By Chad Creveling, CFA, and Peggy Creveling, CFA As the new year begins, many of us expats have a renewed desire to make positive changes in our lives. From a financial standpoint, improving our circumstances largely requires instilling good habits, being consistent, getting started early, and possessing a basic understanding of finance and investing concepts. To help you enjoy a more prosperous 2018, here are some financial resolutions to consider. If you start at the...
By Peggy Creveling, CFA, and Chad Creveling, CFA As you look for a holiday gift for your favorite expat or perhaps just for some interesting reading over the holidays, have a look through our annual list of highly rated books from 2017, especially selected with the expat reader in mind. All can be easily purchased on the internet, and while some are more serious, others are just for fun. For those expats who may live...
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By Chad Creveling, CFA, and Peggy Creveling, CFA In recent years, investors’ appetite for cheaper, passive ways to diversify has accelerated growth in the global exchange-traded fund (ETF) industry. According to industry data-provider ETFGI, total assets in ETF products surpassed $4 trillion as of May 2017 globally. Growth in ETF assets combined with frothy global markets has spawned an increasing amount of alarming press emerging over the safety of ETFs. The size of the industry...
By Peggy Creveling, CFA, and Chad Creveling, CFA For expats who are considering a home purchase, buying a less expensive house can be difficult—for most of us, costlier homes simply seem more desirable. But you should be aware of the trade-off: By sacrificing a little size and whatever other amenities the more expensive home has, you can add significantly to your retirement savings. As an example, in our case study below we show how additional...
By Chad Creveling, CFA, and Peggy Creveling, CFA This article is for general information purposes only and is not intended as specific tax advice. Please consult your tax advisor for advice relevant to your situation. Buying a home overseas is a significant financial decision for any expatriate. For American taxpayers who are taxed on their global income, it’s important to understand how foreign exchange movements can impact the U.S. tax you may owe when you...
By Peggy Creveling, CFA, and Chad Creveling, CFA When it comes to currency, there is no shortage of places for expats to hold their savings. Many offshore banks offer multicurrency accounts and market high-yielding forex or dual-currency deposits to their expat clients. Concerns regarding the viability of some currencies as well as recent government interventions can complicate the decision about which currency to hold. Since even a relatively small foreign exchange move can have a...
By Peggy Creveling, CFA, and Chad Creveling, CFA If you go to the airport with no tickets and no idea where you want to go, it goes without saying that you probably won’t be going anywhere. This sounds obvious, yet that is exactly what some expats are effectively doing with their finances―by failing to plan, effectively they’re planning to fail. Therefore, one of the most important steps in getting control of your finances is to...
By Peggy Creveling, CFA, and Chad Creveling, CFA Creveling & Creveling protects its clients' privacy. The following is a fictitious example designed to demonstrate the type of financial decision-making required to achieve financial security and does not refer to any specific case. The Situation Craig and Cindy are expatriates from Toronto in their 50s. Their two kids are grown, and the couple has been working to save, hoping to accumulate enough to retire when they...
By Chad Creveling, CFA, and Peggy Creveling, CFA You hear it all the time: “My portfolio is up 15%!” or “My financial advisor is really clever—he’s getting me a 30% return!” Generally, this is harmless bragging, but it does tend to elicit envy and cause investors to question their own investment performance. Sometimes, it may lead someone to stray from a consistent, disciplined investment strategy appropriate for their unique situation. When someone brags about their...
By Peggy Creveling, CFA, and Chad Creveling, CFA Creveling & Creveling protects its clients’ privacy. The following is a fictitious example designed to demonstrate the type of financial decision-making required to achieve financial security and does not refer to any specific case. The Situation John is a single American expatriate, age 45, living and working in Bangkok. Until recently, he has not been in a position to save and has accumulated only $100,000 for future...
By Peggy Creveling, CFA, and Chad Creveling, CFA Expatriate executives working for multinational corporations frequently receive part of their compensation in the form of long-term incentive (LTI) awards linked to their employer’s stock. Often, the expat executive has a choice of receiving restricted stock units (RSUs), nonqualified stock options (NQSOs), or a combination of the two. If you’re an expat executive being offered RSUs or NQSOs, you’ll want to think carefully before making your choice...
By Chad Creveling, CFA, and Peggy Creveling, CFA Many expatriates require some form of life insurance, especially those with either family members or other financial obligations that could outlive them. However, sorting through the countless options to determine the best policy for your situation can be time-consuming, and calculating the correct amount of insurance to purchase can be tricky. Insurance is a complex product, and many people don’t fully understand what they are buying or...