5 Ways to Protect Your Money During Crisis

While there is no end in sight to the novel coronavirus pandemic, many people are wondering if it’s too late to protect their hard-earned money outside of their local banking system. The good news is that there are a number of ways in which you can still protect your money, and in this article, we’re going to outline five ways you can protect your money during crisis and the pros and cons to each strategy.

1. Offshore Banking

Offshore banking is a solid way to protect your money during crisis. For years, people have turned to offshore banking because it can offer lower taxes, including lower corporate taxation. In addition, offshore banking tends to be more private than domestic banking and can offer protection against legal action including foreclosure and seizure. If you are interested in investing internationally, offshore offers viable opportunities.

There are, however, some negative sides to offshore banking. For instance, offshore banking can be costly with high minimum investment amounts. It can be difficult to avoid taxes today due to new regulation that’s continuously evolving. Unlike the FDIC in the U.S., there is no insurance on offshore banking, and it can, in some instances, take longer to access money that’s offshore.

2. Physical Precious Metals Held Offshore

One way to get rid of the middleman is to invest in precious physical metals, especially gold and silver. In terms of precious metals, you don’t have to worry about them being destroyed by fire or being hacked. There’s no maintenance with physical precious metals, and holding physical precious metals tends to be private. You can easily transport physical precious metals, although carrying them internationally is a different story because of customs.

In the case of physical precious metals, you’ll need storage. While some people choose a security deposit box, when you’re holding metals offshore, a private professional storage is best, but this does entail fees. If you are looking to put your physical precious metals to use, you’ll quite likely need to convert to currency first. Also, if you hold for more than a year, a 28% capital gains tax is applied, although this doesn’t always have to be the case with offshore. Another con to consider you won’t gain any interest on metals.

3. Bitcoin / Cryptocurrency

Cryptocurrency, including Bitcoin, is known for its security and low transaction costs. Plus, transactions are faster with cryptocurrency. You can trade anywhere in the world and even take advantage of an income opportunity with mining.

However, there is a learning curve with mining and using cryptocurrencies period. The value is volatile, which isn’t always desirable for investors. Cryptocurrency isn’t as anonymous as it always was, especially since taxation has come into play. With cryptocurrency, you also won’t have the same credit or influence as you’d have with the central banking system.

4. Collectibles

If you are passionate about collecting sports cards, jewelry, or other items, then investing in collectibles gives you a way to follow your dreams while also potentially earning returns. Collectibles can be a great way to diversify your assets while also gaining value in the long term.

It’s important to remember, however, that investing in collectibles is indeed a long-term investment if you’re looking for serious gains. The tax regulations on collectibles are also very strict. For instance, nothing in your collection can be for personal use.

5. Hidden at Home

If it seems intuitive to keep your assets hidden at home, perhaps buried in the backyard or hidden beneath your mattress, just know you aren’t alone. There are some advantages of doing just this. For example, your assets are available anytime you need them. If there’s an emergency, you don’t have to travel anywhere to get cash. You don’t have to pay any fees, such as bank fees, when you keep your cash at home.

However, you also won’t get any earned interest this way. You also have to fight your own temptation and impulse spending notions, if this applies to you. Still, hiding your assets isn’t the safest bet against burglars, friends, and even family members. It can also be difficult to keep track of your finances this way.

Conclusion

While the COVID-19 pandemic continues to sweep the globe, it’s not too late to protect your money and diversify your assets right now. Using the tips in this guide, you can see how simple it is to put your eggs in many different baskets that don’t include local banking systems!