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News Details


Jun - 2019

Four ways for NRIs to ensure smooth cross-border financial planning

As you move ahead in life and in your career, your personal and financial needs are bound to change. Many of you will probably end up moving out of the country at some point in time or the other—for professional or personal reasons. When that happens, there are many factors that you must consider in order to keep your finances safe and secure.

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With every major life change, you must review and modify your financial plan. To take the right money decisions, speak to a certified financial planner or a wealth management firm. This will help you manage and maintain your finances no matter which part of the globe you are residing in. For new investors, it makes a lot of sense to take guidance, but what if you’re a seasoned player? Will you even then need a financial planner or a certified financial transitionist? If you fall under any of these categories, the chances are that you could potentially improve the health of your finances with help from someone who has expertise in the field.

Various NRI scenarios

You worked for a couple of years in India and are moving to a new country

This is a common occurrence in today’s scenario. Many bright professionals have moved to greener pastures abroad to advance their careers and/or education, with the hopes of eventually settling down outside India. If you’re in this category, you also have a fair amount of savings and investments to make your aspirations a reality.

You have moved overseas for work and continue to stay there

If you’ve already passed the first checkpoint, you are now looking for a way to legally continue making investments without leaving your country of residence.

- Your parents stay in India and own properties

Many of us have ancestral or familial properties that are owned by our parents. What happens to these and how do they tie into your future investments are important factors.

- Your investments are not organised or compliant

You may have already initiated the switch from being a resident to a non-resident investor; however, your investments are not properly organised or managed.

- You try to find a local planner to help manage your finances

Once you’ve left the country, it becomes imperative to have someone taking care of your accounts and investments in both geographies. This is when you start looking for a certified financial planner or wealth management firm that have alliances or partnerships with reputed overseas firms.

If we analyse the points above, there are a few things in common across factors. For example, being able to remotely manage your finances and assets is a common need across all categories.

Ways for NRIs to handle their money and investments

- Go After Risk-Adjusted Returns

Most of us would like to keep our investments organised, easy-to-manage and simple. The best way to do so is to have a clearly defined objective for your investments. This helps you to understand your risks better and balance your investment allocation accordingly and participate in the opportunities presented by both locations. We would seek better advice from the reputed management consultants and advisory business consultants in India.

- Tax Planning & Reporting

One of the most important aspects of cross-border financial planning is taxes. As an NRI, without the right knowledge of the kind of taxes applicable and how to deal with them effectively, managing your investments in two different countries can be a challenge. The underlying goal here is to have a method where you have access to the knowledge and services of accountants in both geographies.

- Don’t Lose Sight of Your Financial Goals

Amidst all the paperwork and formalities involved in changing your resident status and getting all your investments in order, it’s important to keep your financial goals in mind. Remember, now that things have changed substantially in your life, your financial plan needs to reflect these, for them to be of any value to you when achieved. Apart from that, you need help to plan for your Indian expenses, and not necessarily rely on making inward remittances.

- Currency Matters

Many investors get into making ad-hoc fund transfers for meeting expenses and making investments in India. While such decisions might have been made based on a currency market trend or isolated advice you’ve received, you miss out on the advantages of making planned transfers at the right times.

At the end of the day, we all know that prevention is better than cure. So, if you organise your financial matters on time, you can avoid problems knocking at your door later.


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