Setting aside all your wealth in one location can bring risks, from currency depreciation to other emerging threats. Its why many people choose to diversify their assets through offshore investing.
Spreading your wealth across multiple jurisdictions can reduce financial vulnerability and lessen your chances of getting caught up in a potential economic collapse. And while you shouldn’t rule out the possibility of a worldwide financial crisis, it is more common that this would only seriously affect one country or region. As such, diversifying your money across multiple parts of the world brings the reassurance of a financial safety net.
However, it is important to research where you plan on placing your offshore investments carefully. While some nations should be avoided, others offer welcoming incentives for foreign investors. You should consider the economic stability and political situation of each country to ensure your money is held securely, as well as the nation’s tax and interest rates. For example, if one jurisdiction offers high-interest rates on your deposits, and another nation offers strong investor privacy, it may be beneficial to invest in both.
When considering how diversified your investments should be, the general rule of 3 is a good place to start. As such, your portfolio should include a minimum of 3 different investment types to shield your assets from market changes. This is because it is highly unlikely that all 3 would lose value at the same time. Instead, some will likely slump while others will gain in value, meaning your portfolio should retain a good balance without a significant overall loss.
There are also different types of investments to consider. For example, international real estate is widely regarded as low-risk due to its consistent returns. You can also get offshore mutual funds, whereby investments are shared between multiple people. This means that any loss of value is spread among all of the investors.
Another option is to simply hold your money in an offshore account to protect it from potential threats, such as divorce lawyers, creditors and legal action. All while earning better interest rates than most UK-based banks.
With all these factors to carefully consider, we recommend seeking professional advice from reputable banking experts. This is where Turner Little can help. As specialists in offshore banking, Turner Little can arrange a bespoke, offshore account that works for you and your needs, regardless of your country of residence. So pick up the phone or fill out our contact form to start a conversation today.