Investing Abroad: Where Do High Net-Worth Investors Grow Their Money?
The act of growing one’s wealth is an involved one, with many factors and challenges to consider. Stocks and investments are a vital part of the process and a necessary provision in a world that tends towards growth.
Money left to appreciate value passively in a savings account is money destined to lose value; shrewd investment is one of the leading ways in which money can be preserved, or even grown beyond inflationary pressure. The ability to engage with finances in this way has recently become more equitable, with retail investment apps enjoying a significant boost in user uptake over the past few years.
But for many, retail investment is little more than a form of gambling. There are those in business and on the rise themselves, that may be looking for more serious routes to growing and securing their wealth. While many domestic opportunities exist to do just that, the secret to true growth may well be lying a little further afield. Successful investors and high net-worth individuals have diverse portfolios, including key stocks, funds and currencies overseas. But why, and with which countries?
The Principles of Investing Abroad
While dealing in the stock market and financial institutions of your home country may seem like conventional wisdom, adopting a more global approach to managing your wealth can further secure your money, and help you take advantage of new and unique opportunities, as well as shifts in markets.
Investing your money abroad can be useful for growing your wealth in more than one fashion, too. Other countries can have different tax expectations for money held on their shores, especially when it comes to the judicious use of portfolio bonds with specific stipulations. In this way, investing abroad can be uniquely lucrative – but should only be attempted with relevant advice from wealth management experts.
Times of Strife
But why should you consider investing your money abroad now? There is never necessarily a ‘bad time to invest abroad, but proper readings of the present economic landscape can help you determine key times for a shift in your diversification plan. The UK is experiencing unique economic difficulty at the moment, as the stratospheric rise in the rate of inflation has precipitated recession fears.
The dangers are two-fold: the rise in inflation serves to devalue the pound, while imminent recession indicates negative growth in the country – and a subsequent fall in the value of many businesses. Investing in foreign currencies can ensure your wealth does not lose value, while international businesses may have better financial outlooks.
Growing Economies
In many cases, moving to another country to apply for residential status can have a positive impact on your wealth status – especially when it comes to the tax breaks certain countries can offer. Monaco and Singapore are particularly popular for these reasons while growing super economies like the UAE and China provide strong and stable growth opportunities.
