Expat Financial Advisors in Colombia – 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.
It makes sense to have a portable option as an expat, as opposed to a localized one, and that is something we specialize in.
If you want to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
Introduction
Colombia, according to many travelers, is a unique country in which several very different cultures and folklore traditions are combined in a bizarre way. Arriving here, one should not be surprised at the combination of Spanish culture with Indian and African customs.
However, it is precisely this, as well as the friendly attitude of the Colombians towards the foreigners, that encourages the latter to leave here to live. At the same time, it is important to take into account that a well-paid job in Colombia for a foreigner is more of a miracle than a reality.
One of the main features of Colombia should be considered that it is here, like nowhere else, that people are kidnapped. And yet, despite the fact that life in Colombia cannot be called calm, foreigners who come here as tourists have nothing to fear. This type of offense mainly has an economic and political motive.
Colombia is a South American country with a unique flavor, rich natural resources and actively fighting crime. But living here is not scary, but the contrast between luxury and poverty is really amazing.
If expats considering moving to Colombia can look beyond the country’s documented problems, they will find a pristine land with a friendly and curious local population. Colombia is a geographically diverse country. Foreigners are constantly in awe of its scenic beauty, from vast mountain ranges to verdant prairies and lush rainforests. Most foreigners living in Colombia are based in the country’s capital, Bogotá, but expats should be able to find an expat community in most Colombian cities.
Living in Colombia as an expat
One of the main considerations for living in Colombia is security. Although the government has done a lot to combat drug trafficking, the problems associated with it are still relevant. Robbery, burglary, and credit card fraud are common crimes. These issues have caused Colombia’s popularity as a destination for expats to lag behind other South American countries such as Brazil and Argentina. However, its foreign population is steadily growing. A lot of young age expats and digital nomads come to Colombia to work as English teachers and spend a few years exploring South America. Other industries compatible for expat community include construction, medicine, and oil and gas sectors. Having at least basic knowledge of the Spanish language will not only be an advantage in the workplace but will also help in communicating with the local population. There are accommodations to suit all budgets in Colombia, although expats typically choose a fairly small selection of middle- and upper-class neighborhoods that provide security and proximity to public transportation, grocery, department stores, and restaurants.
Cost of living in Colombia
The cost of living in Colombia is lower than in North America or Europe. Bogotá, the capital of Colombia, is much more affordable than other major cities in South America, including Buenos Aires, Sao Paulo and Montevideo. Although the cost of schooling can be high, especially in private and international schools, foreigners will find that private medical care is reasonably priced. These costly elements of expat life in Colombia are also offset by low taxes.
The relatively low cost of living is a major attraction for expats considering moving to Colombia. With low taxes and plenty of first world amenities, Colombia offers expats a high quality of life at a relatively low cost. As is usually the case, the cost of living in smaller towns or rural areas is lower than in larger cities such as Bogota and Medellin.
Locally produced services and goods tend to be affordable, while imported goods are more expensive. According to Mercer’s 2020 Cost of Living report, Bogotá, the capital of Colombia, was ranked 181st out of 209 cities. This is much lower than many other major cities in South America, including Buenos Aires, São Paulo and Montevideo. The great disparity in wealth in Colombia means it’s possible to live a luxurious Western lifestyle or save pennies when needed. Foreign currency gives expats more purchasing power compared to the Colombian peso (COP).
Families and children of expats
Colombia is becoming more and more popular among families, as expats realize that this is not the country riddled with drugs and crime that it is portrayed in films and the media. There is plenty to do for the whole family, from adventurous vacations to children’s parks, museums, and restaurants in major cities. Schools are also of a good standard, and those parents who would like their children to continue to study in their countries will be happy to know that there are several excellent international schools in Bogota and Medellin.
Concerning the question of real estate
Today real estate in Colombia costs much less than in large cities of the Russian Federation. This fact is also important for those who seek to move to this country to live and subsequently obtain permanent residence.
Rent prices
Renting an apartment in Colombia is no more difficult than in any other country. Rental prices are democratic.
The cost of renting housing located in a residential area will be almost twice as high as the cost of renting an apartment located in the city center.
To date, housing prices look like this:
• One-room apartment (sleeping area) – 300-600 dollars / month.
• One-room apartment (center) – 200-300 dollars / month.
• Three-room apartment (sleeping area) – 500-800 dollars / month.
• Three-room apartment (center) – 300-500 dollars / month.
How to move to Colombia?
Today, immigration to a country like Colombia is not as popular as it was a few years ago. This is explained by the fact that mostly people go to places where there is an opportunity to get a well-paid job or to live well at the expense of the state. As a rule, they are attracted to central and Western European countries. But there are also those wishing to obtain Colombian citizenship.
Immigration can be done by:
• employment;
• investment in the economy;
• marriages;
• studying at a Colombian university.
Employment in Colombia
Immigration to this country in order to get a job is possible only after obtaining a work visa, which can be of 2 main types: temporary and resident visa.
A temporary work visa can be obtained by a foreign person who has an agreement concluded with an entrepreneur from Colombia.
This is a multiple entry visa, and it is issued for twenty-four months. It is important to take into account the fact that if a foreign person stays outside the country for more than one hundred and eighty days, then the visa will be cancelled.
A resident visa allows a foreign person to subsequently obtain permission for permanent residence.
A residence visa is issued to foreigners who:
• plan to stay in Colombia indefinitely;
• have a visa of a husband or wife of a citizen (ki) of Colombia;
• have a visa of a companion of a citizen (ki) of Colombia, who has been continuously residing in the country for five years.
Investing in the economy
Also, immigration to the territory of Colombia is possible by investing your own money in the economy of this state. It is important to consider that the amount must be at least one hundred thousand US dollars.
It is also important to register the invested amount with any of the Colombian banks.
Marriage
Immigration to this country through marriage is very popular. Of course, a foreign person will not be able to obtain citizenship immediately.
According to Colombian law, this is possible only after the applicant can prove that after the marriage, he lived in the territory of the state for at least 3 years.
Moreover, the applicant does not have the right to travel outside the country for a period of more than one hundred and eighty days. Prior to obtaining citizenship, a foreign person has a temporary visa, the validity of which is twenty-four months. In the future, the foreigner has the right to extend it.
Getting higher education
Colombia boasts of having forty universities on its territory. Immigration for the purpose of education is possible only after obtaining a student visa. It is issued for a period of twelve months, after which it can be repeatedly renewed. When a foreigner graduates from a Colombian university, he can replace one visa with another.
If a foreign student has a visa in his hands, then he has the right to receive such “bonuses” as:
• training in a private or public institution;
• implementation of the practice;
• participation in various student programs.
If you want to move to Colombia, start a business there, transfer money, open savings or other financial activities, you will probably need a help of a professional – financial advisor.
Who is a financial advisor?
A financial advisor is a very important person. He is an investment specialist who knows how to save and increase funds. He evaluates the financial condition and resources of his client, develops an investment policy for him, a scheme for working with banks, brokerage and insurance companies, helps him make financial decisions and manage the budget. Ideally, the consultant is able to solve all the financial problems of the company or individual.
This is a specialist who advises on financial policy issues at various levels. He can work both as an individual and in the status of a legal entity. It does not change its function.
He advises clients on the issues of saving or increasing funds, assesses their financial condition, develops an investment policy, a scheme for working with banking institutions, and makes management decisions. And most importantly, it helps emigrants understand the financial system of the country they are moving to.
Today, we will mainly focus on three main categories of financial advisors, namely:
• bank financial consultants
• local financial advisors
• online financial advisors
The consultant must be well versed in a particular area of finance but may also be a multidisciplinary professional. Let’s now look at each type of financial advisor mentioned.
Bank financial advisors
When moving abroad, mostly expats start their financial career by opening a bank account. Choosing the right bank and the right account is a rather complex process that you will have to figure out on your own. Foreigners in Colombia need to consult with the bank’s financial adviser to make sure they have made the right choice.
This type of financial advisor is very necessary when foreigners deal with different types of banking services. One of the most important things expats will need when investing is a savings account.
A savings or investment account is a type of account that offers customers an easy way to withdraw or deposit money anytime, anywhere without restrictions. It is the best choice for both those who want to keep their money safe and those who need to use their money every day.
Local financial advisor
There are many misconceptions about the role of a financial advisor and the differences between financial market professionals. The reality is that having an expert to help you navigate the financial market and tailor your nutritional investment to suit your individual needs can be extremely rewarding in the long run. Especially local fiduciary consultants who are required by law and ethics to always put you first.
Many people prefer a local financial advisor because of the convenience, interaction, and more. Here are the main reasons and benefits of choosing a local consultant:
Personal communication
Yes, some only trust personally, especially when it comes to money. If you are not comfortable doing business online, a local financial advisor may be a good fit for you.
Many people prefer a personal, human touch, especially the older generation who grew up on bricks and mortar, rather than doing business online, which is why a local financial advisor is the advisor of choice.
In addition to managing your investment portfolio, the benefits of being a traditional local financial advisor include the ability to discuss your questions and concerns as often as you like, from anywhere.
Face-to-face meetings can help you clarify your expenses and goals by scheduling an assessment meeting and scheduling regular reviews. All consultants are individuals, which is why it’s important to take a close look and ask questions to find the one who fits your individual needs.
Local experience
Colombia is a foreign country and for many expats the laws may be different, investment options, savings accounts and more may require different skills.
The key solution is a local financial advisor. They are usually educated and focused on the laws and regulations they follow in the country. As such, they are an excellent resource if you are looking to invest locally to spur growth in your area, city, or state.
Keep in mind that local investments can bring you two rates of return: one directly to your portfolio and the other through your community. There is growing evidence that, compared to their non-local counterparts, local businesses have two to four times the impact on local economic development for every dollar spent on them.
So, if you have an investment portfolio that includes local businesses, your dollars will continue to circulate and improve the well-being of your entire community by creating new jobs, increasing income, and ultimately supporting funding for schools, parks, police. and fire services; and safe and prosperous areas.
An expert, local financial advisor can help you with due diligence to make sure your local investment makes sense.
Online financial advisors
This is by far the best option. The concept of having an online financial advisor is a relatively new concept.
This is a model that has successfully proven itself in all developed countries. Generations X and Y are accustomed to interacting with people online. Whether you share selfies with friends and family on Facebook and Instagram, or video calls on Skype, we are open to daily online communication with those who matter to us.
Here are some of the benefits of being an online financial advisor to tell you the benefits of being a financial advisor who is using technology and wants to connect with you.
Different locations
If you’re in a relationship and your finances are combined, your financial planner should talk to both of you so we’re all on the same wavelength.
There is nothing worse than a partner trying to explain to another partner a conversation they had with their financial planner. However, in today’s society, getting both of you in the same room in the same place can be extremely difficult. You may both be at work, or one may be at home with the kids and the other may be at work.
Having an online financial planner solves this problem. You can join a video conference wherever you are, and your partner can also join the same conference.
You are all getting the same message and know exactly where you are with your finances and what next steps you need to take to achieve what you want.
Online Documentation
Financial planning requires a LOT of paperwork. Those who receive basic financial planning advice will easily find hundreds of pages of documentation with advice.
There will be many documents that will also require your signature. Where do you keep all this documentation? Especially if you love to travel?
As an online finance consultant, we benefit from technological advances. Therefore, we can safely send you all these documents online by e-mail.
But the most interesting thing is that you can put your electronic signature! Use a few clicks to sign documents, switch superusers, set up attachments, and implement Plan B.
All of these documents will be securely hosted on an online portal that only you and your online financial advisor can access.
Many may be skeptical about this, which also has its own explanation. It’s a relatively new concept and it’s hard for people to get used to some of the things that can also be done on an online platform, but it’s a great tool that saves you time and benefits in the first place.
This is all the information you need to know on how to find a financial advisor in Colombia to help you achieve any financial goal. The choice is yours, of course, but online financial advisors definitely win this competition.
How do you know if you need a financial advisor?
Money is difficult to control, no matter how much it is. Sometimes we need professional financial help because we cannot develop and follow strategies properly, but at the same time we are not sure where to start and for the first step we will define and fix what financial goals you want to achieve.
Do you want to start investing or investing more money in Colombia? If you don’t know where to start, keep reading.
We hope this was a helpful blog post that will help you with the decision if you need a financial advisor and what type is best for you, how they can help you, the three main types of financial advisors, real estate investment in Colombia and more.
Often, specific events cause a person to seek financial advice. These events are usually associated with unexpected blows, major losses, or major life events.
The truth is that some financial decisions need support; others you can probably manage on your own – at least for now.
If you find yourself in one of these scenarios, you may need financial advice:
• I’m about to retire and want to make sure I’m on the right track
• I just inherited some money from my parents, and I need 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 older and need help managing their finances.
• I hate investing and financial planning, and I need professional help, so I don’t lose all my money.
• I love financial planning and investing, but I need a second opinion to see if I can do it better.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
