For those who have never invested internationally, breaking into this new financial realm can sometimes be overwhelming, not least because of the many myths surrounding offshore and international investing.
While some myths may be rooted in truth, many more are completely false and spread out of ignorance. Before you make any moves toward or away from offshore and international investments, learn the truth behind each of these myths.
1. Investing Internationally is Risky
This myth is partially true simply because every investment carries risk. Whether you invest in a blue-chip stock or a startup tech company, there will be risk involved.
However, saying that there is inherently more risk in an offshore investment than a domestic investment is patently untrue.
If you want to invest offshore as a way to diversify your portfolio or prepare your estate for the future, there are a variety of risk levels that you can consider. Investors can always select the right level of risk and reward that they want whether it is at home or offshore.
2. The American Market Can Offer Greater Profits
This myth is almost entirely false. Profits vary depending on the timing of the investment, the risk involved and performance of the investment, and it typically has little to do with the geographic location.
While some American investments can perform incredibly well, certainly not all do. Conversely, many international investments are huge successes, although they are not all the same.
3. Only the Very Rich Can Invest Internationally
Another completely false myth is the idea that international investments are reserved only for the incredibly rich who can afford to invest millions of dollars at a time. While there is no question that millionaires can and do invest internationally, that privilege is not based on income.
Whatever your net worth or the amount of money you are interested in investing, an offshore or international stock, trust, fund or piece of real estate can be available within your budget.
4. International Investments are Ways to Avoid Tax
This myth is only partially true. One of the many benefits of investing offshore is the potential for reductions in taxation. However, that depends entirely on the location where you choose to bank and the nation’s local tax laws.
It is important to note that investing offshore and taxing advantage of tax perks is not illegal. In today’s world, these savvy investment moves don’t carry a stigma, and they are simply a benefit of being a careful investor.
5. International Banking Jurisdictions Allow Anonymity
This myth is rooted in truth, but it is important to understand it completely. Various offshore banking hotspots, such as Belize, offer corporations and individuals the chance to bank anonymously and privately as needed.
This might include not providing a list of directors for a business or not needing to supply financial disclosure forms after receiving large sums of money for business expansion. Anonymity can be a byproduct of investing internationally, but it is not necessarily something that you can apply across the board.
By getting the truth about these five myths, you can be better prepared to make up your mind about international investing. Contact Caye Bank today for more helpful information about banking in Belize.
