When the average person hears about something like “offshore” investing, they automatically imagine something sinister or dark, possibly even illegal, that people are using to dodge the authorities in order to hide ill-gotten gains. This is not always the case, however.
Sure, there are some who would use offshore investments to suspicious ends, but there are also quite a large number of perfectly legitimate, prudently sound reasons to consider adding offshore products to your ever-growing portfolio.
“For the individual investor, there are many benefits to offshore investments, whether they are expatriates living abroad or citizens living in their home country. Offshore investing is a financial option one should be aware of in their quest to build a solid and protected portfolio that increases in value
Economic uncertainty can be just one of many different factors that may have an impact on the various types of investments we choose to pursue. One of the variables that can define the magnitude of that impact is where our investments are based. If you look at certain economic jurisdictions, say Luxembourg or the Isle of Man, for example, you will find much stronger regulations set in place to protect investors and yet both the aforementioned places have fewer restrictions in place that limit investors, compared to other countries and jurisdictions. If you decide to settle on a financial provider in one of these international investment centers for your money’s future, you will find that you immediately gain access to a much broader range of commodities, funds, bonds and structured products than you might have access to in your home country.
What makes these offshore situations so great is that the flexibility they provide and the wider selection of products they make available to the investor also includes the option to invest in different currencies.
While it’s true that the US dollar is always strong, you’d be surprised at how many savvy investors choose to diversify their holdings in multiple currencies solely as a means of protecting their investments against the slim, but nonetheless possible, chance that a significant shift in the value of the US dollar might occur. From the Japanese yen to the Swiss franc, there are strong alternative currencies who stand on their own almost as strongly as the US dollar, which is to say that if something were to happen to the dollar, currencies like these could remain relatively unaffected.
Investor protections and disclosure laws may not be something you’re entirely comfortable with, depending on the country in which you reside. Just because you are looking for protection and confidentiality in your investments does not mean you are doing so for nefarious reasons. You may be looking for investments that protect you from unnecessary disclosures because certain countries have more lenient laws on information breaches. With that as the case, however, even the most investor-friendly jurisdictions ultimately still have to be in compliance with the Common Reporting Standards.
Obviously, one of the biggest perks to offshore investing is the tax advantages. It’s not that offshore investing is an instrument for avoiding taxes, as many of you have been led to believe, but rather a tool by which to utilize more options for how and when you are taxed.
Additionally, if you are an expatriate or someone who plans on travelling the globe during your life, there’s a high likelihood that you will have to move funds around from different banks or cash out bank accounts, pension plans and so forth. The good news is that no matter where you go, your offshore investments continue to work for you, ideally earning you more money for as long as you’re in the game.
Nonetheless, careful consideration should be applied when it comes to offshore investing. It’s important that you touch base with a trusted financial advisor like myself so that you know exactly which offshore products are sound and which are not. I can walk you through every conceivable option and variable to help you ultimately decide which offshore investment is most prudent for you.
Richard Cayne originally from Montreal, Quebec Canada currently resides in Bangkok Thailand and runs the Meyer Group of Companies www.meyerjapan.com. Prior to which he was residing in Tokyo Japan for over 15 years and is currently CEO of Asia Wealth Group Holdings Ltd a London, UK Stock Exchange listed Financial Holdings Company
Richard Cayne has been involved in wealth management in Asia for over 25 years and has assisted many High Net worth Japanese families create innovative international tax and wealth management planning solutions. The public company of which he is CEO can be seen at www.asiawealthgroup.com or stock exchange link: