The United States’ economy is certainly being tested in today’s time. It seems as if every day, some shocking news item is being reported relating to the U.S.’s deficit or perhaps another major company filing for bankruptcy. At least, you’re fairly confident that your money will always be protected right? Don’t be too sure. Millions of Americans have already lost major dollars because of bank closings and other negative changes in stocks and bonds.
The simple fact of the matter is that the government has the right to seize all of its citizens’ assets if deemed necessary. Think about it. If things get worse, where will the U.S. turn first? To outside sources of aid? Probably not…not before turning to its own citizens to pick up the burden. This is what you call socialism in the modern age, and not too many people are happy about it.
That explains the increasing popularity of offshore accounting and offshore investing. This involves storing and investing your money overseas, rather than in domestic bank. There are various advantages to consider here, including tax concessions and the opportunity to diversify your portfolio to an international level.
However, the primary advantage is that you can experience some independence by investing your money through offshore banks. When you do this, you are no longer at the mercy of your own government, nor do you have to worry about asset seizure or even bankruptcy. Your money can be stored in what is considered a “third party” location and you can ensure your money against loss.
You have total privacy over your account and do not have to answer to the federal government regarding your account. This is not to suggest that you can do anything illegal, such as underreporting American income. The main advantage of offshore investing is that you are independent and have full control over your account and your spending.
There are some technicalities that may apply from country to country. For example, you have to learn about bank wiring, passports, estate and gift tax planning, exchange controls, travel restrictions and perhaps even dual citizenships. (Not all countries allow dual citizenships for that matter)
No, offshore investing and accounting are not illegal practices. However, it’s not the type of thing the U.S. broadcasts. Just think if half the population suddenly started storing their money overseas. Now you have an even deeper deficit! So while there is nothing illegal about this activity, you may want to seriously consider starting an account before sanctions are added in the best interest of the U.S.’s economy.