When clients tell me they plan to move to New Zealand, our conversation quickly moves beyond visa requirements to the complex financial implications of international relocation. At Cambridge Partners, we’ve seen firsthand how financial challenges can significantly impact how successfully people transition from living overseas to settling in Aotearoa.
More Than Just a Transaction
There’s a fundamental difference between clients who are relocating, for example, through the Parent Retirement Visa category or the Skilled Migrant pathway, versus those who view New Zealand residency as merely a “transaction to get a pathway.” While we’re happy to have conversations with anyone considering investment in New Zealand, our focus is on those who are making the move long term, because that’s where we can add the most significant value through comprehensive financial planning.
The emotional and practical aspects of financial transitions during immigration cannot be overstated. Moving countries involves numerous unknowns, and having clarity around your financial situation provides crucial stability during this period of change.
Unique Challenges for US Expats
We’ve developed specialised solutions for US clients, in particular, to address their unique challenges. Perhaps the most pressing issue is managing US retirement accounts after relocation.
Many Americans are shocked to discover that numerous US financial institutions will not allow them to maintain accounts once they leave the United States. Imagine the stress of receiving a letter from UBS, Charles Schwab, or similar institutions demanding you withdraw your funds within 60 days.
The implications can be severe:
- Significant tax consequences from forced withdrawals
- Loss of long-term retirement planning structures
- Administrative complexity during an already stressful relocation period
- Potential loss of investment momentum at a critical time
This scenario is more common than you might think. We’ve had clients who, amid packing up their lives and preparing for a major international move, suddenly receive notices that their lifelong savings need to be withdrawn and relocated. It’s not just about the money – it’s about the sense of security and future planning that’s suddenly thrown into disarray.
For instance, one client received a letter from their long-standing financial institution just weeks before their planned move. They were given a 60-day ultimatum to close their accounts, including retirement funds that had been carefully cultivated over decades. The potential tax implications were staggering, not to mention the emotional toll of having to make rushed decisions about their financial future.
This is where our expertise becomes crucial. We’ve developed relationships and strategies that allow our clients to maintain these important accounts, avoid the tax hit and preserve their long-term financial plans. It’s about more than just keeping the money – it’s about maintaining financial continuity and peace of mind during a major life transition.
Developing Tailored Solutions
In response to these challenges, we’ve created approaches that allow US clients to manage their retirement accounts without having to withdraw them, avoiding the substantial tax implications that would otherwise occur.
This work has become a significant part of our business, representing approximately 25% of the funds we manage. The solutions we’ve developed address issues many people don’t anticipate until they’re already in the middle of their relocation journey.
Reducing Relocation Stress
Financial uncertainty creates significant anxiety during international moves. By providing clear pathways for managing cross-border financial matters, we help remove one major source of stress from the relocation equation.
Our experience shows that clients who have properly structured their finances before moving experience a much smoother transition to life in New Zealand. They can focus on settling into their new community rather than scrambling to address unexpected financial complications.
Looking Beyond the Transaction
If you’re considering relocating to New Zealand, I encourage you to think beyond the investment requirements for visa purposes. Consider how your entire financial picture will transition—from retirement accounts to investment structures, tax implications, and everyday banking.
The most successful relocations we’ve supported have involved early planning and comprehensive consideration of financial transitions’ practical and emotional aspects. Would you like to discuss how your specific financial situation might be affected by a move to New Zealand? I’d be happy to share more about how we support clients through this significant life change.