Looking to diversify your investment portfolio? Look over there… all the way over there. Across the ocean wait investment opportunities you may not know you had, such as international investments in the form of insurance bonds. Read on to find out what they are, and how you get one.
Why Invest Internationally?
If you are at all worried about the steady devaluation of the American dollar, you might want to think about investing in foreign currencies. Lots of folks craft truly diversified portfolios by looking to overseas markets for investment opportunities.
The old saying about not putting all your eggs in one basket holds true, especially for investors. Spreading your wealth to a variety of investments, domestic and overseas, also spreads your risk. By investing in many currencies and markets, you will protect yourself against failure or lack of performance in any one.
What Are Insurance Bonds?
An insurance bond (also called an investment bond) is actually a type of life insurance policy. It is a single premium policy wildly popular as an investment in countries like the UK.
They are designed as long-term investments; the best returns are seen after at least five years. You do have access to your money during that time, although you may pay a penalty for cashing out early.
As with all investments, there is an element of risk. Your profits are dependent on the performance of the funds you (or your broker) chose when buying the bond. However, most of these bonds allow you to change funds, meaning you can weather ups and downs of the market and still come out on top.
Because these are long-term investments, many people establish them as nest-eggs for their children or grandchildren. If this sounds appealing, look for an insurance bond that offers an option to transfer ownership to the child at a predetermined age.
What's the Next Step?
To invest in international investment bonds, you need to hire an international broker. Your broker will be able to educate you on the wide array of investment bonds and other international investment opportunities available to you, and help you decide which are best for your portfolio.
Typically, this kind of investment is best suited to big spenders because opening an insurance bond requires a hefty lump sum. Americans looking to tap into international bonds can be expected to front as much as $10,000 by some brokers. If you are lucky, however, you can find a broker able to combine individual buyers' lump sums into the minimum required for a single bond. Consult Olympic Northwest Insurance for more information about insurance bonds.Share
22 September 2014
When I lost my job, I also lost my health insurance. I've never had to buy health insurance on my own before, so when I went to my insurance agent, I had no idea where to start. The coverage options, deductibles, co-pays, and premiums were confusing. I wasn't sure how to make sense of all of the tiers and doctor's networks. I created this site to help others who've never purchased health insurance before. The posts here are full of resources for insurance coverage, and I hope that it will help you to find the policy that's right for you.