The term “offshore accounts”
can mean many different things to a seasoned private investor. In
fact, an offshore account could be anything from a regular bank account to an offshore
foundation. Each of these different accounts is important to
know for private investors. This knowledge can help them form
their investing strategy offshore and decide what offshore accounts will work best for them. To help with this knowledge gathering, we have included a breakdown of each
It is the most recognized of
the offshore accounts. In its simplest form, it is not much
different than a regular domestic savings and checking accounts.
You can use it in much the same manner and often times, you will be provided a debit card which will allow you
to withdraw funds from ATMs around the world. However, at a
slightly higher level, an offshore bank account is a beachhead that allows you to invest in all kinds of foreign
investments ranging from mutual funds up through actual foreign businesses. Also, the setup of an offshore bank account can vary from being held in the
name of the person to creating a private company to do business out of that country.
This a great tool for small
businesses. Many small businesses are shut out from getting a
domestic merchant account which keeps them from maximizing their profits. In this void, an offshore merchant account works gives them back this
leverage. In addition, an offshore merchant account tends to have
lower fees than a domestic merchant account and is able to more easily accept all kinds of different forms of
currency through more of a true 24 hours 7 days a week cycle.
The result is these offshore accounts are a great plus for the small business owners and really help those who
can promote their products and services worldwide.
An offshore trust works very
much like a domestic trust; however, it is ruled by the laws and regulations of the offshore
country. This works much better for asset protection because
creditors or less likely to extend their reach to an offshore trust. This simple asset protection is ideal for many investors who are looking
for more security for their money.
An offshore foundation can be
thought of as a cross between a trust and a corporation. Its creation is to cloak the use of assets to allow the
private investor even more privacy. Although an offshore foundation cannot engage in business directly, it can
own an offshore company which can participate in all forms of offshore business and investing. These offshore
accounts are growing in popularity because of their heightened asset protection.
Never before have so many
options been available to the private investor. This variety of
offshore accounts is great benefit to private investors and all those
serious about protecting their money should consider them.