How to make smarter financial choices abroad

Relocating to a new country brings exciting possibilities, but it also introduces new systems, unfamiliar rules and a financial landscape that can feel difficult to navigate. Many internationals want to make informed decisions, yet between taxes, insurance, investments and long-term planning, the complexity can quickly become overwhelming. That complexity also creates opportunities for sales pressure.

Banks, brokers and international product providers often promote solutions that appear polished but come with high fees, difficult conditions and long commitments. Independent advice cuts through the noise by focusing on the person rather than the product. 

Why expats often end up with unsuitable financial products

Living abroad adds a number of additional challenges. Expats must interpret a new tax system, understand fresh regulations, and deal with investment rules that differ from those in their home country. On top of this, cross-border questions and limited time make it even harder to build a confident financial plan.

This environment leaves many internationals vulnerable to commissioned product sales. Long-term savings plans, structured products and insurance-based investments are among the most common pitfalls. The underlying issue is simple: salespeople earn money when a contract is signed, not when the client achieves good results.

Fee-based advice vs. commission-based selling

Fee structures determine incentives, and incentives shape outcomes. For expats navigating unfamiliar systems, understanding the differences between the two approaches is essential.

Commission-based advice: High costs, low transparency

Commission-driven recommendations are built around products rather than people. This often results in high ongoing fees, limited flexibility and expensive structures hidden inside investments. Many internationals find that their portfolio underperforms once all charges are accounted for. Meanwhile, the salesperson is paid regardless of how the investment performs.

Independent fee-based advice: Transparent, simple, aligned

Independent advisors are paid for their expertise and guidance, not for selling products. This creates a relationship that is aligned with the client’s interests. The result is clear explanations, transparent pricing, simple structures and solutions tailored to personal goals. With no hidden incentives, clients can make decisions with confidence. 

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A real example: Investing CHF 300.000

Comparing approaches becomes easier when considering the long-term effects of costs. Even small differences in fees can accumulate significantly over time, affecting long-term financial outcomes.

Traditional sales organisation

In a traditional commissioned setup, costs often include around 1,5% in management fees, roughly 1% in product or structure costs and additional hidden charges. Altogether, this can amount to approximately CHF 7.500 per year, regardless of performance. High costs make it difficult for investments to generate strong long-term results.

Independent financial adviser

An independent adviser typically builds cost-efficient portfolios with transparent structures and affordable funds. These portfolios avoid embedded commissions and unnecessary layers of charges. As a result, total yearly costs often fall between 0,4 and 0,9%. For a CHF 300.000 investment, this can translate into savings of roughly CHF 4.800 to CHF 6.300 per year. Over time, the difference can grow to CHF 50.000–100.000, simply through reduced fees and a more efficient strategy.

The silent threat: Inflation

Alongside visible fees, inflation gradually reduces purchasing power. Even moderate inflation of 2 to 3% can erode the value of cash or low-return products each year. For example, an untouched CHF 300.000 can lose tens of thousands in real value over time.

Independent advisors help clients plan for this by focusing on investment strategies designed to grow wealth above inflation, ensuring savings remain productive rather than shrinking.

Why independence matters, especially for expats

Expats require financial solutions that support their international lifestyle rather than someone else’s sales targets. Independent advice provides clarity in unfamiliar systems, transparent pricing, and long-term planning that reflects individual goals. It protects clients from unnecessary fees, complicated structures and products that are not aligned with their needs.

With objective guidance, internationals can build financial confidence, adapt to new environments and maintain control over their long-term future.