Georgetown Trust Blog

Use Your IRA to Make Offshore Investments

Posted by Georgetown Trust on Mar 12, 2015 9:00:00 AM

CouplePlanningInvestmentsiStock_000045577918_SmallFor many Americans, an IRA, or individual retirement account, is a big part of their retirement savings and financial safety net for the future.

Each year, you are eligible to submit as much as $6,500 to your existing IRA, an amount that is tax deductible.

The net value of your IRA can grow over time thanks to a fund manager who makes investments on your behalf.

If you are ready to branch out and take your IRA offshore, here is what you'll need to know to get started.

Benefits of Offshore Investing Through an IRA

When you establish an IRA, it is typically because you want to create a secure financial future for yourself and for your loved ones. The whole intention is to ensure that you have enough money to retire comfortably in the future, and the added bonus is that you can defer taxes at the same time. Like any investments, IRAs will work best if they are diverse.

By investing in offshore stocks, shares, real estate, precious metals and more in places around the world, you can reduce your overall vulnerability. Investors know that diversification is one of the keys to a profitable and secure portfolio, but too many individuals forget about that fact altogether for their IRA and invest only in a single geographic location. 

Move Your IRA Offshore as an LLC

One of the most common and effective ways to move your entire IRA offshore is to create an international LLC, or limited liability corporation.

You can move the entire net worth of your IRA into an offshore business, and you'll have the freedom to invest as you deem most appropriate.

Of course, there will still be some guidelines that you have to follow in order to be compliant with government agencies like the IRS.

There are some restrictions on how you can invest the IRA assets, and investments should not be for personal use or for the immediate benefit of friends and family.

Self-Directed IRAs and Their Benefits

An offshore IRA in the form of an LLC can be directed by a trustee or manager of your choosing, but it can also be self-directed.

This can be beneficial in a number of ways, but one of the most notable is the saving you'll enjoy on investment and management fees.

In addition, you won't need to worry that the person managing your IRA is only investing in things that offer commission or perks for them. You can make split-second decisions based on market conditions and control your financial future in the way that you deem most appropriate. 

How to Get Started

If you want to start making the most of your IRA by taking it offshore in the form of an LLC or an offshore self-directed IRA, then working with Georgetown Trust can be a great place to start. By creating an offshore LLC, you'll be ready to transfer assets and take control of your retirement, your finances and your future.

If your IRA is your primary way to prepare for retirement, consider making the most of it by taking it offshore for a greater variety of investment opportunities.

Take Control of Your Investments with a Self-Directed IRA

 

Topics: Self-directed IRA