Retirement Planning the Offshore Way

Why do so many of us constantly push the thought of retirement planning to the back of our minds?

Reluctance…!

1Reluctance to save for an event that seems so far off
2Reluctance to tie in to an inflexible pension scheme
3Reluctance to put a large portion of our current income out of reach for the long term

But in terms of retirement planning, putting off until tomorrow that which you could get done today will end up costing you very dearly.

Every month you delay your retirement savings planning, you significantly reduce the value of your future potential retirement fund.

Or put another way, every month you delay your retirement savings planning you significantly increase the amount that you will need to invest to achieve the same level of retirement income than if you’d started today.

If a 25 year old and a 35 year old were to start saving for retirement at 55 and the 25 year old invested £300 a month towards retirement, the 35 year old would have to increase his contributions to £803 a month to achieve the same potential returns.

At the state retirement age of 65 the average man will have some 19 more years to live and the average woman, 22 years. You will have to support yourself without work and, very likely, without state income.

This means that you will spend 25% to 30% of your life in retirement.

You will need substantial sums of money to support yourself in retirement in the manner to which you will have become accustomed throughout your life to date.

Recent figures show that individuals aged between 25 and 44 are saving 1/3rd of the amount they should be saving in order to support their current lifestyle in retirement.

In most countries you are forced to make your own pension provision if you want to have any chance of a comfortable retirement. The value of the government pension that you could once rely on is diminishing every year.

Ready to Start Planning?

If you’re an expatriate you are in a more privileged position than most – chances are you’re enjoying a higher salary and extra benefits as a result of working away from home. Furthermore expatriates have greater freedom when it comes to making investment decisions: they are not necessarily restricted by the same regulations that domestic investors experience.

Decisions That Need To Be Made

The most sensible solution would seem to be finding a safe harbour to anchor your retirement investments so that you can move from country to country as necessary without this having any negative impact on your assets.

However, if you decide to do this you need to decide exactly where that safe harbour should be.

Offshore financial centres present a viable solution - especially if you are undecided as to your eventual retirement destination. Basing your pension investment offshore should mean that future movements of capital or income are not impeded.

What To Be Aware Of

Your own personal circumstances are unique.

Be realistic about how much you should be contributing.

Consider the charges the bonuses and the flexibility of any investment plan - generally the more flexible the plan the more charges will be.

Know that a good offshore retirement plan should allow you to do the following without penalty:-

1Reduce contributions without penalty (normally after an initial period of one to two years).
2Switch investments between different funds to respond to changes in the market. Preferably including funds managed by other people outside of the institution zone.
3Have the option of retiring when you want to without penalty.
4Allow certain access to monies invested (again, after an initial period).
How to Find the RIGHT Solution

Finding out what each provider's best products are currently, and then hand picking the best to suit your own personal needs and current circumstances is the best idea!

But how impractical!

Do you have the time to do this?

Would you consider yourself an expert in offshore investments and pension planning?

Where would you start?

Obviously professional advice will get you the right solution and save you time and money and reduce your cost of delay significantly!

To find out more about what solutions are on offer in the market place and to learn more about offshore investing and saving for your future, visit http://www.offshoreinvestmentguide.com today.

Discover how to build wealth, enjoy greater privacy, protect your assets and secure your financial future with the Offshore Investment Guide.

http://www.offshoreinvestmentguide.com

Of the 75 million baby boomers nearing retirement today, many are:

• Debt Ridden
• Severely unprepared for retirement
• Under Funded
• Without a Strategy

This is a very serious problem in a country that we can all remember used to assure most people of a retirement where you are taken care of financially.

We all know that social security alone is not the answer to this problem. Many baby boomers are on the cusp of retirement without the ability to pay their basic living expenses with the money they will have coming in after retirement.

This means most will be looking for jobs to compensate, or they will be looking for extensions of their current jobs past the time they had hoped to retire and enjoy their lives comfortably.

Out of embarrassment, many people answer their friends by saying they wouldn’t know what to do with themselves in retirement to justify why they are still working to make ends meet past retirement age.

If you are in the situation above or can picture that situation in the next 10 years, there is something you can do to change that financial prognosis.

First, look at your 401k. Calculate what you could expect at retirement if you could actively manage it up to 8% more in yearly compounded return.

Depending on when retirement is supposed to happen for you, what kind of nest egg does that leave you as opposed to depending on the return you are seeing now?

A very simple but powerful 401k strategy that works with any 401k plan involves two things.

1. Awareness
2. Use of an index fund

By awareness, I mean tracking the value of your 401k holdings on a weekly basis if possible. With this level of awareness you can easily spot a portfolio decline. If it approaches a predetermined amount (5% to no more than 10% suggested) you should switch into a money market. Or if you are well informed and have the ability to do so, switch into an index fund that is designed to profit from a decline (a Bear Fund).

The biggest advantage you will gain is NOT letting your account value sink to such dismal levels where a 40%, 50% or greater gain is required just to get back to even.

This alone could significantly increase the size of your 401k over time.

Is this the only strategy that can safely increase your return rate on your 401k?

Not at all. You just need to know what most people won’t tell you. I have written a book on the subject called “Scientific Wealth Strategies.” You can find it at http://wealthscientist.com

I also have some more retirement strategies and resources located here: http://wwww.retirementinfo4u.com

Whatever your situation is right now, how much time you have left to make a change, and how much you calculate your need to be for a comfortable retirement, you cannot benefit from leaving things as they are.

Only education and strategic investment can net you the returns needed to have a safety net in place so that when you retire, you are not stuck in a constant monthly deficit spending cycle.

That’s not what retirement was supposed to be about. And it doesn’t have to be that way for you!

C.C. Collins is a Wealth Building Advisor and Author of “Scientific Wealth Strategies” at http://wealthscientist.com Find more information at www.retirementinfo4u.com