Money Management

Before you take the plunge, make sure you look at the pros and cons. 

Investing overseas can be an excellent way to diversify your portfolio. This can open up a world of opportunities to increase returns on your investments, as well as minimize risk. However, before you dive headfirst into investing abroad, there are some important factors that you need to take into consideration. Let’s take a look at some of the pros and cons of investing overseas, as well as some tips on how to get started.

The pros of investing overseas

Investing overseas is an excellent way to diversify your portfolio and spread out risk. Because the markets in different countries tend to move differently than each other at different times, this can reduce your overall risk while still allowing you to capitalize on potential gains.

Additionally, investing overseas can give you access to more investment opportunities than those available in your home country. This could potentially allow you to invest in companies or industries that may not be easily accessible in your home market.

The cons of investing overseas

There are also some drawbacks associated with investing overseas that must be taken into consideration before making any decisions. One issue is that it can be difficult (and expensive) for investors located far away from their investments to monitor performance and make adjustments when necessary.

In addition, foreign investments often come with higher fees due to currency conversion costs or taxes associated with foreign transactions. Finally, it’s important to understand the legal system of the country in which you’re investing, as this may influence whether certain investments are allowed by law or if certain taxes apply. Here are the factors you should consider when choosing which international companies and countries to invest in.

1. Political events

The political climate in a particular country or region can have a huge impact on whether investments in that area will be successful. Political instability can lead to economic uncertainty and even chaos, which can negatively impact investments. Is the country in danger of a civil war? Or a coup d’etat? Be sure to research the political situation in any country you are considering investing in before making any decisions.

2. Economic and social events

Like political events, economic and social events also play an important role in the success of overseas investments. For example, if a country is suffering from an economic recession or a social upheaval is taking place — such as civil unrest — it could be difficult for investors to make wise decisions regarding their investments. Therefore, it’s important to pay attention to both economic and social developments when researching countries for investment opportunities.

3. Currency exchange risk

When investing overseas, one of the biggest risks you face is currency exchange risk. This means that your investments could lose value due to fluctuations in foreign exchange rates between the U.S dollar and other currencies used around the world. For example, during the 1994 Mexican Peso crisis, the IMF had to inject $50 billion into Mexico’s economy. To mitigate this risk, it’s important to use hedging strategies when trading on international markets.

4. Transparency and access to information

Investing overseas also requires access to good quality information about local markets. This may not always be available easily or quickly enough for investors in another country. It’s also important that investors have access to accurate data on market conditions so they can make informed decisions. Unlike the U.S., many countries do not require a high level of transparency for publicly traded companies.

5. Costs and legal remedies

Investing overseas comes with its own set of associated costs, including transaction fees (brokerage fees) and taxes (if applicable), as well as legal fees. There may be high costs to get the research and information needed. As such, it is important for investors considering investing internationally to do their due diligence in a foreign country. In addition, if there are any legal issues, they may have to be resolved in that country, which can complicate things even further.

6. Illiquidity

Another factor investors need to consider when looking at international investments is liquidity and how easy it is for them to get out of positions held offshore. Some securities traded outside the U.S. may not always be liquid, meaning investors could find themselves stuck with positions they cannot easily sell.

7. Different market operations

National exchanges operate differently from each other, which means investors must familiarize themselves with rules governing those exchanges. Failure to understand them could cause problems down the line.

Investing overseas can be a great way for investors looking for new opportunities or ways to diversify their portfolios. However, it comes with certain risks associated with international markets. Political risks, different regulations, costs, and currency exchange risks are some of the factors to consider. By researching thoroughly prior to making any decisions, investors will have better chances at making successful international investments while avoiding unpleasant surprises down the road!

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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Target has recycled 2.19 million car seats through its trade-in program.  

Target’s car seat trade-in program is back just in time for your spring cleaning. If you have a car seat you’re no longer using, you can bring it to your local Target during select dates to be recycled. Target will recycle your car seat, and you’ll get a coupon. This program provides the perfect opportunity to get 20% off the new gear you’ve been meaning to buy. Don’t miss out on this two-week event.

What you need to know about this popular trade-in event

Target introduced its car seat trade-in program in 2016 and has since recycled 2.19 million car seats. The retailer’s next trade-in event will run from April 16, 2023, through April 29, 2023. Most, but not all, Target stores will participate in the program. Guests are encouraged to bring an old, expired, or damaged car seat to Target to be recycled during the event.

Drop-off boxes will be located near Guest Services. After dropping off a car seat, a 20% off coupon will be loaded to your Target Circle account through the retailer’s mobile app. During the event, Target will accept all car seats, including infant car seats, convertible car seats, car seat bases, harness or booster car seats, and expired or damaged car seats.

You can use the 20% off coupon to purchase a car seat, stroller, or select baby gear, including playards, high chairs, swings, rockers, bouncers, walkers, entertainers, and jumpers. Shoppers can redeem the coupon in-store or online through May 13, 2023. Each guest will receive one coupon per Target Circle account and can redeem each coupon twice.

Other ways to save on baby and toddler gear

If you’re about to do spring cleaning, this event is an ideal time to recycle additional unused baby and toddler gear you have taking up space around the house. If you regularly shop at Target and need new essentials for your baby or toddler, below are a few additional ways to keep more money in your checking account while you shop for your child:

Join the Target Circle program to get discounts and rewards: The Target Circle Rewards program is free to join. As a member, you can clip virtual coupons and earn cash back rewards when you shop. You can redeem your earned rewards as a discount on your next purchase. If you’re on a budget, this easy-to-use program can be a win for your wallet. Don’t forget to check the weekly sales flier: Target outlines its weekly sales on its website and mobile app. Before your next trip to Target, review the weekly ad to see what items are on sale. Shopping on-sale items and making a list can help you avoid overspending. Get a better price with Target’s price match guarantee: This Target policy could help you spend less on your next haul. The retailer will match its own online and mobile app prices if the price is lower than the in-store price. Target will also match the lower price for select retailers like Amazon, Best Buy, and Wayfair. Shop the clearance rack: Like other retailers, Target sells clearance items. While shopping, don’t forget to check the clearance rack to see if you can find a worthwhile bargain buy. This could be a great way to save on baby gear, clothing, accessories, and toys.

You’re not alone if you’re looking for ways to stretch your money further. Even in today’s expensive world, staying on budget while shopping for everyday essentials is possible. Check out these free personal finance resources for additional ways to save money.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Best Buy, and Target. The Motley Fool has a disclosure policy.

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Soon, more shoppers will have a Costco in their neighborhoods. 

Many shoppers are big fans of warehouse clubs like Costco. Members can keep more money in their checking accounts by purchasing everyday household essentials, toiletries, and groceries in bulk. While Costco already has hundreds of warehouse clubs nationwide, there will soon be more. The retailer is opening several locations in the U.S. and abroad. This could make for the perfect opportunity to give Costco a try soon.

Costco will soon be available to more shoppers

Costco currently operates nearly 600 clubs throughout the United States — but the brand has plans to continue expanding. The warehouse club announced on its website that it plans to open locations in three U.S. cities this spring.

A new club is set to open in Kyle, Texas, in April 2023. Costco will also open locations in Longmont, Colorado, and Tulsa, Oklahoma, in May 2023. If you live in any of these areas, you may get to shop in a brand-new club soon.

The retailer will also open new locations in other parts of the world, including London, Ontario, Meiwa, Japan, Gold Coast, Australia, and Yinzhou, China. All locations are set to open between March and June of this year. This continued growth shows warehouse clubs are in demand as shoppers look for ways to reduce their spending.

Should you join a warehouse club?

You may wonder if joining Costco is a good idea. You might be able to save money by shopping with the retailer. But you should ensure it’s a good money move for your situation. Before charging a yearly a membership to your credit card, consider the following:

Club location

Check to see what clubs are in your area. Joining a warehouse club may not make sense if you don’t have a location near your home or work. Having to drive a long distance and spend extra money on gas every time you need to restock could cancel out the savings you get.

Membership cost

You’ll need a membership to shop at a warehouse club. Before spending money on a membership, make sure you budget for the yearly cost. You should also consider whether you’ll use your membership often. It could be a good investment if you plan to visit at least several times a year. But if you don’t plan to visit often, it may not be a worthwhile expense.

Food waste

While not all items sold at warehouse clubs are sold in bulk, many are. If you have a big family or live with several people, it may be easier to use up products before they expire. But if you live alone or with only one other person, there could be a risk of food waste.

Storage space

Finally, consider how much storage space you have at home. Do you have enough dry storage, and fridge and freezer space for bulk purchases? When you come home from a haul, you’ll want to feel confident that you have enough room to store everything you bought.

Shopping at Costco could be a win for your wallet

Shopping at a warehouse club like Costco could help you keep more cash in your pocket. Whether you shop at Costco or another retailer, you can avoid overspending and stay on budget by creating a shopping list. Having a plan can help you avoid impulse buys. For additional ways to save money, check out our personal finance resources.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Some credit unions argue they are now actually safer than banks. 

The rapid collapse of Silicon Valley Bank (SVB) spooked many bank customers who feared it could destabilize the whole system. It’s particularly unnerving for companies, charities, and high-net-worth individuals with higher deposits, as these might fall outside of the insurance thresholds. But what about credit unions? How safe is any money you have deposited with them? And how is it protected?

How credit unions protect your deposits

Credit unions are similar to banks in a lot of ways — both are financial institutions that offer savings accounts, checking accounts, loans, and other products. The biggest difference is that credit unions are nonprofits. They are member-owned cooperatives and often cater to specific groups of people, such as a region or industry.

When it comes to safeguarding your money, credit union deposits are insured by the National Credit Union Administration (NCUA). The National Credit Union Share Insurance Fund (NCUSIF) is similar to FDIC insurance, in that funds are insured for up to $250,000 per shareowner, per insured credit union, for each account ownership category. An ownership category is the way your money is held — such as a single account or a joint account.

One big difference between credit unions and banks right now is that a much larger proportion of deposits are covered. According to the Credit Union National Association, more than 91% of credit union deposits are insured. In contrast, analysis from S&P Global puts the proportion of uninsured bank deposits at almost 46%. Over 90% of SVB deposits were uninsured.

Hang on, does that mean credit unions are safer than banks?

As the impact of SVB’s collapse continues to send shockwaves through the system, some credit unions have been quick to tout their credentials as a safer alternative. It’s certainly true that the higher proportion of insured deposits makes them less susceptible to the pressures that pulled SVB and Signature Bank under. But credit unions can and do fail for other reasons — what’s important is knowing that your funds will be protected if they do.

If you have money with a credit union, make sure the union is part of the NCUA and your funds are covered by its insurance. If you have more than $250,000 in a single bank, look at ways to ensure all your deposits are protected. That might mean opening a joint account in addition to a single account, which entitles you to an additional $250,000 in insurance per person. You could also move some funds to a different bank or credit union.

If a credit union is struggling, NCUA might step in and place the union into conservatorship — essentially taking control of the organization. With the NCUA at the helm, if the credit union can fix its problems, control might be returned to the members. It might also merge with another credit union, or be liquidated. In each scenario, your funds would be protected by NCUSIF. The NCUA says, “No member of a federally insured credit union has ever lost a penny in insured accounts.”

Making sure your money is safe

Given the events of recent weeks, the jitters surrounding bank deposits are understandable. All the same, it’s worth noting that for all the uncertainty, bank customers have not lost any of their money. Even SVB customers with uninsured deposits were made whole. It isn’t clear what impact the erosion of trust will have on the sector moving forward, but there are a number of consumer protections in place to ensure your cash is safe.

Whether your funds are with a credit union or a bank, FDIC insurance and NCUA insurance matter. Most major banks and credit unions are covered, so just double check your institution is signed up. If you have less than $250,000 in deposits, your money will be protected — even if the organization fails for some reason.

If your deposits are over the insurance threshold, look for ways to cover your extra cash. You might open a new account with a different ownership category, switch to a different bank or credit union, or even open a brokerage account. See what route might work best for you. In the unlikely event that your bank or credit union fails, that insurance will make a big difference.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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