5 Common Types of Offshore Investments

Investing offshore can mean a variety of different things, and the best opportunity for one person may not be the most beneficial for someone else. Ultimately, it all boils down to the level of risk and reward required as well as how diverse the holdings are. One of the most common offshore investment opportunities is venture capitalism, which has enormous potential but also a level of risk. Mutual funds and precious metals, on the other hand, may be a safer option. Offshore life insurance and real estate are two more choices that many investors turn to when banking offshore.

For many individuals, the idea of offshore banking involves little more than placing a portion of assets in an offshore account in order to retain privacy or act as a safety net. In reality, however, offshore investing has come a long way, and there are countless different opportunities available for the savvy investor. Here are just five of the most common types of offshore investments that can be of benefit to you and your financial future.

1. Offshore Venture Capitalism

One of the investment opportunities with the greatest risk as well as the greatest potential for profit is that of venture capitalism. By taking this investment offshore, your money may be able to make a bigger impact for a company that operates with much lower overhead fees. By investing in a startup or a company poised on the brink of growth, you can make a big difference and also benefit substantially as you will receive either a portion of the company’s profits or a set repayment amount with interest.

2. Precious Metals

Things like gold, platinum and silver all have an impressive value, and they are traded just as commonly overseas as they are domestically. The specific value of these precious metals goes up and down over time, which is what influences the purchase price, but they will almost certainly remain valuable for the foreseeable future.

3. Offshore Mutual Funds

Mutual funds are a fantastic way for investors to feel less vulnerable and have less risk. They work because multiple people invest their money into a fund that purchases stocks, utilities and more in a varied way. Even if some investments lose value, the risk is spread among all of the investors.

4. International Real Estate

Another very common offshore investment is that of international real estate. Some individuals merely want to put money into a new commercial property or the development of a beach front community, but others will want to purchase real estate for their own needs. Among retirees, this is an especially popular choice as they can utilize the property as a second home or even a full-time residence.

5. Offshore Life Insurance Policies

An excellent offshore investment opportunity is that of life insurance. Many individuals who have worked hard to amass wealth over their lifetime use these policies to protect assets for loved ones. Asset preservation can include everything from stocks, to cash, to real estate, and it is even possible to earmark funds for charitable organizations or political groups should that be desired by the investor.

These five investments represent some of the best and most popular options for investing through an offshore bank or financial institution. Click here for more about opportunities through Caye Bank.

Caye Bank

Caye International Bank Limited (CIBL) was granted an Unrestricted "A" Class International Banking License on September 29th, 2003 by the Central Bank of Belize and is regulated by the Central Bank of Belize which set the standards for liquidity and capital adequacy.

Your Guide to Using a Prepaid Banking Debit Card

Summary:

A prepaid banking debit card is easy to apply for, offers a range of benefits and works in a convenient and safe way for individuals around the world.

Strategies for Offshore Investing Novices

Many investors are attracted to the opportunities offered by international investing. While some realize they need to learn a little more about how to make the most of those opportunities, others tend to think that investing offshore is just like domestic investing, just in a different location. The fact is that if you want to be successful with offshore investing, there are a few lessons that must be learned up front.

Borrow Money Offshore Through a Well-Regulated Jurisdiction

If you plan to borrow money offshore, take time to consider the right currency, avoid terms that seem too good to be true and seek out international jurisdictions with lending regulations in place.

Offshore Bank Accounts Can Help You Manage Different Currencies

Bank accounts in offshore jurisdictions such as Belize are routinely offered in United States dollars (USD) and the local currency. Although it is natural for North American account holders who are new to the world of offshore banking to open an account in USD, they should not ignore the convenience and possibilities that local currency accounts offer. These benefits range from making local transactions easier, having greater access to the local networks of automated teller machines (ATM) with international debit cards, taking advantage of the currency exchange spread where applicable and being able to take part in the local private enterprise.