DIY planning and self-help guides are dangerous
Uae-based expatriates have recently become inundated by claims from some interested parties of the alleged “pros” of not consulting the expertise of a professional, independent financial planner.
With the use of online and printed guidebooks, as well as presentations and seminars, these individuals are encouraging people who are inexperienced in financial planning, to select the DIY route, or exceptionally low-cost options.
This is tremendously worrying and, regrettably, could well be a potentially disastrous accident waiting to happen.
Your money and the major lifestyle plusses it brings you and your family — such as top-quality education, a good home, holidays, the ability to choose when to stop working and your desired retirement — are far too important to risk or not take seriously.
When it comes to other important areas in life, health issues or perhaps a legal problem, the majority of people wouldn’t consider going it alone.
They would consult a doctor or a lawyer. In that case, why even contemplate not consulting a specialist financial adviser in regard to something as important as financial freedom, security and independence?
The costs of doing it yourself and making mistakes are far too high, and all too often, irreparable. Why put yourself and your family at risk? Experimenting with DIY financial planning is akin to selfdiagnosing via Dr Google. As it’s not a personal, tailor-made diagnosis, it could have grave, highlynegative consequences.
When our financial advisers meet with clients, they sit down with them and fully explore their requirements, wants and goals, in order to map out a financial pathway throughout their lives. There are many complexes and variations that must be taken into account, because of the typically transient nature of the expat lifestyle. Indeed, the wrapper or platform that is used is just as crucial as the underlying investments.
Financial advice must be personal, especially when it comes to tax. Consider the following example: a UK domiciled investor, residing in the UAE, with a nonUK domiciled wife, has a view to retiring in Spain.
Which platform would be the most tax efficient for him? And what would happen if it’s not in the most tax efficient solution? By making the wrong decisions, the individual could expose himself to a substantial tax liability. This type of bespoke information just isn’t readily available online.
However, unquestionably, it is essential to choose the right adviser and the right advisory organisation. The financial adviser must be in possession of the appropriate and relevant qualifications, as well as the right level of experience, to provide the financial plan and solutions to reach, possibly exceed, your financial goals.
Furthermore, the adviser should also be supported by the power and strength of a solid organisation. This means they will be working within a structured, regulated environment, with the necessary compliance, access to the latest product and market research, news, product and services launches, and state of the art technologies.
In addition, the organisation will have established relationships with major investment banks, and offer a wide range of products and services that won’t be available to DIY investors.