International pension funds are mutual funds purchased in any country outside of the USA. When thinking of retirement income, most people do not think of investing in international pension funds. Just about every country will have these funds because frankly, residents of the country in question do need to provide for their retirement as well.
Just like the USA, mutual funds in other countries are based on stocks and bonds, and in this global economic time, when the US economy is still rather sluggish, it is a wise investment choice to look into international pension funds.
It is important to note that not all countries are going through the global recession and the same level of severity. Furthermore, countries are recovering from these troubling economic times at different intervals as well. This fact makes international pension funds very attractive. American investors can take advantage of a stronger economy elsewhere.
A Google search will bring up international pension funds directories, which will provide valuable information on what funds are out there and how well they are doing. It is wonderful to invest in America, no one will argue with that; however, it does not mean that an investor is tied to, or obliged to invest solely in their country of their origin. Many investors will invest in home pension funds and international pension funds as well. This way they provide a safety net for themselves to protect their future against economic down times and ensure that their retirement is everything they wanted it to be.
Another important consideration is to look beyond the current standing of the international pension funds. Of course investors want the big money and will look at what is presently performing well; however, mutual funds are no more stable than a company stocks are. The trends for mutual funds will go up and down every few years. It is therefore important to study these trends to see which international pension funds truly are the most stable and lucrative investments.
Another important factor to consider when investing in cross border pension funds is the tax obstacles. An investor must be very careful in choosing a pension plan which is not eaten up in foreign taxes. Although, many countries are happy and anxious to sell to foreign investors, not all countries have worked out an equitable tax system that will make foreign investments of this nature worthwhile.