Offshore Savings Bonds Advantages

The wonderful world of offshore provides even those who are expatriate residents onshore in Europe, and therefore potentially affected by the EU savings tax directive and associated exchanges of information agreements, with a way to effectively and securely manage all of their savings and investments under one umbrella.

The umbrella in question is called an offshore savings bond, also known as an offshore portfolio bond or even a wrapper. If you’ve never heard about this product then this report will outline its many advantages in details. Or if your financial adviser has recommended you have one as part of your balanced portfolio, it will give you more insight into perhaps why one has been recommended to you.

The advantages of offshore savings bonds are many…read on to learn more, because whether you’re actively considering incorporating one into your financial plan or not, after reading this report, you may well discover how much you could benefit from such a solution.

Offshore savings or portfolio bonds are structures under which a plethora of assets, accounts, funds and even shares can be held. The structure itself consists of an insurance contract and a bank account which when coupled together creates a holding vehicle for you through which you can invest and manage your investments.

Such a structure falls outside the remit of the EU savings tax directive.

You can invest through an offshore savings bond into the likes of offshore funds, cash deposits, direct holdings, bond-based funds – and you can use the confidential and secure structure to limit your tax exposure and liability. The other main and real advantage is that such a bond or wrapper allows you to minimise the administration of all your investments to the absolute minimum. You can swap and change how and where your money is invested with a simple and easy faxed instruction. This means that you no longer have to engage in the time consuming headache of proving who you are for company due diligence every time you want to restructure how your assets are held and invested.

Something as seemingly straightforward as taking advantage of one banks preferential interest rates on an account over anothers can be an administrative headache nowadays as you have to go through the one bank’s due diligence process before you can transfer your money in – potentially resulting in you losing out on a least a month’s worth of the preferential rate. But with an offshore savings bond, no such hassle is incurred. You simply fax your instructions through – and hey presto, your money will be transferred according to your wishes!

The transparency for you, the ease of asset and account management, the security, privacy and confidentiality of the structure all combine together to make these products invaluable for expatriates who have in the region of £50,000 or more under management, invested or saved. The structures are also very cost effective to maintain once they are established, and you can easily offset the cost with the tax you save through structuring all of your investments under this one, tax efficient and legitimate umbrella.

If you want to find out more information about these products and solutions, learn how you can also benefit from discounts on fund charges, and even have initial charges reduced to zero in certain circumstances, get in touch with us.