Dear ,

My story should be called "Escape to Brazil" because at my core is the love of tropical places and living an expat lifestyle. From my first excursion to Brazil in '96 I knew I had found, to borrow a title from Hemmingway; "My place in the sun". I started my quest in '84 by moving to Australia from Canada, now I've been offshore for over 28 years. Having lived as a permanent traveller my entire adult life, has given me a unique perspective, especially because I have made a career of sharing this (type) information, since the beginning of the web - (which explains why I registered the domain investoffshore.com in '94).

Your first investment offshore is time, to learn how to invest offshore. The purpose of this this newsletter is to introduce some new ideas about the great opportunities offshore, and some experienced professional advisers, who are available to guide you. All you have to do is ask - write your questions to me, and I'll get them answered by one of the many experts I know (in complete confidentiality).

Aaron A Day
Editor

The Overseas Radio Network is a new and exclusive online network for the expatriate community and sovereign minded. It was created for everyone interested in a life abroad. From the expert traveler and investor....students of liberty and life....to the would-be expat waiting to take that next step. Broadcasting over 40 unique programs hosted by our international experts - www.overseasradio.com.

You are invited to join us for The Truth and Lies radio show, hosted by R David Finzer, the president and CEO of the Capital Conservator Group, on the Overseas Radio Network 1PM to 2PM New York Time Monday-Friday. This informative 1 hour radio show is dedicated to revealing the truth and exposing the lies about:

• international living and expatriation,
• pitfalls and rewards of the PT (permanent traveler) lifestyle,
• offshore companies, trusts, foundations and other structures, asset protection

We asked the readers of InvestOffshore to ask questions and you responded, with 2 very interesting examples of cross-border tax planning problems:

• U.K. citizen accumulated a U.K. Pension and retires to Florida.
• German who accumulates a Pension in Peru and then becomes Resident, on a Work Visa, to the USA.

Submit a question to be answered on "The Truth and Lies" radio show.

Fitch Ratings says the potential credit impact on banks due to new US tax regulations designed to inhibit offshore tax evasion could be tough to gauge due to uncharted consumer response. A significant outflow of foreign deposits could occur, but other customers might simply stay put.

Skittish high net worth individuals opposed to deeper deposit transparency could cause a material dislocation of deposits, but many other depositors with smaller holdings might choose to keep deposits in place based on necessity and function.

However, banks are clearly opposed to the new tax parameters as they breed additional uncertainty for an industry already under massive regulatory pressure.

US banks are contesting the proposed Foreign Account Tax Compliance Act of 2010 (FATCA) rule requiring them to report to the IRS interest income on foreign deposits earned by non-US residents. Banks contend that heightened disclosure could spook investors, prompting them to withdraw cash and place it instead in accounts requiring less transparency. Cheap deposits mean cheap funding for banks. A meaningful dip in deposits could translate to increased capital risk. Still, we feel a low interest rate environment would diminish any pinch felt by banks regarding current cost of funds stemming from foreign deposits.

Banks in states with considerable immigrant populations (Florida, California, Texas, and New Mexico) would likely be at higher risk for a sudden decrease in foreign deposits, as those states tend to rely heavily on community bank businesses versus larger institutional firms. The Florida Bankers Association has estimated that between $60 billion and $100 billion in foreign deposits, or close to 20% of the state's total deposits, are held in Florida banks. That said, we feel the impact of a potential shift in foreign deposits for US banks would not be significant.

Additionally, overseas financial institutions will now need to report American clients with accounts of more than $50,000 to the IRS. Banks have deemed the new process both time-consuming and costly. We feel that banks will absorb the rules gradationally; keeping in mind that noncompliance will result in a stiff 30% withholding tax on payments received from the US.

While FATCA won't become effective until Jan. 1, 2013, many banks and depositors are beginning to make decisions in order to be compliant by the end of 2012.

Request an introduction to a Cross Borders Retirement Plan Consultant.

An attractive investment combining the potential for Annualized Returns of 12%, Early Redemption every 6 months, and linked to the performance of Safe Haven Indices.

Investment Description: The RBC, Safe Haven Indices, Phoenix Notes are designed for investors seeking attractive high growth returns (12% p.a.) compared to low deposit rates. These relative "Safe Havens" in the global markets have not been heavily impacted by the current financial woes of the Eurozone.

• S&P/TSX60: The Flagship Canadian Index, with Canada often referred to in the recent times as the Switzerland of the Americas
• S&P/ASX200: The main Australian Index, representing one of the few growing commodity based economies
• OMX30: The Swedish Index characterizes one of he worlds most resilient economies with 6% GDP growth in 2010, and it's own currency t he SEK isolating it from ongoing Eurozone problems
• SMI: The Swiss Index represents exposure to 20 stocks on the Swiss Exchange. Switzerland is one of the oldest safe haven markets

Australia and Canada in particular have strong commodity based economies, which have benefited from rising domestic investment and growing export markets. Both have strong and easily accessible trade links with East Asia, which makes them less dependent on dampening European demand. Importantly all have independent monetary systems which have ensured domestic fiscal stability.

Request the 4 page brochure about RBC Phoenix Notes.

The BVI has long been a good barometer for identifying market trends, in the offshore incorporation industry.

The British Virgin Islands Financial Services Commission has published statistics on the islands' financial services industry for the second and third quarters of 2011, showing that business activity increased last year.

Business incorporations and registrations, at 17,056 in Q3, showed improvement on Q2 registrations and incorporations of 15,689. This was a marked increase on that recorded in Q3 2010, where a total of 15,946 businesses were registered or incorporated, with 2011 set to breach 2010 levels. Incorporation and registration statistics however remain subdued compared to 2008 levels.

A total of three banking or fiduciary service licenses were issued in the third quarter. Total assets under management in the banking and fiduciary sectors increased over the quarter, to USD2.45bn, up from USD2.418bn in Q2 2011.

A total of 44 investment business licenses were issued in Q3, down from 50 the previous quarter. This was an improvement on the 31 licenses approved in Q3 2010.

During the third quarter, the British Virgin Islands provided information to third countries, facilitating 31 formal requests for non-public information, an increase on the previous quarter but consistent with Q3 2010 levels.

Request more information about the BVI IBC.

Paradise isn't lost, it's still possible to retire in a dream destination, and Invest Offshore can show IRA investors some of the ways to get there with "Offshore Real Estate Investing". The self-directed IRA owns an LLC which holds the assets. The LLC opens an account with an offshore investment firm and invests the asset for growth. We refer to these as IRA LLC's.

Many people may think that offshore IRA real estate investing sounds complicated. Like any other offshore investment, it takes research and due diligence and we aim to provide investors key information to assist with informed decision making. International investment opportunities abound for those with the skill and patience to work their way through the process. Our goal is to educate and empower individuals to take charge of their retirement through the use of self-directed IRAs and tax-advantaged plans. Write to request more information.

Barrymore Beach Club, Runaway Bay, St. Georges, Antigua
Located on the quiet, peaceful Runaway Bay, the Barrymore Beach Club was designed by a leading island architect and offers apartments with kitchenettes and patios as well as three bedroom villas with pool and popular local restaurant.

This property comprises 4 two storey buildings each with 4 two bedroom, two bath apartments. Each building, inclusive of stairways is approximately 4400 sq. ft. and Barrymore Beach Club is also the home of an attractively designed, elegant restaurant. Barrymore Beach Club is a well maintained property and ideal for a condo or time-share development. On-going business will ensure a smooth transition from an apartment complex to a condominium operation, from a cash-flow perspective.

Introducing Paradise Properties Connection a professional, full service personalized Real Estate Company and has been in existence for 8 years dealing on a one-to-one basis with exclusive clients. Paradise Properties Connection Ltd. has comprehensive Caribbean real estate listings. Properties and villas for sale, land for sale and luxury villa rentals are available across the Caribbean region.

Request an introduction to Paradise Properties Connection.

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