You probably know some of the benefits of offshore accounts and investments. Investing in products in offshore jurisdictions provides a host of benefits from legal tax minimization or deferral to ownership confidentiality. But it’s hard to know everything that might be available to you and when and why to use each option. That’s why you need a qualified financial planning consultant such as Richard Cayne of Meyer International on your side. From products to jurisdictions, a planner can guide you toward the investments that best suit your particular goals.
Read on to find out more about offshore investment products and which might be right for you.
Why Invest Offshore?
The most basic question to that question is that moving some or all of your wealth overseas is a way to protect you, your family and everything that you’ve worked so hard for. Your offshore investments may help you to protect your assets against litigation and against the ever-changing laws in your country of citizenship or residence.
A Slew of Options
Once you’ve decided to move your money into offshore investment products, a whole new world of options becomes open to you. You can invest in areas or products that don’t exist in your country or take advantage of less or more traditional investment structures than you may be able to find in your country of residence.
Consider Your Personal Needs
Do you need to be conservative with your portfolio or can you take some risks for a possible big payout? Are you looking to invest long-term or short-term? Are tax saving opportunities the most important thing to you or is privacy? All of these are questions are ones that you and your financial planning consultant should discuss before choosing investment products for you.
Once you’ve decided what your goals are, a good consultant can guide you toward the right jurisdictions and products to help you to reach your financial goals safely.
For Reducing Taxes
Rather than focusing solely on the investment product, those interested in legally reducing their tax payments will be focused on which jurisdiction to choose to invest in as well as which product.
Consider any of the countries known for low tax rates. Smaller jurisdictions with little export product and low populations may offer particularly low tax rates for the purpose of attracting investors. This is why places like the Cayman Islands, Isle of Man and Switzerland are perpetually popular with offshore investors. Ask your international investment consultant to point you toward the right jurisdictions for you.
For Protecting Assets
Offshore investment products are great for transferring ownership of wealth and other assets both tangible and intangible. By forming structures like foundations or trusts, asset holders can create legal transfers so that assets are no longer held in their name. For some it’s as simple as succession planning and the desire to be able to pass the assets onto their loved ones without hastle.
Locations such as Liechtenstein are popular for forming asset-protection trusts as they make special protective provisions for investors that include a short statute of limitations with regards to their foreign investors. They have also come into favor because English is the first language of the jurisdiction. The Bahamas, Cyprus and Panama also offer similar enticements.
For some investors, privacy is key. The most important thing is their confidentiality and they are looking for, above all else, the promise that no one will know who is behind their assets and investments.
For these investors, banks that offer accounts to corporations rather than those associated with the individual names can be attractive. Jurisdictions that are amenable to the formation of shell companies and other discreet holding structures will also be suitable and the options are plentiful. Just make sure to go with a consultant that is knowledgeable about asset planning in these areas.
For further information about offshore investing and asset protection, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561