With escalating global inflation rates, investing has never been more important. But hasn’t investment been a buzzword overtime? Even if you think you are no investor because you are not groomed with financial knowledge or taken great financial risks, there is probably a lot you are not considering. Just by dedicating a major part of your finances into your children’s education, you are making quite a substantial investment.
However, investment at its core is much more intricate. A canny investor will carefully research where to invest before making an investment decision. Investment research is popular among investors interested in foreign markets. Usually in view of creating companies or having a personal holding company, the host country must be determined favorable for investment. Foreign investment projects as company formation Malta, or top-rated investment hosts like Switzerland, Sweden, the UK or US stand out among foreign investment choices.
These countries rank high as investment destinations based on globally reputed metrics. The case of Malta has however been intriguing to investment experts. Attractive tax policies, relative political stability, geographical connection between continents, among other things, makes it profitable to set up a company in Malta. The investment results also speak well. Malta’s FDI inflow increased by $100 million in 2021 alone.
No doubt, to create a company in Malta will not be a bad investment decision. But what other investment ideas are implementable in 2022?
- Start out Early
One certain fact about investing is that the money you invest makes more money for you. This also means that the more you invest the more returns you make. However, in the investment game time is a key determinant. The earlier you start out on investing the better for your returns.
The benefits of investing early is validated by mathematical proofs. Compound interest makes the difference between early and late starters. It earns more and faster than savings because both your investment and its principal accumulate interests.
A more practical way to view early investment is to glean from the investment story of one of America’s richest, Warren Buffet. Buffett bought his first stock as early as 11 years old. Ever since he has lived over 60 years of investing with his hedge fund company and is presently worth over $100 billion.
Perhaps not everyone can make it to a $100 billion like Buffet, but his early grasp of investment principles is something we can all adopt. Buffett’s life also teaches the inevitability of risk-taking in successful investment. Sometimes such risk can be emotionally-driven, like when he vowed in 1943 to be a millionaire at thirty or kill himself. But taking such risky moves early on is a component in his success today.
- Consider Investing in Energy Transition
While a disaster may cause unprecedented damages in a place, it might also be the catalyst for unimaginable profit elsewhere. The energy sector typifies this narrative. Following the enervating COVID-19 pandemic, the demand for energy has gone up.
Also, the ongoing Russia-Ukraine war is impacting the global oil and gas market. At the time of Russia’s invasion oil price was set at $76 per barrel. With the full escalation of the war, the price rose to $110 per barrel within a few months.
The reason is majorly due to the EU’s dependence on Russia’s supply of oil and gas. Global economic sanctions on Russia by the UK and US in response to its invasion of Ukraine has also reduced the export rate of hydrocarbon products in Russia. The global disruption affected by the ban of Russian hydrocarbons has shot up its demand, especially in European countries dependent on Russian supply.
While it seems unethical to gain off the back of disasters, the global advantages of investing against the low supply of oil and gas are significant. Energy transition – to renewable energy sources has recently seen more advocacy given the climate change mitigation benefits it portends. Mitigating climate change is desirable, simply because we still want our planet inhabitable for a long time. So, investing in the energy transition industry is both rewarding and life-preserving.
A good investment idea in energy transition is by investing in renewable energy-based companies. With wind and solar energy sources constituting over 10% of the world’s renewable energy source, accelerated energy transition through investment will sustain the switch. NextEra Energy Inc (NEE), Freyr Battery (FREY), First Solar Inc. (FSLR), are some of the renewable energy stocks you can invest in.
- Invest in International Stocks
As an investor in 2022, broadening your investment scope is a right move. Moving towards international investments opens up new economic realities and unfetters you from the constraints and risks of your immediate location.
Notably, investing internationally benefits you in two major ways. First you are able to spread out your risks among foreign markets. This can help to absorb your investment risks due to the different market experiences. This means that if you are losing in one country, you may profit in another. And it doesn’t have to be at equal rates.
Also, international investment helps you to seize the growth potentials in other countries’ markets. As a foreign investor, you can as well benefit from the regulations involved in company formation. Some European countries provide easy processes to create companies. The fluid process of company registration in Malta is an example of a straightforward and standardized process in foreign company formation.
- Invest for Your Retirement
Like every other person, you imagine a post-retirement life that is filled with financial ease. But not all are prepared to invest in it. The downtrend in the value of stocks and bonds and rising inflation are some of the reasons financial experts give when they pronounce that 2022 is not a great retirement year. In other words, retirement planning is more important now than ever.
Adopting a pension plan or a defined contribution plan at your place of work can work well for your retirement. However, one of the tested and proven money-friendly retirement options is retiring overseas. Retiring overseas can bring ease to your finances. There are several destinations abroad with subsidized costs on property, healthcare, tax rates, and living conditions. This is why many Westerners choose retiring in Malta, Finland, Spain, Netherlands among others over retiring in the US.
The top-perfoming investment ideas in 2022 can be summed in the statement “investing requires strategy”. Investing strategically includes identifying the best investment destinations. If, for instance, you are exploring Europe for a country with company formation potentials Malta is one.
Company formation Malta is one of the most incentivised investment choices in the world. The Maltese government does this by granting citizenship in exchange for investment to non-Europeans. Asides this, seizing the opportunity to create a company in Malta comes with a lot of economic benefits that guarantee profitable returns.