Eliminate or Reduce Taxes Legally
Benjamin Franklin famously said that there were only two things certain in life: Death and taxes. However, the amount of taxes paid by domestic investors can often be staggering, making even a profitable investment seem like a burden.
One of the most effective ways to reduce or even eliminate taxes altogether is by placing assets in a country with a limited or nonexistent capital gains tax plan. In Belize, for example, foreign investors don’t have to pay taxes on their earned profits, which in turns helps them to save more money and see their wealth grow over time.
Get Access to Foreign Currencies
Even if you aren’t planning an international vacation anytime soon, you might still want to consider purchasing or investing in foreign currencies.
Having all of your assets in a single currency, such as the United States dollar, can be a risky move that leaves you financially vulnerable should the banking system fail or the economy dip substantially. A smarter move might be to invest in multiple currencies as a kind of safety net, which can be easily done when you bank in an offshore location.
Diversity is the Spice of Life
Few people would place all of their cash in a single location and hope for the best, yet that is exactly what many investors do domestically. To diversify your holdings, explore the various types of offshore accounts and investments open to private holders.
You might open an offshore checking account, an offshore savings account, purchase some real estate internationally and then place the remainder of your assets into a life insurance plan.
Enjoy Privacy and Security When Investing
In some countries, the government can freeze your assets, limit your access to your own bank account and monitor what you do financially. If you would prefer to bank anonymously, offshore accounts might be the best fit. A banking system that won’t interfere with individuals may be a more secure option in the long run.
Private offshore accounts can be a smart move financially as well as something that gives you peace of mind. Click here for additional information on opening your own account offshore.
Offshore investing may not be a new idea in the financial world, but many people still assume that it is primarily for large corporations or executives with millions of dollars. In reality, offshore accounts can be a huge benefit for just about anyone.
These accounts can reduce or even potentially eliminate a big chunk of your tax burden, they can easily grant you access to a range of foreign currencies, they can add much-needed geographic diversity to your portfolio, and they can grant you anonymity, privacy and extra security when it comes to your finances.