Introduction
For many expatriates, the first half of the year passes quickly. Between career commitments, family responsibilities and travel, it can be easy to postpone reviewing your financial arrangements.
A mid year review can provide an opportunity to consider whether your financial plans continue to reflect your circumstances and longer term objectives. Changes such as a new role, an increase in income, growing family commitments or future relocation plans may all influence your financial priorities.
Below are seven areas that many internationally mobile professionals choose to review during the year.
1. Review Whether Your Investment Strategy Still Reflects Your Objectives
Investment markets naturally fluctuate over time, and personal circumstances can change just as quickly.
If your financial objectives, investment timeframe or attitude to risk have changed, it may be appropriate to review whether your existing investment strategy remains suitable.
Regular reviews can also help identify whether your portfolio continues to reflect your intended asset allocation.
2. Consider How Your Income Supports Your Long Term Objectives
Many professionals living in the UAE benefit from strong earning potential. However, higher income alone does not necessarily lead to greater long term financial security.
You may wish to consider questions such as:
- Are you saving and investing consistently?
- Has your income increased since your last financial review?
- Are you maintaining an appropriate balance between current spending and future planning?
Reviewing these areas periodically can help ensure your financial arrangements continue to support your objectives.
3. Revisit Your Retirement Planning
Retirement planning is often overlooked while focusing on career progression.
For expatriates, retirement planning may involve assets, pensions and investments across multiple jurisdictions, making regular reviews particularly valuable.
A mid year review can help assess whether your current arrangements continue to align with your anticipated retirement objectives and expected lifestyle.
4. Review Your Emergency Savings
Unexpected events can affect anyone, regardless of where they live.
Having access to readily available savings may help provide greater financial resilience during periods of uncertainty, including changes in employment or unexpected personal circumstances.
The appropriate level of emergency savings will vary depending on your individual circumstances and financial commitments.
5. Review Your Financial Protection Arrangements
Financial planning often includes considering how existing assets and future income may be protected.
Depending on your circumstances, you may wish to review arrangements relating to:
- Life insurance
- Critical illness cover
- Income protection
- Medical insurance
Any review should consider whether existing arrangements continue to reflect your current needs and responsibilities.
6. Review Your Estate Planning
Estate planning is an important consideration for many expatriates, particularly where assets or family members are located in different jurisdictions.
You may wish to review whether your existing wills, beneficiary nominations and wider estate planning arrangements remain appropriate in light of any changes to your personal or financial circumstances.
7. Consider Your Future Plans
Many expatriates relocate several times throughout their careers.
Whether you expect to remain in the UAE or anticipate moving elsewhere in the future, it can be helpful to consider whether your financial arrangements offer sufficient flexibility.
Questions you may wish to consider include:
- Are your assets held in a way that supports international mobility?
- Have you considered the potential tax implications of a future move?
- Are your retirement arrangements appropriate for your long term plans?
- Do your financial arrangements continue to reflect your broader objectives?
Bringing Your Financial Arrangements Together
A financial review does not necessarily mean making changes. In many cases, it is simply an opportunity to assess whether your existing arrangements continue to reflect your circumstances, objectives and attitude to risk.
Taking time to review your financial position during the year may help identify areas that warrant further consideration or discussion.
How Blacktower Financial Management (DIFC) Limited Can Help
Blacktower Financial Management (DIFC) Limited provides financial planning and wealth management services to internationally mobile individuals and families across the UAE and wider GCC.
Our advisers work with clients to understand their individual circumstances and objectives, helping them understand and make informed decisions on a range of financial planning matters including investment planning, retirement planning, estate planning and broader cross border financial considerations.
If you would like to discuss your financial circumstances, you can arrange an initial conversation with one of our advisers to explore whether financial advice may be appropriate for your needs.
Disclaimer: Blacktower Financial Management (DIFC) Limited is regulated by the Dubai Financial Services Authority (DFSA). This blog is for general information purposes only and does not constitute legal, tax, or financial advice. You should seek independent advice from qualified professionals before making any decisions based on its contents.
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