As a professional athlete you can often find yourself living in international locations for extended periods of time, or even just working or playing in international locations where you receive income and get paid in international currencies.
Receiving income in another country can be very complicated if you don’t know what to do and where to do it when you move countries. In this article, we delve into some of the nuances that can arise with an overseas situation and how you can manage it easily.
What Kind of Risks Are We Dealing With?
The first thing to understand is that there are three different kinds of risks – financial, exchange rate, and political. Our goal will be to minimise these risks. For example, in order to minimise the exchange-rate risk, when making international transactions you should look to open and hold multiple currency accounts.
It’s also advised that you engage a global payments specialist that can assist you with exchange rates. Typically they charge no fees on transfers and provide much more value than your bank.
Political risk can arise at any time, creating instability in cities, countries and even whole countries. When these things occur, having someone to assist you in managing your foreign exchange (FX) movements, assess forward contracts, or simply hold funds in your own local account can be invaluable.
What’s my Foreign Exchange risk?
The foreign exchange rate is the service fee required to convert one currency into another. Normal international transactions like bank transfers cost extra because the banks charge a lot to process them. They can also take a fee of up to 5% of your money on their exchange rates. However, these rates can vary between institutions, so you want to make sure you know to speak to a global payments specialist when transacting internationally.
Things To Consider When Moving Money
When you look to move countries, if a new offer has come up, you’ll need to change your current country’s currency to the new country’s currency. This usually results in a lot of hidden charges that creep up on you with the exchange rate.
By planning ahead and using a service that charges no fees, you can keep a large portion of your funds intact, or at the very least be warned about potential fees that could arise.
As with any venture, it is important to do your research and have a solid plan moving forward so you can avoid the potential costs of making alterations or unwise decisions based on misinformation. This is an important aspect of the initial financial health check carried out for all Archer Sports Advisory clients in partnership with CB3 Global Payments.
Whilst every effort has been made to provide valuable, useful information in this guide, Archer Sports and any related associated entities accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances. This is intended as general information only.