Navigating the financial world may seem daunting for anyone and even more so if you are an expat living in a foreign country with little knowledge of the local language.
Let me guide you through the options that may make this a bit easier for you.
Assuming you are looking for someone to be your guide in these topics, who should you be looking for and where to look for them?
Fluent English is a must. And if it’s a Czech speaking person, it’s even better as they can read all the small print and communicate in Czech on your behalf where needed.
Professionally you are looking for someone who is knowledgeable and trustworthy. Having a financial advisor is like having a doctor who you can trust. They should know the overall financial situation of yours as well as your goals and expectations for the future.
Another thing to decide is if you prefer to have a few people taking care of your financial health: a banker, an insurance or a mortgage broker and an investment specialist.
Or you can turn to a financial advisor who will take care of all of the above. And the bonus? Their work is usually free of charge for you and they have a wider range of financial products to choose from.
As for me, I always ask my friends for a referral when looking for a professional. Or turn to Google reviews. In the Czech republic, there is a place that’s even better than that for financial advisors: www.dobryporadce.cz. Here you can find your person and read what their clients say about them.
Let’s look into some details about the main areas together.
Life insurance
This is the foundation of your financial portfolio. It will protect your current assets as well as your future plans.
Life insurance is your security net for when things go wrong. It is designed to close the gap between your active income and the lowered one in case of an illness or injury, be it days, weeks or even years.
Life insurance is like haute couture – tailor made to suit your needs.
Does it make sense to arrange one while living here?
Do you have life insurance arranged in your home country? Then check the scope of insurance and if it covers the whole world, you are mostly safe.
If you do not have your life insurance yet, arrange one while living here.
You know how they say it “better safe than sorry”.
Mortgage
Have you decided to live here longterm? Or are you simply looking to add an investment property to your portfolio and do not want to use your money for it?
Depending on your nationality, residency status and form of income (employee/ self-employed person/ business owner) a financial advisor can help you find the best bank to cater to your needs.
Contrary to general opinion, interest rates are not the only factor to look at. You want to know the other fees and conditions connected to the mortgage too (like property evaluation or processing fees).
Did you know that you can also benefit from arranging a mortgage for your own living by reducing the tax base by the interest paid?
Investments
Investments are a hot topic recently. Securing retirement, funds for kids or simply adding more to your already saved money? Whatever the goal is, there is a suitable investment instrument to get you closer.
With the help of a financial expert, you will determine the time frames, amounts and create a sustainable strategy that will grow your money while protecting it at the same time.
What to concentrate on while deciding on suitable instruments?
Have risk management in mind: choose the right instrument for the given time frame, have sufficient emergency funds (3-6 months worth of your expenses is the minimum), diversify in terms of different industries (remember what Covid meant for the travel industry?), countries and risk level.
And once again: being a tax payer in the Czech republic entitles you to the same tax benefits as Czech citizens!
As you can see, there is a lot to think about. Building a financial portfolio is like building a house. If you take enough time for proper planning in the beginning, you will benefit from it years after.
If you’d like to learn more, feel free to follow my Instagram profile https://www.instagram.com/katerina.finance/ or book your free initial online meeting through my web: www.katerinabendova.cz
Here’s to financial health and literacy!
Kateřina Bendová, DiS.,
Consultant
Zdroj: Kateřina Bendová, DiS.
