Reasons to Open an Offshore Account
Ashley Maready
1. Easier relocation
Perhaps you're planning to relocate to a new country in the next few months or years. It will be a smoother transition for you if you've already got some money ready and waiting for you in your new home
2. You're supporting someone in that country
If you have a child who is living in another country for school, or has moved for a job and is just getting their feet under them financially, you might want the ability to provide financial support more cheaply/easily than having to wire money to them internationally from your American bank account.
3. You get paid in a foreign currency
Maybe you have a job as a freelancer for a company headquartered in another country. It might be easier for your employer to pay you in that country's currency, as opposed to USD.
4. You own property in another country
If you own a vacation home on foreign soil (ooh-la-la), it will likely be a lot easier to pay for maintenance, repairs, and taxes in the currency of that country.
5. You want to save money on taxes…or earn more money on your savings
There may be tax benefits to having money in an offshore account (although this will depend on your individual tax circumstances). And in some countries, you'll earn higher interest on your savings account than you would here.
6. You want to take advantage of potentially safer/more stable banking
Sometimes, banks fail. If you keep your money in an FDIC-insured bank account in the U.S., you'll be covered for up to $250,000. Some banks outside the United States have been commended for their safety and stability, so as we march forward into an uncertain world, it might pay to look at offshore accounts for this reason.
7. You want to diversify your assets
It's wise to diversify your assets. If you have all your money in one type of investment, it's much riskier. Like the old saying goes, don't put all your eggs in one basket.
If you meet some of the above criteria, or will in the future, you might find that opening an offshore bank account could benefit you. As with any big financial move, do your research ahead of time and go into it with your eyes wide open.