Suggest to the average American that he or she might benefit from owning a foreign bank account and you’re more than likely to get a questioning look and a response like, “Why on earth would I want to do that?
Americans, you see, tend to have an extremely parochial attitude when it comes to their money – and they also tend to have an almost unnatural suspicion of foreign banking activities. After all, the media has exposed us to an endless series of foreign banking tales, involving political fiascos, financial fiascos, and criminal capers.
Yet the simple fact is that most Americans could benefit by owning a foreign bank account. Already, foreign banking – or, as it is more popularly known today, “offshore banking” – has become an important tool for thousands of legitimate and highly successful businesses and individuals.
And in today’s world of high-tech computerized satellite communications, it’s easier than one might imagine.
Who would have believed, even 5 years ago, that a simple standard transaction like talking to an American Express agent, the person demanding a checkbook number could be halfway around the world in India, speaking better English than most Americans?
To top it off, this person was probably born in a low-tech mud hut and 15 years ago didn’t even have access to electricity and running water.
In practice, a foreign bank account allows the prudent investor to synchronize the benefits of various banking activities and blend them into a single financial strategy for making profits and saving taxes. For the careful investor, it is one of the most pragmatic ways to expand the realm of financial opportunity, as it is one of the most creative ways to diversify assets.
Since offshore banks do not operate in the United States (hence their name), accounts held in them are rarely subject to our state and federal laws and regulations. Offshore banks can also offer a wide range of services far beyond the legal capacity of domestic banks. By aggressively using these services, investors can increase their profits, reduce their tax burden, and raise capital at lower interest rates – all without the restrictive red tap maze often found in the United States.
There are approximately 45 jurisdictions around the world that bill themselves as offshore financial centers or banking havens. Many of these centers are remote, lack adequate backup facilities, or have loopholes in their banking or tax laws that may affect your privacy or your rate of return on investment. This does not necessarily mean that you should avoid banks in these jurisdictions when shopping for a foreign bank account location.
However, it does mean that you should be more careful, making sure that the bank is well-managed and offers the services, expertise, and security you are looking for.
As a means of increasing your wealth by diversifying your investments, minimizing your text load, and increasing your investment profits, you should seriously look into getting one or more offshore bank accounts.
Didn’t your grandmother ever tell you not to put all your eggs in one basket?