Everyone has different reasons why he/she wants to have an offshore account. Whatever your reasons, putting some money offshore is a smart move and I will explain why. Here is the list of why you want to open an offshore account in 2017:
1) Asset protection from creditors
When creditors are after you, their lawyer will make a research of your assets. If he finds them, he will press charges, if he doesn’t find (any), he might as well drop his case, since most often lawyers are paid a percentage of what they take from you. Having all money on one pile will make you an easy target, but if you stashed away some money or most of it into an offshore account, lawyer can’t find these assets and will go after easier target. Even if he would somehow (practically impossible) found out that you have assets in an offshore account, the court battle would be expensive and long, so he will rather drop the case.
Too many people stick their noses into other people private matters, like for example how much money one has. With an offshore account you stash some of your hard earned money away where is hidden from prying eyes. Nobody can find what you really have. An offshore account is the first step you can do to make your life more private. Next step would be getting a second passport. For additional privacy use your debit card which is linked to an offshore account for all international purchases.
3) Donald Trump presidency
According to Oxford Economics, Donald Trump will be either the best thing for the economy or a disaster. From stock exchange market one can tell that investors are excited about Donald Trump presidency, with expectations for taxes do decrease and businesses to expand. All good right? Wrong. What if things don’t go as planned. Whatever your political beliefs are, you can’t gamble with your hard earned money. Take away specific amount and stash it away into offshore account. Money for “play” can stay at home and in case things don’t go as planned that’s all you lose, but your nest egg offshore is intact.
4) Protection against IRS
Any IRS agent can empty your account with few keystrokes. If you own money to IRS and they are after you they will take away your assets. Warning, even if you have an offshore account with bank which has branches in the United States, they can take away your assets. IRS can also revoke your US passport, so act quickly and open an offshore account before they take away your passport and rights to travel. With rightly chosen offshore account, even though you have to report it, there is nothing IRS can do to take away your assets.
5) Currency diversification
It is a smart move to hold your cash in multiple currencies. In todays volatile world economy, currencies can quickly go bust. Just last year after UK voters voted for Brexit, pound lost a lot of its value and is now at lowest in decades against dollar. Things can happen quickly and currency can go bust, therefore diversify. Most international banks will allow you to hold multiple currencies in an offshore bank account.
Please note that you are not required to report your offshore account to US government and filed FBAR (Foreign Bank Account Report) as long as you have less than $10.000 in offshore account(s). If you have more than that you will have to file FBAR. You can avoid this with purchase of gold, which you store in deposit box. That way you maintain less than $10.000 in your offshore account(s) and have additional assets in gold.