Taking your assets offshore: Are you paranoid?

Not being negative, but with today lackluster economic situations, it's understandable when people's outlook on their future is rather bleak. This is true in many parts of the world.

Economic turmoils

United States of America? Many Americans we know are losing confidence in their own economy. They no longer consider that “Living the American dream” is no longer relevant. Some businessmen moved their headquarters to Singapore, Hong Kong, and Malaysia. Some of them even denounce their citizenship and migrate to a more stable jurisdictions, such as Costa Rica.

The Eurozone? The debt crisis that has started in 2009 is yet to find a proper solution to it. And things worsen with the Greece defaulting its IMF debt.

China? Allegedly the largest economy in the world has just devalued its currency to support economic growth – a move that shook the world's economy and causes the tumbling down of Asian currencies.

What about countries in South East Asian region? Various events, which include the Fed's announcement, the Greece crisis, the devaluation if Chinese Yuan and various local events have caused the regional currencies to take the fall. More and more people are taking their money and secure it in an offshore bank account, as well investing their money in offshore assets, which include real estate, precious metals and stocks.

Any way out?

It seems that there is no more safe place in the world for your assets. The good news is, it's just your assumption, probably from reading all the news from the mainstream media. In reality, there ARE jurisdictions – offshore jurisdiction - that are off the radar because they are typically smaller-economy jurisdictions, such as Jersey, Costa Rica, St. Vincent and the Grenadines, Luxembourg, Liechtenstein, Belize and so on. Those jurisdictions are generally more stable politically and economically than your home country.

Some creative asset owners who are looking for alternative ways for protecting their assets, decide to bring them out into offshore jurisdictions.

Now, the big question is, are they paranoid? Is the world economy that bad?

Getting prepared isn't paranoid

The short answer to your question: No, they are not being paranoid – they are getting prepared, based on facts; and yes, the world economy is quite bad, thus making the case of going offshore a logical decision.

Here's the long answer.

Paranoia is a thought process believed to be heavily influenced by anxiety or fear, often to the point of irrationality and delusion (source: Wikipedia).

Taking your asset offshore is not a decision based on paranoia because it's a rational decision, based on the facts. Let's take the “good” unemployment rate, for example.

Our friends in the US are saying the same thing: If the economy is getting better, then why do they see and hear that more and more people are unemployed? Why do they see that more and more local small businesses are struggling, if not going out of business? Their observation is backed by many resources, saying that rates and reports are somehow rigged.

Further research can reveal the big picture to you: The global economic recovery is at risk of stalling.

Need more fact on why going offshore is a credible personal financial move? Gold confiscation in 1933. Weimar Germany hyperinflation horror story. The freezing of bank accounts in Cyprus and Greece, as well as corralito in Argentina. Any of those could happen again anytime soon.

Inflation is one thing, but hyperinflation is a different story: It can bring your currency's value to near-zero in just a short period of time. When that happens, you can't just take your money and keep it overseas; it's already too late. Not only that, when in times of need, your home country's government can legally limit your access to your assets – if not take them away from you for the so-called greater good.

Inflation is one thing, but hyperinflation is a different story: It can bring your currency's value to near-zero in just a short period of time. When that happens, you can't just take your money and keep it overseas; it's already too late. Not only that, when in times of need, your home country's government can legally limit your access to your assets – if not take them away from you for the so-called greater good.

Inflation is one thing, but hyperinflation is a different story: It can bring your currency's value to near-zero in just a short period of time. When that happens, you can't just take your money and keep it overseas; it's already too late. Not only that, when in times of need, your home country's government can legally limit your access to your assets – if not take them away from you for the so-called greater good.

  1. You can limit third-party access to your assets, maintaining your financial sovereignty.
  2. You can invest your money in a real estate, precious metal, stocks or any other assets in a more stable jurisdiction.
  3. You can keep your currencies in an account and access it from all over the world.
  4. Friendly local laws and regulations when it comes to business and investing.

As you can see, although what you have may not be the ultimate solutions, you definitely have more choices and flexibility at hand, which is a luxury to many of us, when it comes to money management.

You can learn more about the upsides of going offshore:

- The Ultimate Reason to Use Offshore Banking Services

- 5 reasons why freelancers should consider offshore jurisdiction

Takeaway

Taking your assets offshore is a legal, prudent and logical ways that you should consider taking, given your home country's and global's uncertain political and economic situations. Although it may not be the best solution available, it certainly helps you spread the risks, as well as benefit from the offshore laws and regulations concerning your assets.

Forming an offshore company and/or opening an offshore banking account is not about being paranoid. it's a part of asset allocation and protection strategy that every person and company should consider taking.

To conclude, this article is for informational purpose only. If you are interested in learning more about going offshore and unsure of what's your next step is, you can consult with your trusted financial and legal advisors. You can also contact us for a free consultation to learn more about the possibilities.