Expat Investments

Investments in Thailand

There are a number of ways and funds if you wish to invest in the Thai stock market or Thai funds. There are also a number of ways to invest in property.

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Offshore Investments

Since the financial collapse of late 2008, it seems even more prudent to diversify your holdings of cash and assets. The UK government will only protect the first £50,000 that you hold in a bank account in the UK; it is $150,000 in the US; whilst Australia will remove their guarantees by the end of the year . So, if all your money is in one bank account, you may be exposing yourself to unnecessary risk. One of the best ways to protect your money is to hold it in an insurance portfolio offshore. Insurance firms that hold your money in Guernsey or Isle of Man (British dependencies, but not under UK jurisdiction; hence you can reduce your taxes to effectively zero) offer protection of your money of up to 90% of your investment.

For example, if you have £100,000 in a UK bank account:

UK bank only protects the first £50,000

Isle of Man/Guernsey insurance company protects £90,000

Once you have transferred your money offshore, you can decide how to invest your money. The least risky way is to hold it in government bonds. Modern portfolios also mean you can access up to 85% of your portfolio from day one. This means your money can grow offshore tax-free and you can partially encash your portfolio as and when you need it.

If you have a higher risk profile, you can also take the opportunity to invest in mutual funds which historically have provided returns of between 8 and 12%. Considering you effectively earn nothing on a Thai bank account it seems common sense.

For example, if you hold £100,000 in an offshore portfolio and it grows at 8% interest per year, it will return £146,932 after only 5 years. The key to this investment is not to panic when the market goes down. The S&P 500 fell by 47% in the financial crisis in 2008, but had bounced back 50% from March to August 2009. These investments should be held for at least a 5 or 10 year period (the typical business cycle). You can even purchase investments which invest in property without the hassle of trying to manage or maintain property.

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