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offshore investing secretsChild's play to unlock the secrets to super returnsBy
Endre Dobozy, January 27 2008 Top 5 Managed Offshore Funds• Essex High Technology 1155.92% Myth #1: Investing Offshore Is Illegal Myth #2: Investing Offshore Is Risky Myth #3: Investing Offshore Is Only For Big Companies, The Rich And Famous Is Offshore Investing Legal? The majority of people incorrectly believe that investing offshore is either wrong or illegal. But before being able to disprove this common myth, we must first establish what offshore actually is. So what is offshore?The technical description of offshore is any jurisdiction other than the resident country of domicile. Or put in plain English; offshore is anywhere other than your own country. If the thought or the word offshore makes you uncomfortable, then simply exchange the word offshore for global because the reality is, the rest of the world makes up the offshore arena. For example, an American could consider Canada offshore for the simple reason that Canada is not the country in which they live. In most cases however, the word offshore is generally taken to pertain to one of the 35 International Finance Centres (formally known as Tax Havens) around the world. Investing OffshoreInvesting offshore is definitely NOT illegal and probably never will be. At present most westernised countries do not have laws prohibiting the investment of money outside of their countries. The reason for this is that no country that depends upon international trade and commerce for their existence could ever enforce such a law without first destroying their own economies. And, if you take a close look at a country like the U.S. you will notice that it has consistently and continuously had an international trade deficit meaning they buy much more internationally than they sell. If the U.S. were to enact a law forbidding or restricting the movement of U.S. Dollars outside their country they would have no international trade. Consequently companies based overseas would not be able to buy U.S. goods because they wouldn't have any U.S. dollars, and companies in the U.S. would be unable to buy goods overseas, because the companies in those countries wouldn't be able to accept U.S. dollars. Therefore, you can legally move your money anywhere in the world you like. There is absolutely no restriction on the amount you move, where you move it, or how you move it. However…it is illegal not to declare any profits from your offshore investments or to not pay the applicable tax! Below is a comparison table of investing in The Templeton Growth Fund, a mutual fund that took a global view instead of placing your money in one country. It compares the rates of return in dollar value for the same amount invested over the same period. All examples are based on $10,000 invested from 1954-1996 without any taxation being applied.
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