Expat financial advisor in Kazakhstan 2021

Expat financial advisor in Kazakhstan 2021 – that will be the topic of today’s article.

I will compare some of the options available locally, alongside more portable, online and international options like what we offer.

For any questions, or if you are looking to invest as an expat, you can contact me using  this form, or via the WhatsApp function below.

It makes sense to have a portable option as an expat, as opposed to a localised one, and that is something we specialise in. 

Introduction

Kazakhstan’s economy is the largest in Central Asia in both absolute terms and per capita, but its currency depreciated sharply between 2013 and 2016. Kazakhstan possesses reserves of oil, minerals and metals. 

It also has significant agricultural potential with vast steppe lands where livestock and grain can be raised. The mountains in the south are important for the cultivation of apples and walnuts; both species are wild here. The industrial sector of Kazakhstan is based on the extraction and processing of these natural resources.

According to the international Organization for Economic Cooperation and Development OECD, the economy of Kazakhstan over the past few decades has gone through a long period of steady growth with a steady increase in the gross domestic product per capita. 

This contributed to the improvement of the socioeconomic living conditions of the country’s citizens, reduced the level of poverty and increased market activity. 

Large-scale export of mineral and energy resources has become the main locomotive of the country’s development. Thanks to him, before the fall in oil prices in 2014, the economy of Kazakhstan had a positive foreign trade balance.

This dependence of the country on external demand for oil, gas and natural resources is viewed in the medium and long term as a potential threat and obstacle to the development of its scientific, technical and innovative potential. 

Due to the low level of economic diversification, a significant portion of the labor force in Kazakhstan is still employed in agriculture. 

One of the ways to achieve economic diversification is considered to be the switching of the national industry to the production of goods with high added value. As expected by the government of the country, this will increase labor productivity and, in the long term, extend the period of equal economic development.

Do you need a financial advisor?

Money can be difficult and intimidating to control, no matter how much you have. Sometimes we are seeking a professional financial help, as we can’t properly make strategies and follow them, but at the same time we are unsure of where to start, and for the first step, determine and fix what financial goals you want to achieve.

Do you want to start investing or invest more money in Kazakhstan? If you do not know where to start from, continue reading.

This helpful blog post will be a quick guide and an overview on in which cases you should contact a financial advisor, how he can help you, three main types of financial advisors, investing in Kazakhstan property and much more. 

Often, specific events will prompt a person to seek financial advice. These events are usually associated with unexpected blows, major losses, or major life events. 

Wondering how much you need to save to retire at 65? Do you need advice on how to pay off your debt? Do you want to know how much insurance you need? Finally, you are an expat in Kazakhstan and need a financial advice?

The truth is that some financial decisions need to be backed up; others you can probably handle on your own – at least for now.

If you fall into one of these scenarios, you may want to seek financial advice:

  • I’m close to retirement and want to make sure I’m on the right track
  • I just inherited some money from my parents and I want some advice on how to invest it.
  • I got married recently and we need help managing our finances as a couple.
  • I am recently divorced or widowed and need help financially as a single person.
  • Mom and Dad are getting old and they / we need help managing their finances.
  • I hate investing and financial planning, and I need professional help in order not to ruin my future.
  • I love financial planning and investing, but I need a second opinion to see if I can do it better

Financial advisor is only a term including financial planners and investment advisors. It is imperative to seek out financial advisors who follow a fiduciary rule, which means they act in the best interest of their clients and only work for remuneration. 

This means that client fees are their only compensation and they do not receive commission when you invest in certain funds or buy financial products.

A good certified financial planner can help organize your overall financial picture, including developing a retirement savings and investment strategy; planning big expenses, such as buying a house or having children; daily budgeting and spending; plus tax and estate planning.

You may also consider hiring a financial planner if you are too overwhelmed or confused by your money to make important financial decisions, including how to balance multiple financial goals, manage a business, get out of outstanding debt, or create a plan. retirement savings. 

If the alternative to meeting with a financial planner is decision paralysis, you are better off seeking outside advice.

Investment consultants usually focus on the nuances of your investment strategy, such as which stocks or funds to buy in retirement accounts and which ones to withdraw and how to minimize taxes. They can also manage your investments, but usually charge a commission of 0.5% to 2% on the portfolio.

Remember that you don’t have to be an investor with millions in the market to have a financial advisor, on the other hand you don’t need one if you only want to know how to invest your funds or which funds to choose when you retire. 

An online financial consultant often turns out to be a cheaper alternative, and some even provide access to human investment consultants or financial planners for an additional fee.

Automated investment services (sometimes called advisor robots) customize and automatically rebalance the investment portfolio for you based on your goals and risk tolerance, and the annual management fee is only 0.25% of your account balance.

Financial advisor can serve as a valuable investment in your goals, and can help you “set and forget” your investments.

So in this article we’ll talk about three types of financial advisors that can help you keep track of your funds,properly invest them either in long-term or short-term and also give you right strategies and advices to meet your financial goals. 

Bank financial advisors

The bank’s financial advisors will try to help their clients determine how to manage their money in the best way, through short-term and long-term investment planning. Usually these advisors work with individuals, companies, financial or corporate clients as employees of a bank or other financial institutions.

In 2018, a full-fledged classification of deposits appeared in Kazakhstan. Investors got the opportunity to choose from three types of deposits the one that suits their personal goals and priorities.

If you need a cash reserve for unforeseen expenses, choose a non-urgent deposit. Deposit and withdrawal of money – no restrictions.

You are collecting a large amount, but want to retain the opportunity to withdraw money early – choose an urgent deposit. Replenishment – no restrictions, partial withdrawal is possible, but with a loss of reward.

If you want to accelerate accumulation at the expense of the most favorable rate – choose a savings deposit with replenishment.

Is your goal to invest capital on the most favorable terms and not take risks? Choose a savings deposit without replenishment.

Two types of deposits – term and savings – do not provide for early withdrawal of money. Compensation for these restrictions is an increased rate of remuneration.

In this case, as an expat, you will need a financial advisor to help you with choosing the best bank with best conditions for you. 

But let’s discuss another option of making an investment, in this case it’s not done in a bank account but in a property.

Investing in Kazakhstan property

Kazakhstan, with a population of 18 million, is the largest economy in Central Asia and was formerly part of the USSR.

They were arguably the region’s biggest successes since the collapse of the Soviet Union in 1991. In fact, Kazakhstan boasts a per capita GDP that is almost equal to that of Russia.

But they are definitely not a bulwark of freedom. President Nazarbayev ruled Kazakhstan’s one-party political system for nearly three decades.

Places like Singapore (and indeed Kazakhstan) are proof that a lack of personal freedom doesn’t necessarily mean that somewhere is a bad investment. Look at the Heritage Foundation’s Index of Economic Freedom and you will hardly find any connection between democracy and a free economy.

Vast oil reserves, pro-investment policies and strategic positioning on the map should lead to a bright future. However, we believe that Kazakhstan’s location is their greatest asset.

This is because China-backed enterprises, along with the Kazakh government, are financing billions of dollars in infrastructure in neighboring countries. New railways, ports, roads and other projects are emerging across Asia.

Many of these projects are part of the China New Silk Road, also known as the Belt and Road Initiative (OBOR).

Beijing’s goal is to create a modern version of its historic Silk Road from centuries past. They create more efficient ways to move goods and materials across Eurasia, from Mongolia to France.

The new Silk Road will bring clear economic benefits. However, China’s soft power will also grow as they manage critical infrastructure around the world. After all, you are more likely to ally with the people who own your railways and highways in the event of a major conflict.

You have several options for investing in the stock market and the real estate market in Kazakhstan. However, they all first require a visit to the country.

Foreign citizens can buy real estate in Kazakhstan only if they permanently reside in the country, and it is difficult to obtain such a status.

On the contrary, foreign companies can directly own real estate with fewer problems. It is usually easier to set up a company and buy real estate in its name than to apply for a residence permit.

If you overcome the obstacles, real estate in Kazakhstan will be appreciated fairly. You can buy real estate in the center of the country’s largest city, Almaty, for less than USD 1,500 per square meter. This is an extremely low price for an upper middle income economy.

The stock exchange of Kazakhstan is significant: more than 130 companies are listed on the exchange, and the market capitalization is 42 billion US dollars. With that said, you will need to board a plane to open a brokerage account. We are not aware of any methods of opening a brokerage account in Kazakhstan without visiting.

Of course, you can also open a company in Kazakhstan. However, it must be a real business with real operations. You can’t just set up a holding company for the sole purpose of owning real estate.

Foreigners can own 100% of a Kazakhstani LLC (Limited Liability Corporation). Most global firms do business in the oil and gas, manufacturing, tourism and technology industries. Companies investing in “strategic industries” of which all of these industries are a part also benefit from generous tax breaks.

Investment in Kazakhstan is currently difficult. But barriers to entry are good if you can overcome them.

Kazakhstan has clear potential and is not yet flooded with foreign money. Now is a great time to put in some effort and go to market.

Local financial advisors

When moving abroad, emigrants face another problem – finding the right way to send / receive money. Here are some examples of when you might need to send money to other countries. If you:

  • Travel abroad and want to save on the exchange rate
  • You are studying or working abroad and need to receive / send money to or from your family at home
  • You need to send money to yourself because you live abroad and your money is in a bank account in another country or in your country.
  • Have international customers / suppliers who need to receive / send payments
  • Earn abroad and want to send money to your bank account home to invest

There are plenty of money transfer services in Kazakhstan, but each of them has its pros and cons, and if you are not familiar with the financial structure of the state, commission rates, tax rates, etc., there is a good chance that you will not choose the best option. In this case, expatriates simply need to contact their local financial advisor.

Research has shown that there are several methods that financial advisors do not recommend when sending and receiving money abroad.

Through banks

Many people around the world believe that using a bank is an easy and inexpensive way to send or receive money abroad. But this is not true.

International money transfers are quite expensive. Banks use SWIFT (or BIC) and IBAN codes to allow incoming and outgoing international bank transfers.

Generally speaking, banks charge you a percentage of the actual amount transferred, plus a commission that is often almost equal to the amount of the transfer itself, plus the terrible exchange rate they use.

So, if you are going to transfer money to another country through a bank, you will actually lose a lot of money.

Western Union or MoneyGram

They are two of the largest overseas money sending companies in the world. This means that, unfortunately, many people use them and spend money without even realizing it, just because they did not know there were better options.

This is why you shouldn’t make transfers with Western Union and MoneyGram:

  • It’s very expensive and take a high percentage of the money you send.
  • (For example, MoneyGram charges you almost a quarter of the amount you send, or $ 22 for a $ 100 transfer)
  • They do not allow you to send or receive money online (you must contact the agency in person and the person receiving the money must do the same)

Then what are the cheapest and most practical ways to make international money transfers?

Below are 2 relatively cheap ways to make money transfers in Kazakhstan, but check with your local financial advisor just in case, as nothing can guarantee the safety of the service you are using. 

Below we list both the pros and cons of each service, there is no perfect one. You must find the best for your financial situation and trust me, only a financial advisor can help you.

So, check out two more money transfer services and their features.

TransferWise is considered the cheapest and easiest money transfer service in Kazakhstan.

Pros:

  • Their commission is only about 0.35% of the total transfer amount.
  • They use the official exchange rate that Google uses.
  • It’s practical – everything can be done on the Internet.
  • No minimum transaction amount

Cons:

  • You cannot send money to someone if that person does not have a current account in the country of destination of your transfer.

Online financial advisor

An online finance consultant, based on an analysis of the financial situation and the composition of the fund, recommends to the investor a strategy for launching and supporting financial products. 

In fact, this guarantees complete transparency of the investment process, and investing with an investor is risky. The financial advisor is anxious to wait for the spontaneous changes in the economy and how the investor will follow the financial plan. 

But any client can be sure that the financial advisor will receive qualified financial advice and the most objective recommendations. His experience and knowledge of a financial advisor are always applied in the interests of the investor, and also demonstrate professional support for the entire investment process.

What are the benefits of working with a us?

  • Save time

How will working with an online financial advisor help you save your time?

Meeting an online financial advisor means you don’t have to drive to their office in traffic jams. You can meet them during your lunch break at work, on the couch at home, or even while on vacation. If you have a device and an Internet connection.

  • Save money

How will working with an online financial advisor help you save your money?

You don’t need to take time off from work or hire a nanny to meet with online financial advisors who don’t work strictly from 9 to 5 o’clock. You can meet them at any time convenient for you, wherever you are, and save on gas and parking costs.

  • Better for the environment

How will the work done by a financial advisor affect the environment?

Since they don’t drive to the office every day, their clients don’t have to drive to see them, there are fewer cars on the roads and less carbon emissions.

In addition, financial planners on the Internet do not print long plans for their clients. Whenever possible, they minimize the consumption of paper, ink and other consumables.

  • You can live anywhere

Does it matter where you live when you work with an online financial advisor?

Many online financial planners have lived in many states over the years, as have their clients. More than 40% of clients have moved to the new city since they started working with their consultants. But both were able to “move” together and remain constant for each other.

When moving to Kazakhstan on vacation, you can find a great online financial advisor there and not worry about returning home and losing their or their precious job. You can still work together from anywhere in the world.

In conclusion, financial advisors play a key role, whether you are in control of your finances, whether you want to invest, or simply cannot decide how to spend a certain amount correctly.

And as stated above, when you are an expat in Kazakhstan, you will find the right consultant for you, and you will have to choose from many options depending on your location, preferences, budget size, interests and of course, depending on your goals!

Pained by financial indecision? Want to invest with Adam?

Financial Planner - Adam Fayed

Adam is an internationally recognised author on financial matters, with over 264.1 million answers views on Quora.com and a widely sold book on Amazon

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