Offshore banking is basically nothing more than placing some of your assets outside of your home country. The term “offshore” may make you think about money laundering or tax evasion. Even if it is true that some people may use it for that purpose, it is not the real reason behind it. Of course, governments and the mass media will twist the truth in an evil way in order to create fear, make you think that it’s illegal or unethical, but this is simply because they are a bunch of busy-body control-freaks who like to know how much money you have, where it is, and how you spend it.
4 reasons why you would want to use offshore banking
1 – Protection from political or economic instability.
Putting all your eggs in the same basket can be unwise especially if your country is on an economic down slope or just purely unstable. Most rich countries are now heavily in debt, losing money and technically insolvent. They abuse their control over money by printing tons of it out of thin air. Most of them are crippled by high level of corruption in their financial sectors and their banking industry. It might be wise to keep a stash somewhere else …
2 – Privacy
One of the great advantages of an offshore account is, of course, privacy. No one in your home country will be aware of your assets. How much you have, where it is, or how your earned it. Don’t be naïve, any of your enemies, competitors, ex-wives can hire a private investigator and have delivered to them your full financial and credit profile for about 70$.
3 – Protection from legal judgements
Talking about your crazy ex-wife and her little bit too talented blood-sucking lawyer, you should be aware that a court judgement will have no jurisdiction on your money offshore. It is not only a secret but also a safe place for your money.
4 – Travel and choice of currencies
If you travel regularly, for sunshine, women or business, or if you have relatives living abroad, it can be simply convenient to keep a stash of money back there, in another currency. Keeping some money in a foreign currency can always be cool if things ever go south at home. Anyway, most banks offer online banking, so you can always keep an eye on your funds or transfer money easily.
How to open an offshore bank account?
First, you need to choose the jurisdiction. Choosing a country which is politically stable with an economy in good condition is very important. You don’t want to sign up for something worse than what you already have! That would defy the purpose, wouldn’t it?
Here are the most popular locations for offshore banking:
Second, search on google and look for a bank with full on-line banking capabilities. Also, make sure to do a little online reputation background check. Make sure to read all the terms, policies and conditions. Some banks can take advantage of your ignorance to rip you off.
Compare the following information about your different options before you make any decisions:
Is there entry fees?
Is there monthly fees?
Do they offer proper customer service in English?
What is the scoop their online services?
Is there any minimum balance requirements?
Don’t be fooled by welcome gifts for new clients. Keep in mind that nothing is free in life and that a free gift for opening a new account should be seen as something suspicious.
Once you have chosen a bank, you will need to choose what kind of account you want. Usually, you can chose between a regular savings account that will allow you to transfer money and reap the interests, or an investment account that can hold multiple currencies, stocks, bonds, and funds.
The investment account would be the best choice but usually comes with a higher fee. Simple savings accounts are limited, but usually, as long as you maintain a minimum balance on it, you can operate the account without any fee, which makes them ideal for the small player.
Is it safe?
Is it actually safer to keep some of your assets in a bank so far from home? This is a legitimate question, however, you should not be worried about it. Popular offshore banking jurisdictions have very rigid regulations about the safety and privacy of their clients’ money. Furthermore, they also have a central bank regularizing rules so banks have to strictly comply with several requirements, like proving they own a sufficient reserve in order a have the required banking licence, etc. The goal of these offshore banking industries is to be competitive on an international market, and therefore, they cannot allow themselves to impose more risks on their clients if they want to prosper and grow.
There are a few drawbacks about offshore banking. The first is obviously that their physical location is far away. If you have some issue with them, it’s not so easy to just storm into the manager office! Also, you might have to read or consult about the law of your country regarding the use of offshore accounts; you might be forced by the law of your country to reveal the existence of such an account to your revenue agency.
With the coming of the internet and globalisation, international and offshore banking has become the norm for most growing businesses, and you can also take advantage of it. There is nothing illegal or immoral there!
Anyway, with the ever-growing rate of divorce, it is wise to have a secret stash offshore or in your homeland hidden under a shell company it is also another simple, cheap and legal way to protect your money.
Just make sure to be aware of the rules, do your research and don’t be shy to call them and ask for clarification over the phone, which will also give you the chance to experience their customer service first-hand.
On the same train of taught, I highly recommend you to read How to Be Invisible: Protect Your Home, Your Children, Your Assets, and Your Life. This book written by a high level security consultant will teach you how to protect your privacy and even if you want, to become totally invisible! This is a “how to” book, and all the tools are there! Moreover, you would be surprise how much you can improve your level of security and privacy with the right information and a very low budget. The author explains exactly how private investigators, working for your ex-wife or here lawyers, obtain your personal information and how to make your trail totally disappear! Amazing book! A must to read for all wannabe Jason Bourne or mafia boss out-there.
Until next post,
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