth, the UK placed sixth, up one from 2019, and Canada came in eighth from the previous sixteenth place.

Enhanced global mobility is not new, some of you may own property in other countries, regularly travel and in effect have two or more homes.  More than just a vacation home, it’s an alternative residence, diversification of more than just your financial assets.

Diversification is becoming as relevant to lifestyle planning as it is to managing wealth, and by spreading your assets and lifestyle globally, you also create a new inheritance and identity for yourself and your family.

In my view this is not just to do with Covid-19, the adventurous have always sought cultural diversity.  In my experience the value of really living in a country is not one money can buy, it is the adventure of building something new.

Circumstances allowing, global citizenship is on offer with many associated benefits including visa-free travel, outstanding education, optimal healthcare, political and economic stability, reduced tax liabilities, wider business and career opportunities – and many are on the move.

This means the ramifications for their families must be considered. Otherwise there could be costly results.  For example, a UK Will is not enough if you own property or a business in the USA, nor Spain amongst others.  Where children are over 18, authorities in most countries are prohibited from disclosing their personal details, even when the child is in trouble and needs help.  The need for Lasting Powers of Attorney stretches way beyond the elderly and infirm and for many reasons.

If you are considering a move, please take advice from professionals and enjoy planning that trip!

Written By: Jacqueline Lee-Lis LLB (Hons), APFS, EFP

Chartered Financial Planner | European Financial Planner www.financialobserver.co.uk / office@financialobserver.co.uk

Professional advice should be sought before any action takes place.