Tuesday, 3 June 2014

Offshore Banking

Offshore banking has become a hot topic in recent years in , once an exclusive preserve of the “rich” , even the moderately wealthy nowadays want a piece of the offshore banking action. Offshore banking services are shrouded in confidentiality.

Opinions vary as to whether or not this state of affairs is preferable, even desirable, when compared to the "good old days." There is no doubt, however, that offshore banking remains a powerful mechanism through which to assert one's financial freedom and privacy.

If you don't already hold a bank account offshore, note that there are at least three good reasons why you too should consider moving at least a portion of your assets to a good offshore banking haven:

- To protect,
- To preserve, and
- To increase.

Assets held domestically are subject to political and social factors that you cannot control. Your home administration may suddenly raise taxes to fund a failing economic experiment. Local courts may be encouraging a culture of legal actions aimed at asset confiscation. The prevalence of divorce, malicious prosecution, and our unstable political world make their own argument each for relocating assets offshore. The unrestricted offshore environment, on the other hand, delivers freedom from excessive taxation and freedom from red tape. Moving your assets to a tax haven bank will allow them to benefit from the offshore fiscal sunlight and grow at a faster rate than back home under the dark shadows of bad financial planning.

Offshore banking, however, isn't only about saving taxes. Offshore banking also equals access to investment products and opportunities that might not be available from your domestic bank, as well as effective asset protection and a level of privacy/secrecy usually unheard of "onshore." In short, doing at least some of one's banking offshore makes financial sense. Isn't it time you tried, too?

One study suggested banks in the United States were only the fortieth safest in the world. Many European countries fared worse. Having an offshore bank account is a key way to reduce your sovereign risk. Imagine your local bank were to go under: who would protect your money? If you answered “deposit insurance”, think again. Not only do many western banks keep mere pennies on hand to pay depositors, but sovereign insurance funds don’t even have 1% of bank deposits on hand.

Why offshore bank account is necessary?

You’ve heard the old saying, “never keep all your eggs in one basket.” In fact, you probably diversify your assets across numerous asset classes, such as growth stocks, Blue Chip stocks, bonds, and real estate.

Yet few people diversify geographically. Having an offshore bank account is a form of risk mitigation that offers the added benefit of potentially high returns and access to new opportunities. Quite simply, having a bank account overseas is the first step to protecting your wealth and your freedom.

Winston Wambua

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