The most reliable method of building savings for future financial goals is through regular monthly savings. With long term savings, individuals benefit from the discipline of fixed regular saving amount being debited on a monthly basis, as well a forced discipline of not spending the money until their objective is achieved.

A regular savings plan can serve as an additional retirement provision or simply as a globally portable vehicle through which to accumulate wealth.

Key features:

  • Tax efficiency
  • Investor protection
  • Choice of payment currency
  • High levels of flexibility
  • Online access
  • Comprehensive fund choice
Investors can invest in unitised/mutual funds through regular premiums as well as through lump sum the price of units will fluctuate, going both down and up according to market conditions.

When the unit price is low, the regular premium paid by an investor, will buy more units. When the unit price is high an investor, naturally, buys fewer units for the same amount of money.

Most clients expect they will make most money in a rising market, which can be true. However, it is still possible to make money in a falling market, as when the unit price is low an investor’s contributions buy more units.

Providing the market recovers prior to where it was at the point of commencing saving, a good return can still be made. By purchasing units when they are cheaper, providing the unit prices rise, the investor can still yield a return on the sale of the units. Over the longer term the fluctuation in unit prices benefits the regular investing.

This beneficial effect that results from the fluctuations in unit prices is known as pound or dollar cost averaging and specifically associated with regular savings vs. single premium investments.
An international bank account in a jurisdiction separate to your country of residence and autonomous of your passport issuer is a fundamental building block of a strong international financial plan.

Bank accounts are the core element of financial planning, providing individuals with the ability of saving for short term objectives and transacting through the global banking system.

Deposit accounts provide the saver with ready access to cash and typically pay interest in line with the respective interest rate of the given deposit currency.
Clients searching for offshore banking solutions in offshore centres can look forward to a range of benefits including:

Security and confidentiality
No exchange control restrictions, allowing capital to be freely moved without formality
Interest on your savings and investment accounts may be paid gross, without deduction of tax at source (although you may have a liability to tax elsewhere)

  • If you reside in the European Union, the European Union Savings Directives will apply to interest earned on your account.
  • Holding assets offshore may have some tax planning advantages
  • There may be inheritance tax benefits for clients dependent upon domicile
  • Sophisticated worldwide communication links facilitating ease of access

Note: MountHurstTM Wealth is not a tax adviser and we recommend that if you are in any doubt as to your tax position you should seek independent advice from an accountant or other suitably qualified tax adviser. The level and bases of taxes may change.