The word “Excited” doesn’t even come close to describing how one feels about moving abroad. It’s a huge step, especially for those who are ready to broaden their career prospects and life experiences. The anticipation of new opportunities and the potential for adventure is indeed intoxicating!
However, before you pack your bags and say your goodbyes, you will be faced with a never-ending list of things to do. So, what exactly should you do before moving abroad? Here’s a checklist for you:
1. Sort Out Your Bank Accounts
Before moving to a foreign land, organize your domestic bank accounts. To start with, if you have multiple bank accounts, simply consolidate them and switch to an NRO account (non-resident ordinary account). In this account, you can maintain your income earned in India, whether it’s the dividend or rent.
After moving abroad if you plan to send money back to India, you must open an NRE account (non-resident external account). It is a savings account, where you can invest the income earned outside India. Through this account, you can also invest in Indian financial products.
2. Keep Your Insurance in Check
It is imperative to have life insurance irrespective of where you live. It will ensure that your loved ones in India are financially covered in case you face life’s eventualities while living abroad. We recommend buying term insurance plans in India which can cover the risks pertaining to your untimely demise, regardless of the location.
Today many reputable insurers like Future Generali offer benefits like rider facilities, monthly income payout option and longer durations with term insurance. Therefore, choose a plan that best suits your needs. Most importantly, go with the coverage amount that can cover your liabilities as well as the goals of your family members, even in your absence.
However, before buying term insurance plans in India, take note of existing terms and conditions and check whether a specific country is excluded or not. If you already have term insurance plans in place, update the KYC details before relocating.
3. Manage Your Investments
The next step is to understand how your investments in India will be treated once you move abroad. Along these lines, you must take the necessary measures. For instance, by updating your KYC details, your ongoing mutual fund SIP’s can be continued with money from your NRO account. However, note that not all mutual fund houses allow you to invest from abroad. Therefore, it’s better to check in advance to avoid a rude shock later.
Similarly, if you have opened a PPF account, you can continue with your existing account. However, note that once you become an NRI, you cannot open a new PPF account.
4. Think About Potential Lifestyle Changes
A move to another country could include a range of lifestyle changes. Therefore, it is critical to deliberately think about the difference in language, culture, climate and work ethics.
If possible, visit the country before you move to see what it is like for yourself. If you cannot, start by researching the basics about your new location, including the language spoken, local food, general history, and currency. The key is to do your homework in advance. This will ensure that you are aware of how the change would affect you after you move.
5. Get Your Documents in Order
Although this step may feel like the ‘Boring Paper Quest’ (sometimes even frustrating), getting your documents ready is equally essential. Although the requirements will differ depending on where you are moving, these are some basics that you will need:
• Bank statements
• Driving license
• Attested copies of your degrees and university transcripts
• Original and certified copies of your birth and marriage certificate
By following the steps mentioned above, you will be better placed with regards to emotional and financial stability. Thus, with this checklist in order, you will only have one thing left to do bid adieu to all your loved ones for one last hurrah!