Just a few decades ago, international investments were thought of as something that only corporations or the incredibly wealthy could take advantage of. Today, however, an increasing number of savvy investors from around the world are understanding the perks of offshore and international investing.
The potential for lower taxes, greater financial security, diversification and even lower investment costs are all benefits of investing internationally.
However, since there are so many different types of international investments to choose from, asking yourself these five key questions can help you know which investment opportunities might be the best fit.
1. Are You Preparing for Retirement?
One of the biggest reasons that individuals turn to offshore and international investing is because they want to set aside a portion of their assets to guarantee a comfortable retirement. If you plan on drawing from your investments during retirement, you might want something that is easy to sell and isn’t tied up like a trust might be. An offshore IRA or an international lifestyle account with impressive interest rates are two great options for aspiring retirees.
2. Do You Want to Live or Travel Overseas?
The beauty of international investments is that you don’t actually have to travel to the country where you open an account or even make an investment. It can all be done without ever stepping foot out of your country of residence, should you choose that. However, some international investors are particularly interested in moving overseas or spending a lot of time enjoying an international vacation home. If that sounds like you, international real estate can be a savvy investment to consider.
3. Do You Want a Hands-on or Hands-off Approach to Investing?
Some investors want to handle all the day-to-day monitoring and trading on their own, but you don’t have to take this hands-on approach to international investing if you don’t want to. A managed international mutual fund, for example, lets you enjoy the profits and the diversification without worrying about each investment along the way.
4. Are You Interesting in Providing Financial Security For Your Loved Ones?
A huge reason that many individuals opt to invest internationally is because they want to help provide financial security for their children, their grandchildren or their spouse in the future. If this sounds like something you are interested in, then you can choose from a number of investments. An offshore life insurance policy is a straightforward choice, and an international trust is another way to set aside assets specifically for a future date or beneficiary of your choosing.
5. Are You Interested in High or Low Risk Investments?
Whether you invest domestically or internationally, you will need to establish a preferred risk level in order to find the right investment. A lower level of risk might mean precious metals like gold, which have always held value, and a higher risk level might mean investing in an international startup company that could develop into a major profit one day in the future.
By answering these five questions, you can have a better idea of what type of international investments will be right for you. Contact Caye Bank to learn more.