question: My cousin recently advised me that he has been working with a financial planner for years and plans to retire at age 55. I live in the UK. Is it wise to hire a financial planner in the UK or an advisor working with international clients in the US? When I sought financial advice two years ago, I was told to pay off my house and then consider financial planning, but now I know there’s more I can do to save money and live frugally.? I don’t think this is good advice. help!
answer: There are many nuances in financial planning when it comes to topics like taxes and estate planning. For these reasons, the experts we spoke to said it’s probably best to choose a domestic financial advisor. (Readers looking for a US financial advisor Can be used This free tool allows you to be matched with an advisor who may meet your needs.)
“Most US advisers probably don’t understand the rules regarding the UK compared to what they know in the US. That said, some advisers may specialize in clients who are residents of both countries. ” says certified financial planner Joe Favorito. At Landmark Wealth Management.
Having a problem with your financial advisor or looking for a new one? Email picks@marketwatch.com.
There are certainly advantages to working with people who live in the same country. “As someone who actually serves clients outside the U.S. across borders, I can tell you that there is nothing better than a planner who specializes in your country of residence. There are many factors, including systems, systems, and economic conditions,” says Alonso Rodríguez Segarra, a certified financial planner at Advice Financial. “Therefore, hiring professionals who are knowledgeable in these areas is extremely beneficial.”
Kashif Ahmed, an American private wealth certified financial planner, says if you live in the UK full-time and your entire financial life is centered there, look for someone local. Give advice. “However, if you have assets and liabilities, including tax status in the US, you may want to work with a US-based planner who has experience with UK clients,” says Ahmed.
In addition to finding someone from the same country, you want to find an advisor who has experience planning situations similar to yours. “Advisers in the UK are likely to be familiar with the health and social security plans available to you,” says Josh Trubow, a certified financial planner at Sensible Financial. “Tax considerations are also important, and someone living locally will likely have a better understanding of UK tax law than someone working in the US.”
To ensure you get the most accurate financial advice, you need to work with someone who understands your country’s laws, rules, and regulations. “You should look for a CFP in the UK, as a US CFP is unlikely to be familiar with UK tax laws or retirement plans,” says Jim Kinney, certified financial planner at Financial Pathways. “Try Locator” financialplanning.cisi.org to find people near you. ”
Was it bad to pay off the mortgage?
When it comes to home repayments, you need to consider what interest rate your mortgage is fixed at. Favorito points out that retirees often prefer “for behavioral finance reasons to have their debt forgiven until retirement,” but added, “Given the recent spike in interest rates, 2.5%, “It’s hard to tell someone who has a 30-year mortgage rate to pay that,” he added. With cash or CD he will get a discount if he can earn 5.25%. Much of the answer depends on opportunity costs and what you do with that money. ”
In fact, Ahmed says, “Deciding whether to pay off your home is part of the planning process. It is very common, and sometimes necessary, to pursue multiple planning needs at the same time.” states.
Favorito says if you don’t spend money and are disciplined enough to maintain a healthy savings strategy, the difference between cash and many mortgage rates that have been fixed in recent years. added that the debt is large enough that it cannot be repaid.
Having a problem with your financial advisor or looking for a new one? Email picks@marketwatch.com.
