Offshore investing refers to the act of doing business (whether making income or keeping bank accounts) overseas in a foreign country. Before you run away, thinking that sounds more like an Oceans Eleven scheme, just be reassured that offshore accounting is not illegal. In fact, there’s very little chance of it ever becoming illegal. You have a perfect right to store money in whatever bank you like, provided that it’s okay with the bank and with the country you do business with.
The government may not like the idea of offshore accounting, but they can’t really stop you. In fact, a lot of people are seeing the advantage in storing part of their money in an offshore account, free from the U.S.’s crumbling economy. What is illegal, and what you do want to avoid, is sending income that you made in the U.S. to an offshore account in an attempt to hide it from the government. You have to report all American income, if you are a citizen of the U.S. Otherwise, this would be considered tax evasion and before you know it, you’ll be betting with Wesley Snipes in prison.
There are no risks in creating an offshore account. It won’t even be absurdly expensive, as many banks will open an account with a small minimum of money. The advantages here are plenty, as you can expect a substantial tax break and will also have access to bank secrecy, user confidentiality and more opportunity regarding your investments. Storing money in an offshore account is also an effective way to protect yourself from creditors and others who would demand access to your bank account by federal court order.
This article does not mean to suggest that your bank accounts are in trouble. It is legally possible that the U.S. government could seize your assets without any good reason, however, at this point in time, it seems unlikely to happen. Nevertheless, with many banks going out of business and various stocks and bonds closing out, it’s understandable why many Americans would seek a bit of refuge in a foreign bank account. This money would not only be safe from the government, but it would also be protected from the fast-shrinking value of the American dollar, provided you get the funds converted now.
If you would like to learn more about offshore investing and accounting, take the advice of the Invisible Investor and continue browsing this site.