Why Go Offshore?

For those who are concerned or fearful about "going offshore" for asset protection, investments or even for business, it may be helpful to remember that risk is relative. Jumping out of a two-story window is certainly high on the risk scale, but if the building is on fire and you can't get out any other way, the two-story jump is a lot less risky than staying where you are.

Before discussing some of the ways in which you can reduce the risk of losing your assets by moving them offshore, let's look at some of the alternatives and the reasons why an increasing number of people are moving some of their assets offshore.

There is a resentful debate going on between those who believe there is "no place like home. There is great freedom of movement within our borders and we are not burdened by a multiplicity of languages.

While the mass media seems to have a large tendency toward socialist policies, it is still possible to write and publish information critical of the government and its policies. Despite the many complaints about medical system, it still offers more choice and access to care than many other medical care systems in the major countries of the world
But there are cancers growing in the body politic and some fear they are unalterable.

One is the so-called "war on drugs" which led to the creation of a curious felony known as money laundering. While this law was created on the excuse that it would hurt the drug dealers, it's become a trap for people who have no ties to any form of criminal activity. Another casualty of the war on drugs is the right to be secure in the custody of our property, which is apparently protected by the Fourth Amendment to the Constitution.

With no legal proof, nearly any government agent or police officer can accuse you of some crime and then proceed to confiscate any property you have that is remotely connected with the alleged crime. Abuses of the asset forfeiture laws are becoming legendary. The recent reform law that was intended to curtail these abuses is not expected to have much impact. In many federal agencies, states, counties and cities, revenues from forfeitures are assumed to be available as a substitute for budgeting the funds to pay for the law enforcement efforts. Thus, the law enforcement personnel are forced to create opportunities for forfeitures in order to meet their budgets.  


Why people go offshore!


The reasons for going offshore and utilizing offshore companies for tax planning and offshore business include:

• Free remittance of profits and capital
• Reduced taxation
• Access to tax treaties
• Security of property rights
• Banking privacy
• The search for political stability
• Availability of offshore experts
• Access to foreign insurance and reinsurance
• Customs and duty exemptions
• Exchange convertibility
• Government cooperation
• Fair treatment
• Territorial taxation on foreign income
• Fewer restrictions
• Tested legal systems
• Higher yields and returns

The motivations for individuals and corporations to utilize offshore planning and offshore companies include the desire to:

• Reduce tax
• Protect assets
• Maintain privacy
• Avoid bureaucracy
• Manage risk
• Reduce costs
• Enhance assets.

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There are other benefits in having some assets offshore.


Access to Foreign Investments:

While there are a profusion of investment opportunities, they are not necessarily the best investments for every investor. There are many investment choices only available in the world. Some of the top mutual fund managers in the world have formed investment funds. Many of these foreign funds are even managed by US fund managers. 
Financial Investment Diversification: 

For maximum profits there is an adage that you should "Put all your eggs in one basket, and then watch that basket closely." This is fine for those who are able to spend all of their time staying on top of their investments, but it poses great risk for those who are still working and unable to devote all of their time to "watching their investment basket." 

There are in fact many different kinds of risk besides the most often discussed risk of not being able to get full value at any time. A diversified investment portfolio would include investments in different industries, in different countries and even in different currencies. While you can obtain investments in different currencies and countries through US sources, having some investments outside a single political jurisdiction would be another form of diversification from a different kind of risk. 

Global Trade Opportunities:


It's become a platitude to say "The world is getting smaller", but platitude’s become platitude because they are abundantly true. If you want to do business then there will be occasions when you need to have some financial assets. That may be all the reason you need to "go offshore".  
Safer Banks & Insurance Companies:

The "free" government "insurance" for our savings and checking accounts isn't free and isn't insurance. Real insurance involves a fund of assets that are based on the statistical likelihood that some event may occur. The premiums paid by all of the policyholder are based on the averages of the payments to some of the policyholders. Thus, if one out of 1,000 policyholders is likely to incur a loss of $100,000, then each of the policyholders would have to pay $100 to cover their statistical share of that loss. And, insurance companies don't insure people who are likely to have a claim. That's why you have to have a physical exam for life or health insurance. You can't get flood insurance if you insist in living on a flood plane - unless it's government "insurance". 

In order to save your time learning about The Offshore World we encourage you sign up to The Tax Haven Report, Insider Guide rather than look for answers on your own. You'll get a direct access to contacts in the offshore country of interest  (Approved Government Agents) and you get comprehensive cost-effective offshore solutions. 

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