Investing your hard earned money can be tricky. Expats make prime targets for unscrupulous con men to target with fantastic “investment opportunities”, but the only sure fire way to lose money over time is by leaving it in your current account, so what are the investment options for expats?
Establishing a well diversified and balanced investment portfolio can be a very daunting task, but by breaking it down into understandable chunks we can get to grips with the options available and cut through the jargon.
There are a whole range of things to take into account when making investment plans as an expat, not least of which are the tax implications and any tax efficient investments that you may be eligible to utilize. There are also a wide range of taxation rules that apply to investments, such as US Withholding tax on Stock Dividends, etc.
With smart planning, you can minimize your exposure to tax liabilities and reap the largest rewards from your portfolio.
For the most part, any investment plans will be tied closely to you Retirement Planning goals and objectives. It is important to have in mind the time frame in which you intend to cover with any plan and can make adjustments accordingly.
Finally the above all needs to tie in with your own individual attitude to risk. If you are close to retirement your attitude to risk may well be much lower than if you are in your early twenties. based on your own attitude you need to plan any portfolio in a position you feel comfortable with on a linear scale of risk vs potential return.
A portfolio that has a higher exposure to the stock market may produce higher returns but also exposes your capital to a greater amount of risk. Equally, a portfolio that has a heavier weighting in Corporate Bonds or Government Bonds will expose you to a reduced level of risk but result in a lower rate of return.
Above all else you need to make sure you fully understand any investment plan that you commit to.
For most people the cornerstone of their investment portfolio is typically made up of a range of Index Funds, ETFs (Exchange Traded Funds), Mutual Funds, and Government Bonds.There are many global suppliers of funds but among the most popular tend to be Vanguard Funds, iShares, and Fidelity.
The articles in this category seek to explain the details behind financial investing, real estate investments, and stock markets, and how expats may make best use of them to grow you nest egg either for an early retirement or simply for a rainy day.