Expats and high net worth individuals have different income options than just cash and government bonds. Modern portfolios combine dividend-paying global stocks, income-oriented funds and ETFs, and high-quality corporate or emerging market bonds.
In addition, many investors are adding real estate, REITs, private credit, structured bonds and multi-asset income solutions for diversification.
High net worth individuals and expats face a unique challenge: earning a reliable income in a world where traditional fixed income assets no longer behave the way they did 10, 20 or 30 years ago.
Global mobility, rising government debt, uncertainty about inflation and stricter banking regulations mean that the current income strategy can no longer rely solely on the safe, old-fashioned options.
This article covers:
- Best portable investments
- Is fixed income still a good investment?
- Income strategies for expats
- Why is probability important?
Key Takeaways:
- Income strategies must be transferable between countries for expats and wealthy individuals.
- Traditional cash and government bonds often cannot keep up with inflation.
- Modern options such as corporate bonds, ETFs, private credits and structured bonds offer higher returns.
- Balancing risk, liquidity and access is essential for stable income.
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The information in this article is intended as general guidance only. It does not constitute financial, legal or tax advice, and is not a recommendation or invitation to invest. Some facts may have changed since the time of writing.
Income planning for expats and high net worth individuals: why is it different?
Expats and high net worth individuals cannot rely on the same income strategies that domestic investors use. A fund available in one country may be restricted in another. Some banks even close customer accounts when they move.
These cross-border restrictions – combined with changing tax regulations and banking restrictions – mean that many traditional products are simply not accessible or portable once you change countries.
Best Portable Income Investments for Expats
For expats, the best income investments are those that remain accessible no matter where you live.
These options should work across borders, survive changes in residency, and continue paying revenue even if a bank or platform imposes restrictions on local customers.
Expats usually look for:
Because people move more often and work in one country for one to two years before moving again, income portfolios today need to be flexible and globally accepted.
Why traditional fixed income no longer works
The real problem is not just low interest rates. It is the shift in global financial conditions since 2008.
Traditional instruments no longer provide safe, reliable income as they once did, and two areas show this most clearly: cash savings no longer beat inflation, and government bonds are riskier than before.
Why savings lose value for expats?
Cash may feel safe, but it is steadily losing purchasing power, especially for expats who have to deal with inflation and currency fluctuations.
The once reliable benefit of earning interest over inflation has disappeared, leaving cash as an increasingly diminishing asset rather than a stable income instrument.
Historically, the cash payment has been about 2% above inflation. But after 2008, and especially after 2020, this trend collapsed:
- Savings rarely keep pace with inflation
- Even strong currencies like the USD, GBP and EUR have lost their purchasing power over time
- Many expats are also facing a currency devaluation, which adds to the loss
Highly indebted governments often prefer moderate inflation (4%-5%) because this indirectly helps reduce their debt burden. For retirees living abroad, this is a silent but significant risk.
Why are bonds no longer a safe haven?
Government bonds no longer act as the defensive anchor they once were. Rising interest rates, high government debt and broken correlations mean that bonds can now fall at the same time as stocks.
This also affects traditional allocation models such as 50/30/20 or the classic 60/40 portfolio, which relied on bonds to provide stability when stocks fell.
For decades, the 60/40 approach worked because stocks and bonds typically moved in opposite directions. But the current environment is different.
In 2022, during the Russia-Ukraine shock, stock markets fell – and so did medium- and long-term government bonds.
Short-term bonds performed better, but offer limited returns and still cannot guarantee protection in the current context.
Modern income solutions for expats and wealthy investors
As traditional fixed income has weakened, expats and high net worth individuals are now turning to modern alternatives such as corporate bonds, structured bonds, etc.
These options offer higher returns, better diversification, and stronger long-term consistency if chosen carefully.
Best corporate bond funds for international investors
For international investors and expats looking for predictable cash flow, high-quality corporate bonds are the best option.
They offer higher yields than government bonds, lower corporate debt and easy access through ETFs and global trading platforms, making them a practical choice for modern income portfolios.
High-quality corporate bonds now offer:
- Annual return of 5-6% (better than many government bonds)
- Lower debt levels than some governments
- Easy access via ETFs and major trading platforms
But you should pay attention to:
- Duration risk (long-term bonds pay more, but are less liquid)
- Junk bonds disguised as high-yield opportunities
Corporate bond ETFs can provide solid portfolio diversification, but should not dominate an income strategy. Investors must be able to manage maturity and credit risk.
High Yield ETF Income Strategies for Expats
For expats looking for easily accessible, income-oriented investments, high-yield ETFs offer attractive returns of 5-7% through covered call or global dividend strategies.
While they remain tied to the stock markets, they are a convenient, low-cost way to generate consistent cash flow without complex structures.
Pros:
- Yields up to 7%
- Easy to buy, low cost
Disadvantages:
- Capital growth is low (in many cases 0%–2%)
- Still correlated with the stock markets
- Withholding tax for non-US investors
These are income-oriented, but not risk-free.
Private credit income funds for high net worth individuals
Private credit offers institutional-level returns and lower volatility by lending directly to stable private companies.
For experienced investors it can be an attractive alternative to government bonds.
Why private credit is attractive:
- Higher returns than government bonds
- Lower volatility (not listed)
- Backed by institutional quality borrowers
Disadvantages:
- Lower liquidity (30-90 days to exit)
- Typically requires advisor access
- Country dependent availability
For experienced investors, private credit often delivers better long-term risk-return than most conventional fixed income assets.
Structured income strategy notes for wealthy expats
For expats who need predictable, adjustable income, structured notes issued by A-rated banks can provide guaranteed or contingent returns of 8-20%.
With terms ranging from 1 to 6 years and customizable risk levels, these products are especially suitable for private banking clients who want more controlled and reliable income than standard investment instruments.
Examples of structured notes include:
- Low-risk bonds linked to diversified indices
- Autocallable income products with a medium risk
- High-yield bonds on individual shares with capital protection
Structured notes are popular among expats because they can generate consistent income while managing risk.
As with private credit, availability depends greatly on where you live.
Why portability is more important than ever
For expats, the biggest risk is not only the return, but also the fact that they no longer have access to their own account.
The modern income strategy must be built on portable platforms and internationally accepted structures to avoid forced liquidations.
Many banks and platforms close accounts when customers:
- Move to another country
- Loss of local residency
- Change the tax residence
A globally portable income portfolio should:
- Multi-jurisdictional
- Managed by a provider that can serve expats
- Structured to avoid forced liquidation of assets
- Free from land-based products
Without portability, even the best income strategy collapses the moment you move.
In short
Income strategies now need to be portable, diversified and inflation-proof.
Traditional safe-income assets no longer behave safely. Cash loses value, government bonds fluctuate during crises and expats face unique challenges when it comes to access and account closures.
There are now better, more modern income solutions – from high-quality corporate bonds to private credit and institutional-quality structured bonds.
Frequently asked questions
What income is considered high net worth?
High net worth individuals (HNWIs) are generally defined as individuals with investable assets of $1 million or more, excluding primary residence.
Some definitions also consider annual income thresholds, usually $200,000+.
Where do wealthy individuals place their money?
High net worth individuals diversify across global equities, corporate bonds, real estate, private credit, structured bonds and multi-asset portfolios to balance growth, income and risk.
Offshore accounts and trusts are also common for tax planning and portability.
Which country is the best in the world to make money for foreigners?
Popular options for foreign earners include the UAE, Singapore, Switzerland and certain EU countries that offer favorable tax or business regimes.
Certain offshore jurisdictions such as the Cayman Islands, Singapore, Luxembourg, Jersey and the UAE can also be attractive for foreigners to earn, preserve and grow wealth.
They often offer tax efficiency, access to global investment opportunities and structures such as trusts or foundations that generate income while protecting assets.
However, not all offshore jurisdictions are ideal for active income earning, so local regulations, access to banks and reporting requirements must be taken into account.
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Adam is an internationally recognized financial author with over 830 million answer views on Quora, a best-selling book on Amazon, and a contributor to Forbes.
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