The wealthy have been relying on the services of the offshore banking industry for many years. These services can include currency exchange management, tax advice and asset protection, as well as safe custody outside the country. Establishing banking relationships outside of the U.S. is a lot like asking for your future spouse's hand in marriage: Expect to provide extensive personal, credit, financial and even medical information when establishing bank relationships outside the U.S. In fact, the client may have to pay for an investigation of his or her financial and personal background before being accepted as a customer.
U.S. banks may offer an offshore alternative to their banking customers, making it easier to maintain financial affairs outside of the U.S. Even banks with a U.S. parent can be subject to local restrictions on withdrawals or bank transfers in and out of the country. Determine banking limitations that may have an impact on cash flow for the client retiring abroad and plan accordingly.
The word "retirement" generates visions of a leisurely life of travel and foreign adventure, but the complexities involved with living abroad make a coordinated wealth management plan challenging. With tax and legal developments changing daily around the world, no one can be an expert on all aspects of the global economy and legal systems. The successful advisor taps into experts on both shores to create a flexible plan for migrating clients.
Tere D'Amato is the director of advanced planning at Commonwealth Financial Network in Waltham, Mass. She can be reached at [email protected].