Investing offshore can be very safe, particularly when you consider that domestic investment also carries risk, that there is a wide range of investment choices available, that risk levels vary by location and that offshore investing can add diversification to any portfolio.
Global Financial Planning
Global Financial PlanningOffshore investing is gaining popularity among everyone from retirees to business owners, and it is easy to see why. Offshore investments hold new opportunities, the potential for impressive returns and the chance to diversify.

However, there are still many people who are very concerned with the safety of investing offshore. Learn more about how safe it really is to invest offshore.

Every Investment Carries Risk

Perhaps the best place to start when discussing the overall safety of international and offshore investments is to realize that every investment, no matter where it is located, carries a risk.

 
That is the inherent quality of an investment: You are investing in the belief that the opportunity will be successful and bring in a profit. Even when you buy government bonds or foreign currency, there is an inherent risk that something could go wrong.

Therefore, no international investment is entirely safe, but neither is any domestic investment. In many ways, however, investing offshore can offer the same level of safety as domestic options, and in some cases the offshore investment will actually be the safer, more stable choice.

Offshore Investments Come in a Variety of Risk and Safety Levels

Another important factor to consider is that investments carry a range of different risk levels. Whether you’re focused on domestic or offshore investments, you will have the opportunity to stick with lower-risk, stable options or riskier investments with a greater chance for big profits.

Ultimately, it is up to each individual investor to decide what risk level that they are most comfortable with. For those with the goal of protecting and preserving assets, sticking with low-risk offshore investments might be ideal. For those who want rapid wealth accumulation, and who are willing to take the necessary risks to get there, an opportunity with a higher potential ROI might be the perfect fit.

Diversification Actually Increases Financial Safety

One of the ways that investing offshore can actually boost financial safety and stability is by adding some much-needed diversity to your holdings. Even if your domestic holdings are relatively diverse, and you’ve spread your assets across multiple companies and industries, the backbone of the portfolio will still rely entirely on a single government, a single currency and a single banking system.

If any of those fail or falter, your entire collection of assets could be at risk. By opting to invest offshore, you’re reducing your overall risk and spreading your vulnerability, which increases the safety and preservation of your assets.

Safe Investments May be More Common in Certain Jurisdictions

When it comes to protecting your offshore investments, location is important. Offshore is a very broad term, and it can include a variety of different countries across the globe. When choosing the best location for offshore investments, there are several keys things to consider.

First, what are the tax benefits that the nation offers? Places like Belize waive income and capital gains taxes to foreign investors. Second, what reserve requirements are mandated by the country’s government? These two factors can make a big difference when it comes to choosing investment opportunities.

In many ways, investing offshore is just as safe as investing domestically. There are still risks, but the profits and opportunities are major benefits. 

Contact us today to find out more about our services and how we can assist you with your financial needs.

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