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, its largely passive investment style, lack of liquidity...
Chad Creveling, CFA and Peggy 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 retirement savings of almost USD 1.2 million may...
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 sell an overseas property. Pay Attention to Currency...
Chad Creveling, CFA and Peggy 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 significant impact on expats' personal finances, it's important...
Chad Creveling, CFA and Peggy 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 reach their mid-60s. They’ve worked out that they...
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 investment returns, there’s a good chance you’re not...
Chad Creveling, CFA and Peggy 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 financial goals such as retirement. Now that he...
Chad Creveling, CFA and Peggy 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. Your decision to receive your LTI award as...
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 even if what they bought really meets their...
Chad Creveling, CFA and Peggy Creveling, CFA |
How much will you need to retire overseas, and how should you invest to achieve that goal? For many of us, a retirement portfolio worth the equivalent of USD 1 million might seem to be more than enough—almost like winning the lottery. Unfortunately, USD 1 million doesn’t go as far as it used to. Depending on your overseas lifestyle, this amount may provide only a reasonable, not generous, retirement, especially if that retirement lasts 30...
Chad Creveling, CFA and Peggy Creveling, CFA |
Creveling & Creveling protects its clients' privacy. The following case study outlines a fictitious example designed to demonstrate the type of financial decision-making required to achieve financial security. It does not refer to any specific case. The Situation To help invest for their retirement, Bill and Emily are considering using their cash savings to purchase a new condo in the Asian city where they live, and then renting it out to other expatriates. Purchasing the...
If you’re an expat who has been abroad for any length of time, you’re no doubt familiar with the various insurance-linked investment schemes (or unit-linked life assurance plans) peddled relentlessly in the offshore markets. We’ve been analyzing these products for years and have written about their pitfalls. The products have evolved over time, however, and unfortunately expats continue to get caught up in their aggressive marketing. For an update on what’s being pushed at expats...