Is offshore investing only for the rich and famous?
Probably not, although most of us don't know a lot about offshore
investing. Here is a simple primer for the fledgling offshore investor.
Offshore investing is simply placing your investment dollars in an
account with a bank that is not in the United States. There are several
advantages to investing offshore.
First, there is
less regulation. Some may feel that this makes the investment riskier,
but that is not necessarily the case. It does allow the fund manager or
company to act more freely. The lack of regulation also means less
taxes. Most offshore accounts are invested in countries that have
minimal tax laws for these investments. That means that more of your
money is available to work for you.
Privacy is
also an issue for some investors. Most of the countries typically
involved in offshore investments have laws making it illegal for the
investment firms to release any information regarding their investors.
There is virtually no governmental reporting. This ensures that your
investments and personal information will be confidential. For many who
want privacy, this is a major benefit of offshore accounts.
In our lawsuit happy society, those with assets want to protect them
from litigation. Many of the offshore countries chosen have laws that
don't recognize foreign awards so the assets placed in these countries
are not subject to seizure. Although not a major consideration for
everyone, for many it is a factor in deciding to choose an offshore
investment vehicle.
Many of the offshore
jurisdiction have much less complicated estate laws and tax structures.
Utilizing offshore accounts for estate planning purposes is becoming
more and more popular. Many set up an offshore charitable foundation in
countries with favorable estate tax laws.
In
order to set up an offshore investment account, an individual must
either reside in or establish a legal presence in the offshore country
that will make the gains taxable in that jurisdiction and not the
onshore one. There are several companies that will help you set up a
corporation and complete the required paperwork to get started in
offshore investing. These firms will help you set up a corporation
called an International Business Corporation (IBC) or a Limited
Liability Corporation (LLC).
If you're happy with your existing
portfolio, but you want to move it offshore, you can move to a
brokerage firm offshore once the legal paperwork is completed. The
brokerage account will be opened under the name of the IBC, and then
the brokerage completes your orders in the name of the IBC. Your
personal identity is never involved. Of course, these brokerages can
invest in offshore mutual funds or any investment worldwide. Offshore
investing may not be for everyone, but if you have assets that you want
to protect from seizure, you want to maintain the strictest
confidentiality, or you want to seek tax relief, investigate the
possibilities. You may find that offshore investing will help you reach
your financial goals.
About the Author :
Jay Moncliff is the founder of
http://www.investingcenter.info a website specialized on
Investing, resources and articles. This site provides updated information on Investing. For more info visit his site:
Investing 
