4 Things You Didn’t Know About Investing Offshore

When things change in government and finance, people start to look further than the borders of where they are right now and look to the future of their cash overseas. Putting money safely away from the current financial markets where you live can feel like an attractive option. The good news is that investing overseas doesn’t have to be complicated or overwhelming, and you don’t have to do it by yourself.

You can speak to offshore Forex brokers, investment managers and financial advisors about the best places to put your money overseas. Key investment decisions should be made as wisely as possible, because it’s your financial security that’s going to take the biggest hit. The best thing that you can do is learn everything that you are able to learn about investing your money offshore and get wise to all the potential pitfalls before they happen. So, below, you’ll find three things that you didn’t know about investing your money offshore:

Risk Mitigation.

One of the most important benefits that you could come across when deciding to invest your cash offshore is protecting yourself from political and economic uncertainty. The more that you can minimize your exposure to risk, the better off your portfolio of investments will be. Minimising that exposure the closer you get to retirement is just a smart way to manage your investment portfolio offshore

Global Investment Village.

Most people turn inwards when it comes to their investment opportunities, preferring to be protective of their assets. When you choose to invest your money offshore, you can instead take a step towards being a part of a global investment village, which offers many investment opportunities and the chance to do well with your finances. Offshore investments can provide a different kind of security – spreading it globally makes perfect financial sense!

New Horizons

Diverting your money offshore gives you the chance to invest in opportunities that may not be available for you to invest in in your own country. Buying shares in the technology of your choice for a company that you wouldn’t normally be able to invest in is a big deal and it can open your mind to anything.

Ups And Downs

As with investing in your home country, the global markets do go up and down. Anything that goes up will eventually drop and it’s why your asset manager will be able to help you choose how much to invest, when and where. When you invest long-term, you should expect ups and downs in the market but you should invest at the right time to make the most out of your cash.

Offshore investments give the investor direct access to certain assets and stocks that wouldn’t be available in their own country. All you need to do is research the potential investments that you can make offshore, and ensure that you put your money in the sensible places.

3 Investments You Should Be Making Into Your Life

As much as we hate to admit it, money does make the world turn around. While it’s perfectly possible to live without a lot of money, if you want to enjoy the finer things in life then you’re going to need a good source of income, and stability with your finances. That’s why in many areas of life it’s a wise idea to make some investments so that if the going gets tough, you’ve got something to fall back on and also give you a steady extra income even when things are good. The big question here, is what to invest your hard earned money into? Luckily, we’ve compiled a quick list of the best 3 investments that you should be making into your life, so check them out!

Health

Pretty much the most important thing in life is your health, so why aren’t you already investing into it? Even if you live the healthiest of lifestyles, there’s no guarantee that you won’t fall ill or injure yourself at some point or another – what would you do then? A sad but true fact is that the healthcare sector is still a business, which means that much alike the economy, prices are going to keep rising when it comes to healthcare.

Even if you’re lucky enough to be under the care of a provider such as the NHS, there will always be treatments that aren’t covered. Have you thought about what you would do then? Imagine being gravely ill or injured and not being able to afford treatment – it’s not a nice thought!

Also, as morbid as it is, there’s always the death side of your health that you need to think about. What would happen if you were to die? Would your family cope with the costs of a funeral and also supporting themselves financially?

A great way of solving all of these dilemmas is by taking out life insurance. Not only does it cover you for costs of treatments, but it also gives you that peace of mind that if the worst does happen, your family are going to be able to cope financially without you there.

A problem that many people face is applying for life insurance. Many people are reluctant to give away personal details or have an examination for insurance purposes, and that’s totally understandable! However, did you know that you can get life insurance quotes without an exam or very personal details? Consider investing into your health and your family by taking out life insurance. After all, it’s one less thing to worry about!

Home

One thing that many people worry about is becoming homeless. If you’re a tenant of a landlord, you never truly know when they will want their property for other uses – leaving you homeless. That’s why it’s a good idea to invest your money into buying your own home so that you’ve always got that security, even if you’re struggling to make ends meet.

Property is also a good idea because you could rent out your property for some extra income too. Imagine having a month rent to play with each month?! There are now more ways than ever to become a homeowner, so why not see which route is the best for your financial circumstances and give you and your family permanent future stability!

Business

Finally, another brilliant idea to invest your money into is business. Whether you’d choose to create your own business and reap the rewards and benefits, or whether you’d prefer to invest in a business you believe in, there’s always going to be a lump sum of money waiting for you should you need it. Remember that if you are choosing to invest in someone else’s business, to make sure that you’re confident the business isn’t going to fall at any point as you could end up losing everything. If you’d rather start your own business but aren’t quite sure how, take a look at this guide on starting a business for beginners so that you can get the ball rolling and make some wise investments into your life!

As you can see, making smart investments into your life means that you could gain security financially, no longer have to worry about your health, and also create an empire for yourself to pass down to your children! What are you waiting for?

Making Alternative Investments: The Pros and Cons of Taking Retirement Into Your Own Hands

Self-directed retirement accounts have gained traction as a viable retirement solution as the democratization of finance leads to smarter investors. Self-directed retirement allows investors to control their own retirement by making investments outside of the traditional marketplace. This allows them to make alternative investments such as partnerships and private mortgages. The nature of the self-directed solution may lead to outsize returns, while raising an investor’s risk profile.

Portfolio Diversity

The advantages of self-directed retirement accounts are multifold. The most obvious of these benefits is the diversification of an investment portfolio. Investors are not as dependent on stock or bond market returns as they would be with a traditional IRA. The self-directed solution gives investors access to products that normally only institutional investors can purchase. Investors can build a far-reaching portfolio that allows them to invest in assets in which they may have an expertise. While there are prohibitions on certain investments such as artwork, coins and other purchases, there is a wide variety of permissible investments.

Favorable Tax Treatment

Another major benefit of a self-directed account is the favorable tax treatment. Like a traditional IRA, investors can defer taxes on their investment gains until retirement. This tax deferment leads to a higher rate of return on investment as investments can be rolled over and compounded without having to pay taxes. Also, some self-directed IRA plans allow you to pass wealth to future generations after death with favorable tax treatment.

These accounts are suitable for high net worth investors who hold most of their assets in their retirement account. Generally, investors in self-directed IRA’s should have a certain degree of investment knowledge and savvy. These products are not suitable for every investor.

Drawbacks

There are some drawbacks to self-directed retirement plans. The first is the greater risk that comes with alternative investments. While the reward for these investments can be great, there is also a greater risk of losing one’s entire investment. Alternative investments are not as transparent as more traditional investments, and that increases the risk of this type of retirement account. In addition, because of the nature of the investments made in this account, investors are at a greater risk of fraud. Thus, it becomes all the more critical to find trusted individual retirement solutions.

Another drawback of self-directed retirement account is the complex tax rules. Although these accounts are generally tax deferred, there are some triggering events that could cause a tax liability. The rules regarding tax treatment for these investments are esoteric and difficult to understand for the average investor. Usually, investors are best off consulting with an accountant or lawyer in order to understand these tax rules and not run afoul of the Internal Revenue Service.

Additionally, for those investors who do not have a long-term outlook, self-directed IRA’s may not be the most suitable option. The alternative investments that are covered by this account are generally not the most liquid securities. Thus, it can take a long time to close out of a position. For investors that would need shorter-term access to their money, that would be difficult to gain in a self-directed account.

Conclusion

There are some benefits to a self-directed IRA. In order to explore this option, consult with an investment professional.