Take Your Financial Matters into Your Own Hands: Go Offshore

It's only natural if you want (or, rather, wish) your Government to take care of your and your family's welfare and well-being. However, not many Governments of the world can give you such luxury.

Not even the land of dreams and opportunities, the United States of America.

In the 1930s, during the worst of the Great Depression, the American government seized gold holdings from citizens. In 2013, nearly 40% of asset holders in Cypress had their money seized by their own government. While most investors today believe their risks are limited to fluctuations in the market, the truth is that the biggest risk to your finances is your own government.

Indeed, it’s surprising too many to think that their own government is their biggest risk factor when it comes to investments. The truth is that political risk in Western areas is high. Things like bail ins, bank deposit taxes, and capital controls can happen at the drop of a hat. Western banks also don’t offer the same level as offshore banks. In offshore banks, you don’t have to worry about your balances and financial activity being reported (unless there is some regulation in place requiring so).

Most Western countries have governments that are so heavily weighed down by debt that they use their banks to get the most interest from account holders. This alone should be a red flag to anyone who is serious about diversifying and protecting assets.

So, when you can’t trust your finances with your own government, what can you do?

Take (Financial) Matters into your Own Hands

Remember the good, old days of hiding your cash under your bed? Often used as a reference for a joke, believe it or not, it's still a thing today. However, hiding your cash under your mattress isn’t the best idea if you’re looking for a strong wealth management.

What about keeping your money in a bank account? Well, you could, but banks - especially in the Western nations - aren't your best bet for protecting your assets. They can practically lend your money to borrowers for the amount that's the multiple of your actual savings (a.k.a. fractional reserve banking). To rub salt into the wound, they won't insure much of your deposits, anyway; for example, in the United States, deposits are only insured up to $250,000 per account by FDIC.

So, what are the available options for an Average Joe? Well, there is one: Go offshore.

Indeed, if you are serious about creating a solid wealth management strategy, then offshore banking should absolutely be a part of your plans. There is simply too much risk to leave all your assets in Western banking systems. Since stashing your money in jars in the backyard probably isn’t your idea of diversification, offshore banking could absolutely be the right choice for you.

More and more ordinary, everyday people are turning to offshore banking to diversify their wealth management strategies and risks. Offshore banks in stable jurisdictions are shown to offer several benefits for investors.

Where is This So-called 'Offshore'?

Generally speaking, 'offshore' banks mean those that aren't in your home country. These usually the best description for banks in the, say, Belize or Cayman Islands. But 'offshore' also be used to describe banks in financially-sound countries, like Singapore, Netherlands, and Switzerland.

In economically- and politically stable areas, offshore bank accounts are nestled in stronger banking systems than we see in Western countries. These offshore banking systems that are backed by sound governments typically feature banking laws that are favorable to account holders.

For instance, higher liquidity rates mean that you can access your money anytime. This a stark contrast to the banks in Western countries that keep little cash on hand and leverage investor funds for as much interest as possible.

In the event of political emergency or some other major emergency, you might not even be able to pull out cash in Western countries, whereas offshore bank account holders in stable jurisdictions don’t have to worry. These banks are also more conservatively run than those in Western countries, meaning that they are more stable, and they are also better capitalized than those in Western countries.

But Why Offshore Banking?

There are several other reasons why using offshore bank accounts can help keep prying eyes and hands away from your finances. For example, an offshore bank account can help you protect your assets from seizure after divorce or litigation. In the United States, 15 million lawsuits are filed each year, placing emphasis on the need to protect your assets. Plus, you know that you won’t have to worry about frozen assets or levies on your investments stowed away in an offshore account.

With an offshore bank account, you can enjoy a number of other benefits, too. For instance, you can take advantage of better foreign exchange rates and higher interest rates. If you’re interested in real estate investing, offshore banking can also open up new opportunities in that arena.

Final Thoughts

The time to get started in offshore banking is most definitely now. If you wait, you leave yourself at risk. By the time trouble starts and a government begins infringing upon its bank account holders, it’s going to be too late to remove and relocate your cash.

If you are serious about your investments and getting the most from them, the best thing to do is to start planning now on your next move. Offshore jurisdictions such as the Caymans, Singapore, and the Netherlands are all excellent choices for offshore bank accounts that are in exceptionally stable systems. You’ll find that getting started in offshore banking is simple, thanks to the convenience of online banking.

Once you diversify your investments in offshore banking, then you will be able to breathe a sigh of relief knowing that you have made the wisest decision possible for protecting your assets.

If you want to learn more about ways to use offshore jurisdictions for your financial planning purposes, you can consult with us.