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If you are like most financially minded individuals, you probably take pride in your diverse portfolio. It takes time and wise choices to build a successful portfolio. We at Alpen Partners believe that you shouldn’t be doing it on your own. There are financial services offered that allow investors to make even smarter decisions and get more from their portfolio
Below, we have listed some of those services any investor should be considering. For more information on how you can take advantage of these financial services, contact us below.
One of the biggest draws to making offshore investments is the diversification. According to Modern Portfolio Theory, diversification is one of the cornerstones of a successful portfolio. In fact, diverse portfolios outperform a concentrated one. By owning a large number of investments in more than one sector or asset class, investors can protect themselves from unsystematic risk, the risk that one encounters when investing in one particular asset.
Some investors seek out offshore investment for the tax benefits. Some countries boast their title as a low-cost jurisdiction, a country or territory that offers tax incentives for foreign investors. These incentives benefit the investor as well as encourage growth of their own economy by attracting wealth from other countries.
Tax Compliance and Optimization
While there are great tax and financial benefits of expatriating, you aren’t off the hook completely. For example, the U.S. is one of the only countries that still requires citizens to pay their taxes after the individual has moved away, and on any income worldwide. The tax is even applied to lawful permanent residents and green card holders.
To file your taxes while you are abroad, you go through the same steps, generally, as you would if you lived in that country still. Whether or not you need to file depends on your age, income, if you can be claimed as a dependent, and more.
Tax optimization involves bringing your financial plans to life through staying mindful of tax-efficient investments and decisions. This includes timing of income and purchases, types of investments, retirement plans, and how the taxes are filed.
Foreign Real Estate Investment
Many foreign real estate investments can lead to residency and, in some cases, a quicker road to citizenship. In rare cases, immediate citizenship is offered after a high enough investment in real estate. This is especially attractive for those looking to expatriate or those who want to earn a second passport in order to extend the amount of visa-free travel that is possible. This can play a key role in offshore retirement or years of stress-free travel.
There are also a lot of tax benefits that come with investing in real estate offshore. In fact, it is one of the few ways that an American can legally keep some of their money offshore privately. When real estate is held directly in an investor’s name, as opposed to in a trust or LLC, the investment is not reportable.
Private banks provide many benefits that their wealthy clients can take advantage of. One of these benefits is the privacy. All of the services that are provided by the advisors are all confidential. While the idea of banks conducting business privately has raised a lot of questions but many banks prefer activities to remain so.
Clients also get to handle their business in a one-on-one environment. The relationship or account manager is chosen work together with the client to provide the services. This allows the account holder to have access to mid-level or upper management officials without having to talk to customer relations first. This can come in handy when you want to make important wealth management decisions and allow for the banks to make unique strategies for you account.
Beyond private banking, you should also consider holding a private bank account in an offshore jurisdiction. This can enhance many of those advantages you would already be getting from private banks.
For those feeling the restriction of the investment opportunities at home, offshore banks offer a wide choice of funds and investments that aren’t available in your home country. It’s an easy and great way to diversify your portfolio.
Alpen Partners partners with many banks around the world, the most significant and prestigious being in Monaco and Switzerland. Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients.
There are many reasons you should make an asset protection plan, mainly involving keeping your property safe in the event that someone wins a lawsuit against you. To avoid this, asset protection planning is key. This means taking assets and putting them out of reach of creditors, turning nonexempt assets into exempt assets.
On the debtor’s side of the creditor-debtor law, sits asset protection. While the creditor is concerned with strategies for collecting, debtors are working diligently to protect their most valuable assets.
In the recent years, Alpen Partners has gained a large number of clients who had the right asset protection structures but the wrong manager to invest these assets and protect the capital from bad investments. Our investment strategy is well suited to achieve the objective of capital protection as we want to achieve positive absolute returns in all circumstances. For example, we have set up investment portfolios that are 100% capital protected for our most conservative clients.
Your wealth is important. If you are serious about your life goals, financial planning and investments are probably important to you. Financial planning can involve many steps from tax optimization to asset protection. Different investments have different rules with different returns.
With the help of financial planning, you will be able to predict where you will be in the years to come by evaluating where you are currently, what sources of income you plan to have in the future, investments you plan to make, and your retirement plans.
Alpen Partners Wealth Management International AG, the sister company of Alpen Partners Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.