The Isle of Man has a stable and independent legal, economic and political climate. All life assurance companies based there are closely regulated. The island is a designated territory of the UK under the Monetary Services & Markets Act 2000. This means investors are covered through laws adopted by the UK authorities as being at least as competent as their own. Compared to Luxembourg for example, the Isle of Man is the only one with a statutory compensation scheme for offshore life assurance companies. Investors worldwide who invest in policies issued by Isle of Man authorised life assurance companies pay off directly from this level of protection afforded them. If a company is unable to meet its financial liabilities, this worldwide investor protection scheme will compensate investors affected by up to 90% of the net worth of their policies and there is no upper amount to the monetary limit.

Monetary institutions on the island are prohibited from disclosing client or transaction details to anyone, unless obliged by law to do so (under a drug enforcement or terrorism order for example).

Non-residence is the key to obtaining offshore tax treatment on the island

In the Isle of Man there is no general capital gains tax or capital transfer tax and apart from VAT at 17.5%, the only significant tax is Income Tax which is 18% maximum and does not equate to offshore funds.

Discovering the right investment solutions based on your requirements and situation and from the point of view of security for your bankroll, tax efficiency of your investment and ease of administration of the policy is something your monetary adviser will be able to facilitate you with. As you are unique, so are your needs, requirements, current situation, futuristic desires and overall objectives - you need personal and specific advice from a qualified and experienced adviser. Make sure you receive it.

To give you one example of the flexible products on offer in the marketplace which can offer tax efficiency, cost effectiveness, asset protection and personal confidentiality together with insurance coverage and income options, let's canvass portfolio bonds.

Whether this product is available to you or right for you, only your adviser can explain you. This is simply one example of what can be achieved with your extra income and for the benefits of personal wealth building.

The Portfolio Bond:

This is a simple holding structure for a wide breadth of investment vehicles - stocks and shares, bonds, funds, cash etc.

Key Points of a Portfolio Bond

# The investor enters into a contract with an insurance company (in all likelihood one in an offshore tax haven)

# Convenience of holding all your assets in 1 portfolio

# Significant initial discounts from fund management groups

# Opportunity for greater tax efficiency

# Ability to transfer in existing quoted dividend holdings

# Almost total investment freedom

# Flexibility to change your investment portfolio at any time

# Easy entry to capital

# Regular income facility

You would pay off from having access to the full expanse of investment vehicles available, and from having your assets handled by professional asset managers. In certain jurisdictions portfolio bonds are 100% free of local taxes and can be structured for exclusive requirements in terms of their taxation status. There can be hefty benefits from structuring your portfolio through an offshore bond type vehicle. As the benefits adapt depending on exclusive personal circumstances this is an area that you really must talk over with a good internationally focused financial adviser.