Expat financial advisors in Tanzania – what are the options?

Expat financial advisor in Tanzania – 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 on email – advice@adamfayed.com

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

INTRODUCTION

Tanzania covers an area of ​​947,300 sq. Km and is located in eastern Africa in the Indian Ocean. It has the longest borders with Kenya (northeast) and Mozambique (southeast) but also borders Burundi, the Democratic Republic of Congo, Malawi, Rwanda, Uganda, and Zambia. In the east, Tanzania is washed by the Indian Ocean. The three largest lakes located in Africa are also border parts of the country. These are Lake Victoria to the north, Lake Tanganyika to the west, and Lake Nyasa to the southwest.

Tanzania is made up of three geographic regions: islands and coastal plains in the east, a saucer-shaped plateau in the center and west, and highlands in the northeast. Mount Kilimanjaro, the highest point in Africa at 5895 m, is located in the northeast of this highland. Another special geographic feature is the Great Rift Valley, which crosses the center of the country.

Tanzania’s climate ranges from tropical in the coastal regions to temperate in the highlands. On the coastal plains and plateau regions, temperatures range from 25 to 31 ° C in the hottest months (November to February) and 15 to 20 ° C in the coldest months (May to August). Temperatures in the highlands range from 10 to 20 ° C.

Some parts of Tanzania only have one rainy season per year, while others have two. The southern, southwestern, central, and western parts of the country have one monsoon season, which lasts from December to April. The northern region of the country, including Dar es Salaam and Arusha, has two rainy seasons a year. People living in this area of ​​Tanzania distinguish between short rains (Vuli) from October to December and long rains (Masika) from March to May.

Tanzania is home to about 55.5 million people. In the five decades since independence, Tanzania’s population has increased almost fivefold. The population is especially concentrated in Dar es Salaam and Zanzibar and their urban areas. Despite these urban centers, just under 70% of people living in Tanzania still live in rural areas.

Tanzania is considered as one of the developed countries in Africa. On the mainland, about 99% of the population is ethnic African, originating from over 120 different tribes, almost all of which are Bantu. In Zanzibar, people are of Arab, African, or mixed Arab and African descent. On the mainland, the population is almost equally divided between Islam, Christianity (mainly Roman Catholicism), and indigenous religions. More than 99% of the population of Zanzibar is Muslim.

Life in Tanzania can be characterized by simply a mix of African, Arab, European, and Indian cultural influences. The official languages ​​are Swahili (Swahili) and English. Swahili is the lingua franca of central and eastern Africa that unites the entire country. Most people living in Tanzania speak one of the 158 local languages ​​as their first language. Arabic is widely spoken in Zanzibar. English is the main language of business, government, and higher education.

Health Precautions

But before you start your life in Tanzania, you have to make sure you have taken all the needed medical precautions. The risk of contracting a serious infectious disease is quite high. These diseases include hepatitis A, typhoid fever, yellow fever, malaria, dengue, and rabies. The level of HIV / AIDS in the country is also quite high and amounts to 4.7% of the population.

In addition to making sure all your routine immunizations are up to date, you should also get the hepatitis A and typhoid vaccine. Also consider vaccines for hepatitis B, yellow fever, and rabies (if you will be in contact with animals). Talk to your doctor about the best antimalarial medication for you and if you need to start taking it before you leave.

When you start living in Tanzania, do not drink tap water as it is full of bacteria and parasites. Many expats install water filtration systems in their homes to minimize the risk of contracting waterborne diseases. Anopheles mosquitoes are another big problem. In addition to taking anti-malarial medications, you can regularly spray your home against mosquitoes, sleep under a mosquito net, and use insect repellent. Remember that the period from May to July is considered the high season for malaria in Tanzania.

Health and safety in Tanzania

The quality of local healthcare facilities in Tanzania is often well below Western standards. Most expats visit an expat clinic in their hometown when they need medical attention. In more serious cases, you will be transferred to Nairobi or Johannesburg. It is recommended that you bring all the prescription drugs you need with you for a few months to get started after arrival.

Medical insurance

Tanzania has two public health insurance schemes. The first is the National Health Insurance Fund (NHIF), that is mandatory for almost all employees and voluntary for private-sector employees. The contribution is 3% from the employer and 3% from the employee. Registration for Social Security Benefit (SHIB) is voluntary for members of the National Social Security Fund (NSSF). Despite no need for additional fees, only about 10% of NSSF members participate in the SHIB due to the relatively small network of healthcare facilities and limited coverage.

You will need to discuss with your employer if you will receive any public health insurance coverage during your stay in Tanzania. In any case, it is highly recommended that you sign up for a comprehensive private health insurance plan yourself with an international insurance company or through your company. Make sure you know exactly what your plan covers and that full medical evacuation coverage is included in your plan.

Rise in crime in the commercial capital

Although the crime rate in Tanzania is considered safer than in many other African countries, it is unfortunately on the rise, especially in Dar es Salaam. Foreigners should rent a house or apartment in a gated community with 24/7 security and alarms, as robberies are common. Pickpocketing and theft are common problems in public transport and in city centers. Violent crime and murder is also on the rise.

Use common sense when you are away from home. Always have the contact information for your embassy or consulate with you, as well as the contact information for your doctor, and know where the nearest hospital or medical facility is. Women should dress modestly, especially in Zanzibar, to avoid harassment.

Tanzanians are friendly people and are usually willing to help, but you must also be careful not to be fooled. Locals, even the police, often ask for money and bribes. They know that expats usually have more money than they do and are not afraid to ask for it. Many expats and tourists fall prey to scams and scams.

Anyway, let’s take a look in Tanzania how you can complete your financial activities, manage, invest, retire, save, etc. In such cases, you will need the help of a financial professional, local or online. That is why in this article we will mainly talk about a financial advisor, the profession, how advisors can help you, and also talk about local and online advisors and their benefits.

How do you know if you need a financial advisor?

Money is difficult to control, no matter how much. Sometimes we need professional financial assistance because we cannot properly develop strategies and follow them, but at the same time, we are not sure where to start, and for the first step we will determine and fix what financial goals you want to achieve.

Are you looking to start investing or investing more money in Tanzania? If you don’t know where to start, keep reading.

This helpful blog post will be a quick guide and overview of when you should contact a financial advisor, how he can help you, the three main types of financial advisors, real estate investing in Tanzania, and more.

Often, specific events lead 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, are you an expat in Tanzania and need 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 find yourself in one of these scenarios, you may need 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 need some advice on how to invest it.
• I recently got married and as a couple we need help managing our finances.
• I am recently divorced or widowed and as a single person I need financial help.
• My parents are getting old and they need help managing their finances.
• I hate investing and financial planning, and I need professional help not to lose all my money.
• I love financial planning and investing, but I need a different opinion to see if I can do it better.

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

This means that client fees are their only compensation and they do not receive a 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 budget and expenses; plus tax and estate planning.

You may also consider hiring a financial planner if you are too depressed 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. pension 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, which 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 do not need to be an investor with millions in the market to have a financial advisor, on the other hand, you do not need one if you only want to know how to invest your funds or what funds to choose when you retire.

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

Automated investment services (sometimes called robotic advisors) 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.

A financial advisor can be a valuable investment in your goals and can help you “set and forget” your investments.

Local financial advisors

The difference between a local financial advisor and other types of financial advisors is actually the difference between a professional service approach and a product-specific approach. Of course, a wealth of local experience is an advantage.

Hiring a local consultant has one key advantage: you can meet with someone who will advise you according to the rules of a particular location, in this case, according to the rules of Tanzania.

Many firms cannot afford this. Whether you agree with virtual business or not, there are bound to be situations where you feel the need to meet and talk with someone who will provide you with valuable strategies and advice.

Other financial consulting companies usually distribute their workload among separate departments. Your “advisor” is most likely an account manager who acts as a buffer between you and some of the other people in the back office who are actually doing the work.

Your “planning” probably comes from the planning department; your investment analysis most likely comes from an analyst who is far from what really matters in your life, and those who actually implement the strategy usually see you as just a bunch of “buys” and “sells”, each of which makes shopping day. You simply won’t be able to meet with a real “advisor” because these responsibilities have been divided among several people in different offices.

On the other hand, you should be able to meet with a consultant if you choose an independent service-oriented consulting firm. Again, hiring a local financial advisor is optional, but for most people there are many benefits to having in-person meetings.

Most consultants to large financial companies, such as banks, will receive some or all of the compensation for selling you a product, be it stocks, bonds, mutual funds, insurance policies, or annuities.

This creates an inevitable conflict of interest. The securities laws in this country recognize this fact and require these “advisors” to be at a lower level. This is called the “suitability” standard, which means they only need to consider whether the products they sell are suitable for your broad investment profile.

The highest standard is the “fiduciary” standard. An independent consultant, whether online or local, who agrees to abide by this standard is required by law to always put you first.

These consultants never sell products, take commissions, or do anything else that could create a conflict of interest. They weigh all the factors in your situation before making any recommendations. Their advice is 100% objective. Whether you are hiring a local consultant or not, remember that they are objective and always prioritize their clients. Speaking of online financial advisors, let’s talk a little about them.

Online financial advisors

Online financial advisors have been steadily gaining popularity over the years and for a variety of reasons.

One of the first reasons people started working with virtual financial advisors was to buy time in the olden days, since they didn’t have to get in their car or sit in traffic to meet their financial advisor during a phone call or Zoom meeting.

For people who travel frequently or plan to relocate to another part of the country (or live abroad), working with an online financial advisor will also ensure that your relationship doesn’t end wherever you are.

Perhaps the most significant advancement accelerating the trend towards virtual financial consulting is the ability of financial consultants to specialize in serving a niche that would be impractical if limited to working with clients in their hometown.

This way, you have the opportunity to hire a financial advisor who truly understands your individual needs, based on their education, experience, and commitment to helping people like you.

What you can get from working with your online financial advisor?

Individual approach to your business – An online financial advisor is not the same as a robotic advisor or even a bank advisor in many ways. First, you will receive real and personalized advice from a real expert who is well versed in finance and investment, not someone who wants to sell you banking products.

This is important for those who want to look at their finances in a healthy way and give advice like professionals. Sometimes the software or algorithm doesn’t work, especially if your problems are a little more complex.

Relatively low fees – Of course, the cost will come down if you choose to hire an online financial consultant as it does not have a luxury office and other trappings that will affect the cost. What he needs is a computer, the Internet, and a good experienced brain.

They also cost less than conventional companies or financial institutions that provide financial advice. It’s also a smarter choice if you want to save money and spend less, but still understand if you really need a financial advisor. The benefits you get from this will multiply when you decide to do a second or third session.

Hire only a reliable online financial advisor to get the best service. After all, your money is hard-earned and you will definitely need someone to show you how to maintain and grow your fortune to new heights.

Online documentation – Financial planning really requires a lot of different documents. Those receiving basic financial planning advice will easily find hundreds of pages of advisory documentation.

There will be many documents that will also require your signature. As an online finance consultant, we are taking advantage of technological advances as there are many clouds and secure platforms that will store your financial data. Therefore, we can safely send you all these documents online by email.

But the most incredible thing is the opportunity to put an electronic signature! Use a few clicks to sign documents to flip your superuser, customize attachments, and implement Plan B.

All of these documents will be securely posted on an online portal that only you and your online financial advisor have access to.

Many people can approach this with skepticism, which also has its own explanation. This is a relatively new concept and it is difficult for people to get used to some of the things that can also be done on an online platform, but it is a great tool that saves you time and benefits in the first place.