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Moving overseas, the financially responsible way · She's On The Money

0:00
Speaker 1: She's on the Money. She's on the Money.
0:23
Speaker 2: Hello, and welcome to She's on the Money, the podcast
0:26
Speaker 2: the Millennials who want Financial Freedom. After almost two years,
0:30
Speaker 2: the world is finally opening up. And if you're someone
0:34
Speaker 2: who is planning on packing up your life and moving
0:37
Speaker 2: overseas to work and live, then this episode for you.
0:41
Speaker 2: One day today, we are chatting through exactly what you
0:44
Speaker 2: need to think about financially before you book your flights.
0:47
Speaker 2: My name is Georgia King and joining me as per
0:51
Speaker 2: is Victoria divine v as you just hinted at before
0:54
Speaker 2: you know, I am terribly keen to get my little
0:58
Speaker 2: bot off to.
0:59
Speaker 3: Lun I'm going to be so sad. I swear if
1:02
Speaker 3: you can't podcast from London, we're gonna have talks.
1:05
Speaker 2: George. We'll sort it out. We'll sort it out.
1:07
Speaker 3: Yeah, well we'll be an international podcast by then, George, amazing,
1:12
Speaker 3: only because we record internationally, not because we'll be that. Yeah.
1:16
Speaker 2: Just climate disclaimer. Have you ever lived overseas?
1:21
Speaker 3: Yes and no, so I've never lived overseas officially, but
1:24
Speaker 3: I did do an exchange to France. I lived in Grandable,
1:28
Speaker 3: which is in the south of France, and did part
1:31
Speaker 3: of my NBA over there. I wouldn't say that I've
1:34
Speaker 3: officially lived overseas though that felt like a bit more
1:37
Speaker 3: of a holiday, But I have lots of friends who
1:40
Speaker 3: have done this. I actually have clients who are currently
1:42
Speaker 3: living overseas, and I've also, you know, worked with clients
1:46
Speaker 3: to prepare themselves to get overseas and relocate, also worked
1:50
Speaker 3: with clients once they get back to make sure that
1:52
Speaker 3: we are on top of things like zuperanuation because you
1:55
Speaker 3: don't have that overseas. But yes, a fair bit of
1:58
Speaker 3: experience preparing for it, not so much actually getting to
2:01
Speaker 3: do it personally.
2:02
Speaker 2: G Yeah, cool. Well, I am very invested in this
2:04
Speaker 2: episode because I am quite keen. But we should preface
2:08
Speaker 2: today's chat, I guess by saying that this isn't like
2:11
Speaker 2: a checklist for your first stint back at BALI. It's
2:14
Speaker 2: more if you're moving somewhere for six months or longer
2:17
Speaker 2: and kind of setting up your life somewhere else what
2:19
Speaker 2: we need to be thinking about which I haven't done,
2:22
Speaker 2: so like, not sure if you want advice from someone
2:24
Speaker 2: who hasn't done it, But I have done it for clients.
2:26
Speaker 3: I've set them up so honestly, gee, who better to
2:29
Speaker 3: help you today, exactly right. So many tickets, so many
2:32
Speaker 3: tickets from this side of the table today.
2:36
Speaker 2: The first thing I want to talk about v is tax.
2:41
Speaker 2: How does that work when we head overseas?
2:43
Speaker 3: All right, So, if you are an Australian resident, which
2:45
Speaker 3: I'm assuming you are because that's this podcast's audience. Hi
2:49
Speaker 3: Australian friends, if you're heading over staves and you're going
2:53
Speaker 3: to stay as an Australian resident, then you are still
2:56
Speaker 3: obliged to lodge an Australian tax return. But please do
2:59
Speaker 3: not be scared of having to do that, because if
3:03
Speaker 3: you're working overseas, you will have to let the a
3:06
Speaker 3: too know of all the foreign income that you are
3:08
Speaker 3: going to be making. But don't worry. You will be
3:11
Speaker 3: exempt from paying tax on that if you have paid
3:14
Speaker 3: tax on that income in another country. So as long
3:18
Speaker 3: as it has been taxed in the right country that
3:20
Speaker 3: you earned it in, you will not have to pay
3:22
Speaker 3: Australian tax on it. So one question I've gotten a
3:25
Speaker 3: lot historically is like, are we going to be taxed
3:28
Speaker 3: twice Georgia? Are we going to be taxed twice?
3:31
Speaker 1: No?
3:32
Speaker 2: Well sometimes though, yeah, look.
3:34
Speaker 3: Sometimes, so it's pretty unusual to be taxed twice, so
3:38
Speaker 3: don't stress too much, but definitely always check because we
3:41
Speaker 3: don't want to be that person that ends up in
3:43
Speaker 3: that pickle. In Australia, we have what's called tax treaties
3:46
Speaker 3: which sound kind of cute, which are formal arrangements between
3:49
Speaker 3: two different jurisdictions, and currently we have treaties in place
3:53
Speaker 3: with more than forty different jurisdictions. And these treaties are
3:57
Speaker 3: also known as a double tax agreement and in place
4:00
Speaker 3: to literally prevent people from being taxed twice. So that's
4:04
Speaker 3: kind of nice.
4:05
Speaker 2: So do you get taxed from like the new country
4:08
Speaker 2: that you're living in or from the Australian government.
4:10
Speaker 3: So if you're living in a country that has one
4:13
Speaker 3: of those tax treaties, like if you move to England Georgia,
4:16
Speaker 3: like I think you want to live in London, then
4:19
Speaker 3: you would have a tax treaty in place, which means
4:21
Speaker 3: you would pay tax over there and not have to
4:23
Speaker 3: pay it over Okay.
4:24
Speaker 2: Cool, good to know. How do we assort our taxes
4:27
Speaker 2: out when we're away though?
4:28
Speaker 3: So you will have your miagov account set up which
4:31
Speaker 3: is easy in twenty twenty one to organize my dad
4:34
Speaker 3: lived overseas. I think it was like in the eighties,
4:37
Speaker 3: seventies or eighties, who knows, it could have been the forties.
4:40
Speaker 3: I can't remember how my daddies, but that would have
4:43
Speaker 3: been much harder. But in twenty twenty one, you just
4:46
Speaker 3: log on online. You've got a miagov account, it's established
4:49
Speaker 3: with the ATO, everything's all linked and you just have
4:52
Speaker 3: to make sure that you're lodging a tax return each year,
4:55
Speaker 3: so you'll be able to stay on top of that
4:57
Speaker 3: very easily and you can manage your super from that
4:59
Speaker 3: as well all the other tax little bits and pieces,
5:02
Speaker 3: and of course an accountant will be more than happy
5:05
Speaker 3: to help you out during this period of time if
5:07
Speaker 3: that's a bit daunting for you or you just don't
5:09
Speaker 3: want to do it yourself, so do not be afraid
5:11
Speaker 3: to seek help. That could potentially save you a good
5:13
Speaker 3: amount of money in the long term. But stipulation on that,
5:17
Speaker 3: if you are going to be approaching an Australian tax agent,
5:21
Speaker 3: they can't lodge like your UK or US tax return.
5:25
Speaker 3: They can only let you know what you are meant
5:28
Speaker 3: to do for Australia and let you know like oh gee,
5:30
Speaker 3: like don't worry. You've already been taxed over there. It's
5:33
Speaker 3: all good. You just have to tell them what's happened.
5:36
Speaker 3: But they're not going to be able to lodge your
5:38
Speaker 3: tax return in the US or the UK, so you
5:40
Speaker 3: might have to engage a tax agent over there. If
5:42
Speaker 3: that's what you're looking for.
5:43
Speaker 2: Help on right, Okay, perfect. Let's move on to Superannuation
5:48
Speaker 2: then via our favorite topic.
5:50
Speaker 3: It's my favorite topic.
5:51
Speaker 2: I love super How does that work when we're living
5:54
Speaker 2: abroad and working over there?
5:55
Speaker 3: Okay, so you're super fund. We will just tick along
5:58
Speaker 3: while you're overseas, still growing. You still can't access it
6:02
Speaker 3: in the same way that you can't access it while
6:04
Speaker 3: you're here before the age of sixty five, and you
6:06
Speaker 3: will still be charged the same fees in Australia. As
6:10
Speaker 3: you know, we are obliged to pay ten percent of
6:13
Speaker 3: our earnings to Super And if you're working for the
6:16
Speaker 3: same company but you're just doing that abroad, then it's
6:19
Speaker 3: very likely that nothing is going to be changing and
6:21
Speaker 3: you are actually going to still be earning Super So
6:23
Speaker 3: that is a money win. But please, please please, if
6:27
Speaker 3: you're in that situation, clarify that that is in your
6:30
Speaker 3: agreement because some companies like to be a little crafty
6:34
Speaker 3: and drop the superanuation component of your income because they think, oh,
6:38
Speaker 3: it's all right, she's overseas, she doesn't need it, but
6:41
Speaker 3: you deserve it if you are not working for an
6:44
Speaker 3: Australian employer, though when you're overseas, then this is going
6:47
Speaker 3: to change. They do not have any obligation to pay
6:50
Speaker 3: you superannuation, so that's something that you are on your
6:53
Speaker 3: own for and I absolutely would be making sure that
6:57
Speaker 3: your superannuation does not slip behind because I do. And
7:00
Speaker 3: I'm sorry, I know these clients actually listen to the show,
7:03
Speaker 3: so hey there. I have a few clients who have
7:06
Speaker 3: lived overseas at ten plus years and we are in
7:08
Speaker 3: a situation where we are aggressively trying to build back
7:11
Speaker 3: their super to make sure that they aren't missing out
7:14
Speaker 3: for the lost time and lost super contributions that they
7:17
Speaker 3: missed while they were over there. But they were actually
7:20
Speaker 3: in the financial position where they could have just been
7:22
Speaker 3: paying it the entire time. So if you were in
7:24
Speaker 3: that position, great, But often when you move overseas g
7:28
Speaker 3: it's pretty expensive, like living in the UK can be
7:32
Speaker 3: quite pricey, so you might not be able to afford it.
7:35
Speaker 3: So if you're a few years off actually this move,
7:38
Speaker 3: or you're a few years off planning it, maybe upping
7:41
Speaker 3: your superannuation contribution now so that you don't have to
7:45
Speaker 3: come home and do it might be a crafty little
7:48
Speaker 3: idea for you.
7:49
Speaker 2: That's a good idea, yeah, which.
7:51
Speaker 3: Is something that you can do through your HR department
7:53
Speaker 3: at work. All you have to do is say, hey,
7:55
Speaker 3: can I please make some additional contributions or you could
7:59
Speaker 3: just be pay it to your account and make them
8:01
Speaker 3: on your own. So there are a number of ways
8:03
Speaker 3: you can do it. But essentially, please look after your
8:06
Speaker 3: superanuation because it's literally there for your retirement. And as
8:10
Speaker 3: I've said before, my personal job can be stilled down
8:14
Speaker 3: George into the most boring sounding job ever, and that
8:18
Speaker 3: is as a financial advisor. My job is to get
8:21
Speaker 3: you to a safe and comfortable retirement.
8:24
Speaker 2: That's it.
8:24
Speaker 3: I just want you to be in a position where
8:26
Speaker 3: you can retire comfortably. There's obviously lots of goal setting
8:30
Speaker 3: and all of the other stuff along the journey, but
8:32
Speaker 3: superanuation is a really key component of that. So please
8:36
Speaker 3: don't forget about it. I'll leave that there.
8:38
Speaker 2: I can imagine a lot of people do let that
8:40
Speaker 2: slide though when they travel overseas phoebe, because like it's
8:43
Speaker 2: you know, it's something that we have to worry about,
8:45
Speaker 2: like way down the line, Why would I stress about
8:47
Speaker 2: it now?
8:47
Speaker 3: Yeah, don't worry.
8:49
Speaker 2: What are the impacts of not contributing to your super
8:51
Speaker 2: for one or two years?
8:52
Speaker 3: So one or two years isn't the worst thing in
8:55
Speaker 3: the world. And it's when you move overseas for one
8:58
Speaker 3: or two years and you're like, oh, just going to
9:00
Speaker 3: be away for a year, and then you end up
9:02
Speaker 3: living away for ten fifteen years and then you come back.
9:06
Speaker 3: It's essentially like you've been out of the workforce for
9:09
Speaker 3: ten to fifteen years because you don't have those contributions
9:13
Speaker 3: and money. And the way that compound interest works is
9:16
Speaker 3: it compounds over time. So the sooner it gets into
9:19
Speaker 3: your account, the sooner it's compounding, the more compounding it's
9:23
Speaker 3: going to be able to do over time. So essentially,
9:26
Speaker 3: if you're not making those contributions, you're not accessing that compounding,
9:31
Speaker 3: and it means that you're going to have to contribute
9:33
Speaker 3: more later to reach the same goals you would have
9:36
Speaker 3: reached had you contributed less. Earlier.
9:39
Speaker 2: Right, Okay, so don't forget about that.
9:42
Speaker 3: Yeah, don't forget about it. And as I said, it
9:44
Speaker 3: can be as simple as up in your contributions now
9:48
Speaker 3: because you know in the future that's something that you
9:50
Speaker 3: want to do and you're just covering yourself. I've got
9:53
Speaker 3: a couple of clients who have done that. They've done
9:55
Speaker 3: it without my advice as well. They just somehow were
9:57
Speaker 3: geniuses and did it. But they did that, and they've
10:00
Speaker 3: gone overseas and when they get back, they'll probably keep
10:03
Speaker 3: that contribution level up just so that they are actually
10:06
Speaker 3: in a better position than they were in before. It's
10:08
Speaker 3: all in your hands, like you have the power to choose.
10:12
Speaker 3: And even if you bumped it up a couple of percent,
10:14
Speaker 3: because it comes out of your pre tax income, it's
10:17
Speaker 3: very likely that it's not going to impact your take
10:20
Speaker 3: home income too significantly. So it's definitely something I would
10:24
Speaker 3: consider looking into. Because it's not like I'm here saying
10:27
Speaker 3: put thousands of dollars aside each and every single month
10:30
Speaker 3: so that you don't miss out, Like that's not it
10:32
Speaker 3: at all. It could be a few dollars that in
10:34
Speaker 3: the long term actually turn into thousands.
10:37
Speaker 2: Right, Okay, so that's tax covered, and that's super covered.
10:42
Speaker 2: What happens to our HEX debts when we're away? Ha hah?
10:46
Speaker 3: Just you and jeerking moving overseas and does not get
10:50
Speaker 3: you out of paying your student debts. You can't run
10:53
Speaker 3: away from them. So long as the income you're making
10:56
Speaker 3: when you're abroad is above the minimum threshold, then you
11:00
Speaker 3: still need to make repayments on your hex's debt as
11:04
Speaker 3: you would if you were at home. So that kind
11:06
Speaker 3: of sucks because often, as we said before, in Australia,
11:11
Speaker 3: your help debt is taken out of your pre tax income,
11:14
Speaker 3: so you don't feel it as much. Whereas if you're
11:16
Speaker 3: going to move overseas, this is going to be a
11:19
Speaker 3: voluntary contribution that comes from you know, could be the
11:22
Speaker 3: US dollar that you earn, It could be pounds that
11:24
Speaker 3: you earn, it could be yen. You're going to have
11:27
Speaker 3: to save for that to make sure that you can
11:28
Speaker 3: make that repayment. And again this is for people who
11:31
Speaker 3: are moving overseas long term, not for a few months.
11:34
Speaker 3: If it's for a few months, don't stress.
11:35
Speaker 2: Two months stressful though, be I imagine if people aren't
11:39
Speaker 2: paying their HEX as they go then tax time could
11:42
Speaker 2: be quite like a nasty shot. Yes, and that's why
11:45
Speaker 2: we want to talk to an accountant or someone who
11:47
Speaker 2: can help us stay on top of it, if that's
11:49
Speaker 2: something that you want to do, just because we want
11:51
Speaker 2: to feel like we're in the right position. And I've
11:53
Speaker 2: seen too many times people just go moving overseas so romantic,
11:57
Speaker 2: like so many great ideas, and they just forget that
12:00
Speaker 2: tax and hex and just life happens in the background.
12:03
Speaker 3: Unfortunately that doesn't stop.
12:05
Speaker 2: Gotcha, all right? My last little question before we head
12:09
Speaker 2: to the break here is how healthcare works when we're overseas.
12:13
Speaker 1: Yeah.
12:13
Speaker 2: I know, obviously like it'll change depending on where exactly
12:16
Speaker 2: you are and the different healthcare systems that are set up.
12:19
Speaker 2: But how can we just make sure that we're covered
12:21
Speaker 2: financially if something goes wrong?
12:22
Speaker 3: Yeah, so first thing first, I would be making sure
12:24
Speaker 3: that you have insurance when you go overseas, Like we
12:27
Speaker 3: have spoken about travel insurance. If it's for a few months,
12:30
Speaker 3: absolutely consider that. If it's for a few years, have
12:32
Speaker 3: a look into some options that might work for you.
12:35
Speaker 3: It's hard for me to comment because I don't know
12:37
Speaker 3: what countries you are going to and it's different everywhere,
12:40
Speaker 3: but because we are Australian's g we have what's called
12:44
Speaker 3: a reciprocal healthcare agreement. So in Australia we are lucky
12:48
Speaker 3: enough to have agreements in place with eleven different countries
12:51
Speaker 3: where we are able to access publicly funded medically necessary care.
12:56
Speaker 3: So those countries are the UK, Sweden, Slovenia, Iland, Norway,
13:00
Speaker 3: New Zealand, the Netherlands, Maulti, Italy, Finland and Belgium. So
13:04
Speaker 3: apologies to our us friends, that's where you would absolutely
13:08
Speaker 3: need to be making sure that you have your own
13:10
Speaker 3: insurances in place. In saying that, in addition, health insurance
13:14
Speaker 3: is really really important, especially if you are overseas, so
13:18
Speaker 3: even if you are going to one of the countries
13:20
Speaker 3: I just mentioned, they absolutely don't cover everything, and you
13:23
Speaker 3: just don't want to be slugged with enormous fees and
13:25
Speaker 3: like I've seen it before and you guys have seen
13:28
Speaker 3: it before as well. One of our money diaries was
13:30
Speaker 3: about someone's partner who had to be flown back from
13:33
Speaker 3: overseas and it was hundreds of thousands of dollars worth
13:36
Speaker 3: of debt that they ended up slugged with because they
13:40
Speaker 3: didn't have insurance. So please make sure you have insurance.
13:44
Speaker 3: It's one of those things that people like, Oh, it's
13:46
Speaker 3: not worth it, I'm not going to use it. It's like, yes,
13:49
Speaker 3: in a perfect world, George, I hope that absolutely nothing
13:53
Speaker 3: happens to you. I actually want insurance to be the
13:56
Speaker 3: biggest waste of money you ever spend money on, because
14:00
Speaker 3: that you didn't actually have anything negative happened to you,
14:03
Speaker 3: and that's better. But if something does happen, we don't
14:07
Speaker 3: need to end up with enormous amounts of debt that
14:10
Speaker 3: is going to take years to pay off. It's not
14:12
Speaker 3: worth it. So in all honestyg I want your insurance
14:16
Speaker 3: to be a big waste of money.
14:17
Speaker 2: I know that that's not what.
14:19
Speaker 3: Every insurance advisory is going to want me to say.
14:21
Speaker 3: But in a perfect world, you're not slugged with it.
14:24
Speaker 3: But it's something that as a financial advisor I see
14:29
Speaker 3: all the time because I have to manage claims and
14:32
Speaker 3: I have to phone to clients who say, hey, the
14:35
Speaker 3: can you help me. I've just been diagnosed with cancer,
14:38
Speaker 3: or I've just gone through this traumatic event, or something
14:40
Speaker 3: has happened and I'm going through that. So I guess
14:43
Speaker 3: from my perspective, it's absolutely worth it because when sit
14:46
Speaker 3: does hit the fan, George, it hits it pretty.
14:49
Speaker 2: Hard, it does. And Murphy's law, like if it can happen,
14:52
Speaker 2: it will happen, you know, like's just cover yourself, just
14:54
Speaker 2: get it, just play it safe, get it done.
14:56
Speaker 3: And remember it's not about is it worth it? We
14:59
Speaker 3: want it to to be a waste of money?
15:01
Speaker 2: Yeah, we do want that smart a potato question maybe
15:05
Speaker 2: here v Yeah, I prefer chips over Chris just to
15:10
Speaker 2: jump in salt and vinegar, of course the way to go. No,
15:14
Speaker 2: I don't know about overrated.
15:16
Speaker 3: Pringles are overrated. This is unsolicited advice that maybe you
15:21
Speaker 3: want to add to this week's newsletter. Talk to me
15:23
Speaker 3: Cole's brand sour cream and chive chips over Pringles. They're
15:28
Speaker 3: like the old Pringles. Really, you know how they've gone smaller,
15:32
Speaker 3: skinnier tubes. They're trying to do just yeah, old Pringles.
15:36
Speaker 2: So wait, are they in a Pringle jar? Are they
15:38
Speaker 2: in a packet? Yep?
15:39
Speaker 3: No, They're in a Pringle container and everything it just
15:41
Speaker 3: says coals on the front, sour cream child, He's stunning
15:45
Speaker 3: across it, all.
15:45
Speaker 2: Right, that's my appointment after this. I'm sorry for bringing
15:49
Speaker 2: potatoes up. I shouldn't have said it. But if we
15:52
Speaker 2: were overseas and we had like a cold or something,
15:56
Speaker 2: are we allowed to go to the doctors and just
15:58
Speaker 2: pay money? Like that's okay?
16:00
Speaker 3: Yes, you absolutely can. In different countries that could be
16:03
Speaker 3: very expensive though, and it's not like in Australia where
16:06
Speaker 3: we just have bulk billing systems, so we can walk
16:09
Speaker 3: into the doctors because we've got our Medicare card, we
16:12
Speaker 3: can just get a bog build and it's free. You're
16:14
Speaker 3: very likely to have to pay for it, and that's
16:16
Speaker 3: why we want insurance. So definitely do a quick Google
16:20
Speaker 3: search if you're going to Slovenia, look up Slovenia Healthcare Australia.
16:24
Speaker 3: There's going to be expat forums and stuff like that
16:27
Speaker 3: that you can read through online about what's worked for
16:30
Speaker 3: other people. Also, another hot tip before we go to
16:33
Speaker 3: a break, which I know you are rearing to get
16:35
Speaker 3: to g Facebook groups are a really great place to
16:39
Speaker 3: start as well. So there are going to be Facebook
16:41
Speaker 3: groups like Ossie's living in the US or Ossie's living
16:43
Speaker 3: in the UK. Have a look at joining those because
16:46
Speaker 3: I know that they're a wealth of knowledge as well,
16:48
Speaker 3: because it can be a bit daunting doing all of
16:51
Speaker 3: the research on your own, and sometimes you just don't
16:53
Speaker 3: know what you don't know.
16:54
Speaker 2: Yeah, for sure, And that can make the information just
16:56
Speaker 2: so much more digestible just hearing it from people that
16:59
Speaker 2: have done it exactly.
17:00
Speaker 3: And also the ability to just like, oh, I co
17:02
Speaker 3: a question up and someone's like this is the one
17:04
Speaker 3: I went with and why and you're like, great, I'll
17:06
Speaker 3: do my research sat instead of having to work out
17:09
Speaker 3: what this is and what that is. Because for me,
17:12
Speaker 3: it's like you and I know the big brands in Australia, right,
17:15
Speaker 3: Like we know what the big four banks are in Australia,
17:18
Speaker 3: we know what they look like, we know what safety
17:20
Speaker 3: looks like, we know the dodgy ones that we probably
17:22
Speaker 3: want to avoid. I wouldn't be able to say the
17:25
Speaker 3: same for the US or the UK.
17:27
Speaker 2: Yeah, I've got the idea.
17:28
Speaker 3: I've never lived there. I don't have that brand experience.
17:31
Speaker 3: So sometimes it's just really nice to ask somebody who's
17:34
Speaker 3: willing to share.
17:35
Speaker 2: Yeah, amazing. All right, guys, we will be back after
17:38
Speaker 2: a very short break to talk about investing when we're
17:40
Speaker 2: abroad and also whether or not V thinks we should
17:43
Speaker 2: have a job lined up before we go don't go anywhere, saucy.
17:48
Speaker 2: Alrighty V. How does investing work if we're overseas?
17:52
Speaker 3: Okay, big question, long answer. I am going to summarize it.
17:56
Speaker 3: It depends how long you're staying overseas for and what
17:59
Speaker 3: your plans are and how you are generating income. So
18:03
Speaker 3: if you're investing g five hundred bucks seat in every
18:06
Speaker 3: single month, you can still do that in Australia. If
18:09
Speaker 3: you're planning on being overseas for a year, that's fine.
18:12
Speaker 3: But if you're planning on moving overseas, it might be
18:16
Speaker 3: worth not doing that anymore in Australia and actually investing overseas.
18:21
Speaker 3: In saying that, there are a number of people in
18:23
Speaker 3: our community who have asked this question, and it's hard
18:27
Speaker 3: to say because it's going to be different for everybody's
18:29
Speaker 3: personal situation, but essentially it's about the ultimate outcome. Are
18:34
Speaker 3: you planning on coming back to Australia, in which case,
18:37
Speaker 3: why would we go to all of the effort of
18:40
Speaker 3: setting up investments in the UK in a different currency
18:44
Speaker 3: so that then we have to wrap them up at
18:45
Speaker 3: some point to move them to Australia to manage them
18:48
Speaker 3: in the future. From my perspective, I would be thinking
18:51
Speaker 3: about future US and what they're going to need and
18:54
Speaker 3: what they're going to want, because it might sound really
18:56
Speaker 3: sexy to do it over there, but it could be
18:59
Speaker 3: creating a lot more admin and hassle in saying that
19:03
Speaker 3: you could always stop investing if you can't afford to
19:05
Speaker 3: do that for that period of time, which is okay.
19:08
Speaker 3: As I've said before, it's completely flexible. Yes, we want
19:12
Speaker 3: to be investing regularly and continuously, but that's not feasible
19:15
Speaker 3: for each and every single person. And then also you
19:19
Speaker 3: could be making a plan to not invest while you're
19:21
Speaker 3: over there, but invest aggressively when you get back, or
19:24
Speaker 3: a completely different option. Again, the outcome is really based
19:28
Speaker 3: on what future use going to need and want. But legally, yes,
19:32
Speaker 3: you are able to still continue to invest in Australia
19:35
Speaker 3: if you don't live here, and what.
19:37
Speaker 2: If you were just starting. So maybe we've got an
19:39
Speaker 2: Australian living in London right now who's found the pod
19:42
Speaker 2: wants to start investing. How should they go about doing.
19:44
Speaker 3: That completely depends on what you are set up to do.
19:48
Speaker 3: So if you don't have Australian bank accounts, it's going
19:51
Speaker 3: to be very hard to invest in Australia because they
19:54
Speaker 3: usually require you to sink those things together, prove residency
19:58
Speaker 3: and all of that other fun stuff. But again, you're
20:01
Speaker 3: more than welcome to invest in the US or in
20:03
Speaker 3: the UK. If there's a micro investing platform that you
20:05
Speaker 3: want to play with over there, go for it. But again,
20:08
Speaker 3: if you're going to go see a financial advisor and
20:10
Speaker 3: have a full financial advice plan set up and it's
20:13
Speaker 3: in the UK, but you know in like five years
20:15
Speaker 3: you're going to move back here, I would probably say
20:18
Speaker 3: that's not the smartest idea because you're going to run
20:21
Speaker 3: into a few issues trying to move it back over
20:23
Speaker 3: because remember, we lose money potentially if we sell our
20:27
Speaker 3: investments too early, and you're going to have to do
20:30
Speaker 3: that and probably pay capital gains tax on the assets
20:34
Speaker 3: if they've increased in value to then bring them back
20:37
Speaker 3: into Australia. So it depends on where you're at or
20:40
Speaker 3: what you want to do. But essentially the world is
20:42
Speaker 3: you're always in twenty twenty one or now twenty twenty
20:45
Speaker 3: two nearly, and you can invest from wherever you are.
20:48
Speaker 3: So if you've got an Australian bank account, you can
20:50
Speaker 3: still invest in Australia, but it's completely up to you
20:54
Speaker 3: in your personal situation.
20:55
Speaker 2: Let's talk about bank accounts now, fee. How do you
20:59
Speaker 2: go about SEP when you're overseas and do you actually
21:02
Speaker 2: need to do that or can you just use your
21:03
Speaker 2: Aussie ones? And I don't know transfer, So.
21:06
Speaker 3: It depends again how long you're going to be there for.
21:09
Speaker 3: So I have a couple of different options that I
21:12
Speaker 3: speak through with clients. Obviously, international fees are really expensive,
21:17
Speaker 3: so if you go overseas just for like a month,
21:19
Speaker 3: I'm not going to say go set up an entirely
21:22
Speaker 3: new bank account. Even if it was three months, I'd
21:24
Speaker 3: really wonder if that is worth it. But again it
21:27
Speaker 3: could be for you, So I would be thinking about
21:30
Speaker 3: what you actually need to do if you're moving to
21:33
Speaker 3: the UK g because this is where you want to
21:36
Speaker 3: go and you're going to be paying rent and bills,
21:39
Speaker 3: it's going to be much easier to have a UK
21:42
Speaker 3: bank account. It's also potentially going to be necessary for
21:46
Speaker 3: whatever employer you join. So as we said before, if
21:50
Speaker 3: you're transferring overseas with than an Australian company, it might
21:53
Speaker 3: be that you need to transfer money over and you're
21:55
Speaker 3: spending Australian dollars and living in the UK like you're
21:58
Speaker 3: on holiday. In a way, you might still just be
22:00
Speaker 3: using your normal bank cards. But if you're moving overseas
22:03
Speaker 3: and you're going to put down some roots, I absolutely
22:05
Speaker 3: would recommend getting a bank account over there. Again, some
22:09
Speaker 3: rules apply. We will be trying to make sure that
22:11
Speaker 3: we have minimal to note fees and it's with a
22:14
Speaker 3: reputable bank. So again, do some research into what is
22:18
Speaker 3: reputable in your country and what is going to work. Well. Gee,
22:23
Speaker 3: if you're moving overseas and you're moving in with some housemates,
22:26
Speaker 3: potentially ask them who are you banking with? Who should
22:28
Speaker 3: I be banking with, what should I be doing and
22:31
Speaker 3: they will be able to help you. Again, Facebook groups
22:34
Speaker 3: are going to be really helpful as well, full of
22:36
Speaker 3: expats who might have already done it before.
22:39
Speaker 2: Brilliant. Do you know if you would need a job
22:42
Speaker 2: first before you can open a bank account or like
22:45
Speaker 2: even have a residential address like that?
22:48
Speaker 3: I don't know, and I think it is very different
22:51
Speaker 3: for very different countries. When I've been doing some research,
22:54
Speaker 3: it seems to be here there and everywhere. But the
22:57
Speaker 3: one thing I can say is no, you don't need
22:59
Speaker 3: a job to set up a bank account. I think
23:02
Speaker 3: you just need to prove that you've got an address
23:04
Speaker 3: there and it makes sense for you to do that.
23:06
Speaker 3: So work that out however you will. And I hate
23:09
Speaker 3: to do this again to youg Facebook groups and next platform.
23:13
Speaker 2: Yeah, it's helpful, it's good, it's good.
23:15
Speaker 3: Well, it's really helpful. And learning from other people's experiences, honestly,
23:19
Speaker 3: there's nothing like it.
23:20
Speaker 2: Okay, I am excited to pivot this conversation a little
23:23
Speaker 2: bit towards career stuff now. V from a career and
23:26
Speaker 2: finance perspective, what are your thoughts on finding a job
23:31
Speaker 2: before you head over or if you like, can you
23:34
Speaker 2: just do it when you're there? What's your take on
23:36
Speaker 2: that you.
23:37
Speaker 3: Could do either? And I don't think that there is
23:39
Speaker 3: a right and I don't think that there is a wrong.
23:41
Speaker 3: It's all about your financial situation.
23:43
Speaker 2: Okay.
23:43
Speaker 3: If you cannot afford to be without a job, I
23:46
Speaker 3: would absolutely say, please don't move to another country without
23:49
Speaker 3: having a job secured in the first place. But if
23:52
Speaker 3: you've got more of an emergency fund and some savings
23:55
Speaker 3: and you're like you know what, I'm going to move overseas.
23:57
Speaker 3: I'm going to go to all these interviews and find
23:59
Speaker 3: the right fit for me. Great, you do you, But
24:02
Speaker 3: the important thing is to have a think about your
24:04
Speaker 3: financial situation before you do that, because I think as well,
24:08
Speaker 3: especially going through COVID and coming out the other side,
24:12
Speaker 3: we don't know what the future job markets look like.
24:15
Speaker 3: We know here in Australia lots of people have lost
24:17
Speaker 3: their jobs. The same will be true internationally, so I
24:21
Speaker 3: don't know what the job markets look like. So from
24:24
Speaker 3: my perspective, I'm conservative. I do some research first, see
24:27
Speaker 3: how hard it is, and then if I was in
24:29
Speaker 3: the financial position to just move and then find a job, great,
24:33
Speaker 3: more than welcome to do that. But again, gee, I'm conservative.
24:37
Speaker 3: I lack knowing.
24:38
Speaker 2: I'd be that person that wants a job before I go.
24:40
Speaker 2: But you do, you, my friends, brilliant. Okay, last question
24:45
Speaker 2: for you today. V If anyone is listening and they're like, oh,
24:49
Speaker 2: I really want to live over seas. I want to
24:52
Speaker 2: have that experience, but I'm worried that it's going to
24:55
Speaker 2: put me behind financially and maybe career wise, what would
24:59
Speaker 2: you say to that. It's your advice.
25:00
Speaker 3: There behind what, George, behind your expectations, behind what other
25:04
Speaker 3: people are doing. They're questioning means, why are we comparing
25:06
Speaker 3: ourselves to the journeys of other people? Because if you
25:10
Speaker 3: want to move overseas and you want that to be
25:12
Speaker 3: a part of your journey, why are you behind? Aren't
25:14
Speaker 3: you ahead because you're actually doing the thing that you
25:17
Speaker 3: want to do. So from my perspective, I really don't
25:20
Speaker 3: think that you're going to be in a worse off position.
25:23
Speaker 3: And if the last eighteen months has taught us anything George,
25:26
Speaker 3: it's that life's pretty unpredictablesome and we need to make
25:29
Speaker 3: the most of opportunities while we have them. Gee, your
25:32
Speaker 3: career is going to fall into place as it's meant to.
25:35
Speaker 3: Plus employees definitely look fondly at job applications that include
25:39
Speaker 3: time spent overseas because you know more experience. It sounds
25:42
Speaker 3: like you're a go getter. And look, at the end
25:45
Speaker 3: of the day, probably not the advice you want to
25:47
Speaker 3: hear from your friendly financial advisor, but there's always time
25:49
Speaker 3: to make more money. It's just set yourself up, make
25:52
Speaker 3: sure that you aren't in mountains of debt to go
25:54
Speaker 3: and enjoy yourself and live the life that you deserve
25:57
Speaker 3: to live. I think it's more about going and living
26:00
Speaker 3: life you want, not going, oh my gosh, I'm not
26:02
Speaker 3: going to be super super rich. Like I don't think
26:04
Speaker 3: I've ever met someone who says, oh, I really regret
26:07
Speaker 3: living overseas for eighteen months. Yeah, I really regret that.
26:11
Speaker 3: Like I really, I've never met that person.
26:14
Speaker 2: Now one hundred percent. I definitely get the stress of
26:17
Speaker 2: feeling like there's pressure on your back to like nail
26:19
Speaker 2: all of these goals. But yeah, from my perspective, I
26:22
Speaker 2: think that you just learn so much from I mean,
26:25
Speaker 2: I haven't done it yet, Hopefully I will learn so
26:27
Speaker 2: much from living over there.
26:29
Speaker 3: But you learn from experience, right, yeah, exactly, and from
26:32
Speaker 3: somebody who's always put a lot of pressure on themselves
26:36
Speaker 3: to perform. I suppose like school, I was very stressed
26:40
Speaker 3: about getting good marks. University I was very stressed about,
26:43
Speaker 3: you know, again getting good marks. But I went straight
26:46
Speaker 3: from school to university, and for me, the idea of
26:50
Speaker 3: a gap year, I was like, no, I can't be
26:52
Speaker 3: sad on anything. Life's gonna leave me behind. I have
26:54
Speaker 3: to go straight to UNI. I kind of regret that
26:57
Speaker 3: mindset in a way. As I've said before, don't regret anything,
27:00
Speaker 3: but I just wished someone had sat me down and
27:02
Speaker 3: said that it's not as important as you think it is,
27:04
Speaker 3: Like go live life, you know, spend a year abroad,
27:06
Speaker 3: go work overseas, it doesn't matter what you're doing. Get
27:09
Speaker 3: some life experience and do that. And I'm not saying
27:12
Speaker 3: that I don't have life experience, but I think, you know,
27:15
Speaker 3: having gone through that and now looking at my little
27:18
Speaker 3: sister who took a gap year, lived her best life
27:21
Speaker 3: and now has a great career, I'm like, cool, So
27:24
Speaker 3: you're saying it wouldn't have changed anything, and I would
27:26
Speaker 3: have got an awesome experience during a period of time
27:29
Speaker 3: that I could have really enjoyed it. I was young,
27:33
Speaker 3: I was single, I didn't have any financial commitments, like
27:36
Speaker 3: I kind of wish i'd embrace that. Whereas I was
27:39
Speaker 3: the type of person that I actually looked at like
27:43
Speaker 3: my ATAR score as being a reflection of my personality.
27:46
Speaker 3: And if I didn't get a good ATI score for me,
27:49
Speaker 3: it felt like I wasn't maybe a good person, And
27:52
Speaker 3: that's absolutely preposterous and the stupidest thing in the entire world.
27:56
Speaker 3: But I think we all need to remember that experience
28:00
Speaker 3: is worth so much more than money sometimes and giving
28:03
Speaker 3: ourselves that space to grow and learn as a human
28:07
Speaker 3: like we deserve that. It's not all about wealth creation.
28:10
Speaker 3: I know we're on a wealth podcast, but it's not
28:12
Speaker 3: all about wealth creation. Yes, let's care about super let's
28:16
Speaker 3: do everything in the right way. Doesn't mean you can't
28:18
Speaker 3: have fun. Doesn't mean you can't live overseas and leave
28:21
Speaker 3: your best life though.
28:22
Speaker 2: After this episode has made me so excited, But I
28:26
Speaker 2: guess the key things we need to remember are to
28:28
Speaker 2: consider tax super remember how investing works when we're heading
28:33
Speaker 2: over there, Remember the rules and laws in different countries.
28:36
Speaker 2: Make sure you do research according to the region that
28:38
Speaker 2: you're moving to make the most of those forums. Ah,
28:42
Speaker 2: there's a lot to take on.
28:43
Speaker 3: Literally, just go do a hygiene check. What do you
28:46
Speaker 3: need to get in order before you go? Because hex
28:50
Speaker 3: super tax, all of that is going to work while
28:53
Speaker 3: you're over there. You just have to set it up
28:55
Speaker 3: properly and know what you're on top of. It's not
28:57
Speaker 3: going to require any additional effort while you're over they're
29:00
Speaker 3: living your best life. But do future you a good
29:02
Speaker 3: service and set yourself up before you go. It's a
29:05
Speaker 3: bit of admin for long term gain. But g I
29:08
Speaker 3: think we've done. We're done here, but just before we
29:10
Speaker 3: head off, we'd like to acknowledge and pay respects to
29:13
Speaker 3: Australia's Aboriginal and Torros Strait Islander people's, the traditional custodians
29:18
Speaker 3: of the lands, the waterways and disguise all across Australia.
29:22
Speaker 3: We thank you for sharing and the caring for the
29:25
Speaker 3: land on which we are able to learn. We pay
29:27
Speaker 3: our respects to elders past and present, and we share
29:30
Speaker 3: our friendship and our kindness.
29:32
Speaker 2: And remember, guys, that the advice shared on She's on
29:35
Speaker 2: the Money is general in nature and does not consider
29:37
Speaker 2: your individual circumstances. She's on the Money exists purely for
29:41
Speaker 2: educational purposes and should not be relied upon to make
29:44
Speaker 2: an investment or a financial decision. And we promise Victoria
29:48
Speaker 2: Divine is an authorized representative of Australia Pacific Funds Management
29:52
Speaker 2: Proprietary Limited ABN three four one three two four six
29:55
Speaker 2: three two five seven AFOSL three three nine one five
29:58
Speaker 2: onex WAK guys by guys
30:11
Speaker 3: Mhmm