How To Keep & Grow Your Money #18

Cash is king 👑

Not long ago, investors were chasing rocketship startups in hopes of a huge payday.

Boy how times have changed.

Those overvalued, buzzy startups just aren't as attractive anymore. You know what's cool? Undervalued companies that earn real profit.

WebStreet finds these companies, acquires them, improves them, and sells them. (And lets you invest)

• They buy overlooked businesses already earning money

• They improve operations, so they make even more money

• They bundle everything into a single, powerful fund that you can invest in.

It's like micro private equity on autopilot.

Unlike a lot of startups, WebStreet is doing great.

Are you an accredited investor looking for passive income and want to invest in businesses providing real value? Join WebStreet’s Waitlist Here.

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In this letter, we analyze the iShares China Large-Cap ETF (FXI).

Ticker: IWF | Price: $30.21 | Market Cap: $8.4B | Average 10-Year Annual Return: 0.6% (as of November 2024)

What is it (short): The iShares China Large-Cap ETF tracks 50 of the largest Chinese companies listed on the Hong Kong Stock Exchange, providing exposure to China’s leading industries.

What is it (long): FXI is designed to reflect the performance of large-cap Chinese stocks, heavily weighted in sectors like financials, technology, and consumer goods. By tracking the FTSE China 50 Index, it offers a concentrated approach to investing in China's economy. While FXI provides access to an important emerging market, its performance can be influenced by regulatory changes, trade tensions, and currency risks.

Our thoughts: FXI is a good choice for investors looking to diversify into China’s economic growth. However, geopolitical risks and market volatility should be carefully considered. Pairing FXI with broader international ETFs may help balance risk while leveraging China's growth potential.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

St. Kitts & Nevis Citizenship-by-Investment Program: New Updates and Opportunities

Overview:

St. Kitts & Nevis recently updated its Citizenship-by-Investment Program (CIP) to attract global investors. These changes make it more accessible while maintaining its reputation as one of the most respected programs in the Caribbean.

Key Updates:

• Lower Investment Thresholds:

  • Developer Real Estate Option: Now starts at $325,000 (down from $400,000).

  • Single-Family Home Option: Starts at $600,000 (down from $800,000).

• Eligibility Adjustments:

  • Dependent parents now qualify at 55 (previously 65).

  • Reduced newborn fees to $7,500 (a $2,500 drop).

Benefits:

1. Visa-Free Travel: Access to 145 countries, including the EU and UK.

2. Tax Advantages: No personal income, inheritance, or capital gains tax.

3. Legacy Planning: Citizenship can be passed down to future generations.

4. Stable Processing: Over 40 years of experience in CBI, ensuring efficient and trustworthy handling.

Why the Changes?

Revenue from the program decreased by 60% this year, prompting the government to make it more competitive. Despite reduced thresholds, it maintains robust due diligence and processing standards​

Conclusion

St. Kitts & Nevis offers a strong balance of affordability and reliability in the Caribbean CBI market. Whether you seek global mobility, tax benefits, or a Plan B for your family, these updates make it a compelling option. However, due to ongoing competition and regulatory scrutiny, consulting experts is recommended for personalized guidance.

Global Optimizer offers resources to help expats adapt to these potential changes.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial concept to learn in this edition: Compound Interest

What is Compound Intersest and Why is it Important for Investing?

Definition: Compound interest is the interest calculated on the initial principal as well as the accumulated interest from previous periods. In simple terms, it’s "interest on interest," which helps your money grow faster over time compared to simple interest.

How It Works:

• Initial Investment: You invest a certain amount (principal).

• Growth Over Time: The investment earns interest, which is then reinvested, allowing future interest to be calculated on a larger base.

• The Effect of Time: The longer the compounding period, the more exponential the growth.

Why It Matters for Investors:

1. Maximizes Growth: Compound interest accelerates the growth of your investments, making it essential for long-term goals like retirement or education savings.

2. Encourages Early Investing: The earlier you start investing, the more time compound interest has to work, multiplying your wealth significantly over decades.

3. Applies to Multiple Assets: It works with a variety of investment types, including savings accounts, mutual funds, and reinvested dividends.

Example:

• Without Compound Interest: A $10,000 investment at 5% simple interest grows to $15,000 in 10 years.

• With Compound Interest: The same $10,000 at 5% compound interest grows to approximately $16,288 in 10 years (compounded annually).

Key Considerations:

• Rate of Return: A higher rate accelerates compounding but may involve more risk.

• Frequency of Compounding: More frequent compounding (e.g., daily vs. annual) leads to faster growth.

• Time Horizon: Longer investment periods amplify the power of compounding.

Importance for Financial Freedom:

Compound interest allows your money to work for you. Even small, consistent investments can grow into substantial sums over time, highlighting the value of patience and discipline in investing.

Takeaway:

Start early, reinvest your earnings, and let compound interest do the heavy lifting for your financial future. It’s one of the most powerful tools for building wealth over time.

To learn more about Compound Interest read more on Investopedia here or learn more on how to invest here.