INTERNATIONAL INVESTMENT
Get higher yields, better asset protection, and greater risk
diversification by investing overseas.
Do you remember the 80s?
I was born in 1984, the year that the United States was
dubbed the best place to be born. America was already
great. It didn’t need to be made “great again.”
Upward mobility, a growing economy, the launch of the
tech revolution, and the end of the Cold War. The rest
of the world couldn’t compete.
Back then, Germany was split in two, the Chinese were
still riding around on bikes, the Soviet Union was in
shambles, and almost two billion people lived in extreme
poverty.
Let that sink in… in 1980, over 43% of the world’s
population lived in extreme poverty.
That’s not the world we live in anymore.
Today, less than 10% of the world lives in extreme
poverty, many post-Soviet countries have become the most
business-friendly countries on earth, and China now has
the biggest car market in the world.
If you’re not one of those investors, sorry to say it,
but your investment strategy is probably stuck in the
80s.
How?
Economies around the world are growing at astonishing
rates and new governments are opening their doors to
international investors every day.
In the 21st century, international investing offers more
opportunities and benefits than you could possibly
imagine.
If you’re ready to diversify your assets in growing
economies and earn higher returns, you’re in the right
place.
I’ll teach you the mindset you’ll need to invest
successfully overseas and then point you toward the
types of investments that will protect and grow your
wealth. Money Protect Offshore Trust - Pile of coin
currency
Why Get Citizenship by Investment Programs?
Asset Protection
Holding assets in jurisdiction around the world
gives you protection from lawsuits, confiscation
by your government, and other takers.
Diversification
Emerging and frontier markets are often
uncorrelated with developed markets, giving you
a hedge against future recessions. Planting
flags via investment will also diversify your
life and freedom across borders.
Higher Returns
From term deposits in foreign banks to rental
yields to growth in value on real estate and
other assets, money invested overseas can
provide higher returns.
The International Investment Mindset
People always look back at a success story and say,
“Wow! I should have done that.” So, why didn’t they?
One word: Mindset.
From a capitalist’s perspective, everything is part
of a market. Everything has a brand.
And from the Kobixt perspective, the
brands that matter don’t come packaged in products
at the grocery store and they’re not splashed across
apparel in the shopping mall.
For a Kobixt, every country is a brand
competing in a market for your dollars.
Places like the United States have created such a
strong brand for themselves – think “The American
Dream” and “from rags to riches” – that they have
become a name brand of sorts for folks all around
the world.
Never mind that the brand doesn’t always deliver.
The mindset problem most people run into is that
they are so busy seeking the name brand that they
miss the places that have great fundamentals.
Want a real-world example?
Many years ago, my friend bought real estate in
Bangkok, Thailand for about $1300/meter. His parents
understood what he was up to, but everyone else told
him he was an idiot for buying in Bangkok.
He recently sold the property for $5000/meter and
everyone hailed him as a genius.
He had the vision and he was right.
Now, he is investing in Cambodia because he thinks
Thailand is overpriced and there is not a lot of
growth left. The yields have been squashed from
about 10% to 4% as people have recognized the
potential in a safe haven like Thailand and flooded
in.
Most people outside of Asia have yet to realize that
Thailand has become a safe haven.
But it is.
Interest rates on depositing cash are so low there
because people are willing to buy and hold their
money in Thai baht. It is the strongest currency in
Southeast Asia.
Would you know that?
Would you know that the Thai baht has increased its
value over the last six years against the US Dollar
and the Euro?
Or would you believe that the Armenian dram has held
its value within 1% against the US Dollar over the
last five years while paying 10% interest at a time
when banks in the US are paying less than 1%?
Would you believe that there are plenty of other
currencies that have held their value against the US
dollar as it has strengthened over the last five
years?
Most folks don’t know about these opportunities
because they are too busy saying that they don’t
work… until they become something, and then everyone
is interested.
Suddenly, everyone wants to move to and invest in
Singapore. But by then, it’s too late. Singapore
won’t take them anymore.
Seven years ago, I got a bank account in Singapore
with a $1000 deposit. Today, it will cost you a
minimum deposit of at least $50,000 – $200,000.
Once a place becomes a huge success, they don’t need
you anymore.
I’ve seen this happen all over the world. Seven
years ago, Budapest was the cheapest capital in
Europe with property for under $1000/meter.
That opportunity is no longer there.
Things ebb and flow.
People may tell you that you’re foolish to invest in
these places, but if the average person (who’s
broke, by the way) tells you that you’re an idiot,
you’re probably doing something right.
These currencies and countries may not be the name
brand that everyone knows, but they deliver.
And because they aren’t the name brand, Nomad
Capitalist’s who do know and who have the right
mindset can get in on the safe havens where the
fundamentals are right before everyone else looks
back and wonders why they didn’t act sooner.
People have bought into the brands of established
countries simply because they have been established
for so long.
Sure, places like the US, Canada, Australia, and the
UK are still safe places to invest, but the costs
are higher and the returns are lower.
And it’s not the 1980s anymore.
In the 21st century, the world is full of
opportunities that didn’t even exist a decade ago.
And these are the kind of investment opportunities
that not only allow you to diversify your money so
that no one government controls it, but they also
earn higher yields, give you greater asset
protection, and can even get you a second residence
or passport in some cases.
Once you adopt the international investment mindset,
you can take your money where it’s treated best and
never look back.
International Real Estate Investments
Real estate is a valuable asset class
just about anywhere you go. But in many
developed countries around the world,
yields are low. 1, 2, 3%.
In places like Australia and big markets
in the US, not only yield low but prices
have also become so high that it’s hard
to buy property. And if you do, you have
to go into debt, increasing risk.
Want to buy property in Canada?
That will be a multimillion-dollar deal,
thank you very much.
In all these locations, people have been buying
property farther and farther out in the suburbs just
to chase yield.
But what would happen if you stopped chasing the
name brands?
What if, instead, you took your money and invested
it where it was treated best?
Here at Kobixt, we talk about markets like
Tbilisi, Georgia, Phnom Penh, Cambodia, Bogota,
Colombia and Istanbul, Turkey.
We also keep an eye on up-and-coming markets like
Cairo, Egypt and Tashkent, Uzbekistan where you can
buy property in prime city locations that will get
high rental yields as well as growth.
For example, in the last two years, property prices
in Tbilisi, Georgia have gone up 30%.
And even when the Russians attempted to invade the
country in 2008, instead of wiping out 50% of
property value, prices only dropped six percent then
bounced back the next year.
And now, the country is more stable and profitable
than ever. Investors are coming from all around the
world to take advantage of the opportunities there.
Georgia isn’t a name-brand country, but it has good
fundamentals, including being one of the most
pro-business places in the world.
So, what are the fundamentals that make for a good
international real estate investment?
If you’re looking for dirt cheap real estate, aim
for places where you can get properties for
$1000/meter or less in the city center.
You will get easier access to high-potential
properties, quality tenants, and a tangible,
income-generating asset that will only go up in
value.
Yes, only up.
Markets like Georgia and Cambodia have barely
suffered a downturn. In fact, Cambodia has done
nothing but go up in 25 years.
This is the difference between economies that eb and
flow and economies that only have upward growth
thanks to pro-business policies.
The good news for you as an international investor
is that new countries are becoming pro-business
every year.
Another place to look, as the saying goes, is to
“Buy where there is blood on the streets.”
Think of markets like Istanbul that have great
fundamentals but seem risky to outsiders.
There are 15 million people in Istanbul alone – 80
million in Turkey – and the economy is developing
like a rocket as they have begun creating TV’s,
washing machines, furniture, and other exports.
But thanks to their low currency, you can get a
great deal on property there.
You don’t have to go cheap or look for blood in the
street, though, to find good foreign real estate
deals.
More stable markets like Bangkok or Kuala Lumpur
will cost more than $1000/meter but are incredibly
livable cities with very undervalued markets.
The same goes for Bogota, Colombia.
And there is an increasing number of countries that
allow you to buy and hold freehold real estate as a
foreigner.
But again, if you’re too busy seeking the name
brand, you’ll miss these places and many others that
have great fundamentals.
High-Interest Bank deposits
Unfortunately, the burdens of US
citizenship do not end with taxation.
Just as US citizens cannot run away from
being tax residents of the US, they
cannot run away from the reporting and
compliance obligations of US
citizenship.
In fact, in many cases, going offshore
will increase these obligations rather
than reduce or eliminate them as you can
do with taxes.
Several years ago, the US set up the
Foreign Account Tax Compliance Act
(FATCA). This act requires all banks,
financial institutions, and Foreign
Financial Institutions (FFIs) around the
world to report all US persons who use
their services to the IRS. Banks and
financial institutions throughout the
world use US indicia to determine
whether you are a US person and whether
or not they need to report your account.
Banks in places like Singapore, Switzerland,
Luxembourg, Panama, and Dubai, as well as
up-and-coming markets like Armenia all, offer
multi-currency accounts.
Imagine being able to switch between currencies at
the drop of a hat.
Imagine being able to diversify your wealth into
multiple currencies so that you never have to rely
on one central bank.
Imagine being able to earn a higher yield and grow
your money from a basic savings account.
For example, right now, you can earn above 5% on a
simple US dollar term deposit in Armenia.
If you have a conservative investment strategy, you
might not make much more than 5% in general. If
you’re looking for a similar approach overseas,
there’s nothing more conservative than placing your
money in a bank.
But if a foreign bank account in a local bank sounds
too risky for you, there are plenty of well-known
international banks in other countries around the
world where you can hold multiple currencies.
For example, if you want to bank with Citibank or
HSBC – I don’t usually recommend them because they
are not the best or easiest to work with – they have
branches all over the world that offer different
benefits depending on the country.
If you’re confident Citibank isn’t going to go out
of business in your home country, why would it go
out of business in another country?
But do you want the honest truth?
There are countries around the world where not even
a single bank has gone under.
Ever.
Compare that to the hundreds that have gone down in
the US, even in the last 10 years of prosperity.
Hundreds.
If you see yourself as a conservative investor, your
home country might not be the safest bet.
There are stronger banks in places like Austria and
Singapore that give you more benefits and will
better protect your money.
Still not convinced?
There are many countries where simply putting money
in the bank will qualify you for residence or
citizenship, allowing you to diversify further by
planting more flags so you are truly never indebted
to one country.
Storing Precious Metals Offshore
The third international asset class to
consider is precious metals –
specifically, offshore gold storage.
For centuries, people have flocked to
metals like gold and silver to protect
their wealth, store value, and hedge
against risk.
It’s a solid investment.
But it’s not immune to risk.
Theft and loss certainly pose a small
threat, but the greatest risk to your
precious metals investments is
government.
From the United States to India, governments all
over the world have track records of heavy-handed
gold confiscation. Even within the past 100 years.
Meanwhile, governments in Russia and China are
buying up gold overseas to protect their economies.
This not only speaks to the potential future value
of those economies and their currencies, but it’s
also proof that you can do it too.
You can buy gold overseas.
There are vaults all around the world in places like
Singapore, Hong Kong, Tel Aviv, London, and Panama
that allow you to store your metals in a neutral
jurisdiction where some bureaucrat can’t just push
one button and take your gold.
You physically own the gold. It’s sitting there, in
the vault. It is segregated and it is allocated in
your name.
If you want true protection, you need all four:
physical, segregated, and personally allocated gold
stored in a neutral jurisdiction.
So, how much do you need to get started overseas?
Glad you asked!
There are some vaults that require you to invest six
or seven figures to get started, but there are
others that have democratized the process where you
can start by buying as little as one gold coin.
In places like Singapore that have spearheaded such
innovative storage solutions, you can store even
small amounts of gold for very low fees.
And you physically own it all. You can go pick it up
whenever you want.
This gives you great flexibility over your precious
metals without having to rely on stock market
vehicles like GLD where you are buying paper gold.
This is real gold. Real silver. In your own name.
You can buy and sell it tax-free, VAT-free, and
without having to worry about your government’s gold
policy.
FOREIGN STOCKS AND BONDS
There is no doubt that the 2010s were good for
markets like the United States.
What most people don’t know is that markets did
even better overseas in places like Thailand.
“I’ve got an international fund,” you say. “I’m
covered!”
Not so fast.
Most of the international funds available in
your home country are not capturing true
international growth.
The average mutual fund in a country like the
United States doesn’t actually hold that many
international assets. It does not dig into the
core of a foreign country.
It merely scratches the surface.
With an international brokerage account in a
market like Hong Kong, you can invest in markets
all over the world.
The ones you think you are investing in right
now but aren’t.
As a Kobixt, you can go directly to
the countries that are growing the fastest and
learn how to buy stock there – from China to
India and all the way to emerging economies like
Cambodia or Armenia.
While the emerging economies will have very few
stocks, many have done very well.
Andi if you are not a US citizen, you have an
extra incentive to invest outside of the United
States: tax benefits.
No matter where you are from, if you invest in
US stocks as a foreigner, you not only have to
pay tax on dividends, but you must also pay
estate taxes when you die.
Most people investing in US stocks don’t know
that.
By investing overseas, you can avoid US tax
policies and make tax-friendly investments
instead.
In a nutshell, if you can stay away from the US
tax net, you’ll be better off.
You don’t need dividends and estate taxes eating
into your investment income. And you don’t need
the US to invest in high-performing stocks.
Many foreign stock markets have done extremely
well.
And if you’re interested in government bonds, in
many cases, you can get the ultimate
two-for-one: a solid investment and immigration
benefits.
For example, Armenia currently offers
immigration benefits to those who invest in
government bonds that pay 8% interest.
That’s not quite as much as the banks, but there
is a good secondary market for them. You are
allowed to buy and sell them or hold them until
maturity.
Plus, the Dram has been pretty consistent with
the Dollar.
And if Armenia doesn’t pique your interest, you
have dozens of other options. There are
opportunities like this all over the world.
All it takes is for you to step out of your tiny
little corner of the world and adopt a global
mindset.
Once you do, you’ll quickly see the many places
where your money will be treated best.
THE BENEFITS OF ECONOMIC CITIZENSHIP
INSTANT PASSPORT
You can obtain a second passport via investment
in as little as 3-4 months.
ENABLES RENUNCIATION
US citizens can use their CBI passports to
renounce their citizenship and save on tax.
TRAVEL PRIVILEGES
Visa-free access to the UK, Ireland, Hong Kong,
Singapore, the EU, Central America, South
America, and Southeast Asia.
NO NONSENSE
A streamlined process for individuals in good
health with a clean background.
LOW RISK
No need to travel to or live in the country.
Your citizenship is guaranteed.
HARD-TO-ACCESS COUNTRIES?
Different CBI passports grant access to Russia,
China, South Africa, and even the US.
The Only Risk is Inaction
If you want the best investments, you have to think
outside the box.
That’s the key.
There are infinitely more opportunities out there now
versus ten, twenty, or thirty years ago as countries
have continued to rise and develop.
Catch them on the rise to the top.
Even small improvements in the standard of living in
emerging and frontier markets can produce high returns.
Don’t be the person who looks at today’s Thailand of 20
years ago when real estate was $500/meter and misses out
on an opportunity that will turn into $5000 or even
$6000/meter apartments.
Don’t be the person who says, “I should have done that.”
Just do it.
There are places where you’ll see tenfold increases –
huge year-over-year gains.
And many of these places have tax advantages as well.
They want your money, so their tax laws are friendlier.
And that’s just a small taste of the many benefits of
investing overseas. There are plenty of articles on our
site that dive deeper into the where, how, and why of
international investing.
In summary, if you want long-term growth, higher yields,
discrete markets, diversification, opportunities to
plant flags, lower entry points, higher probabilities of
success, or simply more options…
Invest overseas.
However you prefer to invest, it can be done overseas
with bigger yields and better benefits.
Let us show you how.
