An excellent product that allows you to manage your assets with a high yield is an offshore investment. Because you can manage assets in areas where there are almost no taxes, your money will grow at a superior speed.

However, it is also a fact that there are many bad agents. Since you will be signing a contract with a foreign financial institution, there are also inferior agents.

In addition, some corrupt agents actively organize seminars and expensive tours to tax havens. However, if you participate in these, the more likely you are to get scammed. In particular, seminars on offshore savings investment that only explain the benefits are worthless.

If you sign up from a bad company, you will start to have problems such as losing contact or being contracted with a high accumulation amount. To avoid this situation, I will explain how you should consider seminars and tours to invest offshore.

Investors Trust and RL360° Are Not Scams

In order to invest in an offshore mutual fund, you have to subscribe to an offshore financial institution. Among these insurance companies, Investors Trust and RL360° are the most famous financial institutions for many people.

There are several insurance companies that can be contracted for offshore investments, and the following financial institutions are well known.

  • Investors Trust
  • RL360°
  • Dominion Capital Strategies
  • Premier Trust
  • Metis Global

The insurance companies themselves, such as Investors Trust and RL360°, are highly rated by Standard & Poor’s (S&P) and Moody’s, and are recognized worldwide.

Naturally, such financial institutions do not sell fraudulent products. The fees vary from company to company, and there are cases where some of them are inferior financial products. However, this does not mean that the products themselves are fraudulent.

Some people say that you should not consider saving and investing overseas, and that is because they signed up for the product without understanding its details. In fact, offshore investments can provide you with overwhelming yields, so it is certainly easier to increase your assets than to invest in your country.

In Many Cases, Offshore Investment Introducers Are No Good

The insurance companies themselves do not sell any fraudulent products; rather, they are rated higher than the financial institutions in your country. Investing with them is highly safe and is rated globally. Nevertheless, why are there still victims of offshore savings investments?

The reason for this is that in most cases, the introducer who recommends offshore investment is no good.

In order to purchase a product sold by a foreign financial institution, you must invest through an IFA (Independent Financial Advisor). Financial institutions do not sell directly to their clients, and you can only sign up through an IFA.

In this case, if the introducer makes an unreasonable contract with an offshore investment without explaining the risks and fees, you will regret it later.

Seminars Whose Contents Are Full of Advantages Are Worthless

You have to be careful about solicitors who organize seminars. Especially if the content of the seminar is full of advantages, it is better not to join.

Although it is true that offshore investment is very advantageous for asset management, it has risks as well. Those who try to get you to sign a contract without explaining the risks are crooks, and they are holding seminars for the referral fee. In particular, you should pay attention to the following points.

  • What are the fees?
  • What are the risks?
  • How about the payment of taxes?

Let’s check each of these points.

Fees Need to Be Explained

In offshore investment, you will aim for a yield of over 10%. There are also types of financial products that do not aim for high returns but rather increase assets through safe investments, in which case the annual interest rate will be at least 4%. Even if the annual interest rate is only 4%, it is still an excellent financial product because it promises that your money will definitely increase.

However, depending on the insurance company, the commission may be very high in some cases. Specifically, the commission rate is as high as 5-6% in some companies.

If you invest offshore with such insurance companies, you will not be able to make as much money as you expected because of the high commission.

If a person explains only the excellent yield in a seminar, it is obviously not right. Essentially, you have to subtract the commission from the yield. Even if the assets increase, it is meaningless if the fees are high, so explaining the fees is a must.

Risk Exists as a Condition of Accumulation Investment

Other than that, there should be an explanation of the risks involved. Although there are excellent systems for offshore investments, such as loyalty bonuses and principal protection, there must be an explanation of the conditions for achieving them.

For example, one offshore insurance company has a mutual fund product that offers a 20-year regular investment that returns more than160%. The following is a part of their official website.

In many cases, it is explained at seminars that this investment product promises to protect more than 160% of the principal. However, there is a condition for this: you need to accumulate the initial amount of money without reducing it in the middle. In other words, it is a financial product that should not be withdrawn in the middle.

There are many corrupt companies that solicit people at seminars without informing them of these risks, saying that you can start with a large amount of money and reduce it later if it seems unreasonable, or that you can withdraw the money in the middle. They make you sign an expensive contract at the beginning for the referral fee, knowing that it will be meaningless if you reduce the amount in the middle.

Therefore, be sure to stop subscribing to a company that says you can reduce or withdraw your money in the middle of the contract because they are trying to deceive you with 100% probability. Instead, you must set up the amount that you can accumulate every month without any reduction.

While it is true that there are high loyalty bonuses and principal protection in offshore investments, it is very important that they explain the risks (terms of achievement) to you.

-It Is True That You Cannot Make a New Contract Suddenly

Incidentally, when considering offshore insurance or mutual funds, the company may say, “Although many people can sign up for these products now without any problems, if you keep putting it off, you will suddenly not be able to. Therefore, it is better to buy an excellent financial product while you still can.”

This is true. Some insurance companies that many people used to be able to sign up with are now not allowing non-residents of offshore areas to sign up. In some cases, new contracts have suddenly become unavailable without notice.

If you can sign a contract before the suspension, you will be able to manage your assets excellently. However, it often happens that new contracts are suspended, and you cannot manage your assets under excellent conditions.

Paying Taxes is Necessary

In the case of offshore investments, the term “tax-free” is frequently used. However, it is the insurance companies in the tax havens that are tax-free, not you.

Since you are investing in a financial institution located in a tax haven, a region where there are almost no taxes, and the investor (you) can easily increase your money. In these offshore tax havens, there is no capital gains tax levied on the profits from trading stocks. As a result, your assets will grow at an accelerated rate.

However, it is the financial institutions that benefit from the tax-free status. In fact, if you transfer the money you make from asset management to your country, and the profit is confirmed, you will be liable to pay tax if there is capital gains tax in your country of residence.

Of course, even if you have to pay taxes, you should still invest offshore. For example, if you save $100 a month from the age of 25 to 65, it will amount to $48,000.

On the other hand, with an annual interest rate of 10%, the amount would grow to about $638,000 under the exact same conditions. Naturally, even if you pay taxes in your country, you will have a lot of money.

In short, keep in mind that you are not tax-free. If the seminar emphasizes the part that you can manage your assets without taxes and misleads you into thinking that you will not have to pay capital gains tax, income tax, or inheritance tax, they are scamming you.

Expensive Tax Haven Tours Over $1,000 Are Scams

In addition to these seminars, there are also expensive overseas investment tours that are offered. In other words, you are going on an inspection tour to an offshore region.

There are many fraudulent companies that charge high fees to participate in these overseas tours. For example, there are many corrupt companies that charge $1,000 or more in addition to the airfare.

Even if it includes the cost of a hotel for two nights and three days, they can still make a lot of money. Of course, all of this profit goes to the company that is holding the offshore inspection seminar. Although it is possible to travel to an offshore area for a low price, you will be charged a lot of money in the name of a tax haven inspection tour.

What you need to think about is, “Is it really necessary to participate in a tax haven inspection seminar?”

Certainly, it is an excellent way to check the actual situation of tax havens. However, even though it is an inspection seminar, you will be visiting a local seminar room and will only be attending a seminar there. So, there is no point in paying a lot of money to go to an offshore country.

Also, you can sign up for an offshore investment while living in your country without having to travel. By paying with a credit card, you can send money directly to the insurance company. In other words, there is no point in going to tax havens.

There Is No Point in Opening a Bank Account Abroad

One of the purposes of attending a tax haven inspection seminar is to open a bank account in the country. Since you will be investing in US dollars, you will be able to deposit your money in a foreign account in US dollars at maturity, and there will be no exchange rate risk since you will not be converting it to your country’s currency.

However, the basic principle of offshore investment is to keep investing for a long period of time, such as 20 years. In this case, you should open an overseas account at the time of maturity.

There is no point in opening an account now because there is usually a minimum amount of money that must be deposited in the account. If you want to open an overseas account at maturity, that’s fine, but there is no point in attending a tax haven inspection seminar and opening an overseas account before you sign the contract.

Rather, if you have no transactions in your bank account for years, you will have the risk of your account being frozen.

Furthermore, when your money comes back to you after the maturity of your offshore investment, you can choose any bank in the world to transfer the money to. Also, you can transfer money in any currency. Therefore, do not go on a tour of tax havens just to open a bank account.

You Should Be Careful of Seminars and Inspection Tours

It’s great to think about increasing your money through asset management. And since many countries only have bad financial products, focusing on asset management overseas is very good intuition.

However, it is important to decide which agency or introducer you buy from. Some agents do not explain the fees and risks at all. The worst ones will tell you that you can reduce or withdraw your money in the middle of the contract, which will surely make you lose money.

In particular, companies that hold seminars or overseas inspection tours tend to only explain the benefits and not the important risks. However, if you subscribe from such people, you will surely lose money due to the bad contract, and you will not be able to manage your assets.

Although foreign insurance companies are excellent worldwide and there are no fraudulent products, many people are deceived because of bad introducers. To avoid such a situation, be sure to carefully check the advantages and disadvantages of the product you are about to purchase.