The foregoing are the primary motivations which take people offshore. The benefits of these are obvious. These efforts provide protection, economic advantage or security, and an overall relief from the discomfort which derives from philosophical conflicts with society. However, there are several other important benefits, distinct from the ones discussed above, which should be recognized when evaluating offshore alternatives. These benefits include opportunities for true diversification of assets, an international presence and insurance against unforeseeable events.
Individuals protect their interests by diversifying their assets.
In this way, risk is spread among many different kinds of investments so that a downturn in one area does not impact a person s entire net worth. Wealth is usually held in home equity, bank accounts or in securities. For greater diversity within their securities portfolio, investors use the same strategy of diversification. These may include blue chips, natural resources, growth companies and emerging markets. More sophisticated investors hedge against market drops through investments in foreign currencies, options and futures.