Offshore Strategies & Services

Offshore strategies may or may not be right for you. Moreover, there is a right way and a wrong way (legal and illegal) to execute offshore strategies. If you choose the wrong way you may wind up worse off than if you had done nothing at all.

You need a principled, experienced offshore consulting firm to give you the right answers. There are hundreds of offshore service providers on the Internet. But who are they and, just as importantly, where are they? If you have never used offshore resources to protect your financial future because you just couldn't be sure with whom you would be dealing, you were correct to be concerned.

Many of these Internet promoters seem to exist only in cyberspace. They prey on fools with unrealistic goals. Use your common sense and choose a consultant just as you would a lawyer, doctor or accountant. Research who they are and where they are ? physically, not just a domain name or email address. Get references and check for licenses or registrations.

Offshore Goals

What are your goals? If your goals are unrealistic you are a perfect candidate to get burned by unscrupulous promoters as they will be the only ones willing to promise you the moon.

If you are going offshore to evade taxes - forget it; this is 2005 not 1975. All of the obvious loopholes have been closed and there is no such thing as secrecy anymore. Just about any country where you would feel at all comfortable parking capital has some sort of treaty with the US allowing the IRS to penetrate the veil of secrecy if there is reason to belief you are evading taxes.

Some unscrupulous promoters will claim that their plans are set up in jurisdictions where there are no income taxes, no capital gains taxes and no death taxes. While this may be true - for that jurisdiction - the U.S. tax consequences are entirely different.

With the exception of a non-CFC (non-controlled foreign companies), there is no simple way to avoid or defer taxes offshore that cannot be done onshore. There are no "offshore only" ways for the average investor, holding marketable securities and acting alone, to avoid income taxes on investment income.

The most predatory offshore service providers will simply lie and tell you that for whatever reason, there are no U.S. taxes due on their preferred type of offshore vehicle ("you don't own the company - you're just the manager;" "you don't owe taxes on offshore trust income;" "the Panamanian foundation is a separate legal entity without any owners, so you don't pay taxes on its income," etc.).

Bad tax advice can have grave consequences. Willful tax evasion and willful failure to file required information returns are, of course, serious crimes that can and do result in massive fines and imprisonment. Even worse it can result in the imposition of heavy fines and interest, and at worst, fines and imprisonment.

Under certain circumstances you may be able to defer taxes until you repatriate the offshore profits (although the IRS interest clock will be ticking on the amount of taxes you have been able to defer) but you will not be able to legally eliminate or defer taxes without:

1. Assuming some kind of real investment risk

2. Surrendering exclusive control over the offshore assets

3. Place assets in a trust, in which case the same trust taxation rules as domestic trusts will usually apply.

Legitimate strategies are available to defer (notice I didn't say "shelter") taxes but they are complicated and situation specific, requiring expert legal advice. There are no simple solutions.

Asset Protection is a legitimate goal and can be done effectively if done well before any lawsuit or other legal action. However, it is fair to say that while protection against civil actions is possible, there is no protection against the US Government. There is nothing like God on earth as a Federal judge. In recent years, Federal judges have jailed defendants for contempt of court for refusing to repatriate assets held in an offshore trust ? even when they had no legal way to do it!

The most commonly employed asset protection techniques include: 1) offshore trusts; 2) captive insurance companies; 3) private placement insurance products, and; sub-part F exemptions.

All of theses require expert planning and ongoing compliance monitoring. If you have significant wealth they will be worth the effort.

Wayne C Walker, principal, Windward Harbor LLC http://www.windwardharbor.com

---

A New Paradigm Shift In Earthly Wealth

Hello,If you dont understand this yet, or have not heard... Read More

10 Wisdom-Based Wealth-Building Strategies

"It's the business of your life?and you're the CEO!" Gala... Read More

How I made $122,000 and lost $132,000 - A lesson in Assets vs Liabilities

This is a true story from my own experience that... Read More

The PDQ? Factor

It's the beginning of a brand new year: a time... Read More

Saving Money - 35 Pieces of Advice to Save

There are only 2 ways to grow your wealth -... Read More

A New Economic Policy

Anyone knows that material wealth is measured in goods: apples,... Read More

Building Wealth: Its An Inside Job ? Part 2

Let's quickly review the principles discussed in the first part... Read More

I Dont Need A Financial Coach To Help Me!

You've been thinking that your financial life could probably be... Read More

3 Simple Ways to Generate Cash Flow

This article focuses on generating cash as a full time... Read More

The One Important Secret of Making More Money Easily

If you're reading this article, it means you are a... Read More

Lesson 2 - The Commodity Of Kings!

What is "The Commodity of Kings""Power is simply "the ability... Read More

Lesson 1 - Why Arent You Wealthy?

We will start the Financial Fitness System with the assumption... Read More

Tax Help - Girls (and Guys) Just Want to Have Fun by Using Tax Saving Tips

In his best selling book, "Rich Dad, Poor Dad, Robert... Read More

The Parthenon Principle

Have you seen a picture of the Parthenon in Athens,... Read More

Methods Of Raising Instant Cash

The inability to come up with the necessary cash when... Read More

Does Money Grow On Trees?

"Money Doesn't Grow On Trees."Some of us even believe it.... Read More

Your Wealth Cycle Foundation

The four main steps in building a wealth cycle foundation... Read More

The Predicament of the Newly Rich

They are the object of thinly disguised envy. They are... Read More

The 11 Best Money Saving Ideas of All Time - Part 1

At any time in history, no matter what the current... Read More

A Completely New Way To Get Rich Rapidly

This new way is catching on around the world. People... Read More

Turbocharged Financial Planning

Financial planning is an ongoing process individuals and businesses should... Read More

Online Retirement Opportunity: Freelance Copywriting

For most of us, the idea of retiring simply on... Read More

Simple Tips on Saving

Simple tips on saving can very often make quite a... Read More

Steps to Financial Freedom

Financial freedom is the power to do what you will... Read More

Wealth Building Tips: Manage Your Money

As someone who loves to shop, enjoys holidays and owns... Read More

Getting An Offshore Bank Account Via The Internet

There is no need to use the many middleman websites... Read More

Endowments and Endowment Shortfalls - What You Need To Know

Endowments and endowment mortgages have received a lot of bad... Read More

Who Else Is Tired of Life Punching Them in the Face?

Remember the bloodied face of Randall "Tex" Cobb?He was a... Read More

Can You Be Rich? Part 1

What does becoming rich mean to you? Is it early... Read More

Trustees: Who Can You Trust?

Early in my legal career I represented two young women... Read More

What Are Your Beliefs About Money and Wealth?

What is your attitude towards having wealth? Do you believe... Read More

Who Else Wants To Know Oprahs Secrets To Wealth & Success?

Before I had a lot of money, I was really... Read More

8 Tips for Keeping More of Your Hard Earned Money

Masters degree not required...just a little common sense, a $5.00... Read More