Why are International Investments Such a Good Idea?

International investments allow you to have greater financial diversity, the potential for greater profits, a variety of investment types, a range of risk levels and ties to more than one currency.

Globe and MoneyIf you are ready to explore new investments and watch your net worth grow, you might have considered international investments. Although international investments are rapidly increasing in popularity, many everyday investors still aren’t sure how it differs from domestic investing.

In a number of different ways, international investing can give you more security, peace of mind, diversity and potential for income. Find out some of the most convincing reasons to expand your portfolio to include international investments.

Variety of Risk Levels

Many investors are concerned that offshore and international investments are too risky, particularly when it comes to emerging stock markets. In reality, however, the risk level is similar whether you invest abroad or domestically.

You can find bonds from around the world that have very low risk levels, or you could lend capital to a fledgling startup, which generally carries a greater level of risk. Just like on the domestic market, international investments come in at different risk levels, and the level of risk you feel most comfortable with is always one of the options.

Array of Investment Types

International investments are not isolated to global stock markets. The category could include commercial real estate in London, a vacation rental on the beach in Belize, managed international mutual funds or even an offshore trust. There is no one type of international investment, which means that you can find one suited to your financial needs and desired outcomes.

Potential for Greater Profits

Since some investors are wary of international markets, international investments may bring with them the potential for greater profits. The world bond market, for example, typically outperforms the United States bond market by a considerable margin. Ultimately, there is no guarantee of profit when it comes to any investment, domestic or otherwise, but many international investment opportunities certainly can provide the potential for serious profits.

Plus, the income you make on many international investments won’t necessarily be subject to capital gains tax, depending on your jurisdiction, which in turn boosts profits and helps you to see your holdings grow over time.

Diversity in Holdings

There are no guaranteed in life, and certainly not when it comes to financial matters. If you have worked hard to amass wealth over your lifetime, it is natural to want to take steps to protect it. One of the ways to do just that is by adding some international investments to your portfolio. If any one market crashes, you won’t have all your assets tied up within it.

Ties to More Than One Currency

Finally, it is worth remembering that currencies vary from country to country, and their value fluctuates substantially all the time. If your entire investment portfolio is made up of US Dollars, that might be problematic if that currency declines in value against the Yen, the Yuan or the Euro.

Having international investments in multiple currencies means that you are hedging your bets and staying financially secure whatever inflation or currency devaluation might bring in the future.

If you haven’t yet explored the many opportunities out there for international investment, now is the perfect time to get started. Contact us today.

Share:

Facebook
X.com
LinkedIn

More Posts

Frequently Asked Questions About Offshore Corporations

With so much uncertainty in the American economy, many high net worth individuals are looking into offshore accounts for asset protection. An offshore limited liability corporation (LLC) is simply a corporation created in a jurisdiction other than the owner’s home country. As experts in creating lucrative offshore accounts for Americans, we get questions every day from potential investors looking for new solutions in asset protection.

Read More »

Your Guide to Setting Up Offshore Trusts

If you are interested in offshore investments but don’t know exactly where to start, a trust might be the perfect way to protect your assets and give you peace of mind. An offshore trust can significantly and legally reduce your tax burden, and it can guarantee financial security for your dependents or loved ones. Opening an offshore trust isn’t difficult, but you will need to start by picking the right offshore location that meets your needs. Then, you will simply need to list out the assets you want to protect and find a trusted adviser to manage them for the immediate future.

Read More »

Benefits of Choosing the Best Offshore Bank

As any international investor can tell you, there are plenty of options for offshore banking institutions these days. Some nations, like Belize, are intentionally positioning themselves as favorable environments for people who want to use offshore investing as a means of building assets for retirement. Part of being a favorable environment means offering banking services that are relevant and easy to use on an as needed basis.

Read More »

Send Us A Message