If you relocate overseas, or if in fact you’re already an expatriate, how can you be sure that when it comes to managing your money you’ll find reputable advisers able to offer quality assured service and advice in your new country of residence?
It can be a tricky undertaking indeed, which is why Shelter Offshore would like to present you with the answers to the questions you should be asking of anyone who claims to be able to offer you offshore investment advice, independent financial advice or specific money management information.
We hope that when you come across an information source like Shelter Offshore you find some of the answers to your general offshore banking and investment questions. At the same time we are not offshore investment specialists or financial advisers qualified to advise one and all via generic - albeit informative - articles. Which is why we’ve compiled 10 of the most important questions you need to ask or consider when seeking the services of an adviser to assist you.
To further assist you we can offer you personalised fact packs with information about offshore investment products and services specific to your requirements and we can help you locate qualified financial advisers whatever your location.
Click here to find out more about our exclusive offshore investment service
The 10 questions and answers: -
1. Security - How safe is your money?
When it comes to investments, no money should ever be paid directly to a financial adviser!
Transfers should always go to the financial institution who will in turn pay a management fee to an adviser.
If an adviser or broker asks you to transfer any money directly to them directly for any reason whatsoever DON’T DO IT!
If the financial adviser or brokerage company you are dealing with is reputable, any investment or savings transfer will always be made directly by you to the financial institution that you are investing with.
The major offshore locations and jurisdictions favoured by reputable investment advisers have the highest levels of investor protection anywhere in the world.
Investments made in the Isle of Man for example are covered by a worldwide investor protection scheme which offers protection of up to 90% of the value of the investment at the time, in the unlikely event that the provider is unable to meet its financial liabilities.
2. How can you be sure that an independent financial adviser referred to you is any good?
How experienced is the adviser you are considering working with and how reputable is the brokerage?
If the brokerage your adviser works through has many hundreds or even thousands of clients in many locations around the world, you can be sure they are professional, reputable and have a solid reputation. And believe me, there are good companies out there like this.
If you are considering working with a one or two person company, ask yourself who will advise you and look after you if the principal is ill, changes company, moves or retires?
And what will you do if you relocate or repatriate?
Larger International brokerages often advertise, they should have a reputable website and have the resources to ensure that their advisers are fully trained and up to date with latest products and market knowledge.
Your brokerage should also offer a newsletter that they send to clients so that you can see the type of products they have available.
3. Why Offshore?
Offshore investment companies have far more flexibility when it comes to investing in alternative currencies, diverse markets and different hedging mechanisms.
Offshore returns can be accumulated free of any tax.
The potentials returns can be significantly higher when tax is not deducted!
Take as an alternative onshore example a UK fund that will have tax deducted from the dividends received - a similar offshore fund will have NO tax deducted and therefore enjoys gross compound growth.
4. How does Tax-Friendly work?
Usually ALL returns in an offshore investment plan can be totally tax free.
This means that your gains build up far quicker and are compounded far more.
Over a number of years this can mean that you build up far greater and more significant amounts in terms of wealth building through a tax friendly investment plan in a tax friendly jurisdiction than you ever could if you were tax liable.
