Making Your First Offshore
Investment A Success In Five Simple
Steps
Provided By:
www.offshoreinvestingadvice.com
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First-time
investment in an offshore
account can be a nerve-racking
experience. Not only do you have
to choose the right bank (that
won’t defraud you), you also
have to be able to navigate the
frequently obscure procedural
waters of offshore accounting.
There is no one set way to
making your first investment,
but this article will take you
through the process in five
simple steps, at the end of
which you’ll know exactly what
you need to do.
The first thing you need to do
when making an offshore
investment is to determine how
much you wish to invest: there
is no point looking at
institutions that require a
minimum investment of $10,000
when all you want to invest is
$1,000.
The next step to making your
offshore investment a reality is
figuring out which jurisdictions
you have access to. This is
simply because it would be
pointless trying to invest in a
fund domiciled in Luxembourg if
the bank is not authorized to
deal with your particular
country of residence. If you are
unable to access a fund due to
jurisdictional issues, then the
use of an appropriate structure
may be required – although you
can always use a mail
redirection service to gain
access to offshore investments
without raising too many
questions.
Now that you've figured out how
much you want to invest, and
where you can invest it, you
need to choose the specific fund
you wish to invest in. Make your
selection by searching the
Internet, reading offshore
investment guides and
publications, or by using an
investment information provider.
Do your research: check the
fund's previous performance,
management and assets. Monitor
it for the next three to six
months. Remember – don't rush
into the investment.
Once you’re happy with your
choice of fund, are able to make
the minimum deposit, and can
circumvent any jurisdictional
issues, you're just one short
step away from being ready to
invest.
First though, you need to
determine whether you wish to
use the services of a broker or
attempt to go it alone. If you
chose the broker method, then
your next step is simply to call
the broker, who will make all
the necessary arrangements. If,
however, you choose to go it
alone, you need to request a
current copy of the fund's
prospectus so that you may begin
the proper investment
proceedings. Obtaining a
prospectus from the fund is
relatively easy: generally a
faxed request should suffice.
I've had the best results from a
short request constructed in the
following manner:
Dear XXXXXXXXX,
I am the investment
administrator of a company
domiciled in (insert tax haven
here).
I would appreciate a current
copy of your prospectus so that
I may invest in your fund.
My mailing address is
XXXXXXXX
XXXXXXX
XXXXX
Kind regards,
XXXXXXXX
I have used this type of letter
on numerous occasions, and even
when I used an Australian postal
address, the funds still sent
the prospectus – although it was
accompanied by a letter stating
that they were not authorized to
deal with Australian residents,
and so would be unable to take
my investment. They included
their account details, however,
for informational purposes.
And now we come to the fifth and
final step – investing your
money. Assuming that all
criteria have been met and you
wish to proceed with the
investment, a bank draft is be
the easiest method of payment.
Simply affix the cheque to the
completed prospectus and send to
the fund.
Be advised that when organizing
the bankers draft, using a bank
with an international flavor
will probably raise fewer
questions. You should also know
it would be imprudent to post
the prospectus from a country
that the fund is not authorized
to deal with.
These five simple steps are
bound to make your first
offshore investment experience
an enjoyable one. Remember, the
fund may still deal with you
even if all their criteria are
not met, but the method detailed
above is still the simplest way
to open an offshore account –
without losing any sleep!
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