Investment
Expatriate offshore investment
deVere & Partners assists expatriates select offshore investment products to
suit their individual requirements. As independent International Financial Advisers,
we are able to provide a wide range of popular products managed by leading offshore
investment companies in the highly regulated offshore centres of the Isle of Man,
Dublin, British Channel Islands and Luxembourg. These locations offer the necessary
investor protection to make certain investments are protected against corporate
failure and fund mismanagement.
Offshore insurance bonds
Offshore insurance bonds, also known as investment wrappers, are widely used by
expatriates to invest offshore.
The popularity of wrappers is largely due to the fact that investors can own and
manage a diverse portfolio of offshore funds within a single cost effective financial
product, providing significant tax benefits.
One of the main reasons expatriates favour offshore insurance bonds is because,
technically, they only own an insurance policy with a death payout equal to the
value of the funds held within their bond. The investment funds held within the
wrapper are technically owned by the offshore bond provider, which pays no income
or capital gains tax within the funds. Therefore, once invested and apart from any
withholding tax deducted at source, an investor’s capital can accumulate entirely
free of tax. deVere & Partners utilises only market leading providers that have
a strong financial base.
Offshore investment bonds
What are offshore investment bonds?
Offshore insurance linked investment bonds are widely used by expatriates for investing
capital over a minimum period of 5 years.
Their popularity is largely due to their cost effectiveness and tax advantages.
Offshore bonds allow owners the flexibility to maintain a personalised portfolio
of offshore investment funds within a single structure.
Offshore investment portfolio
Expat investors are able to create a portfolio of offshore investment funds that
reflects their tolerance to risk. It allows the client to take advantage of a wide
range of tax-efficient investment opportunities in one portfolio with the flexibility
to make changes to their portfolio and provide an income, if required.
Offshore investment funds
The choice of offshore investment funds is wide ranging and includes funds managed
by some of the world’s leading offshore fund managers, selected for consistent performance.
Some of the offshore Investment fund management companies available through insurance
bonds: Fidelity, Invesco, Jardine Fleming, Perpetual, Barings, Investec, Barclays
and many more.
Offshore investment adviser service
Expatriate investors who are clients of deVere & Partners benefit from the ongoing
services from their financial adviser.
Investment timing
When to invest? Many people have experienced the stress involved in
second guessing the financial markets. They buy close to market highs and sell close
to market lows. The timing of a short term investment is critical and can make a
significant difference to its performance.
Staying in the market: To benefit from the full potential of the financial
markets, investors must stay invested during the ups and downs of the financial
markets. Investors should stay invested for at least 5 years and preferably longer.
Investment risk
Experienced expatriate investors understand it is necessary to take risks to achieve
potentially higher returns, rather than leaving their money on deposit in a bank.
Investors who cannot accept the potential for losses in the early years of an investment
should choose funds from low risk categories.
Risk factors
Nearly anything you do with your money involves risk. The key is to understand,
limit and manage risk in such a way as to accomplish your objectives. There is no
investment that does not have one or more elements of risk. Yet, some of those with
significant risk, such as real estate, common stock and closely held businesses,
have the greatest potential for return. The only solution is to diversify, spread
your funds around, carefully balancing one risk against another.
Inflation risk
Will today’s money buy as much in the future? The risk that it will not is inflation
risk. Just look at the costs of the many items you use every day. Compare their
costs today with the costs of ten, twenty or thirty years ago. The costs of housing,
automobiles, utilities, food, clothing, theatre tickets, all have increased substantially
through the years. Inflation robs the value of a fixed investment which stays level,
such as savings account. The purchasing power of the principal sum is gradually
eroded.
Market fluctuation risk
This is the risk that the real estate, limited partnership interests, stocks, bonds,
or investment company shares that you have purchased will go down in market value
after you purchase them. The market in general may fall and then rise, but your
specific investment could fall and then not rise!
Investment
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