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I meet with many expats on a weekly basis. Some need help, and realize it, some don’t realize it, and others simply don’t need help. It always is good to hear from expats who are well taken care of and can count on decent adviser to help them achieve their goals and objectives.

Yet, after meeting with one too many guy who has been recommended “2year” savings plan on the understanding that it allows you to stop saving after 2 years, I wanted to post a warning here.

Some expats are attracted by the nice sweet speech given by their “adviser” while other fall for the big bonuses offered by some of the companies over the first few months and tend to forget that there are no free lunches…

Just wanted to put the record straight.

2 YEAR SAVINGS/RETIREMENT PLANS DO NOT EXIST.
If your contract is for 10/15/25 years, then it effectively is for that term, and fees are ongoing through the life of your plan. Those fees are based on the original premium invested – and decreasing your period after some time will not decrease your fees.

20 YEARS SAVING/RETIREMENT PLAN DO
Don’t get me wrong – those plans are great when explained properly. If you know what you are getting into and have enough discipline to follow your plan and strategy through its term, they really help you achieve your goals.

AND ARE GREAT WHEN EXPLAINED PROPERLY
In short,at the end of the day, if sold and explained properly, they are a good product for those that can discipline themselves to maintain the plan over the agreed term.

HOMEWORK / PAPERWORK
As always, do your homework. Read the paperwork.
Ask questions, do some research, and if needed, ask your adviser to sign a explain the fees in writing and sign this document. Should anything go wrong, you at least have something to fall back upon and argue your case.

COOLING OFF PERIOD
Also – all those plans have a cooling off period. If you don’t receive your documents within 2 weeks of the first payment – ask them from your adviser. He should provide them to you ASAP – otherwise he may be hiding something from you – usually the cooling off period.

Good luck