Spain is a wonderful place to live, thanks to the climate, the culture, and other factors that combine to result in an excellent quality of life. It is also an ideal country from which to explore the rest of Europe, easily accessible thanks to the high-speed rail network and inexpensive flights.
There is a sizable American expatriate community in Spain. US expats living in Spain often have financial questions though, relating to double taxation, saving and investing, and the complexities of often having income or assets in the US while living in Spain, or in both countries. These cross-border questions mean it’s sensible to consult a financial advisor with specialist experience assisting Americans in Spain.
Other questions revolve around where to save and invest, currency fluctuations, tax and reporting requirements for both countries, and retirement planning.
Financial advisors in the US won’t be able to address these cross-border issues though. To find a specialist financial advisor for Americans living in Spain, first do some online research and ask other Americans in Spain for recommendations, then, armed with a shortlist, ask your potential advisor about the following areas.
1. Their credentials, qualifications, performance, and experience with US expats
It is critical to inquire about the experience and qualifications of your potential expat financial advisor in Spain and about their experience with other Americans, and then to verify the information they provide to ensure that it is accurate.
You should also check that they are registered with the relevant regulatory bodies, which will possess a record of both the adviser and the activity that they engaged in.
There should also be a public record of their professional credentials available that you can verify.
Next, you should ask for references from their current clients, and again seek to verify their authenticity.
Knowing that your expat financial advisor is regulated, qualified, educated and experienced goes a long way to reassuring you that they are able to advise you and that they are trustworthy.
Lastly, ask to see evidence of their investment performance, so you can compare it to index benchmarks and other advisors.
2. Their personal and firm values
You should always ask potential expat financial advisors in Spain about their personal and firm values. This is important because once you hire an expat financial planner, you will want to know that their values align rather than clash with yours. Whether this is the case or not will impact both your relationship with them and also your finances, as they will be making investment recommendations, or perhaps taking investment and other financial decisions on your behalf.
You might, for example, favor ethical, social, sustainable, or carbon-neutral investments, or you might like to invest in certain regions or industries while avoiding others, but if your advisor disagrees, their stock pick suggestions and your vision for your portfolio might diverge, which would create issues.
Most firms also publish a values statement, giving you an insight into their outlook and preferences.
3. Their investment approach
You should also ask your expat financial advisor in Spain to explain their investment approach, to see that their investing style aligns with (or can cater to) your own personal, financial goals and objectives, and that it is neither overly conservative or aggressive for you.
Some expat financial advisors hold a series of model portfolios or pool their clients funds based on several different risk tolerance levels, and/or designed for income or growth. Others pick assets on a discretionary basis for each client.
There are pros and cons to each of these investment approaches, but it’s important to understand their approach and the types of assets that they favor.
It’s also worth asking them for their views on the current economic and investment climate, and what risks and opportunities they see in the coming months and years. While no one knows the future, you should expect them to provide a thoughtful analysis to reassure you that they have a well informed and balanced approach.
4. Communication with their clients
It’s important to understand how you will receive information from your expat financial advisor in Spain. Do they provide regular reporting, so you can monitor and track your investments, in terms of both performance and progress towards goals? And, how often and in what format?
Furthermore, you will want to know how you can communicate with them when you have a question. Inevitably, you’ll have questions from time to time, and it’s useful to know that you can arrange a call, or communicate by email if you prefer, and that they’ll respond in a timely manner. You may also like to have a periodic meeting, in person or via video call, to catch up on strategy and progress, perhaps annually or biannually.
Another important aspect of communication is whether your advisor is flexible and able to react if you want to make adjustments to your portfolio or if your priorities or goals evolve, as inevitably they will from time to time.
5. Their fee structure
Expat financial advisors can utilize a variety of fee systems, and it’s important that their cost structure at the outset. Focusing on fee-only advisors who don’t receive commissions for recommending particular investment products helps to keep things straightforward and eliminates the possibility of conflicts of interest. Some financial advisors charge transaction fees too, when selling or buying an asset, which could incentivize them to make more transactions.
Knowing their clear and transparent fee structure also lets you compare with other potential advisors apples for apples.
In conclusion, make sure you pick an expat financial advisor who is experienced, regulated, transparent, as well as aligned and adaptable to your needs. They should advise you about all of the charges and fees that you will pay, and they should be able to create a portfolio that is appropriate for your values and your goals.
Get in touch to find out how we can help you to achieve your financial goals.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
