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Ideas/Section-8
The number one rule in
investing is NEVER PUT ALL YOUR EGGS IN ONE BASKET.
To rich people, this means, do not keep all your money in one economy.
If that
economy goes bust, so does your money. Therefore, keeping their
money (even if
not all of it) offshore gives rich people the opportunity to diversify
their assets
and spread any risk.
On the other end of spectrum, for the average American the idea
of having a
bank account in a foreign country may sound like a fantasy gone
mad. If ever,
this dream that may never be achievable, or even ridiculous. Afterall,
to the
average American, a foreign bank account is only for the extremely
wealthy
or the extremely criminal.
It is without question that Americans have an extremely parochial
attitude
when it comes to their money. In fact, with older Americans, there
is even
a distinct sense of suspicion of foreign banking activities. Many
Americans
believe that we have the best and the safest banking system in the
world, so
why even consider going anywhere else with your money.
Regardless of whatever reasons, the average Americans could not
identify one
single advantage for owning a foreign bank account. The word "foreign
banking" or "offshore banking" carries with it a
stigma that is largely
associated with our own misconceptions of the third-world countries.
On the other end of the spectrum, however, there is a growing segment
of
Americans who have embraced the merits of offshore banking. To these
thousands
of legitimate and highly successful businesses and individuals,
the word
"offshore banking" has become an important tool for accumulating,
enhancing,
and protecting wealth.
A foreign bank account gives the learned
investor the opportunity to take
advantage of the benefits of various banking activities and blend
them into
a unique profit-making and tax-saving financial strategy. For the
careful
and conscientious investor, this very feature of offshore banking
is one of
the most practical ways of expanding the realm of financial opportunity,
because it is one of the most creative ways to diversify your assets.
Accounts held in offshore banks are rarely
subject to U.S. state and federal
laws and regulations. Offshore banks can also offer a wide range
of services
well beyond the legal ability of U.S. banks. Through aggressive
use of
these services, investors can increase their profits, reduce their
tax
burdens, and raise capital at lower interest rates -- all without
the
restrictive maze of red tape often required by banks in the United
States.
HOW TO OPEN A FOREIGN BANK ACCOUNT
If you plan to visit a country in which you may be banking, you
should consider
a number of banks. Before you actually travel to visit the bank,
it will be
to your advantage to first correspond by post or by email. Here
are some of
the more salient points you should consider when selecting a bank:
>> Does it provide the banking services you require? See our
section on
types of account for more information about different types of services
you can have.
>> How large is the bank? Is it a multi-national operating
offshore, or is
it an independent bank that is local to the country where it operates.
>> How secure is your investment? Does the government under
which the offshore
bank operates offer Deposit insurance?
>> Communications capabilities. Does the bank have internet
service. Can you
communicate by phone, fax, and email?
