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How global sporting events like the FIFA World Cup reinvigorate the economy

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International sporting events have long been a great source of entertainment and inspiration for the millions of fans around the world. While the spotlight goes to the best teams and their most valuable players, the economic impact of international sports events is not often given its place in the podium.

For many people, this is always a big question: Despite the fact that hosting international sporting competitions cost millions to billions of dollars, why are countries still willing to take in this responsibility? Most importantly, why do hundreds of member countries spend and invest in these events in the first place? The answer lies in how it directly affects the national and global economy.

The FIFA World Cup, for instance, has brought a significant impact not only on the economy of its host country but it has also made its economic presence felt on a global scale. This is because, hosting sports events like the World Cup can easily ensure inflows of foreign capital, directly generating local employment and promoting tourism.

Opportunities for employment and a boost for other industries such as banking, hospitality, and construction to name a few, are some of the many aspects that can eventually encourage and reinvigorate the confidence for investments.

While most major sporting events take place in relatively large countries like the US, Brazil, China, and Russia, there are smaller jurisdictions that host athletic spectacles that may be lower in profile but equally global in scale. The 2017 America’s Cup, for example, took place in the British Overseas Territory of Bermuda (home to major offshore investment institutions like LOM Financial). The 2022 World Cup, meanwhile, is expected to be hosted for the first time by the small GCC nation of Qatar.

Although hosts invest billions of dollars to provide the proper infrastructure to support events like these, analysts have always been positive of a generous return of investment. Russia, the host for 2018’s World Cup, for instance, expects $31 billion economic impacts, according to its organizers.

Should investors worry about inflation?

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In definition, inflation takes place when there is a noticeable rise in the prices of both goods and services, resulting in an equal fall of a currency’s purchasing power. This event has majorly caused serious financial woes especially for fix-waged earners, but this period can also be challenging especially for investors looking at long-term goals.

How inflation affects investors will depend on their choice of investment. Basically, as the implicit value of money fails, long-term investors have to worry about how inflation can slowly take away real savings, devaluing investment returns and at the same time, decreasing their long-term purchasing power.

Unprotected investment portfolios that lack enough diversification can be the top victim of inflation. For instance, investors who look forward to a stable income stream from fixed income securities find inflation as their number one threat. Most fixed income securities carry the same rate of interest until maturity, making its purchasing power vulnerable to decline.

As a response to the risks posed by inflation, experts—such as LOM Financial—suggest investing in equities as a more flexible and safer alternative. With this type of investment vehicle, there’s a higher possibility that the value of one’s investment can have the chance to fight the effects of inflation.

However, investing in equities doesn’t protect you from other threats that could make you lose your money. This investment option carries a high risk and should be carefully studied and assessed. Such risks are understandably a major consideration in how portfolios must be designed, including offshore discretionary management accounts.

Of course, your investing strategies should ultimately depend on your financial goals and how you want to survive in the world of investing. The only way to protect yourself from these risks is to stay informed, learn from your failures, and remember the lessons of your success.

Offshore financial centers and how they thrive on near-zero taxation

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Most countries generate revenue via different sources and national taxation is one of them. Two of the biggest national income providers come from the citizen’s personal income tax and the domiciled companies’ corporate taxes, but what happens to jurisdictions who decided not to impose them?

Offshore financial centers (OFCs) are often asked the same question: how can these geographically small nations afford not to impose corporate and personal income taxes? Since it’s impossible to support the economic growth of these countries, how will they make up for the loss from the absence of these revenue-generating systems?

The truth is, OFCs enjoy several benefits than other nations but it doesn’t mean that they’re completely tax-free. The taxation system in the Cayman Islands, for instance, supplement the loss of corporate taxes by imposing several measures like increasing tax requirements for imported goods, resulting in a higher cost of living. This means that while employees enjoy a completely zero income tax environment, they have to pay higher for their daily, living expenses.

One of the most interesting facts about the Cayman Islands is the number of domiciled companies in this jurisdiction: approximately over a hundred thousand – that’s almost twice their territory’s total population. This impressive statistics also means one thing: while there is no corporate tax collected from over 100,000 companies based in this offshore investment center, the government still earns by imposing registration fees as not just a one-time payment since an annual renewal fee for continued operations is also required.

Indeed, tax revenues from a growing business environment as well as the spending power of a particular population make up a large percentage of the national income, but there is also one sector that contributes to its total earnings: the tourism industry. From this highly active sector, tropical OFC destinations earn from collecting departure taxes as soon as tourists exit the country.

Here’s how top athletes build their wealth outside the sports industry

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Just like any other celebrity, professional athletes equally share the ups and downs of fame and fortune. Success has let them achieve their wildest dreams, doing the things that they love while amassing wealth and inspiring millions of fans around the world.

However, accomplished athletes also face the everyday challenges of managing and maintaining their wealth. Unlike other celebrities like Hollywood superstars or self-made millionaires, their income peaks at a very young age and can dramatically and unpredictably drop depending on some unforeseen circumstances.

Most of the time, professional athletes are amateur wealth managers and their financial literacy can fall ‘below average,’ making them vulnerable to risky investments and unwise decisions, among others. However, there are some who have successfully found the ultimate solution to both maintain and grow their wealth by focusing on one important goal: building multiple streams of income. In other words, as professional and high-earning athletes, they make more money not just from one but many sources.

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For instance, most individuals who have enough financial resources earn more by diversifying their income through investing, especially with trusted investment companies such as LOM Financial. In contrary to what other people think, investing is not just about setting money aside for a rainy day but it’s more about using a substantial capital to generate an equally significant income over time.

Another income stream that professional athletes can look at is in real estate – by diversifying one’s investment portfolio by acquiring properties that can provide long-term, and tax-free, financial benefit. In fact, several sports superstars including Andre Agassi, Alex Rodriguez and Shaquille O’Neal have found a home in the real estate industry.

Finally, most athletes don’t really enjoy the technicalities of financial management but do love to earn more by doing something that they enjoy. One stream of income is starting a small business, whether online or offline. Some may call it, “hobby business” and it’s for a reason. Usually, this stream of income is related to the athletes’ interests and hobbies.