What are the Immediate Benefits to Opening a Bank Account Outside the U.S.?
Deciding how to protect assets can be a complicated decision. On one hand, a person must assess his or her own comfort level regarding risk. On the other hand, a person may not be familiar with all of the various types of protection strategies.
For example, one strategy that may not be part of a traditional portfolio is having a foreign bank account. Having a bank account in another country offers many benefits and can be a profitable investment.
The Benefits of a Foreign Bank Account
Having a foreign bank account allows an investor to keep his or her funds separate from the control of his or her home country. If a crisis occurs that affects the capital in a person's home country, the funds in a foreign bank account will be safe from this crisis.
In a similar manner, if currency controls or limitations on the ability for a consumer to transfer funds are established in a person's home country, the foreign bank account can provide a backup. This can help an investor have immediate access to contingent funds to help pay bills, make other investments and make withdrawals as needed.
Another benefit of having a bank account in another country is that it provides investors with the first step towards moving assets offshore and investing in the foreign market. Individuals who open up foreign bank accounts can more easily put their money in other types of foreign investments, such as foreign real estate or an international business.
Additionally, these individuals may begin to transfer more of their assets into an offshore account. Basically, a foreign bank account is a building block for creating a more diversified portfolio and protecting assets offshore.
Comply with Your Country
Having a bank account in another country can be very useful, but consumers should be careful that they comply with the laws of their country.
For example, the United States has a rule that requires Americans to report any foreign accounts that they have that exceed $10,000 in value. This information must be directly reported to the United States Treasury Department by June 30th of every year.
If a foreign bank account has less than $10,000, it is not necessary to make this reporting to the United States Treasury Department.
Nagel Law focuses on providing clients with a variety of asset protection tools to help them diversify their assets outside of the U.S. Foreign bank accounts can help individuals protect their personal wealth. Visit www.nagellaw.com for information about a variety of global wealth protection strategies.