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What do you do with the savings?

Discussion in 'Teaching abroad' started by eburor, Jul 28, 2019.

  1. TeacherMan2019

    TeacherMan2019 New commenter

    ...and once again right to being personal without offering any evidence. Sad to see. If the OP has any questions that they would like answered with data-backed evidence, feel free to ask.
  2. motorhomer

    motorhomer New commenter

    Some great posts being made, thanks for the advice everyone.
  3. the hippo

    the hippo Lead commenter Community helper

    You are most welcome, motorhomer.

    As someone who has already retired once overseas and is planning to do it again at some point, the spectre (or rather the reality) of the Great British Pound losing a significant part of its value vis-à-vis the euro makes the arguments about interest rates seem like pretty small beer. Maybe Mr. Hallam has discussed this point in his book and so he has already told us all what we should do instead of having a pension (or anything else) that is based in the UK.
  4. HeroForTheDay

    HeroForTheDay Occasional commenter

    If you have a HSBC account in the UK, and open a HSBC account in your country of choice, you can do Bank Transfers without charge from the bank and only pay the currency exchange rates
    Fiona8318 likes this.
  5. frogusmaximus

    frogusmaximus Occasional commenter

    That is interesting.

    Ten years ago when i started the overseas teaching i planned to open an HSBC account in the UK since i'd already opened one in SE Asia and thought it would be offer advantages.

    it didn't as each are separate entities.
  6. frogusmaximus

    frogusmaximus Occasional commenter

    I always felt the key to my success as a teacher was the ability to communicate effectively at the level of the children with whom I was working. I find it quite amusing that a key poster on this thread has not done that and one wonders how his students enjoy is lessons.
  7. SPC2

    SPC2 Occasional commenter

    My previous enthusiasm for joining the 'Buy to Let' Brigade has been dampened by a UK holiday viewing of, 'Can't Pay? We'll take it away!'.

    The issues some landlords apparently have, and the state some rental properties are been left in, have led me to consider alternative investments. Like scratch cards.
  8. clovispoint

    clovispoint Occasional commenter

    His books are specifically written with expatriates in mind. Have you read them? You seem to be very bitter about the recommendations. His advice has saved hundreds of people millions of pounds- literally.

    The Hallam books offer multiple case studies of teachers/expats and their situations, offer advice on how and what to invest in. There is nothing dodgy about stocks if you are sensible, certainly no riskier than 'bricks and mortar'. The buy-to-let crowd has done well but past performance does not guarantee future returns...

    The biggest risk is not saving (followed by saving but not investing).
    Helen-Back and 576 like this.
  9. Bill8899

    Bill8899 New commenter

    I find it disturbing that you think a poster not communicating effectively at the level of a troll or two is any indication of what his students think of his lessons.
    TeacherMan2019 and the hippo like this.
  10. p1lchard99

    p1lchard99 New commenter

    I teach in the UAE and once you are here it is very easy to set up an account with a foreign exchange / transfer place such as Al Ansari etc. You can then withdraw your dirhims and transfer it to your UK bank account in the transfer place. I know that Al Ansari charge approx 64 dirhims for any transfer and any amount. This is approx 12.50 English pounds. If you have online banking you can also transfer money that way from your UAE bank account (this is much more costly, however). It will take a while to get your UAE bank account as you can only get one once you have residency so I opted for the transfer. Hope this help.
  11. fullblownattack63

    fullblownattack63 New commenter

    I'm 31, unattached and just finished my first year in Qatar.

    Before I left UK I kept my HSBC current account and Halifax credit card using my family UK address. I still use them all the time for holidays, foreign money and transferring money back home (it's crazy how many people close their UK accounts!) I also pay National Insurance contributions (class 2) for my state pension, and have 7 years of TPS pension fully topped up.

    I took out a LISA a few years ago and pumped in full of money, as well as transferring my old ISA into it. I can no longer pay more into it as I'm not a UK resident strictly speaking (I don't pay tax), but it earns about 200quid of interest a year and gets a 25% bonus if I choose to use it for a first property in the UK, or for my pension.

    My focus for the next 29 years (wishing to retire at 60) is to go down the 'Millionaire Teacher/Expat' route. I have a diversified portfolio with Internaxx, and a US based advisor (mentioned in the book). I had a very good first year, and looking to put at least £25k in it every year until I'm 60. Of course that is the plan...I realise that having a family down the line may scupper this a bit!

    Unless I was a property investor (I'm not, because in my view there's too many expat landlords in the world) I don't think I could be doing much better considering my position and income.

    Happy to answer any questions for people who fit a similar age/lifestyle profile to me!
    TeacherMan2019 likes this.
  12. noncon

    noncon New commenter

    Similar to you, I'm 30 and live in the ME. I put all my savings in a stocks and shares LISA and have my own property. My LISA is purely for my pension or possibly a second property. Looking to make more money on the side by trading stocks. Whats a good broker to use? I used Interactive Brokers before but their layout was just horrible. Thinking about going with IG. Also, is it wise to go straight into daytrading or should I take it slow and build a portfolio first? Lastly, how do you get around paying capital gains tax on any profit you made trading stocks?
  13. clovispoint

    clovispoint Occasional commenter

    You will not be able to contribute further to the LISA if you declare yourself non-resident which you should to avoid capital gains tax (see below). It's just a form.

    No, it is not wise unless you have some sort of edge over the rest of the trading world? If so, DM me!

    You do not pay capital gains on the sale of UK held assets (other than property) if you are non-resident. It is fairly straightforward if you read through. Timing is important.

    See: https://www.litrg.org.uk/tax-guides...capital-gains-tax-individuals-not-resident-uk, https://www.gov.uk/capital-gains-tax/what-you-pay-it-on

    You can also set up and invest with an overseas account and so avoid capital gains tax altogether.
  14. 576

    576 Established commenter

    I don't know anything about capital gains tax, but I had to respond to your wording. I don't see taxes as something to 'get round'. It was taxes that paid for my state school education and my student grants (way back when they were a thing), it was taxes that paid everytime I saw a doctor, and as a child also for the dentist and opticians.
    It is taxes that pay for the roads in the UK that are so much better than the ones in Africa.
    As someone who benefitted from taxes, it's only right and proper that I contribute back to society.

    At the moment I don't pay UK tax as a non resident, but I paid income tax in Kenya for 5 years and if I return to the UK I will pay my taxes and hope they help someone like me, whose family couldn't afford private health care or education.
  15. fullblownattack63

    fullblownattack63 New commenter

    Quote from gov.uk...

    "You have to pay tax on gains you make on property and land in the UK even if you're non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving."

    I'm investing with Internaxx which is domiciled in Luxembourg, so I wouldn't need to pay tax even if I did return before 5 years.

    Noncon, remember a LISA can only be used with the 25% government bonus to buy your first property.
  16. clovispoint

    clovispoint Occasional commenter

    Well this is alarming. It is just a proposal but it shows why you need to save and invest!

    "Tory Iain Duncan Smith’s Centre for Social Justice suggest the government withhold the state pension until 75:

    The SPA [State Pension Age] should better reflect the longer life expectancies that we now enjoy and be used to support the fiscal balance of the nation.

    The SPA in the UK is set to rise to 66 by 2020 (Pensions Act 2011), to 67 between 2026 and 2028 (State Pension Act 2014) and to 68 between 2044 and 2046 (State Pension Act 2007).

    We propose accelerating the SPA increase to 70 by 2028 and then 75 by 2035."


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