Not that long ago, you could buy a CD in a U.S. bank and get a decent rate of return…4% or 5% annually was typical. Sure, you wouldn’t get rich this way. But it was a safe and affordable way to build a nest egg. Today of course, times are very different. For nearly a decade, the Federal Reserve has kept interest rates at zero. And instead of paying 4% to 5% annually on CDs, now you’re lucky to get 1%.
Contrary to popular belief, you don't have to have bags of cash to open an offshore bank account. Even if you invest a few thousand dollars in a non-U.S. bank, you can still avail of several key benefits of offshore banking. Benefits like...
Why take your assets offshore with an international structure? Simple. It can make your assets virtually invulnerable to civil judgments. It can also protect you from risks such as civil forfeiture, exchange controls, repressive legislation, or political instability. It's more difficult for creditors to collect against international assets. No country automatically enforces U.S. civil judgments. Many countries don't enforce them at all. If you live in the States, a U.S. court can order you to repatriate your international assets. But if you've set up your structure properly, you won't have the power to bring the funds back. And that's a fantastic incentive for a creditor to settle the lawsuit.
In 1986, I walked into the main Credit Suisse branch in Chicago and told the doorman I wanted to open a Swiss bank account. I was led to a private office overlooking the Chicago skyline and was asked for my minimum deposit. Being just 31 at the time, I played it conservative and started with just $2,000 (about $4,300 in today's dollars). I was asked to fill out a one-page form and provide a copy of my driver's license. I gave him a check and away I went. It took all of 20 minutes. In 1986, "offshore" was still exotic. It was something regular people didn't really do. How things have changed in 29 years.
A flower-bedecked cobbled street winding down to the river. A heron lazily flapping towards its nest at sunset. The reflection of yet another fairytale chateau shimmering on the water. Forming a geographical border between northern and southern France, the Loire river transports you on a journey through one of the country’s most fascinating regions.
Among other benefits, those in the program can import household goods and vehicles (cars less than three years old, a boat, or a light plane) tax-free within a year of approval. They are also exempt from paying any tax on income or investments generated outside Belize. The couple brought in a shipping container’s worth of household goods to start their new life near Bullet Tree Falls Village...
Can you guess what all these Americans have in common?• William Jefferson Clinton: 42nd President of the United States • John Kerry: 2004 Democratic presidential candidate, former Massachusetts Senator, current U.S. Secretary of State • Jack Lew: U.S. Secretary of the Treasury • Mitt Romney: 2012 Republican presidential candidate, former governor of Massachusetts • Michael Froman: President Obama’s U.S. Trade Representative
Many people are surprised to learn that one of their biggest tax-planning decisions when it comes to living overseas has to do with where they live before they go. It’s one of the most overlooked aspects of tax planning. Put simply, there are states that are “no-income tax” states. If you move overseas from one of these, then you’ll pay no state income tax.