Offshore Investment Advice to Help Your Portfolio Grow

Like so many others, I’m working hard to make my financial future as bright as possible. I save when ever possible, and invest smart when I have the money to do so. In my opinion I have a good portfolio built up, I’ve seen gains and small losses over the years, however I am not as far along as I had planned to be by this time. There are a couple of reasons for this, one is the fact that markets go up and down, there is nothing any of us can do about it, the second is the high percentage of tax that is charged on capital gains. I finally got tired of paying the government so much if any at all of my investment gains, so I decided to seek some offshore investment advice.

Anyone who’s been investing for a while has probably heard of individuals moving their funds to foreign markets to avoid capital gains tax. I always figured it was a fantastic idea, how ever I didn’t know the first thing about it. My first step was to talk to my local broker about the idea, of course since he is paid commissions on my account he just attempted to sell me on the idea of keeping my portfolio with him and his brokerage. I was going to have to look else where for the information I needed, so I fired up my favorite search engine and started doing some searches for offshore investment advice.

What I got back from my queries wasn’t easy to understand. While several sites appeared to offer legitimate business advice, others were clearly scams. While I didn’t know the first thing about investing offshore I also wasn’t about to just send large amounts of money to someone I didn’t know or ever talk to. I really needed to talk person to person with someone for some solid offshore investment advice. I really thought the best place to get it would be to find a brokerage that has been handling transactions for Americans to foreign markets over the years.

After I had put in a few hours reviewing multiple websites, I found a site that looked promising. It was a firm specializing in offshore investment advice. So I decided to call in person, I had been avoiding any site that didn’t display a phone number for fear it was a scam. I spoke with a broker at that firm, he was more then happy to hear out my current situation as well as my expectations for the future. After hearing my store he gave me some offshore investment advice that fit what I was looking for, needless to say once our conversation was over I had the confidence to go ahead with the necessary investments to make my dreams a reality offshore.

Now keep in mind investing in offshore markets isn’t the easiest and it isn’t everyones cup of tea. If you’re in a similar position and wanting to find out more information on the subject I suggest that you call a broker that is versed in and can provide offshore investment advice for your unique situation. The better advice you receive at the get go the better chance you have of seeing profits on the back end.

Real Estate Investing and Your Portfolio

Investing is complicated, and in order to be a success, you must be able to sift through technical details, and balance risks against potential gains. With a bit of practice, though, you’ll find that a well-maintained investment portfolio will significantly decrease the relative stress involved.

First and foremost is diversity. Any professional will tell you that it is unwise to put all of your eggs into one basket, so to speak. Since investment of any sort involves a great deal of risk, a wise investor will research the market, and then invest over a variety of platforms, to balance the associated risk. As a general rule, no more than 30% of your investment capital should rest in any one category.

If you feel relatively comfortable in this environment, and you’ve got some extra time on your hands, you may be interested in direct commodity investing. Commodities are among the most unpredictable (and consequently risky) business ventures. But therein lays the opportunity for incredible gains. You will need to watch this market with extreme care.

Real Estate Investment Trusts (REITs) can help round out your investment portfolio. An REIT is typically a high-yield investment, and REITs come with a variety of options. Equity REITs generate income through rent collected from properties. Mortgage REITs involve money lending, wherein the return on your investment would likely come from property owners and developers. As its name suggests, a hybrid REIT is a combination the two. There is paperwork involved, and it would be wise to research these options carefully. Be prepared.

Options are another form of real estate investment, wherein a potential buyer eliminates alternative bidders by having a property taken off the market for a designated period of time. For this luxury, the buyer agrees to pay a specific amount upfront to the seller. Purchase of the property, then, is contingent upon any number of factors (i.e. inspections, financing, etc.). Options tend to vary, so pay close attention to its terms before signing. As a buyer, if you fail to meet your end of the bargain in the designated timeframe, you will likely forfeit your initial payment (the amount paid to take the property off the market).

Still, one of the most profitable (and least risky) real estate investments remains the traditional buying and selling of a property. This is where you will be most connected to the business, and therefore more capable of formulating accurate decisions. Your presence will help to avoid obvious pitfalls.

Regardless of your investment choices, it is wise to remain in the loop. Research each option carefully, and don’t be afraid to ask questions. Know the business, so that you can get the most of your investments.

Investing – Assess A Company’s Valuation

It is advisable and an advantage for investors to have an understanding of financial statements. It enables investors to draw their own conclusions about the company and possibly survive in challenging markets. However, it is not a simple task. Thus, it is probably easier to assess a company by using basic yardsticks.

Business

Analyzing the business of a company provides an understanding about how well positioned the company is in the industry and also the potential growth of the industry itself.

You should understand and identify what type of business and industry the company is in, what and where the risks could come from and what is the market segment of the business.

Management

Good people will run a good company. In fact, most goodwill built over the years is largely due to good management. The honesty, integrity and commitment of the people are a crucial determinant of the success of a business. Dishonesty and mismanagement can easily bring about the downfall of even large multinational companies like Enron, WorldCom and the National Australia Bank.

Earnings

To provide an estimation of how well the company is doing, investors should assess the nature, quality and predictability of future revenue streams, as well as earnings before interest, tax and depreciation.

The earnings of a good company if not growing, should be sustainable. The earnings of a company should justify the capital employed as in the long term; investors would withdraw their support if profits of the company do not justify their investment value.

Cash Flow

Most analysts will consider a company’s cash flow as the best way to determine the company’s health. Cash could come from three sources; operating activities, investing activities and financing activities.

The cash flow statement provides detail of all incoming and outgoing cash from each of the three sources. Revenue from the operating activities is consists of cash items only. Cash flow from investing activities includes the purchase and sale of property, plant and equipment. Cash flow from financing would show any monies raised or paid out to shareholders (including the dividends payment).

Dividends

For a company that does have a dividend policy, it’s good to know whether it employs a constant dividend growth policy, residual method or none. For a profitable company with a lack of investment opportunities, it would be wise to return part of the profits as dividend to its shareholders. In most cases, profitable cash generating companies in mature or slow growth industries are the common dividend distributors. By knowing a company’s past dividend distribution and the management’s intentions, a good gauge of future distributions can be made. Popular models to value dividend paying companies are to discount the future dividends using either a constant or multiple period growth rates.

To determine the value of an investment requires ascertaining whether a current price reflects sufficient growth to allow an investor to generate a return that meets their cost of capital. Clearly, all the above have to be considered collectively for a fair assessment of a company’s valuation.

By learning to recognize the tell tale signs, you are better prepared to protect your interests. If you can interpret the information, you able to determine the magnitude of any underlying problems.