British expats who move overseas can reap quite the mountain of benefits when they transfer their pensions. Given the right circumstances and some good financial advice, the tax savings alone can be enormous. But, like everything financial, there are pitfalls that can derail even the best-laid plans.
If there’s one thing we’ve learned from advising expat clients over the years, it’s that there are always sand traps to be avoided. That’s because for every sound investment choice to be made, there are also a few mistakes to stay well away from.
Case in point: Here we explain one of the top mistakes that pensioners should avoid in 2018.
The Big Mistake: Taking Advice From an Unregulated Adviser
The financial adviser you choose to work with should be putting your best interests above their own.
One very obvious reason for this is that you don’t want to be investing in the wrong funds. Back in the UK, a Milton Keynes man found this out the hard way. His pension savings were put into unsuitable funds by an adviser who was not authorised to handle pension transfers or give advice about them.
His £415,000 in savings went into two separate overseas pension schemes. Both of them were completely unsuitable for a retail investor like himself. He also found out that most of his money went to a fund that was managed by the same people who transferred his pension money.
Once he discovered the truth, the company offered him £6,000 to keep quiet about it and not to report the incident to Action Fraud, the UK’s national reporting centre for fraud.
Lesson Learned: Always Do Your Homework
Financial advisers can come from a range of different professional backgrounds. Some went to university for accounting or business, while others have a different kind of education.
In addition, there are scores of different professional designations — well over 100, according to the Financial Industry Regulatory Authority (FINRA). But regardless of whether your adviser is a CPA, an ARPC, a CISP, or a CPRS, you’ll need to know they’re investing in products that are above-the-board and right for you.
Always check the credentials of your adviser before making any investment decisions based on their advice. In the U.S., you can check the background and experience of the adviser, broker, or firm that you’re working with on your retirement or other financial plans. BrokerCheck is maintained by FINRA and can help you make better decisions about the professionals you choose to work with.
Check Tim Carroll on BrokerCheck
Here at UK Pension Transfer LLC, we’re always above board and we always put the client’s best interests ahead of our own. Founder Tim Carroll has been registered as an Investment Adviser in the State of Georgia since 2012. His CRD# is 60099950, and you can use it to look up his records on the FINRA website (or just use his name, although there are multiple “Timothy Carrolls” listed).
You can also find detailed information about Mr. Carroll’s professional background and conduct here. This is a U.S. Government website called “Adviser Info,” and it’s run by the United States Securities and Exchange Commission (SEC).
In short, Tim Carroll won’t be putting his own interests above yours when you come to UK Pension Transfer LLC for advice. Call anytime for a free pension review or just to talk. Tim will be happy to answer any pension transfer questions that you may have.