- Inbound planning — Inbound planning applies when clients and/or their assets move into a country (e.g., an individual moving from abroad to the U.S.). This category of global planning includes strategy and guidance before and after arrival in a foreign country. For instance, in the case of a non-citizen moving to the U.S., inbound planning involves helping clients to still take care of their financial concerns in their home country while also acclimating to the U.S.’s financial system (i.e., its tax, retirement, investment, insurance and related areas of concern, may be substantively different from what the client is familiar with within their home country).
- Outbound planning — This type of planning caters to clients and/or their assets moving out of a country. An American planning to move abroad exemplifies a client in need of outbound international planning. It involves pre-departure preparations, such as helping an American client understand their financial obligations as a US taxpayer abroad and tying up their loose financial ends in the US. For these clients, advice is typically tax-focused (e.g., retirement account transfers, taxation of US assets, and tax-residency planning). US citizens will also require advice regarding their ongoing financial reporting and investment constraints, especially given recent financial and tax reporting requirements implemented by the IRS and Treasury for US citizens living abroad.
- Cross-border planning — Cross-border planning describes a comprehensive financial planning approach that accounts for a client and/or their assets from the perspectives of both countries involved in an international move, or with clients who have dual citizenship or residency statuses in another country who need both inbound/outbound and ongoing advice support. Arguably the most specialized type of financial planning advising for cross-border clients requires more intimate knowledge of each country’s financial system, and how the rules of each system interact.
Advisors must be prepared to address specific concerns at each stage and work with clients as they transition through these phases. Expatriate clients may consult with an advisor at any stage of their transition, whether it be before their international move, as they first arrive, or well after moving.
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