There are a number of reasons why investors should consider using offshore solutions for their investments. This will often depend upon personal circumstances but can be broadly summarised in the following categories.
Taxation control
For many investors the tax benefits an offshore investment can provide will be an important factor. Investors can benefit from tax efficient growth as we do not pay Capital Gains Tax or Income Tax on the investments held.
Even switches between investments do not generally result in any Capital Gains Tax liability. As a result any investment gains are allowed to roll-up almost free of taxes.
Normally, only when investors withdraw money from our products will any investment gains be liable to local taxes. However, one of the key benefits of Skandia International’s solutions is the control given to investors as withdrawals can be timed to minimise the impact of any such taxes.
Residency flexibility
For those living or working overseas, or are planning to move in the near future, it may appear confusing and complicated to understand and set up local products. This could be due to lack of familiarity with local companies, laws, taxes or even languages.
Investors may also want the flexibility of an investment solution which can adapt and move with them as circumstances change.
Diversification
For many people living around the globe offshore investing has long been an accepted way of life. For some, the prospect of investing money outside their own country can be daunting, but with expert advice there are a number of benefits to be had.
Offshore investing can help to diversify a portfolio in a number of ways. For instance it can:
gain exposure to investment sectors not catered for by local products
make the most of international growth cycles and flourishing foreign economies
enjoy the advantages of having access to the world's top investment fund managers working for you
protect you against potential depreciation in local currency rates whilst able to access more stable global currencies
build a more secure, balanced portfolio in a well regulated and secure jurisdiction.
By choosing people and organisations you know and trust you can reduce the risk of investing offshore. Few financial institutions can offer you the advantages that Skandia International can:
wholly-owned subsidiary of Old Mutual, a FTSE 100 company
over 25 years of experience satisfying the needs of international investors
regular valuation reports and on-line access to investment information to keep you informed and reassured.
For further information on investor protection and how the Skandia International companies are covered, please go to the "about us" section.
Other factors to consider
Whatever your reason for choosing to invest offshore or internationally, it is important to consider a number of factors:
The length of time for which you want to invest. Generally speaking, you should not consider an investment unless you are prepared to lock away your money for a minimum of three to five years. The longer time frame you choose, the lower the level of risk you are placing on your original investment, as short-term peaks and troughs tend to be smoothed out over the longer term.
How much money you want to invest, and whether you prefer to deposit a lump sum or make regular savings.
The investment costs. Different investments have different fees structures. Ask your financial adviser to explain this to you as well as the impact on your investment.
Flexibility. If you anticipate changing your contributions, selling the investment or switching to another investment, ensure the chosen investment can accommodate these changes.
Strategy. Are you looking for an investment to form the bedrock of your investment portfolio, or are you looking for an exciting peripheral investment with the potential to boost overall returns significantly?
Risk. Because most investments are linked to stock and bond markets, the value of your investment can go down as well as up, meaning that investment returns cannot be guaranteed.