Case Studies

Case study 1 - Retiring overseas:

Roger & Janice (69 & 64) are UK nationals. They recently retired to Italy with combined UK pensions generating just over 14,000 GBP per year. The proceeds from the sale of their UK home totalled 300,000 GBP and they wanted to save this offshore to supplement their pension income and provide a nest egg to pass on to their grandchildren in the future.

Through Offshore Investment Designer, a tailor-made holding vehicle was established by the clients that provided access to institutional rate bank deposits 20% above what they had been receiving. The growth of which was exempt from the EU Savings Tax Directive. The vehicle also allowed for the flexibility to make ad hoc withdrawals, together with a regular monthly income to meet their needs. The vehicle is structured in a way that it is inheritance tax exempt upon death to pass onto their children after 7 years.

Case study 2 - Saving for the future:

George (45) is a UK national and M.D. of a multinational company in Europe. He had very little provision for his retirement and so needed a regular savings vehicle that would provide an income in retirement from the age of 65, possibly before.

Offshore Investment Designer recommended a flexible monthly savings vehicle with a major financial institution that allowed George's company to make the monthly contributions on his behalf. The investment is fully portable allowing George the freedom to not only move to other countries but also to move to another company if he needs to. Due to the volume of business introduced by Offshore Investment Designer, we were able to negotiate an excellent monthly bonus allocation which should allow George to retire earlier than expected.

Case study 3 - Children's Education:

Andrew & Maria (31 & 32) are UK and Spanish nationals, living in Thailand. They have a 2 year old son and a 9 month old daughter. They would like to give their children the best start in life, with a university education in either the UK or Europe.

Offshore Investment Designer sourced a very flexible, cost efficient savings vehicle that allowed Andrew & Maria to save on a monthly basis providing access to the world's leading fund managers. The investment allows for any unforeseen circumstances; they can not only increase the amount that they save every month but they can also reduce the amount they save, and even take a break from making contributions altogether.

By the time that their son and daughter reach higher education age, they can expect to have a fund in place that will not only cover the ever increasing costs of education fees, but could also pay for their living expenses when they leave home for the first time.

Case study 4 - The Experienced Investor:

Keith (55) is an Australian national, living in Mexico and is an experienced investor with over $3 million invested. Keith had been investing for a number of years and wanted access to a wider range of funds from the international market place than those he had been investing in for the last 15 years. Keith also wanted to be able to re-structure his portfolio quickly and cost effectively when necessary.

Offshore Investment Designer found the perfect portfolio bond to suit Keith's requirements. It enables him to consolidate his existing investments into one easily manageable entity. Furthermore, it allows access to the world's leading fund managers with lower trading costs than would normally be associated with investing directly through the fund managers and a free quarterly review showing recommended holdings and new funds. Keith also has access to the majority of his portfolio with an offshore debit card and cheque book issued by Lloyds TSB. Keith found the fund analysis service invaluable as he often has a good idea of which sectors and markets he wants to invest into but needs assistance deciding the best fund manager and comparing any fees. He also has online access to valuations so that he can keep track of performance wherever he is in the world.

Case study 5 - Offshore Wrapper:

Judy is 57 years old, living in Germany and holding approximately 100k GBP in offshore fixed deposits, 45k GBP in frozen UK ISAS and another 30k GBP in the UK stock market.

Offshore Investment Designer assisted Judy in the consolidation of her investments through an offshore wrapper. This meant all of her investments were held under one roof and any administration headaches were a thing of the past. Furthermore, when Judy came to Offshore Investment Designer she wanted to find a legitimate way of not losing 20% of her offshore account interest to the European Savings Tax directive (EUSD). By holding her fixed deposits through an offshore wrapper Offshore Investment Designer showed Judy a way of eliminating her need to pay the EUSD and saving her 20% of her interest.

From the single simple structure of her offshore wrapper, Offshore Investment Designer helped Judy diversify her portfolio through investment across various asset classes, offshore funds and fixed deposits ensuring that her nest egg was not all in one basket. Furthermore, profit made through the sale and purchase of her funds within the wrapper is not subjected to capital gains tax.

Case study 6 - Releasing a UK Pension:

Peter (47) is a UK national living in the Philippines with the intention to move to Monaco or Dubai in the next 5 years to concentrate on business interests. He has a UK frozen pension (valued at £700,000) that he cannot access until retirement age. Peter has no intention of returning to the UK and he wanted to make use of his retirement fund at an age where he could make the most of it in around 5-8 years.

Offshore Investment Designer were able to compare all QROPS (Qualifying Recognised Overseas Pension Schemes) vehicles that allowed Peter to transfer his UK Pension to an approved scheme outside of the UK (fully compliant with HMRC), reinvest the money into better performing assets and cash deposits and over time release his pension fund without the deduction of UK tax. Peter has NO obligation to ever buy an annuity. The vehicle is structured in a tax efficient way that allows Peter to pass on the un-spent value of his pension fund in the future to his family.

Case study 7 – Spanish Compliant Bond, reduce tax in Spain:

Stuart & Karen (70 & 63) are UK nationals and have retired to Spain. Neither had built up a significant pension so the proceeds from the sale of their UK property (350,000GBP) needed to be used to provide a monthly income. Through Offshore Investment Designer, they were able to find a savings & investment vehicle that not only allowed for an income to be drawn on a monthly basis, but also had the flexibility to vary the amount withdrawn to suit their lifestyles. The investment was structured specifically to comply with local tax legislation, significantly reducing the amount of tax that they had to pay on their annual income from around 18% down to below 6%.

Case study 8 – Returning to the UK after working overseas:

Having spent the last 15 years working on major projects throughout the Middle East, Harry (55) had decided to return back home to live in the UK. Whilst working overseas Harry had accrued savings of around 1.2MGBP. His enquiry through Offshore Investment Designer resulted in Harry investing through an Offshore. Yet fully UK compliant structure that would allow him an annual tax free income of 60kGBP pa (5%pa tax) in the UK. Harry can continue to receive his tax free income for most of his life.

Case study 9 – Retired Overseas:

Robert (63) is a UK national and had retired to Malaysia 3 years ago. He’d been living off the interest generated from his life savings and was reasonably happy with the returns that were being generated by the bank he’d used for the last 20 years. Robert, like countless others in his situation, was concerned that the recent credit crunch could mean that the 400kGBP he’d managed to save over the years could be at risk if his bank were to be affected. Following his enquiry through Offshore Investment Designer, Robert’s savings are now held in a combination of institutional bank deposits through an offshore savings & investment structure in the secure location of The Isle of Man. This investment approach has meant that not only is Robert at less risk of losing his life savings, but he also enjoys a much higher rate of return than he’d been receiving previously. Robert told us he now sleeps better at night and has more money to spend enjoying his retirement.

Case study 10 – Protecting against the cost of care if returning to the UK:

William & Pat (72 & 67) had been enjoying their retirement overseas for 10 years before ill health had forced them to consider returning to the UK. They were concerned that the ever increasing cost of residential care would inevitably reduce their life savings to such an extent that their children would be at risk of losing their inheritance.

Following their enquiry to Offshore Investment Designer, William set up an offshore life assurance investment vehicle before returning to the UK. The structure allows him to invest their savings in a combination of bank deposits and low risk holdings which have not only improved on the returns that were being generated previously, but also allows for the flexibility to draw an income to suit their requirements. We also pointed out that the UK Government does not treat monies in a Life Assurance structure as savings, so William & Pat have also been able to safeguard their children’s inheritance.

Case study 11 – French Compliant: France

Phillip & Helen (65 & 58) are UK nationals and have retired to France. Phillip worked for a major multinational company all over the world for 40 years. Before retiring, Phillip submitted an enquiry to Offshore Investment Designer to ensure that his financial affairs would be in order before the move. His main requirements were for his life savings to be used to supplement his company pension income, and that in the event of their deaths the monies remaining should be divided equally between their 4 children. The result of his enquiry is that they now have an investment that is structured specifically to comply with local tax legislation, significantly reducing the amount of tax that they had to pay on the income generated by their savings. Establishing the investment before moving to France has also meant that the forced heirship rule will not apply, and that monies can be passed to their children free of French Inheritance Tax.