Before having an investment conversation, go through the Am I prepared to invest? checklist:
1. Do you have a regular income?
2. Do you have an emergency fund that will cover your monthly expenditure for 3-4 months?
3. Are you willing to put money aside for a long term commitment?
If you answered yes, then keep reading and discover the options that are available to expats:
Regular Saving Plans
Maybe you are at a point when youre realizing that spending all your extra cash on nights that you wont remember with people who youll never forget isnt the most sustainable way to fund your future. Or maybe youre at a point in your career where you are making more than enough to make ends meet. Or you just want to be proactive and start planning for your retirement because that day will come whether we want to fight it or not.
A regular savings plan is exactly that a plan where you save regularly. It can be flexible depending on your preference whether you are setting money aside monthly, quarterly, semi-annually, or even once a year.
A regular savings plan is just another way to say pension. Yes, those ancient terms that our parents always discussed as they aged and prepared to kick you out of the house. Pensions are one of the most efficient ways to not only store but grow your savings.
Some of the benefits include
Tax Free growth
Flexible time commitments
Multiple currencies
Mobile even if you leave China, the savings will travel with you still intact
Low barrier to start minimum of $300 USD or about 2200 RMB
Lump Sum
Have you ever heard the phrase, Too much of a good thing. Well that is especially true when it comes to cash. Cash is a powerful tool but its not a practical investment because it only has value when its being spent. Also, given todays interests rates, your cash is burning faster than you can add to it.
So what should you do with that lump of cash thats burning a hole in your pocket (figuratively)? It would be a good time to consider a lump sum investment. There are two main forms of lump sums:
Portfolio Bonds This is a one-time investment where you are able to purchase a mixture of stocks, bonds, mutual funds, structured products, and currencies all at once. Portfolio Bonds offer the same flexibility as a regular savings plan but they have a higher barrier to entry. You can consider opening an account beginning at 60,000 USD.
Of course we couldnt leave this article without mentioning the power that resides on the internet. We use our phones to spend money, why shouldnt we use them to build wealth. Online platforms are geared towards the DIY crowd who may need little to no help and are comfortable with executing their own investment decisions. For an online platform, you should consider opening an account with anything from $5000 USD and more.
Real Estate
Real estate is one of the most popular forms of investment because its where most of us were raised. Not to mention all the reality shows geared towards flipping properties for a profit in 30 days. Its no secret that property is one of the safest investments, but we must consider the location, current market conditions, and expected yields.
One of the most exciting factors of being an expat is the lifestyle. Spending a weekend in Thailand and planning your Golden Week in Europe isnt a surprise to expats in China. With no surprise to where we are traveling, we should use that same scope for investing in property. Even if you have a Mexican passport working in Chengdu, it shouldnt prevent you from looking at property in Germany.
Mortgages are still available for expats but you just have to be aware of the resources that are geared towards the global professional. With investment properties, you can expect to make a deposit anywhere from 20% - 35% and financing the remainder.
To find out how to get started, scan the QR code to receive an investment guide PDF.
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