Finance planning is becoming more and more popular because it is critical to a balanced and stress-free life. It is tricky to comprehend the nuances of financial planning, and if you are an NRI, it can be even more complicated as the complexities increase substantially when two geographical regions are involved. Consider these factors when setting up your finances as a global citizen.

Geo-aligning your goals –

You will have to consider how you will split your time and assets between these two countries, the rate of inflation (which will differ from country to country), and the exchange rate & currency depreciation. A person’s current income and expenses have to be aligned with their goals for the current year and for the future (probably in India). Upon returning to India, how much of your savings will you need and will you be working? In order to begin financial planning, you must think through and answer all these questions.

Managing Assets across Geography –

Managing your assets in India can be a challenge if you have assets in both countries. The financial advisor assigned should possess strong local knowledge of the country’s tax rules and regulations. Keeping the assets in good condition means following all rules and regulations. If you break the rules, you could get in trouble easily.

Inheritance –

While residing in a different country, it can often be challenging to handle inheritances or transfers of property without the help of a qualified financial advisor who is well versed in inheritance laws and can prevent death taxes and provide necessary structures to reduce the government’s share of a property. If there are assets located in different geographies, it is recommended that you create a separate will for each one and register it, ensuring cross references between the Wills. In this way, the process of executing Wills will be hassle-free and stress-free.

Taxation –

A financial advisor needs to first verify whether a Double Tax Avoidance Agreement (DTAA) exists between India and the country where you reside. You will then be able to claim the tax you paid abroad as a tax credit when filing your tax returns by ensuring you do not pay excess taxes.

Insurance –

Insurance plays a crucial role in financial planning, helping you to protect your assets against any risk. In case of health problems while traveling, ensuring you have an adequate insurance plan can be helpful. Ensure you haven’t overlooked anything concerning coverage, returns, and claims by checking all aspects.

Build your Portfolio –

It may be necessary to work with several financial advisors who will provide essential information based on their local knowledge and experience of the market. Investing should be focused on your financial goals with local goals being targeted with investments specifically for that purpose to avoid currency conversion. An international financial planning firm makes the process of planning, monitoring, and reviewing easier and less time consuming.

The ability to have meaningful investments that meet your current needs and future goals requires knowledge of industries, financial markets, and structures as a global citizen. Engage the services of a good & competent financial advisor who is aware of global laws and regulations and can provide you with valuable advice on your portfolio.

Management of global assets has been a hallmark of IMMPL for 20 years. See how our team can ease your worries about money, and help you accomplish your financial goals and achieve financial freedom, no matter where you are.