One of the most common financial pitfalls for NRIs is not understanding their tax obligations in both India and their country of residence. NRIs are taxed on their global income, but there may be tax treaties in place that reduce or eliminate double taxation.
Not Understanding Tax Obligations
Another common pitfall for NRIs is investing without a plan. NRIs may be tempted to invest in assets that they are familiar with, such as Indian real estate or gold. While making investment decisions, it is critical to take into account one’s investment objectives, risk tolerance, and time horizon.
Investing Without a Plan
NRIs often face challenges when planning for retirement. They may have to save for retirement in multiple countries and may not be eligible for some government pension benefits.
Not Planning for Retirement
NRIs need to take steps to protect their assets in both India and their country of residence. This includes having adequate insurance coverage and estate planning documents in place.
Not Protecting Your Assets
NRIs are often targets of financial scams. Scammers may try to trick NRIs into investing in fraudulent schemes or sending money to fake charities. It is important to be vigilant and to be suspicious of unsolicited investment offers and requests for money.
Falling Victim to Scams
PrimeWealth gives more than just investment advice. From budgeting, to cash flow, to savings, to debt management, to estate planning, to risk management, to tax planning, we do it all !