What billionaires do in their free time will surprise you

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Almost everyone knows the success stories of some of the world’s wealthiest individuals but have you ever wondered how their life is like beyond what you see or read about online?

Not surprisingly, just like ordinary folks, high net-worth individuals (HNWIs) also need some time to escape from the everyday routine and pursue their passion outside work – but unlike normal people, they do it on a grander scale.

According to a recent Wealth-X study focusing on ultra-high net worth (UHNW) individuals, these are the top three passions and interests of the planet’s richest people:

  1. Art

Most billionaires possess an exquisite work of art and collecting the world’s rarest visual and artistic creations has been one of the top passions of many ultra-rich people. Some of them invest in thousand to million-dollar worth of art works not just as a way to diversify their portfolio but to simply have the full right to claim ownership to a beautiful masterpiece.

  1. Sports

Just like ordinary individuals, the ultra-rich love sports and they would invest not only their money but also their time just to support their favorite teams. In fact, their passion for the games also make them want to play it themselves. Some examples of popular sports among the wealthy are yachting, football (soccer), golf, tennis, and skiing.

  1. Philanthropy

Topping the list of the most popular hobbies of the uber-wealthy is philanthropy. According to the same study, more than a third of the world’s richest support and organize charitable activities. Many high net-worth individuals have been known to provide generous funding for humanitarian causes, child education, medical research, and even scholarship grants through several foundations. Examples of famous philanthropists are Bill and Melinda Gates, Warren Buffett, Carlos Slim Helú, and Li Ka-shing.

Why successful individuals invest in offshore mutual funds

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Success stories are often described as something achieved by hard work, perseverance, and having the right connections. However, not everyone knows that the most successful people in the world have relied on one strategic move that has not only made them financially stronger, but has also helped them grow their wealth over time: investing in offshore mutual funds.

In definition, offshore mutual funds refer to a collective investment system strategically situated in offshore financial centers (OFC) where non-resident investors can enjoy an attractive list of benefits: little or no tax liabilities in the jurisdiction, geographic diversification, and asset protection and privacy. Let’s take a closer look at the major benefits of investing in offshore mutual funds.

Low to neutral tax liabilities

Investing in offshore mutual funds means enjoying its primary incentive: favorable and most of the time, zero tax rates. This is because of the government’s initiatives to promote healthy and more attractive investments. Since these small countries have relatively few resources of their own, they have focused on attracting wealth from the outside to effectively boost their economic activity.

Smaller stakes with bigger potential returns

Investing in offshore mutual funds have been attractive to investors around the world because knowledgeable fund managers are able to outperform onshore funds. LOM Financial’s mutual funds, for example, have consistently posted strong growth figures year after year. The company’s investment experts have experience in managing the nuances of mutual funds for the last two decades, proven by the funds’ impressive track records of out-performing their benchmarks on a consistent basis.

Effective Portfolio Diversification

Many financial and investment experts believe that diversifying one’s investment portfolio is an effective way to improve one’s risk-adjusted returns—and investing offshore can add more to the list of its benefits. Offshore mutual funds offer investors opportunities to create a diversified portfolio.

Secrecy Policies and Regulations

Offshore centers provide the liberty in regard to regulations as well as policies that allow security and privacy of investors’ assets.  With these investor driven regulations, the process of establishing and more importantly, administering funds, are simplified.

These advantages mean less paperwork, reduced headaches, and worry.