Diversifying Assets Through Offshore Banking

Caye International Bank

Offshore Banking at Caye International BankThere are countless strategies for investment. Some individuals look for high-risk and high-reward opportunities, and others want to plan for long-term security. Whatever the strategy, however, diversification is key. In fact, that might be the most important factor in successful asset protection and investment.

One of the best ways to diversify assets is through offshore banking. Explore the need for financial diversification, better understand all your offshore options, and work toward a strategy that will help protect your investments for many years to come.

The Role of Diversification in Investment Planning

There’s a saying that almost every investor has heard at least once: Don’t put all your eggs into one basket. It might sound trite, but it’s true. There is no such thing as a guaranteed investment, and there is no such thing as a market that’s too strong to fail. The reality is that nothing is guaranteed in the world of investing, so you must be proactive in diversifying your assets.

Diversification is the act of spreading your investments to prevent concentration in any one specific area. You don’t want to have all your assets in your local checking or savings account, but you also don’t want to put all your money into energy stocks.

If your investments are diverse, then one failure doesn’t necessarily mean that your holdings will take a big hit. Every serious investor recognizes the need for financial diversification and strives for a diverse portfolio as a result.

Why Geographic Diversity Matters

There are several types of financial diversification that you can consider. One of the most important is recognizing the need for geographic diversification. Many investors take pains to spread out their investments across multiple markets, but they are still all in a one country’s currency and banking system.

Unfortunately, no market or currency is immune to problems. If the banking system failed or the currency dropped sharply for any number of reasons, would your investments hold up? That is only one of the many good reasons to explore offshore or international banking opportunities.

Holding your assets offshore means that you aren’t as vulnerable. Your holdings aren’t tied to a single country, currency, or banking system.

New Opportunities Through Offshore Banking

Domestically, you already have access to plenty of investment opportunities. The sheer choice might seem overwhelming as it is, causing you to wonder why you need more investments elsewhere.
Ultimately, all investors want the same thing: to choose the best investments with the best returns. If that’s the case for you, why limit yourself to the investment opportunities within only your home country?

There are investment structures offshore that allow you to accrue greater profits. There are also opportunities that let you limit tax erosion, protecting more of your hard-earned wealth over time. By sticking with domestic banking, you might be missing out on these options, and so many more.

For the most robust and diverse range of opportunities, don’t limit yourself to only domestic bank accounts.

Better Financial Protections Through Offshore Bank Accounts

No matter how carefully you work to protect your assets domestically, there are still measures in place that could jeopardize your financial stability. No one wants to ponder the reality of a future legal battle, a divorce, or a criminal proceeding, but these things can happen. Sometimes, they arise for completely unavoidable reasons.

Certain legal battles might mean that your assets are frozen. In other cases, the government may limit your access to your portfolio altogether. Obviously, these situations can be problematic. They range from mildly inconvenient to devastating, especially if you’re running a business or caring for dependents.

To prevent this from happening, diversification is key. If you have some assets stored overseas in offshore bank accounts, then you’ll never be without funds. Whatever situation you find yourself in, you will be able to control your own financial status.

Offshore Banking Facilitates Overseas Residency

In many cases, you can open an offshore bank account without ever having to step foot in the country. The procedure for opening an account or making an investment can typically be done online followed by a few notarized documents.

Many people who opt to diversify with offshore bank accounts because they’re thinking about relocation or retiring to a beautiful, tropical setting. Imagine that you’re planning to retire in a beachfront location. After considering the cost of living, climate, the expenses of real estate, and logistics, you decide on retirement in Belize.

A smart way to begin the process of relocation is to open a bank account in the nation of your choice, in this example, Belize. This makes day-to-day spending far easier. This applies to relocation as well as to those who are planning to invest in an overseas vacation home or investment property.

The Role of Offshore Banking in Diversified Estate Planning

Even among those who recognize the need for diversification, there is sometimes a lack of focus when it comes to estate planning. That is almost certainly a mistake. When you set aside assets and holdings for your loved ones in the future, don’t you want them to have the same financial protections that you have for yourself today?

When you begin the process of estate planning, look for a diverse range of investment structures. Once again, you don’t want your entire estate to be focused in a single location, reliant on a single type of currency, or dependent on a single banking system.
Through diversity, you can enjoy peace of mind. You’ll know that today and, in the future, your loved ones will be properly cared for.

Offshore banking is an ideal way to diversify your assets. Keep in mind that no two offshore banks or jurisdictions are the same. Some things to look for in an international bank include a jurisdiction with low or no taxes, minimal government intervention, and high liquidity ratio.

Belize and Caye International Bank offer these benefits and more. Consider the stability and security of Belize and the expertise of Caye International Bank to diversify your portfolio.

Contact us today to get started.

This article is copyright © 2018 

Tags: , , , , , ,

About this author:

Luigi Wewege

Luigi Wewege is the Senior Vice President of Caye International Bank, published author of The Digital Banking Revolution, has co-authored economic research which was presented before the U.S. Congress and currently serves as an Instructor at the FinTech School as well as a Speaker at the Silicon Valley Innovation Centre. He holds an Italian MBA with a major in International Business, as well as a BSBA with a triple major in Finance, International Business, and Management - cum laude from the University of Missouri-St. Louis.

Leave a Reply

*