Expats tend to earn a handsome living. With international businesses providing high salaries – particularly to those who relocate from their native countries, the potential earnings of any expat can be astronomical but only if you invest your wealth wisely. It comes as no surprise that around 5 million brits are living aboard and many more are considering it following the COVID-19 pandemic.
It’s now a commonly known practice but investing your wealth is a great use of your time and effort so that you can increase your wealth significantly. However, with so many new investment avenues that you can now go down, choosing where your money should go is now more complicated than ever.
Fortunately, we’re here to tell you our top 4 tips for all expats to consider before investing their money.
Consider how long your expat status will be
This is vital when defining your investment strategy due to exchange rates. When you invest your money, you should always invest in the currency that you eventually want to cash out in.
This is so that when the time comes to draw your money out, the risk of a bad exchange rate harming your profits will be reduced. With the average expat spending between 5 and 10 years abroad, you must consider how long is left of your stay abroad and decide if you should be investing in your home currency or your current country’s currency.
Build a global portfolio
We realise that for some expats, you might not know when you will be returning to your native country and with that, you should consider a globally diverse portfolio of investments. This is a must for any expat and can be a great investment to mitigate the currency risk previously mentioned.
Seek wealth managers
The best wealth managers reduce all of the risk involved in investing, especially when you are living abroad. These people are professionals and will do all of the work for you so you can relax knowing your money is being invested properly.
Furthermore, with the wealth managers in control of your finances, you won’t have to spend all of your time researching the best places to invest therefore, you can enjoy your time doing other activities.
Some countries possess laws and tax penalties which makes it difficult to invest in foreign stocks but with property investment, you don’t have to worry about any penalties.
In the past, there have been a few cases where foreign property investment has gone wrong due to less formal investment routes so our tip for you is to find a reputable real estate agent – preferably from your country of origin who now resides in the country where you wish to purchase a property. This will help to reduce the risk of a dodgy deal swallowing up your investment.
As you can see, there is much to consider before investing your hard-earned money – especially for expats. It is vital that you do your research on any investment and where you are not sure, seeking the help of wealth managers is a great way to ensure the safety of your investment.