Author Topic: How can a Latin American start to invest?  (Read 2423 times)

mvaliente2001

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How can a Latin American start to invest?
« on: September 12, 2012, 08:50:56 AM »
Hi, I'm a Latin American living in Venezuela. I can save about $700/month and I would like to invest it in USA or Europe.  I would appreciate if you give me some advice.

  * Is this little income enough to start investing?
  * Is it legal, can I invest in USA markets being an foreigner in an foreign country?
  * About taxes, would I have to declare taxes in USA?
  * If I can invest in USA or Europe, could you give me a link to information about how to start.

I don't know how to start. What organization should I contact to start investing? What would be a sensible plan, giving my geographic location?

My goals are modests. Mostly (i) protect my money of inflation, (ii) gain more than the saving rates and (iii) Begin to learn how to invest.

Thanks in advance.

gooki

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Re: How can a Latin American start to invest?
« Reply #1 on: September 12, 2012, 06:26:19 PM »
1. No, that's perfectly acceptable ammonium to invest on a monthly basis.
2. Yes, perfectly legal.
3. Complete a W-8BEN form with your investment provider to avoid paying US taxes.
4. With your monthly input I'd be looking at investing in Vanguard index funds. So give them a bell and see if they offer accounts to people in your location:
https://global.vanguard.com/international/americas/home/home.html

Is their a reason you don't want to invest locally? Exchange rate fluctuations can kill foreign investment returns, something you don;t have to deal with, when keeping your money local.

mvaliente2001

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Re: How can a Latin American start to invest?
« Reply #2 on: September 13, 2012, 08:59:35 PM »
Thank you for your reply, this is what I was looking for.

One of the problems with local investment is inflation. The governments in my country  can't control or don't care about controlling inflation.

The other reason is that currently you can't freely buy and sell foreign currencies. This is not the first time that such restrictions have been placed and surely it won't be the last time.  So, I want to stay away of my local currency.


Thanks again!

AdrianM

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Re: How can a Latin American start to invest?
« Reply #3 on: September 13, 2012, 10:33:46 PM »
In one word I can tell you why he doesn't want to invest in his his own country.

"Chavez"

Venezuela would be a great country to invest in if it wasn't for the succession of tin pot dictators in charge.

daddynuke

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Re: How can a Latin American start to invest?
« Reply #4 on: April 04, 2014, 03:47:52 AM »
1. No, that's perfectly acceptable ammonium to invest on a monthly basis.
2. Yes, perfectly legal.
3. Complete a W-8BEN form with your investment provider to avoid paying US taxes.
4. With your monthly input I'd be looking at investing in Vanguard index funds. So give them a bell and see if they offer accounts to people in your location:
https://global.vanguard.com/international/americas/home/home.html

Is their a reason you don't want to invest locally? Exchange rate fluctuations can kill foreign investment returns, something you don;t have to deal with, when keeping your money local.

The Vanguard link is intended only for institutional investors. I am in Costa Rica and have no way to buy into an index fund from there and need some options. Anyone have a suggestion?