- Retirement Planning
- Education Planning
- Capital Optimization
- Estate | Inheritance planning
- Corporate Services
- QROPS | UK Pension Transfer
- Tax Planning
The things that people save and require money for have not changed drastically over the past 200 years. What has changed is the way in which people have sought to accumulate the funds for these expenses and liabilities as it becomes increasingly hard to cater to all of your financial commitments with money gained from employment alone.
People still need money to pay for the down-payment of a house, buy a car, pay for a wedding and a honeymoon, pay for international school and then university for a child or children and then still ultimately have enough money accumulated at the end of all that to ensure their financial security in their retirement years.
How do you intend to pay for the guaranteed expenses of the future with money that isn’t guaranteed today?
Everything in life changes and very often without our consent. How will your financial security and lifestyle be affected if you lose your job? If you change employers? If you get a pay-cut? If you get divorced? If a partner dies or becomes terminally ill? If you are not financially prepared for unforeseen events then poor planning will sometimes result in irreparable damage to your standard of living and lifestyle.
How will you retire? Where? How much will it cost to retire comfortably and with dignity? What would you like to be doing and where? What type clothes would you like to wear? Where would you like to go on holiday? What sort of restaurant would you like to eat at? These are all questions that should be answered as soon as possible to ensure that the answer to all of the above is not “I cannot afford to”.
At Tyton our lifestyling approach ensures that you have money for both the foreseen and unforeseen events in life. Taking into consideration and working to combat against inflation, taxes, risk of loss of income due to death, disability or even legal action a comprehensive financial plan from Tyton will enable you to maximize your resources and your money whilst safely minimizing the risk of loss over your given investment time-horizon.
Goals are ordinarily quantifiable as short-term, medium-term and long-term and you should select your investments accordingly whilst considering the risk/return implications inherent within each. There is no one-size-fits-all solution.
Send us a mail on our Contact page to arrange a free no-obligation financial review with a Tyton Capital advisor and ensure the future financial safety of yourself and your loved ones, today.
have you considered…..
- That continuing your current lifestyle into retirement will be extremely difficult if you only rely on cash…?
- That there is increasing stress on state pension systems worldwide and historical deficits across the board…?
- What changes should be made to the management of your investments as you approach new stages of your life…?
- How risk/return modelling is of paramount importance to ensuring your ongoing financial security…?
- The necessity of striking a balance between equity, cash and fixed interest instruments…?
- That managing your money is a full-time job that cannot be managed efficiently by you alone…?
Speak to a dozen individuals, and you’ll find yourself with a dozen different definitions of the word retirement. Within those same dozen individuals, however, only one or two will actually have everything properly in place to sort out what they hope to achieve (reword). Have you taken the time to really think about what you will require, and what sort of preparations you will need to start doing now?
With each passing year, individuals are finding it less and less likely that they will be babysat by the government or their company in old age. If they want anything more than the bread-and-cabbage diet, and more entertaining hobbies than watching TV reruns all day, they are going to have to take their own financial security into their own hands.
Add to this the fact that each week, month, you put off thinking about retirement, the more difficult it becomes. Due to this “cost of delay”, the longer you put off saving and investing for your future, the less time your money has to grow, and the more it will cost you to achieve the same goal. This is why often we hear the phrase “the best time to start, is yesterday.”
We at Tyton are happy to sit down and have this discussion with you. We also understand that individuals of different nationalities have different tax implications regarding where and how they hold their savings, and we can help you plan accordingly.
have you considered…..
- How you will continue to support yourself and your family when you are unable to work…?
- How living overseas affects your pension eligibility in your home country…?
- If your spouses pension will be greatly reduced if he or she outlives you…?
- What happens to your Japanese pension eligibility when you leave…?
- How much you will receive from a stressed state-pension system in future years…?
- How continually increasing state-pension ages will make it difficult for you to receive income before the onset of serious medical issues…?
As any parent will know, investing in your children’s education may be the most valuable contribution to their future you could possibly make. The other side of this coin, however, is the fact that the cost of doing so is quickly becoming one of the most expensive aspects of being a parent.
Last year average total cost of university(tuition, books, cost of living, etc…) in the United States averaged around 40,000 USD per annum; with some of the top-level private schools costing in the neighborhood of 60,000 USD per annum. The even scarier part of this story is that these fees have been steadily increasing at a rate even higher than inflation (approx 5% p.a.) and show little sign of slowing down.
Throughout the rest of the world, countries that have historically enjoyed lower university costs (UK, France, Japan) are also witnessing their fees increase drastically as government education subsidies dry up…
Procrastinating regards addressing these fees until your children enter university could entail you taking a severe cut to standard of living, due allocating such a significant portion of annual salary to these fees. Having your children shoulder the burden of the fees could entail a stressful student life while holding down a job, or heavy student-debt that looms over their shoulders for many years after graduation.
Instead, taking the time to properly plan ahead would safely ensure that necessary funds are available at your child’s 18th birthday.
have you considered…..
- That historically the education prices index increases prices by 5% each year…?
- How much an education will cost in 15-20 years time…?
- What the financial ramifications will be if your child wishes to study abroad…?
- How University debt will affect the start of your child’s career and lifestyle thereafter…?
- How being forced to work a part-time job will affect your child’s study ability…?
- That your assets and income level may exclude your child from any form of financial aid…?
- That the prevalence of post-graduate education has made further education an absolute necessity even at entry-level….?
There are a number of reasons why our clients choose to make a Lump Sum investment into capital markets. Perhaps they have recently accumulated a large sum of cash through bonuses or extended periods of saving, or liquidating previous large investments into assets such as real estate. Rather than let it sit in current accounts typically under-performing inflation, a Lump Sum investment will enable you to achieve sufficient growth through capital appreciation, or at the very least achieve capital protection by keeping pace with inflation.
One of the key benefits of Lump Sum investments into capital markets is the ability to achieve sufficient diversification. Spreading your nest egg across different types of asset classes, geographic regions, and financial institutions will allow you to sufficiently protect against downside risk without significantly limiting the potential for growth.
Lump Sum investments typically have a medium to long term time horizon. For example, a client may know that children’s University fees will start to kick in in 5 years time, and he wants to ensure the exact amount of money he needs will be there at the time his child needs it, and in the correct currency of associated future outgoings.
Or, maybe a couple knows they want to buy a house soon, but are not sure exactly of when or where. In order to best prepare for the down payment, they invest their savings from bonuses, etc, into a medium term investment vehicle that is more likely to outperform inflation, is internationally portable, and gives them access to investment options they may not have elsewhere.
A Lump Sum investment is very much a case-by-case scenario. There is no one-size-fits all solution. A client’s specific needs, resources, and goals directly impact what may or may not be deemed suitable. We here at Tyton are experienced in tailoring your specific needs to the entire spectrum of international investment.
have you considered…..
- That any sum of money will double in 10 years at a 7.2% yearly rate of return…?
- That opportunity cost means money held as cash has a calculable loss each and every year?
- Utilising Modern Portfolio Theory to full diversify and hedge against volatility…?
- Investing in ETFs? Funds? CTAs? Hedge Funds…?
- Having your money looked after by the industries most seasoned professionals…?
Many people prefer not to think about what will happen on their death. But failure to make proper plans can leave behind a mess that has to be sorted out by our nearest and dearest at great expense, during a time of profound grief.
Making a will is one way that individuals can put their affairs in order. Under this arrangement the exectors named in the will apply for a grant of probate, take possession of the assets of the deceased and then distribute those assets according to the tems of the will. While this is a perfectly acceptable arrangement, it can result in high administration costs (often around 4% of total value of the estate), long time delays, and often a very large tax bill.
The intelligent alternative to a will is to set up a trust or corporate structure structure during your lifetime. With careful planning this can eradicate delays, administration costs and taxes, as well as giving other benefits. For these reasons the use of trusts and corporate services is increasing dramatically.
We at Tyton are happy to discuss with you in detail how these structures work, and if they would be beneficial to you either now or in the future. Please head over to our Contact page to arrange a complimentary first consultation.
have you considered…..
- What happens to your assets legally when you die…?
- What taxes and liabilities will be transferred to your family upon your death?
- How to efficiently transfer your assets to your loved ones without excessive tax liabilities…?
- How to create a structure which protects your wealth for generations to come…?
- How to plan when you have assets in Japan and your home country too…?
- How to consolidate all of your worldwide financial accounts for ease of transfer…?
The extent to which a company looks to provide employees with benefits is often a determining factor in how long an employee will choose to work for the company. Due to increasing stress on state pension and healthcare systems very commonly governmental schemes will fall far short of the needs and standard of any given company. Setting up private health, life and pension schemes for your staff sets a working precedent and creates an environment conducive to long-term employment where employees are not daunted by the idea of working for the company for many years because they know that the level of protection they enjoy is as a direct result of that continued employment.
There are numerous areas in which you could look to increase the benefits of your staff; from defined-benefit to defined-contribution retirement plans, from term to whole-of-life insurance, to private full-coverage health insurance.
We also assist in the establishment and incorporation of International Business Companies and other corporate structures in numerous reputable financial centers worldwide. Working within a stringent legal framework you may benefit from having your assets held within a tax-compliant corporate structure; minimizing tax liabilities in some cases, removing them altogether in others.
Contact your Tyton Capital advisor today for more information on how we can comprehensively service all of your corporate needs.
have you considered…..
- How your assets could be consolidated, streamlined and held by a corporate structure, wrap or trust…?
- How to best hold overseas property?
- The ramifications of numerous international transfers on your business…?
- How to make your company a more competitive employer…?
- How failure to look after your employees benefits will results in reduced employment terms and essentially lost revenue…?
UK pensions have traditionally been heavily regulated: the rules governing them have sought to maximise the tax take, firstly by taxing the pension income; secondly by taking any residual value on death; and lastly to stop retirees from spending their pension in the first years of retirement, leaving them to depend on the State thereafter. From April 2006 some of these rules were lifted, so that British expatriates can move their pension benefits, with the approval of the UK authorities, outside the UK. Achieved via a Qualifying Recognised Overseas Pension Scheme – a QROPS, which must meet various requirements before HMRC will recognise it.
QROPS benefits really start when you have been away from Britain for at least 5 years and do not intend to return for at least the foreseeable future.
- Once your pension schemes have been transferred into a QROPS, and you have been UK non-resident for at least 5 years, then the QROPS provider no longer has to report payments or withdrawals to the HMRC.
- As our QROPS providers are based offshore, payments are made to you gross (although it’s likely that you will be liable to income tax dependent on your country of residence at the time of receipt).
- After you have been overseas for at least 5 tax years, the QROPS pension fund becomes subject only to the laws of the relevant overseas jurisdiction, and the requirement to purchase an annuity by age 75 (or be faced with a possible 82% tax charge) is no longer applicable. The normal UK minimum pension age will still normally apply of 60/65 before benefits can be taken.
- A transfer to a QROPS is a benefit crystallisation event. This means that if the fund is in excess of the Standard Lifetime Allowance (SLA) for 2010 of £1.8m, the excess proceeds will be taxable at the rate of 55%.
- In order to be an eligible scheme, the QROPS must be fully approved by HMRC, and a list of such schemes can be found at:
Summary of the Benefits of a QROPS transfer
- At age 75 there is no need to purchase an annuity. Your pension doesn’t die with you.
- There is usually a wide choice of assets available. Onshore and offshore funds.
- Improved returns on the investment.
- You can pass on all funds remaining at death to your family. No IHT liability.
- Tax-free growth of funds both before and after retirement.
- Take income in the currency of your choice.
- Protection against creditors.
- Tax-free lump-sum up to 30% of fund value.
- Consolidate several UK pensions into a single QROPS.
Send us a mail on our Contact page to see if you are eligible to benefit from an HMRC compliant pension transfer…
have you considered…..
- Unless you take action more than half of your pension gets delivered to not your family but the Queen when you die…?
- That QROPS is fully regulated with strict ongoing regulatory and compliance requirements placed on providers
- Popularity is increasing year on year, meaning increased business and potentially a rising cost of delay…?
- Having your eligiblity calculated by Tyton costs you nothing…?
Living and working overseas gives us the opportunity to access tax planning opportunities that we may not normally have had access to in our home countries. As globalization continues, and more individuals are finding their careers taking them abroad, it is imperative that each of us make sure we are getting the most out of what is available.
One of the key benefits of building up an asset base in offshore domiciles is the potential tax benefits. Any savings or investments located offshore may have the ability to grow free of some or in some cases all forms of taxation, depending upon your residence and nationality. In addition, you may have flexibility when it comes to planning your inheritance tax status, as well as choices of how most efficiently to repatriate the money to your home country if you decide to do so.
Aside from potential tax benefits, there are a number of other sources of value in organizing your savings internationally. For example, such offshore vehicles will give you access to a much wider range of investment options. Domestic solutions typically specialize only in their own respective countries, whereas offshore centres give you the entire world of investment expertise under one roof. In addition, the ability to centralize your holdings in one internationally portable and accessible location could prove invaluable over the years, helping you avoid the headache of having multiple accounts in multiple locations, and multiple tax liabilities.
Feel free to get in touch with us if you would like to learn more about tax planning and how to effectively make use of the options available to you while living overseas over on our Contact page or if you have more questions regarding Tax Planning why not check out our Frequently Asked Questions page.
have you considered…..
- That owing to your nationality and residence you have specific tax planning opportunities to lessen the bill…?
- That taxation planning is carried out within the tax-code to eliminate unnecessary taxes?
- The potential benefits of investments with gross rollup…?
- Where, why and how you owe taxes on your worldwide assets…?
- How the Japanese tax code regards your assets in your home country and vice-versa…?
- How failure to plan properly could leave you with a nasty retroactive tax-bill in the future…?