{"id":8531,"date":"2017-01-03T09:00:44","date_gmt":"2017-01-03T14:00:44","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=8531"},"modified":"2020-03-27T08:28:28","modified_gmt":"2020-03-27T12:28:28","slug":"best-offshore-investment-2017","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/best-offshore-investment-2017\/","title":{"rendered":"The Best Offshore Investment for 2017"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">I\u2019ve been covering the offshore beat since 2000. In that time, I\u2019ve seen everything, great, good, boring and bad that\u2019s out there. I\u2019ve seen amazing successes, high returns, losses, fraud, and everything inbetween. After all of that, here\u2019s the best offshore investment I\u2019ve ever seen. My best offshore investment for 2017.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note that I\u2019m not an investment advisor, my firm doesn\u2019t sell investments, and we don\u2019t receive \u00a0a commission for referring clients to investment advisors. We\u2019re in the business of international tax and business planning and don\u2019t have the conflicts of interest that permeate the offshore industry. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">My suggestion as to the best offshore investment for 2017 is based on my personal experience and what I\u2019ve learned over the years working with hundreds of clients. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">My criteria in selecting the best offshore investment is more than just the highest return. Returns are balanced against risk and each of the points below. Taking each into consideration, my best offshore investment is hardwoods. Specifically, <\/span><b>my best offshore investment for 2017 is teakwood from Panama. <\/b><span style=\"font-weight: 400;\">Here\u2019s why: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Return on investment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Minimal risk of loss<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Assured by the seller \/ developer<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reviewed and recommended by multiple sources<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ease of purchase and no ongoing management required<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No U.S. reporting or tax compliance requirements<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No special structures, such as a foreign trust or insurance policy, required<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can make the investment with your retirement account<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Offers a unique side benefit in addition to the return on investment &#8211; in this case, <\/span><span style=\"font-weight: 400;\">you get residency in Panama for free<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Teak offers the best combination of these criteria. But, it\u2019s the side benefit of residency that puts it over the top. If you\u2019re living, working, or doing business abroad, you want residency somewhere. The first step in building a safe haven abroad is residency and it\u2019s the key component of most offshore tax plans. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, I\u2019m getting ahead of myself. Let me take each of these criteria in turn\u2026<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, <\/span><b>the returns on hardwoods are solid<\/b><span style=\"font-weight: 400;\">. Forestry has returned about 15% per annum nearly every year since 1987. \u00a0So, that get\u2019s us to the starting gate\u2026 an offshore investment with a great return that can\u2019t be found in the United States. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, it\u2019s the rest of the benefits of hardwoods that make it my best offshore investment&#8230;.<\/span><\/p>\n<p><b>Risk of Loss:<\/b><span style=\"font-weight: 400;\"> The risk of loss is minimal because the trees and the project are <\/span><span style=\"font-weight: 400;\">assured<\/span><span style=\"font-weight: 400;\"> by the developer. If something were to happen, such as poorly growing trees, disease, fire, etc. the developer would replant your land at no cost to you. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I also note that you\u2019re the owner of the land. Once the first crop is harvested, you can replant or sell the parcel. There\u2019s no risk of loss of the land, as it\u2019s fully titled in your name. <\/span><\/p>\n<p><b>Reviewed and recommended:<\/b><span style=\"font-weight: 400;\"> I\u2019m not an investment advisor &#8211; my expertise is planning international business and asset protection structures. I rely on professionals to identify the best category of investment. Then I go to my sources and find the best <\/span><i><span style=\"font-weight: 400;\">offshore <\/span><\/i><span style=\"font-weight: 400;\">opportunity in that category. Finally, I get information on a regular basis from clients who call to talk over their tax situation at year-end.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There has been a lot of positive press for hardwoods in the last few years. Ever since the financial collapse of 2004, wood has been a top investment of the 1%&#8230; and this has continued through 2017. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For articles on the merits of investing in hardwoods, see: <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Motley Fool: <\/span><a href=\"http:\/\/www.fool.com\/investing\/general\/2013\/01\/14\/the-real-growth-industry-timber.aspx\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">The Real &#8220;Growth&#8221; Industry: Timber 101<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/a><span style=\"font-weight: 400;\">CNNMoney: <\/span><a href=\"http:\/\/money.cnn.com\/2014\/11\/24\/investing\/wealthy-timber-land-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Timber! Why the rich are buying trees<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn the rarefied world of the wealthy, timber is the hot new commodity.\u201d \u2013 CNN Money<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Money Week (UK): <\/span><a href=\"http:\/\/moneyweek.com\/why-you-should-invest-in-forestry-and-what-to-buy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Why you should invest in forestry \u2013 and what to buy<\/span><\/a><\/p>\n<p><b>Ease of Purchase and No Maintenance:<\/b><span style=\"font-weight: 400;\"> An investment in Panama teak is very easy. No real estate agent, broker or other intermediary is required. Also, the paperwork is minimal and there are no transactional costs or commissions to pay. Finally, there\u2019s no need for you to open an offshore bank or brokerage account. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike rental real estate, an investment in teakwood requires zero maintenance or work by you. Over the next few years, the forestry manager will maintain the property, cultivate the soil, nurture the trees, thin the seedlings and do everything else necessary to manage your investment. For this, they get a percentage of the harvest with no fees charged to you. <\/span><\/p>\n<p><b>No U.S. Reporting:<\/b><span style=\"font-weight: 400;\"> An investment in foreign teakwood doesn\u2019t require any U.S. reporting. The land and the farm are exempted from the Foreign Bank Account and Foreign Asset Statements. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So long as you hold the investment in your name, and not in a corporation, trust, or other special structure, you will have no U.S. reporting requirements. To avoid the FBAR, you can send the wire to purchase the trees from your U.S. account into an foreign escrow account (no need to open an offshore bank account). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note that we\u2019re talking about reporting here, not the payment of tax. When the trees sell, you will pay U.S. tax on the capital gain. This is reported on Schedule D of your personal return. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also note that these comments are limited to teakwood and long term timber investments. If you were to invest in an active farm, where you\u2019re cutting and selling regularly, this would be an active business rather than a passive investment. In that case, you will have multiple U.S. reporting obligations. <\/span><\/p>\n<p><b>No Special Structures Required: <\/b><span style=\"font-weight: 400;\">One of the reasons you have no U.S. reporting required on your Panama teak investment is that no special structures are required to hold that investment. You don\u2019t need to setup a Panama corporation or <\/span><a href=\"http:\/\/premieroffshore.com\/panama-foundation-asset-protection-2\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">foundation<\/span><\/a><span style=\"font-weight: 400;\">. You don\u2019t need to create an <\/span><a href=\"http:\/\/premieroffshore.com\/international-trust-asset-protection-trust\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">asset protection trust<\/span><\/a><span style=\"font-weight: 400;\">. You can title the land and the teak in your name. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, you can use these structures if you like. You could hold a large teak investment inside a <\/span><a href=\"http:\/\/www.escapeartist.com\/blog\/offshore-dynasty-trust-explained\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Dynasty Trust<\/span><\/a><span style=\"font-weight: 400;\"> to create multigenerational asset protection and tax free growth. But, it\u2019s not required. You\u2019re in control when it comes to teakwood\u2026 you can make the offshore plan as simple or complex as you need. <\/span><\/p>\n<p><b>Can use your IRA:<\/b><span style=\"font-weight: 400;\"> You can invest in Panama teak using your IRA or other U.S. retirement account. So long as your IRA is vested (you\u2019re retired or an account from a previous employer), you can invest it in teakwood.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are two ways to use your retirement account to invest in timber: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Move your account to a U.S. custodian that allows for international investments and have them make the investment. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Setup an offshore IRA LLC, move your account into that LLC, and then you make the investment in teak. <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The first option is quick, easy, and should not have any significant costs. The second will cost about $3,000, but it will give you checkbook control over your retirement account. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you plan to make only one foreign investment, going through your custodian is probably the most efficient. If you want to move your entire retirement account offshore, and make multiple investments, a self directed offshore IRA LLC is the best choice. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moving your IRA offshore also gives you assert protection. While the <\/span><a href=\"http:\/\/premieroffshore.com\/irs-can-seize-ira\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">IRS can seize a U.S. retirement account<\/span><\/a><span style=\"font-weight: 400;\">, one invested offshore is secure from the taxman and other creditors. If you want to diversify your IRA out of the United States, and protect it from future creditors, consider forming an IRA LLC. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more on using your IRA to invest in Panama teak, see: <\/span><a href=\"http:\/\/premieroffshore.com\/how-to-get-residency-in-panama-using-your-ira\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">How to get Residency in Panama Using Your IRA<\/span><\/a><\/p>\n<p><b>Side Benefits:<\/b><span style=\"font-weight: 400;\"> What makes Panama teak my my best offshore investment for 2017 is the side benefit of residency. Basically, you can <\/span><b>get residency in Panama for free with an investment of $20,000 in teakwood.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re from a top 50 country, called a \u201cfriendly nation\u201d in the Panama law, you can get residency in Panama with an investment of $20,000. For more on this program, see: <\/span><a href=\"http:\/\/premieroffshore.com\/best-panama-residency-by-investment-program\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Best Panama Residency by Investment Program<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re not from a friendly nation, you can get residency in Panama with an investment of $80,000 in teak. The $20,000 program includes legal and government costs while the $80,000 does not (and is much more expensive overall than the friendly nations visa). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">To sweeten the deal, once you\u2019ve been a resident for 5 years, you can apply for citizenship and a second passport from Panama. This passport includes visa-free or visa on arrival access to 127 countries and territories, ranking it higher than most other second passport program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the investment in Panama is a fraction of its competitors (so long as you\u2019re from a friendly nation). For example, you\u2019ll need invest $550,000 and pay about $30,000 in fees for a second passport from <\/span><a href=\"http:\/\/www.escapeartist.com\/blog\/the-best-second-passport-is-from-st-lucia\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">St. Lucia<\/span><\/a><span style=\"font-weight: 400;\"> that gets you 125 countries. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, with Panama you need to wait 5 years, but the investment is only $20,000\u2026 and you get that back with a nice return. If you\u2019re from the U.S., U.K., Canada, the EU, or any of the 50 friendly nations, this is the best low costs second passport available. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For all of these reasons, I believe teakwood in Panama is the best offshore investment available in 2017 It provides solid returns, requires no special structures or U.S. reporting, no maintenance charges to you, and gets you residency in the top expat and retirement country on the planet. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I hope you\u2019ve found this article on my best offshore investment for 2017 helpful. For more information, and to be introduced to an investment and residency expert, please contact me at <\/span><a href=\"mailto:info@premieroffshore.com\"><span style=\"font-weight: 400;\">info@premieroffshore.com<\/span><\/a><span style=\"font-weight: 400;\"> or call us at (619) 550-2743. All consultations are free and confidential.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I\u2019ve been covering the offshore beat since 2000. In that time, I\u2019ve seen everything, great, good, boring and bad that\u2019s out there. I\u2019ve seen amazing successes, high returns, losses, fraud, and everything inbetween. After all of that, here\u2019s the best offshore investment I\u2019ve ever seen. My best offshore investment for 2017. Note that I\u2019m not [&hellip;]<\/p>\n","protected":false},"author":686,"featured_media":6919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"yst_prominent_words":[17468,17465,17464,17482,2544,17467,2061,3694,17466,8583,5150,1888,17483,6029,17480,3023,3056,17481,17469,17484],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2016\/06\/The-Offshore-IRA-LLC-for-Business-Investors-pic.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8531"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/686"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=8531"}],"version-history":[{"count":2,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8531\/revisions"}],"predecessor-version":[{"id":28689,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/8531\/revisions\/28689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/6919"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=8531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=8531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=8531"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=8531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}