Expats May be Risk Takers But How Does This Translate to Investments
Expat financial services should work to give you peace of mind regarding your income, security, legacy, risks and other specific circumstances.
In some ways one item from the above list is the most important: risk. This is because it is your approach to risk that largely determines your income, your legacy and your security. Generally speaking, the higher the level of risk involved, the greater the level of return you could potentially enjoy. However, in historical terms, it is clear that risk may sometimes only mean short-term volatility, and over the longer term these riskier strategies have a tendency to yield more solid returns when all things are considered.
As such, it is this trade-off – risk versus returns – that characterises the approach of many expat investors, who have to consider important issues such as local market conditions, global market conditions, market conditions in their country of origin and, of course, currency risk. All these factors influence how expat financial decisions may impact future wealth.
Consider your tolerances
What kind of person are you? Are you a risk-taker or do you find weathering uncertainty and volatility to be an uncomfortable experience.
As an expat, there is a good chance that you are adventurous and already predisposed to a more risk-tolerant approach than most. However, it is by no means a given that this attitude will translate to your expat financial planning. You must therefore, analyse your investment goals and your projected time horizon to consider what kind of strategy might work for you.
Regular savings are one of the most tried and tested ways of securing wealth. However, as one of the more risk-averse investments they may not always help to grow wealth in a way that is in keeping with broader financial objectives.
But there are ways to invest regular savings to make the money keep pace with growth objectives rather than simply preserving it and while no expat investor can predict what the future holds, it is often comforting to know that money held in regular savings can not only meet present needs but may also be capable of responding to unexpected additional expenditure requirements as well as providing liquid assets for beneficiaries in the future.
One way expat investors can achieve their long-term financial goals is to spread their investments across multiple asset classes, in a variety of investment vehicles and in different geographical regions across the globe. Doing so can help defend against the pitfalls of volatility.
However, this kind of approach to investment requires the help of an expat financial services specialist who can provide guidance, management and accurate jurisdictional knowledge in the language of the investor's country of residence.
Contact Blacktower today
Blacktower has multiple offices across Europe, Grand Cayman and beyond. As an expat financial advice specialist, we offer tried and tested solutions built around our clients' personal needs, investment goals and time horizons. Contact us today for more information about how we can help you.