Today's comment is by Eric Roseman, our Investment Director and Editor of Global Mutual Fund Investor.

Dear A-Letter Reader:

As we've discussed this week, at first glance, going offshore can seem intimidating even to the best of us. And offshore investing is no different. When you hear about the unreasonable obstacles that the U.S. government puts between its citizens and offshore investments or about the tax consequences of some of these investments, pursuing greater wealth opportunities offshore can seem downright scary.

But going offshore really isn't that complicated - it just takes some legwork. But there is plenty of incentive, especially if you're interested in offshore funds:

Six Reasons Why Offshore Funds are an Excellent Long-Term Investment

1. Greater choice. The United States is the world's biggest securities market, but the overwhelming majority of mutual funds traded worldwide aren't available on U.S. exchanges. Indeed, of the more than 54,000 funds trading worldwide, only about 8,000 are registered in the United States.
   
   
2. Offshore funds offer a greater margin of safety than most U.S.-based mutual funds during bear markets. Although bear market or reverse-index mutual funds have been available to retail investors in the United States since the beginning of this decade, offshore funds provide a greater spectrum of alternative mutual funds offered to retail investors that can utilize popular hedge fund trading tactics, including short-selling and long/short global equity strategies. In the United States, individuals must be high net-worth accredited investors to buy alternative mutual funds employing defensive market hedging techniques. In the offshore context, that's not the case. Many of the world's leading hedge fund organizations require only $25,000 - and sometimes much less - to get started.
   
   
3. Offshore funds can offer foreign currency diversification. Most offshore mutual funds are denominated in euro while some products are also sold in Swiss francs and British sterling, in addition to the U.S. dollar. In the United States, the mutual fund industry only offers products denominated in dollars.
   
   
4. Offshore funds offer privacy. As with any non-U.S. investment, offshore funds make it impossible for the small army of professional asset trackers, information brokers and corporate espionage specialists that advertise their ability to uncover assets in U.S. bank and securities accounts to track your wealth. That's because when you buy an offshore fund through the auspices of a foreign private bank, that institution acts as your nominee on the transaction, protecting your privacy in the process.
   
   
5. Offshore funds are suitable for certain structures. There are no restrictions on placing offshore funds in retirement plans, offshore annuities, or offshore life insurance policies. 
   
   
6. Offshore funds are a hedge against a sudden U.S. market disturbance. For five full days following the terrorist attack of September 11, 2001, the U.S. markets were closed. When the markets finally re-opened, the Dow had dropped 7%. Terrorism isn't the only risk - there are many other reasons why U.S. markets could shut down, such as a potential computer virus or a New York City wide blackout. Access to global trading markets and foreign currencies in an account beyond your home borders will give you added protection should disaster strike.

Most investors need guidance before starting to take advantage of these great offshore funds and other offshore investments. Next month, I'm providing that guidance at the Offshore Advantage Seminar. I'm also going to show investors how to start an offshore investment portfolio for under $25,000, how to start your own Global Currency Sandwich with deposit protection insurance, and how to tap into the world's best-performing mutual funds in U.S. dollars, euro, sterling, Swiss francs and the Norwegian krone.

I'll also discuss how to get started on offshore tax deferral, including methods to stretch those dollars or euros into capital gains using Europe's best money-managers, most profitable stocks (many pay dividends) and international currencies and bonds.

If you've ever wanted to learn more about the offshore investment world, I'm your guide on getting started next month in Puerto Vallarta. I hope I get a chance to meet you there.

ERIC ROSEMAN, Investment Director
On behalf of The Sovereign Society

EDITOR'S NOTE: We hope you enjoyed our week week-long series on the advantages of the offshore world. Over the past week, you've heard about one of the easiest ways to access offshore investments from Larry Grossman, the top reasons to choose an offshore haven from Bob Bauman, how to defer taxes and protect your assets with a special offshore structure from Marc Sola, and why true financial privacy is only available offshore from Mark Nestmann. Feel free to contact any of our contributors directly using the contact details below.

Larry C. Grossman, CFP, CIMA
Sovereign International Asset Management, LLC
E-mail: lgrossman@worldwideplanning.com
Website: http://www.worldwideplanning.com

Robert E. Bauman, Esq., Legal Counsel
The Sovereign Society
Email: info@sovereignsociety.com
Website: http://www.sovereignsociety.com

Marc Sola
NMG International Financial Services
Facsimile: +41.1.266.21.49
E-mail: info@nmg-ifs.com

Mark Nestmann
The Nestmann Group
Email: asssetpro@nestmann.com
Website: http://www.nestmann.com

And of course, all of this week's A-Letter commentators will share their various offshore skills at the Offshore Advantage Seminar next month. If you're still interested in attending, you only have 10 days left to register. Call David Newman today at 1-866-765-7506 to reserve your spot. Or click here for more information.