I speak with Americans every day who want to diversify their investments and open an offshore brokerage account or offshore bank account. One of their biggest concerns is whether their offshore brokerage account is secure. The news in the U. One reason for this is that, contrary to popular belief, the U. Go in to any bank in America and try to open an account.
You should be up and running in about 30 minutes. Try to do the same offshore and you will be lucky to be making your first transfer in 30 days. Americans often buy the hype of bank insurance and brokerage coverage. This is a for profit business and not government guaranteed.
Though, it was created by an act of Congress, so it has a similar charter and rating as Sallie and Fanny in real estate… and you know how well that went. The SIPC guarantees your original deposit only. Any interest or capital gains derived thereon are not covered.
If you brokerage goes under, you may be making payments to the SIPC, and not the other way around. You account does relatively well over the years and, in , you take your profits and go.
One and a half years later, the brokerage goes under. This is all to say that the U. SIPC treats you as if you were complicit in the fraud or scam that brought down the brokerage firm.
They will demand you pay back any profits you took out up to two years before the crash. None of this is possible in an offshore brokerage. What if you took cash out in and , paid tax on it, and now the SIPC wants it back? Too bad for you. Pay them and attempt to get a refund from the IRS. This is one of many reasons why I recommend an offshore brokerage account.
If and when the SIPC must choose between taking money from you or its member firms, you will lose every time. This will also allow you to diversify out of the United States and out of the U.
If you would like more information on taking your account offshore, or on how to set up an offshore company to hold that account, please contact me at info premieroffshore. I will be happy to work with you to structure your international affairs in an efficient and tax compliant manner. Articles , Asset Protection , Offshore Banking. Next Post Previous Post.More...