The reality is that for many people who are used to investing domestically, offshore investments may seem unusual or risky.
Thankfully, that is far from true, and many of the myths surrounding investing offshore are just that: Myths. Find out which of the most common myths are true, which are false and how tell if offshore investing is right for you.
Offshore Investments are Only For Millionaires: False
There are still plenty of people who are under the impression that offshore investing is only beneficial if you have millions of dollars worth of assets.
While millionaires, billionaires and corporations certainly benefit from offshore investments, anyone can take advantage of the many advantages that they can bring.
Offshore Investments Reduce Taxes: True
This myth is a little harder to crack. Simply investing in real estate, gold or trusts in offshore locations certainly doesn’t make you exempt from taxation altogether. However, the right banking destination can go a long way in reducing your total taxes. For example, setting up an offshore trust means that the assets within are no longer subject to taxation.
Alternatively, if you were to place assets in a bank account or make an investment in Belize, your profits won’t be taxed thanks to the country’s zero capital gains taxation policy for foreign investors.
Offshore Investments Bring More Risk: False
All investments, regardless of their location or value, carry some level of risk. Certain types of investments may have a reduced risk, and those with greater risk levels often bring with them greater potential for steep profits. However, it is possible to find both high-risk and low-risk investments in offshore locations.
It is entirely up to the investor to determine the level of risk or vulnerability that they feel comfortable with, and location doesn’t necessarily have to be a factor in the equation.
Offshore Investments are Best for World Travelers: False
Another common misconception regarding offshore investments is that they are best suited for world travelers who frequent international destinations. Thankfully, you don’t have to travel overseas to invest overseas.
International online banking means that everything from checking your savings account balance to transferring funds to monitoring your life insurance policy can happen from your home computer, your tablet or any other Internet-equipped device.
In many cases, myths surrounding investing offshore simply aren’t true. Learn more about offshore investments and determine if they are right for you.