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As the global economy seeks to expand, more investors are finding that their portfolios are becoming inevitably diversified from foreign markets. Products that reach consumers at a global level almost always involve an international supply chain that requires various investments in various foreign markets. For example, investors might find infrastructure or job training investments in India are needed in order to service a customer service need or deliver an inexpensive product to consumers in rural areas.

Products made cheaply in China that reach a global audience also requires investments in shipping, marketing, and advertising in other markets. Niche companies in the United States might wish to open up a similar service in Europe or Asia, and establishing another branch and linking them together requires its own form of investment. Real estate investors that might wish to expand their business and expertise abroad must make significant investments into foreign real estate markets, many of which might function very differently from the markets in his or her parent country.

While the type of investment you are trying to make in a foreign market will vary from investor to investor, there are a few tips to consider before investing abroad. Consider the following:

Know the Rules. Not every market is the same, and it is important to fully understand the host country’s rules and regulations that apply to non-nationals who may want to invest in the country. Some countries are friendlier to outside investment than others, and it is important that all investors fully understand the legal and regulatory aspects of their investment into a given market.

Consider the Risk. Risk analysis is vital for any enterprise looking to establish operations abroad. Investment strategies will inevitably be tied to turbulent markets or countries with considerable political risk. By understanding these concerns, you may be more successful than competing investors who are not willing to take the leap.

Prepare to Lose. Investing in developing countries with weak democratic and legal infrastructure can prove to be difficult for foreign investors who might be used to stronger, established judicial institutions. Investing in countries that are ruled by dictators or despots or of which regularly experience coups, civil wars, or nationalization means foreign investors avoid those markets simply because the political risk is too great. Nevertheless, some investors find these markets desirable because they scare off much of their competitors and they can sometimes monopolize a market for a given amount of time. These investors, however, are always prepared to lose some or all of their investment and also have backup plans before going into places like Zimbabwe, Syria, or Burma, for example.

Know the Currency. Investments into foreign markets will require you to know about the local currency. Many currencies fluctuate dramatically and while pegged to the US Dollar or Euro, are not as strong, valuable, or stable. Big changes in the global market can have dramatic effects on foreign currencies, which can be either positive or negative depending on where and how you have invested. This will have consequences for investment portfolios and businesses established in a foreign market, and keeping track of the currency rate in the foreign country will prove to be a necessary part of savvy investing abroad.

Understand the Supply Chain. Your investment means nothing if your foreign country does not have the resources to fully develop, ship, and sell your product. Even if your investment is in currency or finances, the productivity and resources utilized by a country’s workforce can be different from the markets and industries you are more familiar with. Building a matchstick factory driven my inexpensive labor in West Africa is useless if the local market has no access to sulfur or the workers have no training & expertise on how to develop sulfur tips for matchsticks. How will these matches be shipped after development? The answer to that question resides outside of your industry, but must be considered if you want your investment to be profitable. These must be considered before spending substantial cash in a foreign market.

Find a Trustworthy Partnership or Strategic Ally. Leave your ego at the door. If you were not born there or didn’t spend a lot of time in a foreign country, you can do all the research in the world and still miss nuanced cultural aspects of a foreign market. This is why finding a partner or developing a strategic relationship with business owners and other investors in the country is helpful. This also builds your legitimacy as an outsider, because it will show local businesspeople that you are serious about making a legitimate investment in their country. Such an ally or strategic alliance will put you in contact with people who can help you better understand things about the local or regional environment that five years of business school could never teach a student.

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Democrats are typically the staunchest supporters of the American social safety net, particularly when it comes to Medicare and Social Security. Thus, it came as a surprise when President Obama submitted a budget that made some concessions to congressional Republicans on Social Security.

The crux of the President’s proposal for Social Security was that its benefits would be linked to the Consumer Price Index (CPI). As it stands, Social Security pension benefits are periodically evaluated and adjusted for inflation, which makes cost-of-living cost increases manageable for pensioners. By tying benefits to the CPI, people receiving Social Security benefits would get less than they do under the current plan. For example, a person who retires at 65 and receives $20,000 annually in social security would receive $289 less monthly under President Obama’s proposed plan.

House Democrats were shocked by the proposal and were wary of accepting it. Minority Leader Nancy Pelosi arranged a meeting with the Democratic Caucus to discuss the issue. The majority of the caucus was against the proposal and concerned about the possibility of it being adopted.

If Democrats are concerned, Republicans are unimpressed. Although the proposal was brought forth by President Obama as a means of getting Republicans to sign on with it, Republican House Speaker Boehner stated that he was “encouraged that the president acknowledged that our safety net programs are unsustainable,” but commented that the offer was “nothing close to what we need in order to … balance the budget.”

However, constituents shouldn’t fear that Social Security benefits will be needlessly limited. President Obama and the Democratic members of the legislature would only be willing to yield Social Security if the Republicans were also willing to make some serious concessions, in the name of balancing the budget. But considering that, according to Speaker Boehner’s remarks, this Social Security proposal is viewed as such a minor issue by Republicans— it is unlikely that it will generate any kind of meaningful compromise across the aisle. Unfortunately, the issue of indexation is not something Republicans really care about and the President’s proposal makes both parties unhappy. This makes it unlikely that Social Security reforms of this nature will make it through Congress.

In the short term, Social Security does not seem to be in danger; however, conservatives have dabbled in limiting Social Security since the beginning of this century. There are two indexation issues that come to play in calculating Social Security benefits: the first is the one addressed by the President’s proposal and the second (the one Republicans care about) relates to calculating the initial benefits for new retirees. This is actually something Republicans attempted (but ultimately failed) to reform back in 2005. The initial plan was to divert part of patrol taxes into personal retirement accounts. When this didn’t work out, Republicans looked into reforming how initial benefits are calculated, but that also failed due to Democratic opposition as well as blowback from far right conservatives.

People can begin collecting Social Security Income (SSI) when they retire. The Social Security Administration states that there is no “best age” at which to being receiving Social Security benefits, but they do explain that retirees collect a greater monthly income when they wait longer to retire. However, for some people it can be more beneficial to retire sooner, even if it means collecting less in monthly benefits. People can retire and begin collecting benefits as early as age 62, but the “full” retirement benefits are only available to those who are aged 66 or older.

In order to be eligible for Social Security Income, a person must live in the United States and be a citizen or a national. It is possible to complete most of an application for SSI online at www.socialsecurity.gov (please note that only websites ending in .gov are official government websites) or toll-free by phone at 1-800-772-1213.  When visiting the Social Security office to finish applying, a social security card, birth certificate, payroll information, and residence information are required. See SSA.gov for more information on what to bring.