Independent Financial, Legal and Tax Advisers for Expatriates |
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Start soon If you are like many people who one day find their bank balance is much higher than it should be, a monthly savings plan could really help your money grow profitably. With the help of an independent financial adviser from Grether MacGeorge your money might soon start working for you instead of the other way around! There are two ways to structure a monthly savings plan. The first is to define a term, say 10, 15, 25 or more years, calculate all the costs for this time period, and then deduct them from your account before you even start. It can take some years before your money reaches the breakeven point where the amount you would receive on an "early surrender" equals the amount you have paid in - even if it is tax efficient. The better way, and one which we recommend, is to treat each monthly contribution as if it were the only one you will ever make and deduct the same charge from each contribution as if it were a lump sum investment. The investment company has to bear the cost of twelve collections per year instead of one, but you gain. Find out more with a personal meeting with a Grether MacGeorge adviser. Of course, charges are not the most important factor to look at when choosing an investment - fund performance usually has far more of an effect in the long run so the selection of a company with consistent top performance can be crucial. Our advisers are trained to recognise both the obvious and the hidden benefits (as well as the drawbacks) of the many investment opportunities available to expatriates. Beware! In the UK offshore industry based in the Channel Islands or the Isle of Man you may have seen adverts for "offshore pensions." Or perhaps you have been encouraged to take out a UK endowment mortgage to support your purchase of a UK property. Companies have many ways of disguising their charges. Both of the above common examples use "front end loaded" charges and reduce your growth opportunities for their benefit. The annual "fund values" described on your annual statements may or may not look impressive, but when you ask the company for the "surrender value" you will get a much less rosy picture with the first type of scheme as compared with our recommended solution. In Switzerland they may not even be tax efficient: the offshore pension gives you no tax rebate and may even increase your Swiss tax liabilities; the UK endowment policy has 20% of its growth deducted in UK tax which you cannot reclaim, and on top of this may even cause your tax burden to increase. |
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Basel based Grether MacGeorge GmbH provides Independent Financial, Tax and Legal Advice to the expat community. The professional advisors in the company provide impartial advice for people looking for help with their investments, mortgages, life insurance, pensions and retirement planning, saving for education costs, setting up and running a business in Switzerland, financial aspects of relocation, and a wide range of other important areas vital to getting the most out of your life outside of your home country. © 2003, Grether MacGeorge GmbH, Austrasse 95, CH 4051 Basel, Switzerland Tel: +41 (0)61 206 8800 or Fax: +41 (0)61 206 8805 |