Offshore Funds for Expats

Investing intelligently may at first seem a daunting task. But by focusing on a few key investment principles, even the newest investor can maximize the total returns on their portfolio.

Some of these principles include:

Tax Planning: Taxes can be the biggest drain on the performance of any portfolio. Investors should protect themselves by utilizing tax structures and offshore funds that reduce or eliminate taxable events.

Safety: When an opportunity sounds too good to be true, it probably is. Accordingly, all investments must be made via well-known and established companies in OECD “white list” countries. And the local government must offer substantial government backed guarantees on investments. Without basic assurances that your money will be treated appropriately, there is no reason invest anywhere. Stick with offshore funds that have a high level of safety infrastructure.

Diversification: For most expats, it is best to use diversified investment vehicles such as offshore funds, index funds, ETFs, hedge funds, REITs, etc. By diversifying properly investors avoid exposure to risk factors affecting individual investments.

Asset Allocation: Maximize portfolio returns by investing across multiple asset classes. These include equities (stocks), bonds, real estate, commodities, and alternative investments. Proper asset allocation is an easy way to control the risk in your portfolio, while maximizing returns across different types of market conditions.

Think Globally: Global markets are complex and intertwined together. But not all markets move in the same direction at the same time. For example, a large move in the US stock indexes might have little near term impact on the price of Eastern European property. By investing in areas that have limited correlation to each other investors can further reduce risk, and take advantage of rising markets.

Have an income goal: For many, the goal is to have a passive income that will support their future target lifestyle. Be clear about your goals and how much you will need to invest NOW to make that overseas pension goal a reality. Building a global pension only happens when goals and action come together.

DIY Offshore is proud to work with investors of all sizes and circumstances. For information about international investments and global pensions, register using the form on the top left of the page. Learn how to invest offshore easily and effectively.