Why the filthy rich invest offshore

Image source: lom.com

The richest people in the world have relied on very few highly-efficient investment strategies in their lifetime and offshore investing has been one of them. Basically, offshore investing looks at opportunities offered beyond the limits of the investors’ home countries, giving them the power and freedom to capitalize on the advantages of tax-reduced, confidential and wider investment pool transactions.

Aside from the unlimited bond and equity assets offered by many offshore companies, there are several reasons why the filthy rich invest offshore.

Tax-neutral jurisdictions in the Caribbean region such as Bahamas and Bermuda, for instance, have economic policies designed to provide favorable tax incentives to foreign investors. These small countries have served as ideal destinations for many corporations and high net-worth individuals, ensuring that their accounts are free from higher tax burdens imposed by their home countries.

Aside from that, investing offshore―through international financial services companies like LOM Financial―gives the rich access to a wider pool of investment options that will help them freely diversify their portfolio. This is because, accounts invested offshore can be more flexible, and more open to international markets.

These destinations also provide a healthy and safe environment for restructuring and protection of ownership of assets—without the worries of lawsuits or foreclosures and other domestic troubles. Furthermore, the same advantage of such offshore jurisdiction provides the benefit of confidentiality.

Offshore investing is a safe and tested option especially for the richest and multi-million investors―and perhaps it’s the only place in the world where their identity, asset, and wealth information, can be legally protected from the public, and more importantly, from potential competitors.