An offshore bank account will allow you to safely and privately explore, with few restrictions, the far reaches of the vast and diverse financial universe; from the bond markets of Korea to the stock exchanges of Eastern Europe; from ultra-private Liechtenstein trust arrangements to the most successful funds; from unique commodity investments to Caribbean corporations; from Israeli nanotech start-ups to age-old European blue-chips; from the mysterious and secretive world of offshore mutual funds to tax-free Swiss gold accounts; from Isle of Man Insurance contracts to Danish multi-currency investment accounts; from uniquely structured tax-free Austrian funds to Bulgarian mortgages; and much more beyond.
With one phone call, or even just the click of your mouse, an offshore bank account will allow you to:
- Privately trade stocks, bonds, mutual funds, CDs, precious metals and currencies on markets everywhere (including CDs that pay up to 16% after currency gains and emerging market stocks and funds traded on exchanges that have soared 496%…407%… and 232% in the past few years).
- Diversify your assets out of American dollars and convert them into currencies set to soar against the dollar in the volatile times ahead, like the rock-solid Swiss franc, the euro and many more commodity currencies upon which we’ve already seen staggering gains of 1,794% and 797% by recommending select little known currency investment techniques.
- Buy into special types of mutual funds, which are managed by legendary, award-winning financial analysts, who rank among the world’s best. These offshore fund managers have consistently proven to outperform their American counterparts, as they are able to trade markets and asset classes far more freely than American fund managers, and they’re allowed to employ far more flexible and powerful investment techniques. You will able to profit from some of the world’s top funds and advisors…from Luxembourg to Thailand…from Korea to the Caribbean…some of which have boasted returns of as much as 867% in a 5-year period. Compare that to the average American mutual fund that, at best, has provided anaemic single-digit returns over the last 5 years.
The articles below originally appeared in our montly newsletter, The Sovereign Individual and will help you more fully understand the benefits of offshore banking and using an offshore bank account. You can learn more about offshore banks, tax havens and asset protection in The Sovereign Individual each month by becoming a member of The Sovereign Society. Click here for details on membership.
More About Offshore Banking
The “New” Offshore Bank—No Longer Just for Millionaires
By Kathlyn Von Rohr
Years ago, you had to be very wealthy to meet the minimum balances and afford the banking fees for an offshore bank account. Not anymore. After dramatic changes in international banking and Internet communications, you can secure a relatively modest offshore account, as your quick, inexpensive entry into the world of foreign investments. And while some nations, like Switzerland, may ask for high minimum deposits, others are relatively low.
An offshore bank account in the right jurisdiction provides layers of asset protection, as well as better investment opportunities. An offshore account shields your assets from greedy settlement-seeking lawyers or determined creditors who want to seize your wealth (in most offshore jurisdictions, they won’t get past the local courts).
Better Investments, Less Taxes
Yes, your cash will be safer offshore, but one of the big pluses of an offshore account is your power to trade freely and invest widely in foreign-issued stocks, bonds, mutual funds and national currencies. You can diversify with instant access to the world’s best investments without being hindered by U.S. laws or SEC rules. You can buy attractive life insurance and annuity products unavailable in the U.S. and Canada. Tax savings may result from deferred investment earnings, capital gains or appreciation, rather than being immediately hit with taxable ordinary income.
Choosing the right jurisdiction for your offshore bank account makes all these investment opportunities possible. Here’s a quick look at two top jurisdictions where you can secure an affordable offshore account.
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Your Quick Fix to Total Wealth
By Robert E. Bauman, JD
One of the greatest threats to your wealth may be lurking deep inside your subconscious. It’s called xenophobia. “Xenophobia” describes “a person unduly fearful or contemptuous of that which is foreign, especially of strangers or foreign peoples.”
And tragically, this fear stops individuals from seeking the whole world of wealth opportunities available in other nations. These well-intentioned, but not very savvy, folks store every last cent of their wealth in U.S. banks and only invest in the U.S. investments their brokers suggest.
But it’s not too late to purge these xenophobic tendencies and move your assets offshore. Here are just a few of the major opportunities waiting for you.
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Fun With Numbers
Modern day life is filled with numbers, and some apply to the offshore world more than others. Here are some interesting numbers to think about…
* 20%. Estimated number of the 285 million American citizens who have passports.
* 1.4 million. The estimated number of Americans who left to live offshore since 2000.
* 600,000. Estimated number of British citizens who leave to live offshore annually.
* 800. Average number of U.S. citizens annually who relinquished citizenship in recent years.
* 33.9%. The amount the top-earning 1% of U.S. taxpayers pay of all U.S. individual income taxes collected.
* Zero. The amount of income taxes paid on offshore income by a resident foreigner in Panama, Andorra, Campione, or Monaco.
* 25%. Estimated amount of U.S. pension funds invested offshore.
* 300%. The amount the Swiss franc has appreciated against the U.S. dollar since 1971.
* US$750,000. Minimum amount usually needed to open an investment account in Liechtenstein.
What You Need to Know Before Investing or Doing Business Offshore
While investing or doing business offshore is perfectly legal for U.S. citizens and residents, there are a few legal formalities you should keep in mind.
The most important of these is that you are responsible for paying taxes on your worldwide income. In addition, many types of offshore investments are subject to separate reporting requirements. Also, transfers of US$10,000 or more in cash or cash equivalents across U.S. borders must be reported, as well as the formation and funding of a foreign corporation, trust or partnership.
While it’s easy to comply with some of these requirements—such as the annual filing of the “foreign bank account reporting” (FBAR) Form TD F 90-22.1, other forms (such as those necessary to report a foreign trust relationship) are more complex. To assist you in complying with these more complex reporting requirements, we recommend the services of a qualified tax attorney.