The wealthy are different, and it is because they have more money. One of the techniques that many savvy, high-net worth investors utilize to stay wealthy is offshore investing. Offshore investing provides significant opportunities and advantages for asset protection, financial privacy, and estate planning, as well as access to some of the world's top money managers. For individuals with something to lose, investigating offshore opportunities is not just an option, but should be considered a requirement. Consider the following:

Asset Protection

The ålitigation explosion' in the United States is alive and growing. We are all reminded on a daily basis of lawsuits, frivolous or justified, that wipe-out an individual or family's life savings. Going offshore can provide an added degree of comfort and security not available with domestic investments. Here in the Cayman Islands, for example, investment advisors can be imprisoned for divulging a client's name. Compare this law with the US where an investment manager can be imprisoned for NOT divulging a client's name. With such protection, if disaster should strike, you'll have additional valuable time to make critical decisions about your money. Offshore holdings can make your wealth invisible to others and help you to escape the predator.

Privacy

Most high-net worth individuals prefer a very high level of privacy in all their financial affairs. The generally held view in most foreign markets is that an investor's assets are their business and no one else's. For anybody trying to gain access to offshore records, applications must go through the bureaucracy of individual foreign governments. In comparison, in the US, nearly all of an individual's records are available for scrutiny by anyone with money or the know-how. Such information as banking records, brokerage accounts, real-estate values, income, property taxes, and much more are easily available. Our firm, like many others, believes in complete confidentiality, and reports nothing to anyone unless we have specific written authorization to do so.

Growth

Although many of the world's top performing businesses are US companies, not all are. In fact if you wanted to invest in the leading chemical company or the largest manufacturing businesses or the largest construction firms, you would have to invest outside the US. In recent years, the US markets have had unprecedented performance. But during the same time, many foreign indexes have experienced even greater performance.

Although an offshore financial advisor can purchase almost any mutual fund that is available in the US market as well as over 200 offshore private funds, it is important to remember that a primary objective of offshore investing is high asset growth, not income. Also, many of the "superstar" mutual fund managers also manage offshore private funds. One of our most popular funds has averaged 30% per year for over 25 years. Of course, some funds have high minimums and many private funds are closed to US investors, unless they are offshore.

Flexibility

In many ways, investing offshore is no different than investing within the US. The investor has access to virtually all the same investment opportunities and strategies. Similar even to the point that the investor can obtain a debit or credit card drawn on their offshore account. (Be sure to work with a firm that processes their offshore credit cards offshore, not onshore.) Investors can buy and sell securities, trade between mutual funds and place money with private money mangers, just as though they were living on Main Street, USA. This includes wire transfers from a US brokerage account into your offshore advisory firm.

Stability

In order to receive the maximum asset protection, it is important that investors choose offshore financial advisory firms that have no US presence. Offshore firms should clear their own trades and hold nothing on US soil that might give authorities the right to examine an investor's financial records. For added comfort and protection, the potential offshore investor should ask the potential offshore financial advisory firm which banks they use for custodial services. These banks should be rated AAA, non-US institutions. Only consider those offshore advisory firms that have adequate insurance to protect your assets.

Risks

As in any investment strategy, one must measure the risks. Before you invest globally you should consider the political and currency risks. Offshore investing is not for everyone. If you think you are a candidate for offshore investing, you would be well advised to use the offshore opportunity as one part of your overall strategy and not as a replacement for everything else.

Choosing a Manager

Before making any commitment with an offshore advisor, do your homework. I always encourage interested investors to actually visit the potential offshore advisor in their offices. This allows the potential investor to investigate and see for themselves what the firm is like and understand the local jurisdiction. More importantly, this allows the potential investor to get to know their advisor and to have in-depth discussions concerning goals and strategies. Your advisor should have a track record of performance as well as a credible list of professional references. I also encourage potential investors to consider the advisors passion for investing and their commitment to education and quality service.

Should you decide that going offshore is an attractive addition to your investment strategy, make sure and develop a strong relationship with your investment advisor. Like most investing, whether you are aggressive or conservative, good communication with your advisor is essential.

Scott Oliver is an offshore financial advisor with Lines Overseas Management, a Bermuda based private wealth management and securities brokerage firm with corporate offices in Grand Cayman and Guernsey. For more information about offshore investing contact Mr. Oliver at 800.277.0479, oliver@candw.ky or www.offshoreoliver.com