As a British expat, how do you choose the best financial adviser?

Choosing a financial advisor as a British Expat is a more complicated task than you might think.  Nearly anyone can call themselves a financial advisor with minimum qualifications required.  As a British expat, your financial needs are unique, and you should take extra care when deciding who to work with.

So, how do you choose a financial advisor as a British expat? Here’s a list of three characteristics to look for.

Work with Fiduciaries

First, you should only work with advisors are fiduciaries. A fiduciary is someone who at all times acts for your sole benefit and interest, only doing what’s best for you. When it comes to your finances, you should only work with someone who will put your interests above their own – and that is exactly what a fiduciary is.

Only 15% of advisors are fiduciaries.

Work with Financial Advisors Who are Fee-Only

Secondly, you should look for a fee-only financial advisor. In the financial services industry, there are three basic ways in which financial advisors are compensated: commission only, fee only or a combination of the two. We hold that the Fee-Only method of compensation is the most transparent and objective method available. This model minimizes conflicts and ensures that your financial planner acts as a fiduciary. Fee-Only planners are compensated directly by their clients.

That is the model we employ and no one pays us a penny except for our clients.

Make Sure Your Advisor Has Cross-Border Expertise

Third, you should seek out a cross-border specialist.  As a British expat in America, your financial life spans two countries, two tax jurisdictions, two currencies, two government pension systems and numerous investment and pension products.

The US is a complex and complicated country, and nowhere is this statement truer than when it comes to the tax code. Throw in some very unhelpful legislation known as FATCA, which shines the spotlight firmly on non-US assets, add in some UK legislative idiosyncrasies and you have an obstacle course that needs navigating.

But if your advisor doesn’t know where the grenades are – because they are an American whose clients are mostly American and therefore why would they (that’s not a dig at American financial advisers; when I was a financial adviser in the UK, I wasn’t equipped to advise Americans living in the UK) – then the chances of you stepping on a landmine, most of which are easily avoidable, are considerable.

Your advisor should not just dabble in UK pensions, they should be an expert.  Your advisor shouldn’t just be aware of the UK state pension, they should know how it interacts with social security and the Windfall Elimination Provision.  The financial advisor that will serve you the best is one who is credentialed and experienced in both US and UK planning and investments.  They will know the opportunities and pitfalls of being an expat in America and can help you navigate them.

Working with anyone less than a cross-border specialist is a disservice to you.

If you would like to know more about the specific pitfalls that UK expats living in America need to be aware of and avoid, then please request our free guide on the subject.

Choose the Right Financial Advisor as a British Expat

At PFW, all of our financial advisors have cross-border expertise and know how to properly serve your particular needs. As British expats ourselves, we know how to offer you the best financial advise to protect your future.

Plan First Wealth is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.