The new generation of investors has already arrived and certified financial planners and wealth managers all over are finding new ways to cater to the financial needs and requirements of the global millennial citizen. This segment is dynamic, mobile, and thrives on doing new things and having new experiences. In fact, millennial are probably the next version of erstwhile nomadic tribes. 

Why do I say that? 

It’s simple.

Millennials are people who have very few geographical boundaries. And thanks to the internet, the world has become an even smaller place than it once used to be. Whether it’s Tasmania or Tanzania, millennials have found a way to work anywhere and anytime. Things like time zones and borders blur themselves out for this generation of always-on-the-move investors. 

While millennials may think that they are fully making use of the opportunities the world provides them, many of them don’t look deep enough into their own financial security. But they are not entirely to blame. The truth is, it’s not like they are not interested, but by virtue of the kind of lives they live, sometimes personal finance may not seem enough of a priority to them. Or maybe they just haven’t been exposed to the possibilities that financial planning offers. In any case, it is quite clear that traditional investment methods and financial planning strategies are not going to work with these individuals. 

Most of these young investors are not bound to one country, with many moving multiple times into new territories over the course of their careers. As mentioned before, with the advent of the internet, boundaries and borders have dissolved, and there’s no knowing where your career or your life will take you. This is also the time in the early years of their careers when there’s no question of ‘settling down.’ In a situation like this, the only thing that can make sure that your plans aren’t hampered is a solid financial foundation. More often than not, many millennial investors often find themselves not returning back to India after staying abroad for many years. Even in this case, the best way to deal with your life transitions is to plan your finances carefully and have them in order at all times. This way you are always equipped for things like medical emergencies or having to book last-minute tickets to home. 

Here’s a list of things you need to keep in mind while building a global portfolio – 

1. Restriction On Investments – As you might have already guessed, there will be certain restrictions imposed on foreign investors, either in terms of the type of investments they make, the amount of tax they are charged, or even the amount that they are allowed to invest in a different country. A conversation with a cross-border financial planning specialist would help you understand the nuances much better. 
2. Taxation – As an NRI, you need to be aware of your tax liabilities, especially if there is a dual-taxation situation going on. Some countries have a DTAA signed with India which allows you to reduce your tax liability in one country or completely wipe it off as well. However, we’re not talking about someone who lives in one place forever, we’re talking about a true global citizen who may move multiple times to different countries. A certified financial transitionist can easily help you with these life changes as they happen and also helps you deal with different taxes whenever you move to a different country. You will most probably need professional assistance as each country has different types of taxes and rules; while USA and UK tax your global income, some countries completely forego tax on capital gains. 
3. Liquidity – When you’re constantly on the move, liquid assets are your best bet for your emergency needs. Someone like you would need a specialised plan that allows you to quickly liquidate and utilise your assets whenever you need them, wherever you are. Financial assets and carefully planned investments are best for someone like you as they can easily be managed to adhere to the changes in rules and taxes for different countries. Also consider things like how easily can you transact money from your accounts and holdings in order for them to be useful to you. 
4. Diversification – Diversification is one of the best things you can do for your financial portfolio. Not only does it make sure that you don’t have all your eggs in one basket. It also helps to ensure that your assets are adequately distributed across geographies and currencies. In fact, having assets in different currencies works really well in your favour as you can always gain from currency depreciation, especially if you have funds that need to be utilised back home in India. However, it would make sense to sit with a certified financial transitionist and a cross-border financial planning expert to help you evaluate the different options available at your disposal. 
5. Life Goals & Estate Planning – You may not have thought about this already, but things like retirement and old age are real and require dedicated time and energy right now. This means that things like where you want to be when you retire and how you want to live are big questions that you will need to answer. And let’s not forget Estate Planning, because we all know that one day we won’t be here to handle our finances or support our near and dear ones. When you’re constantly on the move, it’s always better to be one step ahead of life in terms of financial decisions. 

Investing overseas may look like a complicated task, but with the right guidance, it can become extremely easy. If you’d like to know more about financial transitions or cross-border financial planning, feel free to get in touch and talk to one of our certified financial advisors.