An international financial advisor is a professional who specializes in international investments. When you open an investment account, you typically have the option to invest in a variety of funds including domestic and overseas choices. Each type has its benefits and the type you choose to invest in is largely a matter of personal preference. If this is your first time investing, you may be a little overwhelmed by all of the choices and fear making the wrong choice. Therefore, here are a few tips on investing and how you can choose the best advisor based on your unique needs.
As you will quickly discover when investing for the first time, many types of funds exists. From stocks and bonds to international and domestic choices, you have many decisions to make. If you are interested in putting money into overseas funds, you should consult with an international financial advisor to learn about all of the risks and benefits of this option as well as what overseas funds are currently available.
One major benefit to overseas investing is that the money you invest has the potential to earn wonderful returns. This means you will earn more interest in less time and may soon develop a small fortune. However, along with the potential to earn more in interest, comes the exposure of money to riskier financial funds. As helpful and interactive financial advisors will tell you, whenever you invest, you are exposing that money to risk, but the risk is sometimes considered higher with international options.
Therefore, as the international financial advisor you choose will tell you, you must be open to the possibility of losing some of the funds you contribute. As such, some types of savings goals are more conducive to overseas options than others because longer term goals have more time to recover from risky options that may not pay off as expected. A top one of these longer term goals is retirement planning. Since you will be contributing money to a retirement account, be it a 401k, Roth IRA, or traditional IRA, over several years, the money within the account will have more time to recover from economic downturns or unsatisfactory investments.
However, shorter term goals such as buying a home or saving for parenthood may not be the best options for investing your savings into international options. This isn't always the case though, so the international financial advisor can evaluate your unique situation and make a decision based on that information. Investing to build a college education fund is yet another example of an option where you can invest money into an international fund but, again, you must determine if the possibility of high returns is worth the risk they carry.
If you do choose to pursue overseas investing, the international financial advisor may still suggest that you diversify your portfolio at least a little to include some domestic funds. Diversification is a wise choice with any investing plan because it will help buffer against any losses in either domestic or international funds.
If you are currently young and know that you have many years to build up your cash, then an international financial advisor may suggest that you put a large amount of savings into overseas funds. Then, as you grow older, the investment advisor may suggest that you begin putting more money into domestic options or other accounts to bring down the risk level. The advisor may make this suggestion because, as you age, you will need the cash within your accounts for retirement so you don't want to take the chance on losing the savings in high risk options.
Once you have determined if overseas investments are the best option for you, the next step is to find a qualified international financial advisor to help you in the process. You want to find a qualified financial professional because they will know which overseas options are performing the best and have the potential to bring you great returns on the money you contribute. When you begin researching the financial advisors you are matched with, you may notice that some are paid on a fee basis while others work on commission. The basic difference between these is that a commission based international financial advisor typically makes earnings on the choices they suggest you invest in and fee based financial professionals typically charge you out of pocket costs.
To quickly locate an international financial advisor, you can use the internet to request cost quotes. During the quote request process, you can customize the request based on your preferences and other factors. This way, you will quickly be matched with an advisor that meets your financial needs and, thus, will find an advisor sooner so you can begin investing.
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