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Expat Investor : March April 2009
EXPAT Serving expats for more than 16 years Now celebrating our 21st anniversary www.expatinvestor.com Mar/April 2009 firstname.lastname@example.org June 2005 In this issue 2 Banking on practicalities Featuring the most innovative and flexible offshore bank accounts for today’s expatriate market. 6 7 Gold outshines them all Read up on the case for gold outshining all other forms of jewellery investment. Flight to safety Lloyds TSB suggests the appropriate weightings you need to balance your investments in equities, bonds and cash instruments. 12 18 23 Healthcare strategies Gap year travel, top health tips, expat lifestyles, Legionnaires’ Disease and healthcare conditions in the US – it’s all covered. Offshore savings Best buy savings accounts and offshore funds Dream locations Why you should look at the property market in Nicaragua. Britain’s £150bn expat army Alliance & Leicester International reports that British expats have savings totalling £150bn between them. Here we report on how you have amassed that wealth. Britain’s army of expats have saved a collective £150 billion between them, according to the latest research from offshore savings bank, Alliance & Leicester International (ALIL). The 5.5 million* British citizens who live around the globe have between them amassed far more wealth per household than those they have left behind. While savers resident in Britain have salted away £820 billion,** equivalent to £31,300 per household, expat households have on average saved up £54,621. According to ALIL’s survey, Australia is the top country for UK expats, with 1.1 million Brits living there. One million eight hundred thousand (1.8m) are spread across Europe, with Spain and France the most popular choices. A million live in North America, the majority in the USA. www.expatinvestor.com GLOBAL DISTRIBUTION BY REGION OF RESIDENCE Number of UK expats Bringing advisers and investors together Africa 114,108 Asia 387,967 Europe 1,802,905 Middle East North America Central & South America Australia/New Zealand 1,026,971 273,859 1,346,473 However, the spread of wealth does not reflect the spread of expats. By far the wealthiest expats are the half a million in the Middle East, principally the oil-rich Gulf. Twenty-eight per cent of them have me&my easy option Enjoy a great rate and easy access. 547,718 GLOBAL DISTRIBUTION BY SAVINGS Africa £2.3 £42,850 Asia £10.2 Europe Middle East North America Central & South America Australia / New Zealand been seconded there to work, and on average they have saved up almost £125,000 per household. So even though only 10% of the UK’s expats live in the Gulf, they account for a quarter (24%) of expat savings, a massive £36 billion between them. Those in North America are the second richest, with £70,000 per household. The least wealthy expats live in Central and South America, with just £26,000 per household. Outside the Gulf, the richest expats can be found in the regional financial powerhouse of Singapore, each with £101,000, while the richest Brits in Europe enjoy the lifestyle of tax haven Monaco, with savings of £150,000 (see above table). The wealthiest expats are those who have been seconded abroad for work, on average worth over £100,000. A quarter of these also receive free accommodation from their firms. Those with the least savings are those who left the UK to find a job in a new country. These are typically younger workers seeking a new life and new adventures. £33.7 £39,231 £36.0 £35.9 £3.5 £27.6 £70,000 £25,917 £43,085 SAVINGS OF UK EXPATS BY REASON FOR LIVING ABROAD Savings Seconded for work Own a business £101,495 £85,136 Retired £67,973 Moved to be with partner Moved to find a job One in five (19%) of all expats use a UK offshore bank for their savings. A third of those using offshore UK banks have been seconded abroad by their firms, and they are most likely to hold their savings in sterling. Almost three-fifths (58%) of expats use local banking services, while almost two-fifths (39%) use UK mainland banking services. Almost half (47%) do most of their banking over the internet. One-third (31%) of expat savings are in sterling, while 29% are in local currencies. The rest is split between US dollars and euros, with euros taking the larger share. Simon Ripton, Joint Managing Director of Alliance & Leicester International, tells Expat Investor, “Expats are far wealthier on average than their UK counterparts. Many who move abroad to work are either highly motivated young 3.00% eAccess2 Offshore internet banking for expatriates To subscribe to Expat Investor, fill in the form on page 20 or visit: expatinvestor.com . Internet Savings Account Gross/p.a. £30,303 £20,777 Total Savings (£bn) Savings per household £49,868 £124,979 people determined to make a success, or established, senior workers on secondment. The concentrations of wealth demonstrate how strong the opportunities are in some parts of the world. The draw of the Gulf has become irresistible to many in recent years and UK expats there are clearly doing extremely well. With the lure of careers in financial markets likely to diminish over the next few years, we may see a further concentration of UK expats in the Middle East. By contrast, with the pound now much weaker against its main trading partners, retiring abroad will be a much more expensive option for British pensioners and may deter many from doing so. Making the right choices on banking services is especially important for those living overseas. Using offshore UK banks can allow for efficient tax planning while internet access ensures it’s quick and easy to manage finances from anywhere in the world.” * Source Institute for Public Policy Research (IPPR) ** Source – A&L Borrowing Monitor research July 2007 ALIL analysed the responses of 1,070 expats. The survey was conducted over the Internet in September and October 2008. The researchers identified where expats were located and how much their savings were from their survey responses. They grossed up the averages using the total UK expat population of 5.5million to calculate the total amount of savings on a regional and global basis. . Interest available Annually, Monthly or Deferred Apply online now at www.bbi.co.im . Minimum balance only £1,000 . Great for regular savings Interest rates are effective from 4th March 2009, variable and quoted gross % p.a. that is, without any deduction of tax. Monthly interest is also available at 2.80% gross p.a. (AER 2.84%). This account is only available to applicants over the age of 18 and is not available to UK residents. Bradford & Bingley International Limited, International eSavings Unit, PO Box 263, Douglas, Isle of Man IM99 2JJ British Isles. EU Savings Directive rules apply to EU resident depositors. It is the responsibility of the depositor to declare any interest received to their relevant tax authority. AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid to the account once a year. Bradford & Bingley International Limited is registered in the Isle of Man No. 052221C. Registered Office: 30 Ridgeway Street, Douglas, Isle of Man, IM11TA, British Isles. Licensed by the Isle of Man Financial Supervision Commission to take deposits. . Deferred interest for tax planning www.expatinvestor.com To register for Expat Investor digital edition, visit the website at
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