How financial advisors can work from abroad: two tales

In the post-COVID era of remote work, advisors have the chance to work not only from home, but also, in some cases, from abroad. While not every advisor may have the opportunity, those considering it will have good company among other expats. 

Around ninety-two percent of U.S.-based high net worth investors considered buying property abroad in 2022, according to a report by Coldwell Banker. And as more Americans retire abroad, lured by the higher quality of life or in many cases a lower price tag, financial advisors who want in on expat life see a business opportunity to serve an expanding overseas clientele with specialized advice, as well as a personal opportunity for growth in a different environment. 

The most popular destination for Americans seeking life abroad is Mexico, according to a study published in October 2022 by Hire A Helper. As of Aug. 1 that year, 10,594 Americans had moved to Mexico, the study found. The next most popular nations were, predictably, English-speaking ones: the U.K., Canada and Australia. European states such as Spain, Germany, France, Ireland and Portugal are also popular, the study noted. 

Although many expats lack established channels for financial support and may deal with issues such as banking, taxes and investing while abroad, their numbers continue to grow — creating ideal market conditions, some say, for advisors to step in and establish a niche. 

Read more: Providing financial advice to Americans living abroad, with Robert Levitt

As of 2016, an estimated 8.7 million non-military member Americans were known to be living abroad, according to the Association of Americans Resident Overseas — more than double the 1999 number of 4.1 million. Amid ballooning costs of living, growing concerns about safety problems such as gun violence and an increasingly divisive political climate, the number has likely grown as Americans seek greener pastures. 

Financial Planning spoke with two advisors on their experience working from abroad. Here are their stories, and some tips they shared on what to look out for if you're thinking about it. 

Reconnecting in Australia 
For Ashley Murphy, working from abroad was always a question of when, not if. 

Murphy, the founder and principal at Minneapolis-based registered investment advisor Areté Wealth Strategists, is also the founder and president of the Global Financial Planning Institute and a dual citizen of the U.S. and Australia. He moved to the States as a young adult and settled with his wife in Minneapolis, but always had "a desire in the back of our minds to spend some significant time and introduce my daughters to what the Australian side of their family is like." 

When COVID hit in 2020, he found his opening. "I was on a mountain-biking trip with some other advisors. And my wife called up. She said, 'What about now?'" His daughters were 2 and 4 years old at the time; the family went for it. 

"We spent the next six months getting ready, researching. … How do I get registered? What's the compliance considerations? And so forth. We rented our house and ran financial models, all these things." Murphy said it is important for an advisor to consider the exchange rate of foreign currency potentially going down as much as 10%, or more, and factor that margin of risk into their calculations for living abroad. 

While away, he and his wife kept their Minnesota home to avoid being considered a tax resident of Australia. (Advisors should check the tax conditions of their chosen destination before moving, Murphy said.) They rented a place, sourcing all their furniture cheaply — from IKEA or off Facebook Marketplace. They had an "asset-light" approach because they knew they would return to the States in a few years. 

Murphy said he had to get used to changing his working hours to become "an early bird" and rallying his staff to become night owls. 

"I put together a PR campaign to clients to say, 'Hey, I'm moving to Australia. Here's why I'm doing it ... and it's not forever.'" The key part was his promise to return, which he did from time to time, to reassure clients he was still around. Murphy specializes in clients who are Americans living in Australia or Australians in the U.S., so the trip could also be framed as relevant to developing his niche expertise.

After two and a half years abroad, Murphy moved back to Minnesota last month. But working from Down Under "was the best decision I ever made." In the warm Australian climate, he got into the best shape of his life through cycling and even participated this month in a world cycling competition in Scotland. 

"So many advisors are focused on how much money they can make," he said. "There's plenty of other advisors making more money than me. I'm doing just fine. But I don't know of any other advisors that are competing in the world championships for cycling, because they've been able to make their life work around their practice rather than the other way around." 

Andrey Shevchenko/stock.adobe.com

Learning how to serve globe-trotting clients in Luxembourg 
Rebecca Conner, the founder and CCO of RIA SeedSafe Financial in Austin, Texas, is another dual citizen; she holds passports for both the U.S. and Luxembourg. Conner is back in the States now, but moved earlier to Luxembourg "as part of an exercise for my daughter to experience part of her history," adding that she wanted her daughter to share in that side of her heritage. 

Rebecca Conner

Prepping clients for your international move is essential, she said. "Make a commitment to how you want to show up for clients and communicate that well in advance," she said. "My lead advisor in the U.S. began taking the majority of new clients, and my current clients were notified a few months in advance that my availability would change."  

In addition, she said, it's important to understand how you sit with the regulators when working from abroad — and "that may mean different things depending on what state you are registered in (or SEC)." Conner said she received approval from her state for a temporary move. 

"Trading also can become a challenge, so we had a team approach to ensuring activities that must be done in the USA were done appropriately."

Conner said a review of tax implications with a good accountant is also important before heading off. So too is getting a VPN, as many softwares might be locked from abroad.  

Living abroad has paid off in Conner's career as an advisor who specializes in serving tech professionals who are frequent globe-trotters. 

"Our clients hop from the U.S. to the U.K., or Netherlands, or even Japan," she said. "Having the experience myself has helped me guide them on process — moving expenses, standard of living changes, culture — and helps us plan for if they decide they want to stay there as well."