How to Evaluate Financial Institutions for Offshore Investments
Most investors with significant capital understand the need to evaluate a financial institution or adviser. Entrusting personal, family, or business assets to the wrong bank, insurance company, agent, or adviser can have devastating results.
Fortunately, evaluating one’s business partners before exchanging money or signing contracts is essential anywhere in the world. Banks too large to fail or insurance companies with a large portfolio of international investments falter when financial markets decline.
That’s why all investors must perform due diligence as part of the process of making any investment. According to FINRA, the Financial Industry Regulatory Association, evaluating the firm’s balance sheet, cash flow, and investment activities is one of the ways to determine whether the bank, insurance company, broker, or agent is the right financial partner.
Due Diligence for Offshore Investing
Once an investor decides to make offshore investments, identifying the right jurisdiction is essential to success. Not every investor will select the same jurisdiction, because each individual, family, or business has different needs, concerns, and goals. Consulting with a trusted tax adviser or accountant is crucial before making a substantial investment, in any financial market or vehicle.
Offshore investing isn’t for everyone. Because the fees to establish offshore investments can be substantial, accredited investors, those with significant assets, must perform the due diligence needed to identify the best financial partners. A personal visit to the bank, financial adviser, or agent is necessary before deciding whether offshore investing is an appropriate strategy for the investor.
A Trusted Adviser Can Guide You to the Right Offshore Investment
Business and personal relationships require some level of trust. After performing due diligence and arranging meetings with several financial institutions and advisers, don’t rule out important interpersonal cues. If the banker, insurance broker, or agent doesn’t listen carefully or provide direct answers to questions, that’s probably not the ideal offshore investments partner.
The guidance of a domestic tax adviser and/or attorney is crucial to obtaining the facts related to offshore investing. Ask as many questions are needed to understand and clarify the details of making an international investment. If properly researched and executed, your investment will yield consistently generous returns to a business or heirs in the future.
For more information on setting up an offshore life insurance policy, contact Karlsberg Insurance.