Industry March 2012

The new rules of money

Throughout the ages, we have had a variety of monetary systems with different disciplines and rules; many things have been used as currency, to exchange for something of value, an asset or a service.

For years the money supply was backed with gold, providing stability and confidence, so money could be saved in the form of cash, considered “as good as gold”.

In 1971 the gold standard was dropped, removing all discipline enforced by the yellow metal and leading to today’s accelerating expansion of the money supply. Paper money loses value when it becomes too abundant. Thus, in today’s debt-based monetary systems, all paper currencies in the world are loaned into existence and owed back with interest.

It has been suggested that the escalating debt of the world is directly correlated to the expansion of money and credit, reducing the purchasing power of savings and pensions as our standard of living increases through inflation. Even a low inflation rate of 1% can cut savings in half during a person’s working lifetime.

Keeping your returns ahead of inflation is a good start.

Whether a young executive starting your career or a high net-worth individual, you will have specific financial requirements and objectives. Offshore financial products and services can help you achieve financial security and provide you with the quality of life you require as an expatriate or international investor.
Investing in international accounts is no longer the premise of the rich and famous; all expatriates may now enjoy the flexibility and other benefits to be gained from investing globally.
Due to growing global demand for international investments, there are many providers that offer a broad range of services from regular savings and investments to pension and retirement plans, as well as tax-efficient lump sum investments.

Investment options
It may be difficult to adequately compare the options open to you as an international investor or expatriate. Monitoring markets and selecting funds can be very time consuming and your independent financial adviser will, therefore, help you navigate the alternative investment world in order to find the vehicle that will help you reach your intended destination.

Portfolio bonds
A portfolio bond is a simple structure for holding a wide range of investments such as stocks, shares, bonds, funds and structured notes, providing a flexible solution for your investments and typically offering greater tax efficiency.
The key features include:

• Convenience of holding all assets in one portfolio
• Significant initial discounts from fund-management groups
• Opportunity for greater tax efficiency
• Ability to transfer to existing quoted share holdings
• Greater investment freedom
• Flexibility to change your investment portfolio at any time
• Easy access to capital
• Regular income facility

Investment performance can be monitored via our online Fund Platform providing access to a full range of investments from leading fund houses offering more than 5,000 of the world’s best performing funds, thus having all assets handled by professional asset managers.

In certain jurisdictions, portfolio bonds are 100% free of local taxes.

Receive financial advice
Planning your finances and understanding how to protect and build your wealth requires professional advice. If you haven’t started planning yet, now is the time to start.