Do you remember opening your first bank account? Not an offshore bank account, I mean your very first account ever.
I do. In fact, I remember it as if it were yesterday.
With me in toe, my parents took me into a local branch of a big national bank – I would have been 6 or 7 at most.
We walked up to the counter, and right there and then I had a savings account. They handed me a bank card, and my very own bank book to track my balance. Quite the milestone for a kid.
It’s still possible to walk into your local branch and open up an account in such a way. In fact, a lot of people will never feel the desire for more than this. For some, opening an account at a local branch is all they need.
But, the logic that the best bank for you is just down the street is flawed.
Don’t get me wrong, there is value in being able to walk in and sit down with your banker. Heck, he might even be your cousin or someone you went to school with.
But unfortunately, cousin Jimmy won’t have much sway in the way that the bank does business. And simply knowing your banker doesn’t counterbalance the bad.
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Why accept poor management and horrendous lending practices if you don’t have to?
The way that banking is conducted today isn’t that different from when I opened my first account. What is different, however, is the variety of options available to us thanks to offshore bank accounts.
Globalization has brought us a plethora of banking options to choose from. And, thanks to increased competition, those additional options are often better than what we’re used to. They’re even suited to our needs, more competitively priced, and better managed.
That said, in order to tap into the benefits of increased competition, you need to look outside of your home country. That’s where the opportunity lies, at least in terms of banking.
Read on to learn about just a few of the benefits that you can receive from opening an offshore bank account…
Offshore bank accounts don’t have anything to do with tax evasion or shady business deals like the media would have you believe. In fact, the term “offshore bank account” simply refers to a bank that’s outside the country where you live.
Now that we have that out of the way, let’s dive into the reasons why you should start the process of opening an offshore bank account today:
The 2008 financial crisis was scary for a lot of people. Many people across North America and Europe lost their homes, their jobs, and their savings.
One of the reasons that the 2008 crisis happened was because of the lending and investing behaviors of big banks. They were exposed to toxic assets and taking on bad debt. In other words, they put themselves and your money in a vulnerable position.
But it’s what came after the financial crisis that really concerns us. We saw governments engage in moves that are unprecedented in living memory. Yes, economic downturns can cause banks to go bust and depositors to lose money. But far worse –governments have demonstrated their willingness to confiscate depositor money. This is what’s called a bail-in.
We’ve seen bail-ins happen in such places as Cyprus, where government policy forced depositors to rescue their own bank. Half of any deposit more than €100,000 in the Bank of Cyprus went straight to saving the bank from closing. In the case of the second-largest bank, Laiki, everything more than €100,000 was lost.
Bank Account Holders In Cyprus Lining Up For Withdrawals[/caption]
Of course, bail-ins are just the start of the problems. In Spain, taxation to deposit money has come into effect. In countries like Poland, Hungary, Portugal, and Argentina retirement savings have been nationalized.
Now, you might be thinking “my country isn’t doing any of this”. And you might be right. But a more accurate statement would be that your government isn’t doing it yet.
Across Europe, the European Union has legislated bail-ins at all banks. It’s becoming normalized, and eventually, it will extend to other countries as well.
Rest assured, as governments sink deeper into insolvency, they will turn to more drastic measures. They will need to do this to ensure their own survival. We’re already seeing it around the world, why is your country any different?
Keeping all of your money in your home country, where bureaucrats can easily take it from you, is no longer an option. Even if your country is considered developed, governments can, will, and have simply taken people’s funds to save their own skin.
Since it’s unrealistic to think there won’t be another financial crisis in the near future, your best bet is to diversify your savings. You should find offshore bank accounts in countries where your money is protected. And as crazy as it might sound, open accounts at banks that are properly managed.
You don’t need to move all of your money overseas to benefit from an offshore account. Even if you place some money outside of the jurisdiction you live in, your risk will be diversified. This alone will increase your ability to access and keep more of your money when a crisis hits.
The popular narrative is that the global financial system is in the clear. The regulatory system has been updated, the banks have been stress tested, and we won’t see another meltdown like 2008.
We know that’s not true. In fact, from a historical perspective, we’re overdue for another crisis. But government initiatives like quantitative easing keep the economy ticking… for now, anyway.
Headlines From The 2008 Financial Crisis Could Be Repeated Any Day.[/caption]
Insiders know the truth about banks in developed countries, many are fundamentally unsound and horribly leveraged. They don’t maintain necessary cash reserves, and one shock could send them into a spiral.
At GlobalBanks, we’re not fear mongers, in fact, we consider ourselves ardent optimists. We know that there are great offshore bank accounts available for everyone. You just need to know where to look.
While not all offshore banks are better-managed than those in your home country, many of them are. And if you choose wisely, you can access well-managed banks in stable banking jurisdictions. Better yet, they will have low levels of debt, and solid capitalization.
Quite simply, many offshore banks do not lend recklessly like those in the European Union or the United States.
Simply put, it’s not their business model. Instead of making money from lending, these banks make money through asset management and fees tied to your offshore bank account. In other words, they don’t have toxic portfolios of bad debt.
There are a handful of staples that almost everyone in the developed world buys: a home, some form of transportation, and insurance.
Insurance is a must-have for many. And it makes sense. You want to protect yourself and your family in the unlikely scenario that there is an accident, your house catches on fire, or worse.
So we go out and buy car insurance, home insurance, health insurance, and life insurance. It can be costly, but it’s worth it… just in case.
But instead of looking for ways to insure their other assets, such as their savings and investments, most people stop there.
Now wouldn’t it be nice if you could protect your money in the same way that you protect your house from a fire?
Let’s pretend for a second that you could call up State Farm and ask them to insure your bank account.
Depending on the value of your savings and investments, insurance to cover these eventualities could be quite costly.
But fortunately, there’s another option. And if you do it correctly, it will even pay you while providing all of the coverage listed above.
You see, each banking jurisdiction has its own set of laws. Some of them even have protections in place that block asset seizure for any reason.
In other words, if you or your company have an offshore bank account in one of these countries, the courts and the people suing you elsewhere can’t touch them. In fact, even if your home country’s government comes knocking, they will be out of luck.
This can be a big win, especially if you ever find yourself being sued.
That’s why it’s so important to have a portion of your assets elsewhere. Having money outside of your home country can allow your loved ones, your business, and you to have access to capital, no matter what happens.
These are only three of the countless reasons why opening an offshore bank account makes sense. And depending on your situation, you might find that there are other reasons that are even more compelling.
The bottom line is that offshore banks can provide better service and better protection for your money. It is the ultimate insurance that you can get for your freedom, true control of your own financials.
To take advantage of an offshore bank account, you first need to open the right one. This requires you to take a strategic approach to account opening. You need to find banks that meet your requirements. And you need to choose the right banking jurisdictions that offer the protections you’re looking for.
From there, making sure you can actually open the account is the next step. And that will depend on your client profile and the specifics of your personal situation. Your citizenship, residency, and source of income, will play a big role in where you can open.
While finding the right bank in the right country and getting them to accept you can be a long and overwhelming process, it doesn’t have to be. In fact, GlobalBanks Insiders can open accounts faster and cheaper than anyone else.
By accessing our private intelligence platform dedicated to helping you open and keep open international bank accounts, you can find banks that match your needs in countries that offer the protection you want.
As a GlobalBanks Insider, you’ll get the tools, intelligence, and key contacts you need to instantly access the offshore banking world, open bank accounts, and avoid expensive mistakes.
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