In today’s uncertainty, I hear much about taking advantage of foreign investment worlds. To many, this is “foreign,” so to speak, but for many there are reasons to look outside our country for investment. A little bit of paying attention to the US markets makes one queasy. The banking system is troubled, the government’s reliance on student debt payments makes me want to run away and with our election choices for president, we have reason to wonder how our country has in store for our investment portfolios, whether stocks, bonds, real estate, business interests or the many other forms of investment.
Maybe I am being a pessimist. But the crash in 2008 taught us a good lesson and history does repeat itself. And I am not the best person to rely on when it comes to how to invest. In fact, my investment history would make you quite comfortable in just doing the opposite of what I do!
But I must say, that I have many clients that seem to do a good job of investing. And I watch them and often attempt to follow their lead. A recent trend tells me that I should be looking abroad to other markets and other countries for a part of my investment strategy. I don’t know that there is any one country or one investment that I have seen people jump at. In fact, the opposite is true. What I have seen is a more global perspective for investment ideas. And that seems like an okay concept to me.
However, the US has a few rules that we have to comply with if our investments leave our US shores. I can help weave through those rules to make sure that you don’t make a misstep here. As US citizens, we are taxed out our world-wide income. Therefore, foreign investment does not tend to offer big tax incentives to us. It might offer some asset protection if it is structured properly and tax deferral works in foreign countries similar to what can be achieved in the US. We can help you understand what those deferral strategies can look like.
Best wishes weaving through the next few years with your investments!