“I first had financial advice in 1994 at a pre-retirement course and have been delighted with the continuing service ever since."
Since September 2012, I have been assigned a new financial advisor at GWM. I have always found him to be very friendly, service-minded, and very importantly, providing quick responses to my questions.
Savings are even more important when you’re working as an expatriate, as you may not have access to the local retirement schemes or your company may not provide the same benefits whilst you’re abroad. University and professional development costs can be a lot more expensive, you may wish to do more travel or you may wish to buy an extra home locally. Savings like most habits is simplest to continue once the habit has been developed.
Dollar cost averaging involves investing a set amount of money at regular intervals. By investing this way, you are not attempting to pick the lows or highs of the market but rather investing a fixed dollar amount regardless of investment market trends. Over time your savings will build up and growth occurs on growth and interest on interest soon adds up. This is called compound interest and even Einstein admitted it was the eighth wonder of the world. Small disciplined savings over a long time can still provide a significant financial benefit due to the compound effects of growth.
Our specialist advisers can create tailor made solutions for you, and can advise you on timeframe, regular amount, frequency of investment, and multi-currency solutions. We will only show you plans that are available where you are living. We will let you know which plans have limited time offers and incentives so that you can make the most out of your plan from the outset. We only use safe and secure locations, normally UK Crown Dependencies with transparent investor protection and regulation and we only compare reputable, recognised companies. Just tell us what you need and we'll create a unique solution for you. Just tell us what you need and we'll show you what's available!
It really depends on what you want to save for and how much you want to save. If you would like to retire in 15 years then choose 15 years but make sure whatever amount you save is something you can afford during that time. This helps you have a clear picture of your target amount in retirement which you can then manage over time.
If you’re earning a lot more for say the five years you plan to work abroad then it makes sense to save a larger amount but over a shorter period of time.
This is the process of regularly saving the same amount, usually on a monthly basis, to smooth out the highs and lows of the market in which you’re invested. It’s also extremely useful as a means of saving if you don’t have a lump sum to invest.
The effect of pound cost averaging is that you're buying assets at different prices on a regular basis, rather than buying at just one price. And while riding out the movements of the market, you could also end up better off than if you invested with a lump sum.
If you invested a £10,000 lump sum and bought share units valued at £10 each, you'd have 1,000 units. This would remain fixed unless you bought more units.
Now, if you bought £500 worth of share units per month over 18 months (£10,000 overall), you would buy 50 units in the first month.
If the unit price went down to £9.50 in the second month, you'd be able to buy 52 units, as the share units are at a lower price, and so on and so on.
If the unit price recovers to the original £10 your lump sum would not have grown, but a regular savings plan would have more units and thus more growth on your capital.
One potential downside of this is that if your savings continuously grow, you'll be missing out on some of that growth as not all of your money has been invested over the whole period. But then if your investments continuously grow then it’s not that bad a downside!