Offshore Bank Account?
Offshore Bank Account?
I'm American and plan to continue living in the USA, but I'm interested in moving some of my wealth outside the country. I'm not hiding anything or trying to get out of taxes. I only want to do this as risk mitigation for a worst-case scenario in our country; no expectation of that happening but I just like being prepared. Safety is my primary goal. Can anyone offer advice on countries and reputable banks I should consider?
In bear markets, stocks return to their rightful owners. - J.P. Morgan
Re: Offshore Bank Account?
Safety from what? The answers to “which bank, which country” are different based on your safety concerns.
Confiscation by the government?
Collapse of the FDIC?
Inability to physically get to the bank (bodily danger)?
Internet infrastructure collapse?
What currency do you wish to hold, USD or the currency where the bank is located?
Confiscation by the government?
Collapse of the FDIC?
Inability to physically get to the bank (bodily danger)?
Internet infrastructure collapse?
What currency do you wish to hold, USD or the currency where the bank is located?
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
- whodidntante
- Posts: 13114
- Joined: Thu Jan 21, 2016 10:11 pm
- Location: outside the echo chamber
Re: Offshore Bank Account?
Americans are highly limited in their ability to open foreign bank accounts because foreign banks don't want to do weird American paperwork. There will be some exceptions, but mostly if you work in a foreign country or at least have residence there.
If you're looking to bug out, one poster here assured me that gold was kind of useful for that.
If you're afraid of a collapse of the US dollar, there are several ways to reduce how badly that would hurt you.
If you're looking to bug out, one poster here assured me that gold was kind of useful for that.
If you're afraid of a collapse of the US dollar, there are several ways to reduce how badly that would hurt you.
Re: Offshore Bank Account?
Move you wealth more than offshore, move it up to the clouds. Bitcoin.
I'm sure there are lots of countries that have banking systems "almost" as good as the US. If there is a failure/collapse of the US banking system the consequences could be just as bad in other countries. Money, and problems, flow accross borders pretty easy these days.
I'm sure there are lots of countries that have banking systems "almost" as good as the US. If there is a failure/collapse of the US banking system the consequences could be just as bad in other countries. Money, and problems, flow accross borders pretty easy these days.
The closest helping hand is at the end of your own arm.
- NewMoneyMustBeSmart
- Posts: 729
- Joined: Sat Jun 01, 2019 10:28 pm
- Location: Midwest
Re: Offshore Bank Account?
I had a bank account in Canada for this reason but closed it when FBAR came into effect. Do not underestimate the costs, compliance, hassle, and paperwork of a foreign bank account.March2009 wrote: ↑Thu Sep 17, 2020 2:57 pm I'm American and plan to continue living in the USA, but I'm interested in moving some of my wealth outside the country. I'm not hiding anything or trying to get out of taxes. I only want to do this as risk mitigation for a worst-case scenario in our country; no expectation of that happening but I just like being prepared. Safety is my primary goal. Can anyone offer advice on countries and reputable banks I should consider?
As a thought experiment, consider an offshore safe deposit box. Certainly many pros and cons, but AFAIK no FBAR requirement.
My wealthy friends suggest Singapore or Hong Kong, although with China's recent usurpation of Hong Kong's independence, I'd recommend Singapore. A second would be Thailand then Germay then Switzerland. This article has some some info:
https://www.offshorecompany.com/banking/best/
-- |
Few are those who see with their own eyes and feel with their own hearts - Einstein |
*Everything I write here is an unreliable opinion*
Re: Offshore Bank Account?
I think this is a reasonable risk control measure in theory. And let's first clarify why somebody would do this. It's not a hedge against the USD's value, you can own foreign currencies in US accounts. It's not a hedge against US federal default, you can hold foreign govt bonds in convenient mutual fund form in US accounts (if FX hedged there's a serious lack of transparency of expected return, which depend not only foreign bond yield but FX hedge carry profit/loss, but just holding them is no big deal). And if you have FDIC insured CD's the bank still owes you the money if the US govt defaults, and plenty of govts have defaulted without their major banks collapsing. No, the reason to have offshore accounts is if you fear the rule of law and property rights in US might be seriously compromised.March2009 wrote: ↑Thu Sep 17, 2020 2:57 pm I'm American and plan to continue living in the USA, but I'm interested in moving some of my wealth outside the country. I'm not hiding anything or trying to get out of taxes. I only want to do this as risk mitigation for a worst-case scenario in our country; no expectation of that happening but I just like being prepared. Safety is my primary goal. Can anyone offer advice on countries and reputable banks I should consider?
This is unlikely I believe, and you seem to also. I don't think it's virtually impossible as other posters seem to. Moreover, I think it's clearly incorrect to assume every country would 'collapse' because the rule of law and property rights were compromised enough in the US for US investors to wish they had offshore accounts. Ask people in foreign countries if they think their country would 'collapse' because the US became a country which no longer respected the rule of law or property rights. I doubt many if any would say yes.
However there's a big practical drawback to this just mentioned: in seeking to foil people who do this to cheat on their taxes, which you made clear is not your intention, Congress/IRS have set very strict standards for reporting offshore accounts. Even besides criminal penalties for willful failure to report, civil penalties can potentially result in loss of the entire account, in the limit. Moreover, even accidental errors can be charged at $10k per violation. And back on the 'willful' side, there's potential contradiction in moving money offshore due to potential deterioration of the rule of law in the US but then counting on the IRS and courts to give you a fair shake on whether your reporting errors on foreign accounts were 'willful' or not, or they are even telling the truth in saying you made a mistake.
The other drawback more basically is that the actual advantage to having offshore accounts, if you live in say Russia (a place that carries on more or less, it has not 'collapsed' by any reasonable definition, but can you count on the govt to act under law and respect property rights? no) is to evade government action, albeit extra-legal or legal but illegitimate. If you feel it would be unethical to ever evade your country's govt's actions, no matter what the govt became or what it did, then there's no point in having money in offshore accounts.
Personally I've ruled out offshore accounts on the basis of potential hassles with the IRS as of now. The cost/benefit doesn't work, IMO.
Re: Offshore Bank Account?
If having foreign bank accounts are such a hassle what about buying a property: condo -something that doesn’t require a lot of expense. Not for income but rather as an insurance of sorts. In this case my guess is that the reporting requirements for IRS not that hard. Though I don’t know exactly if that so.JackoC wrote: ↑Thu Sep 17, 2020 5:46 pmI think this is a reasonable risk control measure in theory. And let's first clarify why somebody would do this. It's not a hedge against the USD's value, you can own foreign currencies in US accounts. It's not a hedge against US federal default, you can hold foreign govt bonds in convenient mutual fund form in US accounts (if FX hedged there's a serious lack of transparency of expected return, which depend not only foreign bond yield but FX hedge carry profit/loss, but just holding them is no big deal). And if you have FDIC insured CD's the bank still owes you the money if the US govt defaults, and plenty of govts have defaulted without their major banks collapsing. No, the reason to have offshore accounts is if you fear the rule of law and property rights in US might be seriously compromised.March2009 wrote: ↑Thu Sep 17, 2020 2:57 pm I'm American and plan to continue living in the USA, but I'm interested in moving some of my wealth outside the country. I'm not hiding anything or trying to get out of taxes. I only want to do this as risk mitigation for a worst-case scenario in our country; no expectation of that happening but I just like being prepared. Safety is my primary goal. Can anyone offer advice on countries and reputable banks I should consider?
This is unlikely I believe, and you seem to also. I don't think it's virtually impossible as other posters seem to. Moreover, I think it's clearly incorrect to assume every country would 'collapse' because the rule of law and property rights were compromised enough in the US for US investors to wish they had offshore accounts. Ask people in foreign countries if they think their country would 'collapse' because the US became a country which no longer respected the rule of law or property rights. I doubt many if any would say yes.
However there's a big practical drawback to this just mentioned: in seeking to foil people who do this to cheat on their taxes, which you made clear is not your intention, Congress/IRS have set very strict standards for reporting offshore accounts. Even besides criminal penalties for willful failure to report, civil penalties can potentially result in loss of the entire account, in the limit. Moreover, even accidental errors can be charged at $10k per violation. And back on the 'willful' side, there's potential contradiction in moving money offshore due to potential deterioration of the rule of law in the US but then counting on the IRS and courts to give you a fair shake on whether your reporting errors on foreign accounts were 'willful' or not, or they are even telling the truth in saying you made a mistake.
The other drawback more basically is that the actual advantage to having offshore accounts, if you live in say Russia (a place that carries on more or less, it has not 'collapsed' by any reasonable definition, but can you count on the govt to act under law and respect property rights? no) is to evade government action, albeit extra-legal or legal but illegitimate. If you feel it would be unethical to ever evade your country's govt's actions, no matter what the govt became or what it did, then there's no point in having money in offshore accounts.
Personally I've ruled out offshore accounts on the basis of potential hassles with the IRS as of now. The cost/benefit doesn't work, IMO.
“Every deduction is allowed as a matter of legislative grace.” US Federal Court
Re: Offshore Bank Account?
I have bank accounts in Canada, Australia, and New Zealand with TD Bank, Westpac, and ASB respectively.
The Canadian account I just went into a branch in Canada and opened it up. Easy enough.
The Australian and New Zealand ones were more difficult.
I had to find the right customer service/bankers at those banks that could assist me with opening the bank from the US without visiting. This was in 2017 or so. At the time, you could open the account and deposit funds, but you couldn’t remove any until you verified your identity.
To do that from the US, I had to have my identity verified at the Australian and New Zealand embassies here in DC, where I live. A consular officer at each verified some documents and I mailed the documents for the Australian account to a Westpac branch in Sydney, and then I had the consular officer from the New Zealand embassy directly e-mail the banker at ASB for verification.
I then had full account access.
Getting a debit card was a bit trickier with the Australian bank. I actually went to Australia for my honeymoon and stopped by a branch to see if a manager there could get me one. Fortunately, the banker there was very competent and managed to get one shipped to me in the US.
With the NZ account, I could just request one from the banker via e-mail or chat or something. It was then mailed to me.
Anyway, it’s a big PITA but I feel better about having funds in foreign accounts that I can access electronically.
I also have a safety deposit boxe in Canada that includes those countries currencies in cash as well as Swiss Francs.
You will need to report the accounts via the FBAR form online every year but it is pretty straight forward. However, there are severe penalties for not doing so don’t forget.
A bit of persistence goes a long way with this process...
The Canadian account I just went into a branch in Canada and opened it up. Easy enough.
The Australian and New Zealand ones were more difficult.
I had to find the right customer service/bankers at those banks that could assist me with opening the bank from the US without visiting. This was in 2017 or so. At the time, you could open the account and deposit funds, but you couldn’t remove any until you verified your identity.
To do that from the US, I had to have my identity verified at the Australian and New Zealand embassies here in DC, where I live. A consular officer at each verified some documents and I mailed the documents for the Australian account to a Westpac branch in Sydney, and then I had the consular officer from the New Zealand embassy directly e-mail the banker at ASB for verification.
I then had full account access.
Getting a debit card was a bit trickier with the Australian bank. I actually went to Australia for my honeymoon and stopped by a branch to see if a manager there could get me one. Fortunately, the banker there was very competent and managed to get one shipped to me in the US.
With the NZ account, I could just request one from the banker via e-mail or chat or something. It was then mailed to me.
Anyway, it’s a big PITA but I feel better about having funds in foreign accounts that I can access electronically.
I also have a safety deposit boxe in Canada that includes those countries currencies in cash as well as Swiss Francs.
You will need to report the accounts via the FBAR form online every year but it is pretty straight forward. However, there are severe penalties for not doing so don’t forget.
A bit of persistence goes a long way with this process...
- Dan-in-Virginia
- Posts: 841
- Joined: Sat Apr 16, 2011 5:33 am
- Location: Virginia
Re: Offshore Bank Account?
Sounds like a better approach is to work with a bank (multinational) with a significant presence in many countries, or that is geared to support customers working (or deployed) around the world.
I bank with USAA, Citibank, Chase, Barclays. I would imagine that at least one or all of them would meet my international needs.
I bank with USAA, Citibank, Chase, Barclays. I would imagine that at least one or all of them would meet my international needs.
Re: Offshore Bank Account?
Good thread. I'm also looking into doing this. Like Gray mentioned, banking with a U.S. bank that has branches overseas is a great option. I was looking into Citigroup. I think they have the most international branches than any other U.S. bank.
Re: Offshore Bank Account?
You're signing yourself into a load of trouble with the IRS.
Annual FBAR filing requirement, penalty of wrongful filing or late filing is 10000 dollars.
Form 8938
Form 3520
Form 3520A
Annual FBAR filing requirement, penalty of wrongful filing or late filing is 10000 dollars.
Form 8938
Form 3520
Form 3520A
-
- Posts: 3487
- Joined: Sun Sep 11, 2016 11:27 am
Re: Offshore Bank Account?
There aren't any specific reporting requirements for foreign real estate, unless you derive income from it. But to maintain foreign real estate, you'd normally need a foreign bank account too -- to pay property/maintenance taxes, upkeep etc. And that may be reportable.SteadyOne wrote: ↑Thu Sep 17, 2020 8:49 pm
If having foreign bank accounts are such a hassle what about buying a property: condo -something that doesn’t require a lot of expense. Not for income but rather as an insurance of sorts. In this case my guess is that the reporting requirements for IRS not that hard. Though I don’t know exactly if that so.
Re: Offshore Bank Account?
We have a GBP denominated account in Guernsey with Skipton International. Super easy to work with and no issues opening the account from the US. Guernsey has a similar program to FDIC, the limit is 50k GBP. They don’t provide 1099 INT forms so you have to figure your annual interest, convert to USD, and ensure you report it on your 1040, if you are a US taxpayer. You will also have to file an annual FBAR if applicable but this is a 5 minute job.
- AerialWombat
- Posts: 3106
- Joined: Tue May 29, 2018 1:07 pm
- Location: Cashtown, Cashylvania
Re: Offshore Bank Account?
.....
Last edited by AerialWombat on Sat Apr 03, 2021 10:24 pm, edited 1 time in total.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
-
- Posts: 186
- Joined: Thu Mar 16, 2017 10:36 am
Re: Offshore Bank Account?
Agreed with AerialWombat above - FBAR is straightforward for ordinary bank accounts. I just fill out the maximum value for my account during the tax year, and that's it. What's funny is that the foreign banks I work with, with the exception of Citibank, always fails to transmit the proper information back to the IRS (e.g., interest income).
VTSAX and chill.
Re: Offshore Bank Account?
Thanks to all for the replies. Really great information and insight!
In bear markets, stocks return to their rightful owners. - J.P. Morgan
-
- Posts: 1879
- Joined: Fri Feb 20, 2015 2:14 pm
Re: Offshore Bank Account?
No way! Not that I don't like the tech but I am more concerned with losing the key123 wrote: ↑Thu Sep 17, 2020 4:57 pm Move you wealth more than offshore, move it up to the clouds. Bitcoin.
I'm sure there are lots of countries that have banking systems "almost" as good as the US. If there is a failure/collapse of the US banking system the consequences could be just as bad in other countries. Money, and problems, flow accross borders pretty easy these days.
Re: Offshore Bank Account?
For those of you who have foreign accounts, are you citizens of the countries where you hold the accounts or do you have any residence there?
I have been thinking of doing something like this too, but admittedly have not had time to do the research
I have been thinking of doing something like this too, but admittedly have not had time to do the research
-
- Posts: 81
- Joined: Sun Feb 17, 2008 11:26 am
Re: Offshore Bank Account?
Interesting discussion. I'm also considering moving some funds overseas.
Re: Offshore Bank Account?
I've considered it because of a possible FDIC failure or complete collapse here in the good ole USA. But considering is as far as I ever got. But I'm curious about the safe deposit suggestion but not offshore. I'm curious about how a large cash stash in a safe deposit box here in the USA would play out in a national banking collapse.NewMoneyMustBeSmart wrote: ↑Thu Sep 17, 2020 5:20 pm
As a thought experiment, consider an offshore safe deposit box. Certainly many pros and cons, but AFAIK no FBAR requirement.
Obviously this is getting a little speculative and if a Mod wants to delete my inquiry that's fine.
- NewMoneyMustBeSmart
- Posts: 729
- Joined: Sat Jun 01, 2019 10:28 pm
- Location: Midwest
Re: Offshore Bank Account?
You will find safe deposit companies in Los Angeles, San Diego, New York City, Los Altos, CA, etc. Call them and ask them.....dcop wrote: ↑Mon Sep 21, 2020 9:39 pmI've considered it because of a possible FDIC failure or complete collapse here in the good ole USA. But considering is as far as I ever got. But I'm curious about the safe deposit suggestion but not offshore. I'm curious about how a large cash stash in a safe deposit box here in the USA would play out in a national banking collapse.NewMoneyMustBeSmart wrote: ↑Thu Sep 17, 2020 5:20 pm
As a thought experiment, consider an offshore safe deposit box. Certainly many pros and cons, but AFAIK no FBAR requirement.
Obviously this is getting a little speculative and if a Mod wants to delete my inquiry that's fine.
-- |
Few are those who see with their own eyes and feel with their own hearts - Einstein |
*Everything I write here is an unreliable opinion*
-
- Posts: 4902
- Joined: Sat Oct 25, 2014 3:23 pm
Re: Offshore Bank Account?
TurboTax asks about foreign accounts and reminds me to file the FBAR form. I do it as I work on my tax return, in Feb or March. I also have a recurring reminder item set in my to-do list. The effort for my two accounts is about 10 minutes.
For those who have or are contemplating opening accounts abroad for risk mitigation purposes, how much (in total or % of networth) do you plan to keep abroad?
Re: Offshore Bank Account?
I too have bank accounts in the 3 countries you list, although with 3 different banks, as well as accounts in the UK, Europe (Germany), and Norway. HSBC, BNZ, Deutsche Bank, and DNBNor allow US citizens to open accounts (although with minimum amounts). One can also keep currency accounts in additional countries via some of the those banks.Dmd149 wrote: ↑Thu Sep 17, 2020 9:14 pm I have bank accounts in Canada, Australia, and New Zealand with TD Bank, Westpac, and ASB respectively.
The Canadian account I just went into a branch in Canada and opened it up. Easy enough.
The Australian and New Zealand ones were more difficult.
I had to find the right customer service/bankers at those banks that could assist me with opening the bank from the US without visiting. This was in 2017 or so. At the time, you could open the account and deposit funds, but you couldn’t remove any until you verified your identity.
To do that from the US, I had to have my identity verified at the Australian and New Zealand embassies here in DC, where I live. A consular officer at each verified some documents and I mailed the documents for the Australian account to a Westpac branch in Sydney, and then I had the consular officer from the New Zealand embassy directly e-mail the banker at ASB for verification.
I then had full account access.
Getting a debit card was a bit trickier with the Australian bank. I actually went to Australia for my honeymoon and stopped by a branch to see if a manager there could get me one. Fortunately, the banker there was very competent and managed to get one shipped to me in the US.
With the NZ account, I could just request one from the banker via e-mail or chat or something. It was then mailed to me.
Anyway, it’s a big PITA but I feel better about having funds in foreign accounts that I can access electronically.
I also have a safety deposit boxe in Canada that includes those countries currencies in cash as well as Swiss Francs.
You will need to report the accounts via the FBAR form online every year but it is pretty straight forward. However, there are severe penalties for not doing so don’t forget.
A bit of persistence goes a long way with this process...
I opened all except DNBNor in person at those banks - and have never seen them in person again (once opened, one can online transfer monies back and forth). Not sure what all the hubbub about paperwork is. My accountant files Fincen form 114 and Fbar with the IRS annually. Takes him no time at all.
Yes, but if you keep them open in the home country I've found you earn different (higher) interest for deposited monies. Less of an issue nowadays with interest rates so low, but still higher when opened in home country bank.JackoC wrote: ↑Thu Sep 17, 2020 5:46 pmIt's not a hedge against the USD's value, you can own foreign currencies in US accounts.March2009 wrote: ↑Thu Sep 17, 2020 2:57 pm I'm American and plan to continue living in the USA, but I'm interested in moving some of my wealth outside the country. I'm not hiding anything or trying to get out of taxes. I only want to do this as risk mitigation for a worst-case scenario in our country; no expectation of that happening but I just like being prepared. Safety is my primary goal. Can anyone offer advice on countries and reputable banks I should consider?
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
-
- Posts: 109
- Joined: Sat Jul 25, 2020 12:51 pm
Re: Offshore Bank Account?
Holding a non-U.S. bank account may complicate your estate plan- to what extent depends on the country/jurisdiction, amount on deposit and bank policy. At the extreme, it may be necessary for your executors to apply for probate or its equivalent in that country and your U.S. will may or may not be recognized. There may also be foreign estate or probate taxes levied.
-
- Posts: 76
- Joined: Fri Mar 01, 2019 2:18 pm
Re: Offshore Bank Account?
OP...have you given any thought to transferwise?
I will not profess to having expertise, but I believe this is an option to holding foreign currency without actually opening foreign bank accounts (so not triggering tax complications).
I opened an account....oh....3 years and 10 months ago or so Never completed any exchanges, but I felt like it was going to give me what I wanted in terms of spreading the risk of holding too many USD.
I will not profess to having expertise, but I believe this is an option to holding foreign currency without actually opening foreign bank accounts (so not triggering tax complications).
I opened an account....oh....3 years and 10 months ago or so Never completed any exchanges, but I felt like it was going to give me what I wanted in terms of spreading the risk of holding too many USD.
Re: Offshore Bank Account?
OP, if you are still getting notifications, did you ever figure this out?
I am in the same position as the OP. To be clear, due to recent political instability, I'd like to move an "emergency" fund of a few years living expenses offshore, so that I felt like my family could just get on a plane if we needed to, and not worry about taking anything with us. I'm willing to submit the FBAR, and I am definitely not trying to avoid taxes or do anything shady.
It seems as though, in theory, Barclay's International on the Isle of Man still accepts US citizens residing in the US, but I haven't been able to get them on the phone. They have a message saying they have long hold times due to COVID. I've spent as long as 40 minutes holding and never gotten through.
The vast majority of banks with international banking operations won't service US citizens (I've tried Lloyds, HSBC expat, Standard Bank to name a few). I looked into bitcoin, but I'm afraid I'd lose the key.
I'm going to get up at 3am in the next few days to call Barclays when they open. If anyone has had any success with this recently, I'd be grateful to hear about it.
I am in the same position as the OP. To be clear, due to recent political instability, I'd like to move an "emergency" fund of a few years living expenses offshore, so that I felt like my family could just get on a plane if we needed to, and not worry about taking anything with us. I'm willing to submit the FBAR, and I am definitely not trying to avoid taxes or do anything shady.
It seems as though, in theory, Barclay's International on the Isle of Man still accepts US citizens residing in the US, but I haven't been able to get them on the phone. They have a message saying they have long hold times due to COVID. I've spent as long as 40 minutes holding and never gotten through.
The vast majority of banks with international banking operations won't service US citizens (I've tried Lloyds, HSBC expat, Standard Bank to name a few). I looked into bitcoin, but I'm afraid I'd lose the key.
I'm going to get up at 3am in the next few days to call Barclays when they open. If anyone has had any success with this recently, I'd be grateful to hear about it.
Re: Offshore Bank Account?
Not OP, and this may not be super helpful for you, but I was able to open a Portuguese bank account recently with relative ease. You do need a Portuguese tax number, which is simple enough to attain if you hire a lawyer (shouldn't cost much), and there's some annoying paperwork, but in the grand scheme of things, it's not that hard.
The downside is, depending on where you'd move to, having money in Portugal may not be the most convenient option, but you can still do wire transfers, etc. I used Millennium BCP. Hope that helps.
The downside is, depending on where you'd move to, having money in Portugal may not be the most convenient option, but you can still do wire transfers, etc. I used Millennium BCP. Hope that helps.
Re: Offshore Bank Account?
Thanks for the reply on Portugal. I'll look into that. For the record, I spent 30 minutes on hold with Barclays International/Isle of Man at 3am in the morning (9am their time), and they never picked up. Their voicemail says they have 'longer hold times due to COVID", but I don't think they are answering their phones.
-
- Posts: 1006
- Joined: Sun Aug 12, 2012 12:35 am
Re: Offshore Bank Account?
The last time I looked into this, I concluded that Singapore was a good jurisdiction to open an account in. They had a strong legal system, strong bank privacy laws and let US citizens open accounts, both banking and investment. I don't believe this has changed.
My motivations were both diversification from deep risks and asset protection.
Whatever you do, report the account to the IRS on your tax return or you could find yourself in a world of hurt.
My motivations were both diversification from deep risks and asset protection.
Whatever you do, report the account to the IRS on your tax return or you could find yourself in a world of hurt.
Re: Offshore Bank Account?
I think as long as it's a private vault safe deposit box. there are little protections on bank associated ones:dcop wrote: ↑Mon Sep 21, 2020 9:39 pmI've considered it because of a possible FDIC failure or complete collapse here in the good ole USA. But considering is as far as I ever got. But I'm curious about the safe deposit suggestion but not offshore. I'm curious about how a large cash stash in a safe deposit box here in the USA would play out in a national banking collapse.NewMoneyMustBeSmart wrote: ↑Thu Sep 17, 2020 5:20 pm
As a thought experiment, consider an offshore safe deposit box. Certainly many pros and cons, but AFAIK no FBAR requirement.
Obviously this is getting a little speculative and if a Mod wants to delete my inquiry that's fine.
https://www.nytimes.com/2019/07/19/busi ... theft.html
more recent article on how to store gold in private vault safe deposit boxes
https://www.nytimes.com/2020/07/28/styl ... orage.html
Re: Offshore Bank Account?
I have a foreign bank account and filled out the FBAR form for the 1st time. It was surprisingly easy. I only have a simple bank account, though. Just enter the largest value of your accounts in total (just 1 for me) and the currency rate that you use and the foreign bank name and address.
Getting a foreign bank account is the difficult part if you are not employed there. Going with HSBC or Citibank, who cater to more international travelers is well-advised.
Getting a foreign bank account is the difficult part if you are not employed there. Going with HSBC or Citibank, who cater to more international travelers is well-advised.
-
- Posts: 411
- Joined: Tue Jan 02, 2018 3:53 pm
Re: Offshore Bank Account?
But how do you get your gold across the border?whodidntante wrote: ↑Thu Sep 17, 2020 4:36 pm . . .
If you're looking to bug out, one poster here assured me that gold was kind of useful for that.
. . .
Re: Offshore Bank Account?
PITA for reporting requirements if all foreign accounts total over $10,000...I have a dormant one but it's well under the limit, so all I have to do is check the box on my federal tax return.
Re: Offshore Bank Account?
Unless you are worried about a collapse of the US banking system or you have specific local currency needs overseas (immigrants with home country connections, as an example) when you visit those countries, I would say having a bank account overseas is not recommended. Your wish to diversify by country or currency is easily met by various fund offerings. They charge you fund management fees, but they take away all the hassle of reporting, taxes, local paperwork, etc.
If you are talking REALLY large amounts, it might be a different discussion. That's not the impression I get...
If you are talking REALLY large amounts, it might be a different discussion. That's not the impression I get...
-
- Posts: 200
- Joined: Thu Aug 27, 2015 5:14 pm
Re: Offshore Bank Account?
Instead of seeking for an offshore bank account for such purpose, has anyone found any relevant insurance product? A foreign insurance policy that would pay in case the US loses rule of law or US is in war seems to be more convenient and useful than a bank account. There shouldn't be any tax reporting requirement in this case as long as the insurance product doesn't have any investment component. This also protects you from letting the then-tyrannical US government know you have foreign assets without breaking law that exists today.
Re: Offshore Bank Account?
Buy some gold coins and keep them in a safe?
The sillier the market’s behavior, the greater the opportunity for the business like investor.