Have you ever wanted to feel like a millionaire? Ever wonder how you could make yourself feel like you are filthy stinking rich? Unless you have a million plus in the bank and several hundred thousand dollars to burn, buying a yacht is probably out of the question. Sure, you’ll feel like a big shot. However, you’ll actually be as poor as a pauper.
So, what are some concrete ways that average joes like you and I can make ourselves feel like a 1%er? Well, we can give to our favorite charities. That always feels good, right? Of course, that only works if we actually have the money to give.
We can buy a nice home. However, using credit to buy more than we can afford can end up making us feel less like a millionaire and more like a slave to our house payment.
How about if we try opening up an offshore bank account? Every millionaire has one of those right? Well, we can’t do that because…well…hmmm…Why can’t we do that again?
Benefits of an International Bank Account
If you want to feel like the next Mitt Romney, opening up an offshore bank account may be just the answer. While you may think that these accounts are reserved for only the wealthiest among us, the fact is that you can find great international banking deals all over the internet. Even if you don’t desire that “million dollar feeling,” having an offshore bank account can still provide you with lots of benefits. Here are a few:
Accounts in Multiple Currencies - Do you enjoy traveling? Are you a regular international traveler or do you aspire to be one in the near future? Then offshore banking may be for you. If you are already a regular world traveler, you already know that the fluctuation in currency exchange rates can be a headache. Off shore banking can help you avoid that. Many offshore bank accounts offer accounts in multiple currencies so that you can avoid those pesky fluctuations.
Moving to a New Country? No Problem - So, during your international travels, you’ve decided you’d like to move to your favorite new country. Better yet, you’ve decided to bounce around and live in a few different countries for several months or years. An offshore bank account provides a convenient place for you to keep your hard-earned money. With an offshore bank account, there is no need to switch banks each time you move. Your money stays in one convenient and safe spot, leaving you with one less thing to worry about as you live your dream.
Competitive Interest Rates – All of us are worried about getting the best interest rates that we can on our money. An offshore bank account can help you with that. Many of these banks offer very competitive interest rates when compared to their “onshore” competitors.
English Speaking Staff - One big concern for potential offshore bank account holders is the possibility of running into a language barrier. Not to worry. Many offshore banks employ staff who are fluent in English. That way, if you ever need assistance with your offshore bank account, you’ll be able to communicate your issues and receive clear answers from the bank.
Is it Legal?
Yes. There tends to be a lot of bad publicity surrounding having an offshore bank account. The image tends to be one of shady characters and wealthy misers hiding money from their governments. The negativity almost makes it seem as though having an offshore account is illegal. The fact is that having the offshore bank account itself is not illegal in any sense. However, you must comply with all applicable tax laws of the country in which you reside. As long as you do that, you are in the clear.
So, if you’re “all-in” for sending money abroad, I encourage you to check out some of the online offshore banks. Whether you want the security of competitive interest rates or the convenience that offshore banking provides for international travelers, an offshore bank account may be just the right fit for you.
About Greg
Seems like a good way to keep money in multiple currencies. One risk that most Americans face is that nearly 100% of their assets are tied up in dollar-denominated assets. With that kind of exposure, we face a huge risk if the dollar faces high inflation.
DC @ Young Adult Money recently posted..Ways to Buy Safe Cleaning Products on a Budget
I know our assest are tied up completely in the dollar. It would be nice to diversify a bit.
I don’t have an offshore account, but I do see the benefits – especially having $$ in multiple currencies. Since our own currency is on the breaking point of hyper-inflation (IMO) and you never know if the next QE will take us down the roller coaster to hell – makes a lot of sense to have money saved in other currencies.
Jason Clayton | frugal habits recently posted..5 Reasons I Love Having a Health Savings Account (HSA)
It really does. I guess I should follow my own advice here and take a look at an offshore account:)
Great point on having money in multiple currencies Greg. I’ve traveled overseas several times and I know it’s usually a hassle to get that country’s currency and all that’s involved with it, not to mention avoiding the fluctuation. I can see how when I (hopefully) get to travel more that would be a great benefit!
John S @ Frugal Rules recently posted..What the Government Teaches About Living Without a Budget
It seems like a great idea doesn’t it? What a time saver it would be to simply transfer your money into a different currency instead of having to jump through all of those hoops.
For some reason I assumed that international bank accounts were a bad thing. Good to know that I was totally wrong! I’m a little nervous about the dollar as well, so having a different currency is certainly not a bad thing (just make sure you pick the right one).
Jason @ WorkSaveLive recently posted..Recipe: Vegetarian Enchiladas
What, you don’t think that $16 Trillion in debt and climbing is sustainable? Come on Jason! Where is your patriotism?
I would feel pretty baller to get to talk about using my offshore account. That alone may be enough reason to set one up. That’s bound to get the chicks. I guess protection from currency inflation would be good to, but mostly it’s all about the chicks lol.
Modest Money recently posted..Get Your Finances in Order With the Help of the Internet
Ummm…yeah! It would be kind of hard to organically work that information in to a conversation, but who cares? Be awkward about it. Having an offshore account is so cool, she’s bound not to notice because she’ll be blinded by your awesomeness!
Aren’t you dating someone? Geez Jeremy- keep it in your pants already! =)
Well, my 17 off-shore account only make up about half my fortune. The rest is in the Justin Bieber brand.
(to be read in a smarmy voice, while picturing me wearing a monacle and smoking a cigar in front of a big fireplace) “I only tap my accounts when in need of something….well…significant. My 400ft. yacht was one such occasion, as they required a sizeable down payment, to the tune of about $150M. No big deal, but I did have to pull a few funds from here and there. I’m pretty sure a war started over it, maybe a few hundred died…no matter. My yacht is now complete, and my crew of 87 men is at the ready should any travel bug tickle my fancy. To the Caymans, you say? Well, I shall give it a go, as it were, but only if my $300,000 scotch collection remains in tow. Ta ta for now.”
Jacob @ iheartbudgets recently posted..How To Save Money: New Dishwasher
You are extremely fancy!
Interesting. I’ve often wondered about them and why someone would need one. I have a friend who travels all the time and constantly at banks getting conversions done. I wonder if this would work for him?
Catherine recently posted..Ok, I’m Joining
I’d say that this is probably a really good idea for him. I never really knew much about this until I started looking into it either.