5 Tips for Retirees Interested in International Investment

Top tips to guide international investment for retirement include a focus on geographic diversity, identifying your preferred risk level, thinking about your retirement residence, paying attention to international reserve requirements and considering your dependents.
Couple Financial Planning

Couple Financial PlanningFinancially preparing for retirement is a big job, and it is one that can take decades of work and saving. While there are certainly a number of methods that can be used to save for your eventual retirement, international investment is definitely a top contender.

If you are interested in learning more about international investment for retirement, utilize these five tips to guide your financial preparation.

1. Identify Your Preferred Risk Level

The first thing that individuals who want to invest for their retirement should do is consider the level of risk they are comfortable with.

Safer, more secure investment options may just keep ahead of inflation, while riskier investments offer the potential for bigger profits.

Safe options might include investing in precious metals or hedge funds, while a riskier alternative could be investing in a new international business.

2. Consider Future Generations

Some individuals primarily want to guarantee their own comfort during retirement, but those with more assets may also want to focus on how to offer financial security to their spouses or children.

If you are particularly interested in beginning your estate planning and preserving assets for dependents, then international investments like life insurance wrappers or trusts may be a smart choice that can grant you peace of mind as you head toward retirement.

3. Look Closely at International Reserve Requirements

With so many different international investment options available, narrowing down the geographic locations can be tricky. As you research individual countries, pay particular attention to the nation’s reserve requirements. This is, essentially, the amount of liquid assets that financial institutions are required to keep on hand in order to give the bank stability.

In places like Belize, for example, the national reserve requirements for banks are three times what they are in the United States, offering a lot more security and stability for your hard-earned assets that you will need during retirement.

4. Determine Where You Want to Live in Retirement

Choosing the home you want to live in during retirement and making investment decisions may not always be related, but they can be if you lean towards international options in either case.

If you plan to retire to a warm beach somewhere like Belize, for instance, then it might make sense to include at least a few investments based in Belize. You may also want to invest in real estate today that can be rented out to generate income until you are ready to retire and live there full-time.

5. Emphasize Geographic Diversity

Major benefits of international investments include the potential for lower taxes each year, lower costs for things like investment and management fees, privacy and even financial anonymity, if desired. In addition, investing in multiple international companies, utilities, stocks, bonds or properties adds diversity to your holdings.

As you plan for your future retirement, there is no question that international investments can be a smart move to help you reduce vulnerability, diversify and protect your assets.

Caye Bank is ready to help you with your financial planning and investing. Contact us today.

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