The word "offshore" has long conjured up images of a murky, somewhat exotic world of financial dealings. The true definition of the word allows for a much more simpler understanding of the term. Offshore, simply put, means establishing a business or investment base in a location other than the country of one’s residence. This has long served both corporations and individuals who have thought in a global sense or who wished to do business on a worldwide scale. When it comes to individual investing, this simply means that instead of investing from a domestic base (i.e. one’s country of residence), you are investing from an offshore base. This helps to maximize the returns that you as an investor receive.

Offshore has come to mean areas around the world that offer minimal or no taxes in addition to added security and confidentiality. In fact, the largest and most secure financial institutions can be found offshore. These institutions pay no capital gains tax, corporate tax or income tax on the funds of their policyholders. In addition, they offer such services as money market funds, offshore mutual funds, hedge funds, and various savings plans designed to provide for the client’s retirement, children’s educational expenses, purchasing a home, and for overall wealth creation through strategic investments.