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Money Matters: Long term Investing Abroad
Plan now for the future
International Bank Accounts demonstrated how offshore investing is not necessarily for criminals and taxevaders, but can be an ideal solution to the international citizen of the world, especiallywhen it comes to investing money for the long term.
Your offshore banking manager can help you decide which investment vehicle to take
advantage of, as there are many to choose from depending on your retirement time line,
your tolerance for risk, and your monetary investing ability.
Stocks, Bonds, and CDs
Stocks are partial ownership "pieces" of a company and are sold on the stock
exchange of the country in which the company is registered. The stock (share)
price goes up and down daily.
You can invest in stocks in your host country, your country of origin, or any other
country; you just need a stock broker to do the investing for you.
Bonds are promissory notes sold by companies to raise money for the company
and also must be purchased through a stockbroker.
CDs are issued by a financial institution and are similar to a savings account in
that the money will be returned to you after a certain period of time with a certain
percentage increase of interest earned on the CD.
Invest a regular, fixed amount
Ideally you should automate your investments so that the money goes directly
from your paycheck to the bank and then to your investment account.
This is particularly easy if your depository account is held at the same bank as
your investment account.
When you don't see your money it is easier not to miss it. If automatic investment
isn't an option, get into the habit of writing your investment account a check or
transferring the money the very same day you get paid.
"Ten percent" is often quoted as the magical percentage of your income that you
should invest to become rich, or at least comfortable, in retirement.
However, if you can't do 10%, do 5% or even a few hundred pounds/euros/dollars
a month. Whatever you can spare, however small the amount, will add up and
compound into a small (some smaller than others!) fortune.
Remember: Take advantage of your bank's advisors!
They are experienced, might even be expats themselves, and often offer their
services free to bank customers. They will help you find the best investment
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