Offshore Investing

The last time you went on vacation, you probably did what most vacationers do. You went to the bank first. What if there were a more rewarding sequence of events available?

Offshore investing puts your money in a bank in a foreign country, most often for tax-savings benefits. Other investors who have names as big as their pocketbooks appreciate the anonymity offered to foreign investors in some countries.

Tax benefits are becoming more scarce as the US Internal Revenue Service (IRS) cracks down on offshore investing, however. IRS regulations now require taxpayers to report income generated worldwide whereas the previous regulations taxed only income made in the United States or its territories. The taxation on worldwide income applies to individuals as well as to corporations.

It is believed that about half the world's wealth is invested in a foreign country. One very attractive reason for this tremendous scale of investment abroad is that the most popular countries to stash your cash don't tax your money at all. You may be required to pay an initiation fee when you open the account but most countries allowing foreign investments tax your invested money very little, if at all.

Even though many consider it as risky business, offshore investing in certain countries is known to be a safe bet. The Bahamas, Bermuda, and the Cayman Islands are very popular tax havens. These lush gorgeous islands offer the investor security, very low or no taxation, and privacy.

So, go ahead. Grab a bikini. Bring along some sunscreen. Go on vacation.

You can enjoy the banking once you reach your tropical destination.