International Bank Account or Local

So you’ve been told to diversify. You met with a financial planner and he advised you to spread your money around, to the point of opening a bank account offshore. Why would anyone in their right mind open an account in another country?

Well it is pretty common among Americans, especially those that have a little more to spend, okay the wealthy. A common fear for the rich is that at any point the U.S. can freeze one’s accounts leaving them hopeless and unable to use their own funds. This can be due to unpaid taxes or other reasons. Can you imagine not being able to use your own money for months?

For this reason people feel the need to have an international bank account setup. Most can be setup with $5,000-$10,000. Anything less than that is probably worth having in cash under your mattress like our grandparents used to save.

Certainly don’t run out and open an account out of fear. Contact a professional banker and see what is best based on your net income and future financial goals.

When doing research you will find that having money in foreign accounts can help lower your taxes. If this is your main reason for banking offshore, be very careful as you do not want to end up in jail. Pay now rather than having to pay later.