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Considerations for the season ahead!
Pete
Posted: Wednesday, July 13, 2011 10:40 AM
Joined: 01/12/2008
Posts: 52


In July's Dock Walk 'Its Your Money' article (page 54) I have a little challenge for you all to complete. Please let me know how you get on.

JULY -  Invest in yourself!
What are you going to do at the end of the season? Consider now what your next set of exams will be and when you can do them. Put money aside for fees and living costs.  Check your VISAs and passports if you are crossing to the US later in the year?

AUGUST - Pay day - where is my bank account? Is it in the currency right?
I recently met someone being paid in US Dollars into his Australian bank account and spending Euros in Italy!! We estimated that he could lose approximately 10% per month of his salary (if he spent it all) just in charges, bank margins and commissions. Being paid into a US dollar account and using a currency broker to move money from one account to another, his Euro account, for example, was the answer.

SEPTEMBER - are you really covered?
Time to check EXACTLY what health insurance you have onboard and if there is any accidental injury or even death in service protection for you and your beneficiaries while you work. When you do know, tell someone at home so they can claim on your behalf if necessary.

OCTOBER  - Cash is no longer king!
At the end of your season you may have a pot of cash that you can't get into your bank (due to strict money laundering rules). Negotiate to have them paid directly with your salary into your bank account.

NOVEMBER - Tax residency is not a matter of choice; it is a matter of FACT!
Get organised and start keeping a diary of when and where you travel. Yacht crew are 'approached' by various tax authorities who believe they might be resident. It is not down to them to prove that you are resident in their country - it is down to you to prove you are not. Understand the residency laws of the countries where you are most likely to become resident (www.lowtax.net is an excellent resource for these rules), then keep a diary and flight ticket stubs etc (not just proof of booking) to support your case.

DECEMBER -
Long term investment... in your future! If you will be in the yachting industry for a while it is time to seriously consider saving for your future. Your friends on land are paying tax and social security which will give them something at retirement... are you? It is down to all crew members to put something aside (I suggest at least 25% of salary) while they are in the industry to try and secure their financial well being.

To retire on an income of €3000per month in 15 years you will need approximately €1.1million in assets. Now you have a bit more time arrange a meeting with your financial adviser and start looking through previous 'It's Your Money' articles for general info on investing.
 
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