Questions and Answers.

One myth that needs to be dispelled is the perception by many that 'offshore centres' are centres of tax-less tropical bliss. In actual fact 'offshore centres' currently attract over a third of the world's foreign deposits as company formations and mutual funds expand. Their laws are numerous, with sophisticated trust, tax and company laws. There are strict regulations and their professionals are world class.

Why Now?
Typical reasons why people haven't already planned to achieve their financial objectives;

i.  Too busy at work, usually dealing with their company's money / financial objectives.
ii.  Unaware of the benefits involved in taking care of these areas now rather than later.
iii.  Lack of understanding due to having never received and / or acted upon professional advice.

A selection of the most commonly used excuses for not taking care of these areas now;

• i.   I'm too busy, call me in three months etc.
  ii.   I will do something, though I just want to take care of "X" first.
  iii.  I've seen somebody before, and I didn't like what he / she had to offer.
  iv.   My partner is scared of investing in the stock market.
  v.   I don't thing the timing is right for me.
  vi.  I've decided to buy an apartment / house, though once that's been paid for I'll look at this.
  vii.  I only invest in property.
  viii.  There's no point starting a pension until I can afford to make a decent contribution.
  ix.   Retirement is a long time from now, I don't want to think about it yet.

The years move past quickly and objectives get left behind, leaving YOU with insufficient time to achieve the things YOU would like to achieve.

Don't leave things too late, take action NOW!

Did YOU know?
If YOU invest £1,000,000 today in the best paying deposit account YOU will earn less than £55,000 a year after tax, assuming interest at 8% gross.

With a specialist portfolio manager, who will invest most of the money in stocks and shares to ensure the income grows to protect against inflation, YOU might earn, £30,000 after tax in today's market.

Now ask yourself this: "If a sensible millionaire earns less than £30,000 a year, how much do YOU think YOU will earn from YOUR pension in retirement - especially if YOU are thinking of stopping work early?"

DON'T STICK YOUR HEAD IN THE SAND, ... ASK US AT

ROYAL OAK INVESTMENTS

FOR FURTHER INFORMATION !

What does investing 'offshore' mean?
(Isn't that illegal?)
Investing money 'offshore' is;

	Perfectly legal. (Although the necessary tax declarations may be required dependent upon country of residence).
	Not a method of tax evasion.
	A very efficient tax deferral option , especially if you're a high rate taxpayer.

I don't like the thought of my money being placed in the Bahamas!
'Offshore' simply means "out of your country of residence", nothing more.

Are we talking about hiding money from the taxman?
No, you may have to pay tax on it eventually, however;

	YOU can choose when YOU pay tax on it.
	YOU can, (to a certain extent), control how much tax YOU pay on it.
	YOU can defer paying tax, to give YOU the maximum benefit.

Why should I consider an 'offshore' investment?

• i.  Do YOU really want to pay all YOUR income tax at the higher rate?
  ii.  Do YOU really want the taxman to get as much of YOUR estate when YOU die as each of YOUR children?
  iii. Do YOU really want to give away a slice of YOUR investments every time YOU re-invest them?

- If the answer to these questions is NO, then YOU need to look at investing 'offshore'.

How can I reduce my tax liability?
YOU could reduce YOUR tax liability by investing;

	Through the Isle of Man or the Channel Islands as these Islands do not tax non-residents on their Isle of Man / Channel Islands investments. (However, a tax liability may arise in YOUR country of residence).
	'Offshore', which can potentially delay YOUR tax bill until YOUR tax band has fallen to a lower rate.

How can I determine my own personal needs?
Simply call Royal Oak Investments or send us an email, including the answers to the following details:

YOUR Name /Financial Objectives /Your Nationality/ Where YOU Are Resident Currently / Where YOU Wish To Conduct Business / What Kind Of Business YOU Wish To Conduct / Where YOU Will Be Upon Achieving The Financial Objective / What Assets Are Involved / And any other information YOU feel may be relevant.

How much will the advice cost me?
Firstly, YOU should ask yourself, how much it will cost YOU if YOU don't conduct YOUR financial affairs in a tax-efficient manner.

Secondly, we have two alternatives, dependent upon YOUR requirements: We can offer our services on a complimentary basis, (i.e. commission from the relevant product provider), or on a FEE BASIS , providing this is arranged prior to any advice being given.

How will my money be invested?
This is obviously dependent upon YOUR individual needs and requirements. Though regardless of the investment recommendation, YOUR money will be directly invested in YOUR NAME with the relevant company, bank, institution or fund management house, and at no time will Royal Oak Investments accept clients funds for investment.

How much will I need to Retire?
Each client is different, and has varying levels of current provision. Though it is not uncommon for clients to want to maintain between 75% and 100% of current income upon retirement. Such incomes aren't achieved without sensible provision over the long term, without even taking into consideration the likes of inflation. (Specific figures will be offered as part of YOUR personal financial appraisal).

How much will my company pension scheme provide me with?
Dependent upon YOUR position within the company and the scheme type used, providing YOU stay with the same employer throughout YOUR working life, (forty years), YOU can achieve UPTO 2/3rds of YOUR final salary upon retirement. However, this is best case scenario and few Expatriates stay with the same company for more than a few years at a time. (We can tell YOU exactly what YOUR company scheme will provide YOU with as part of YOUR personal financial appraisal).

What if I move companies?
If YOU move companies YOUR entitlement will lessen. There is usually a possibility that YOU can transfer YOUR old scheme into either YOUR new employers scheme, or into a personal scheme for yourself. Unfortunately this usually reduces the value of what it would have been worth with the original scheme. (Specific analysis for YOUR current or old schemes will be available as part of YOUR personal financial appraisal).

Can I do anything better than leaving my money in the Bank?
It is highly likely that YOU'LL be able to outperform the returns from a traditional bank account, though it is important that the THREE main areas of financial management are maintained. Short-term, Medium-term and Long-term. (These areas will be discussed at length as part of YOUR personal financial appraisal).

How much will I need to send my children to Private Education / University?
Private Education and University fees are grossly underestimated on the whole, and can cost from around £6,000 to £25,000 per annum, dependent on the institution concerned. Bearing in mind that schooling has it's own inflation rate, (typically much higher than normal inflation rates), it's not difficult to realise that high education costs now, can quickly double in real terms when you take into consideration the effects of inflation. (More accurate figures will be made available to YOU during YOUR personal financial appraisal).

These are just a few short examples of the more typical questions asked by our clients and are by no means conclusive.

If YOU have any other questions, please email them to us, and we will attempt to answer them to the best of our ability.

Take a Financial Interest in YOURSELF and talk to US at Royal Oak Investments !