Sam Orgill of ProACT Partnership looks at ways to enhance your lifestyle

How to make a million? How to become richer than you are?  These are the questions I grapple with every day for my clients and myself.  Do you want to be a ‘Player’ a person of influence, a serious contender, someone who sets trends and causes a stir?  Do you dream of a choice of cars, planes, boat or helicopter?  Could you live the lifestyle of a Formula 1 Grand prix driver – apart from the day job?

It sounds exciting and glamorous so the next step is to start planning.  Talk to an accountant or IFA and within 2 minutes the glamour has disappeared and your eyes glaze over.  What did he say?

We all want money made easy - to understand and in the bank! How can you get the money? Well here is a crash course of 6 simple ways to make a million.

1.    INHERIT IT.  Easy money just keep on the right side of the parents and ensure your siblings don’t inch ahead of you.  Better still encourage sisters to use method 3 below – leaving more for you.  Make sure the parents put everything in a Trust – preferable offshore in the Caribbean – and the will clearly marks you as executor and beneficiary.  A bit of a bore with life expectancy ever increasing.  On average the parents will live to 75, but if they do survive that long they will survive another 10 years.  So if Mum is 85 when she dies you don’t get the money until you are 60 – to old to be a racing driver and you will have had to work till then.  So this method has its drawbacks.  What’s more if, like me, you where born into the wrong family this is a complete none starter.

2.   WIN IT.  Excellent method for the lucky few and highly recommended by your advisors and agents.  Unfortunately the odds are against you – but keep trying!!

3.   MARRY IT.  Important method, especially for women (see 1 above).  An excellent way of freeing yourself from the drudgery of working for a living, building a career and generally having to earn your million.  Competition is tough for the eligible few but stay focused.  Even if you don’t marry your million make sure the spouse has the potential to get you there – and don’t forget to insure the spouse for a million just in case of accidents…..

4.   SAVE IT.  The old maxim of save 10% of what you earn holds true.  Save a small amount of money over a long period of time then you can make your million.  Boring but fail safe.  Don’t buy expensive fancy savings plans but do invest properly so you can earn good average returns.  If companies can make 10, 15, 20% profit in a year so can you.  Set your target and make sure you investments achieve it.  If you achieve 15% per year growth your money will double every 5 years because of the power of compound interest – interest on interest.

5.   INVEST IT. Many people are familiar with ‘Who wants to be a millionaire’.  The serious player is only seven steps away from a Million – his lump sum doubles at each stage.  This is the way to track your way to a million.  Again you target, say, 15% per year growth in your investment.  You know it will double in value every 5 years if you hit your 15% per year growth.  These don’t have to be high risk investments – just consistent.  A 100,000 lump sum will become a million in 17 years.  In good time to relax and enjoy it!! Unless you spend the money along the way……..

6.   PAY LESS TAX. It is your inalienable right to minimize your tax bill. Base yourself in Monaco to pay little or no tax.  But Cyprus works very well with 5% tax on your expatriate pensions. Then do contract work in the middle east, get paid loads of petro-dollars and pay not income tax on foreign earning in tax free Dubai. A perfect way to boost your wealth late in your working life. There are other great tax breaks for people who base themselves in Cyprus for living, working or retirement. Make sure you review and pay the minimum amount of tax, and claim the biggest rebates.

ProACT offer free reviews and professional advice to expatriates living and working abroad. This is our brief guide to make a million and overcome the stresses and strains of everyday living.  It’s a competitive world along side the Lewis Hamilton’s and Ronaldo’s of this world.  But if you are worth a million then you should become a Player.

Sam Orgill

Tel: +357 26 819 424

www.proactpartnership.com