You may have wondered: “What can an offshore bank account give me that an account at Bank of America can’t?”
The answer is: A wide range of benefits you absolutely need.
An offshore (or foreign) bank account is simply a bank account you have outside of your country of residence.
Here are the top 10 reasons why you should open one now.
Reason #1: Dilute Your Political Risk
Today, the biggest threat to your savings isn’t market risk. It’s your own government.
There’s no doubt government poses an increasing risk to your savings. Governments are sinking hopelessly deeper into insolvency. Predictably, they are turning to the same desperate measures they’ve used throughout history.
It’s only prudent to expect more bail-ins (as we’ve seen in Cyprus), bank deposit taxes (as we’ve seen in Spain), retirement savings nationalizations (as we’ve seen in Poland, Hungary, Portugal, and Argentina), and capital controls (as we’ve seen in Cyprus and Iceland), among other destructive actions. And these are just a few recent examples.
If you think these kinds of things can’t happen in your country, think again.
According to Mr Saad:
…people who have more than $100,000 in the bank are targets for any government that’s looking for money to shore up its own inability to manage its finances.
A big part of any strategy to reduce your political risk is to place some of your savings outside of the immediate reach of thieving bureaucrats in your home country. Setting up a foreign bank account in the right jurisdiction is a convenient way to do just that.
That way your home government can’t easily confiscate, freeze, or devalue all of your money with a couple of taps on the keyboard. If your home government imposes capital controls, an offshore bank account would help ensure you could access your money when you need it most.
In short, keeping some of your savings in the right foreign bank can largely protect you from madness in your home country.