| Once you have made the decision to take up the | | | | Keep in mind that U.S. citizens can even have their |
| expatriate lifestyle, you must determine how you will | | | | social security checks sent directly to them or |
| handle your financial transactions abroad. The three | | | | deposited in their foreign account in most countries. |
| most common options are: | | | | The U.S. excludes several countries, but because of |
| (1) continue to use the banking system in your home | | | | the political relationships with these few countries, |
| country, | | | | you probably would not be living in them anyway. |
| (2) open an account in your new country, or | | | | Use Off-Shore Accounts. Mentioning an off-shore |
| (3) do all of your banking through off-shore accounts. | | | | account conjures up a picture of international intrigue |
| There are advantages and disadvantages to each. | | | | and/or illegal activity in most people's minds. These |
| Keep your banking and investment account in your | | | | accounts can be used in this way, but there are also |
| home country. This seems to be the most obvious | | | | legitimate reasons for someone to use an off-shore |
| and the easiest choice. After all, you already have | | | | account, and it is this use we will consider. |
| these accounts in place. The question of course is | | | | By definition an offshore bank is a bank located |
| how you are going to use your bank account. If you | | | | outside of your country of residence, and generally |
| are constantly writing checks for everything, you | | | | with favorable tax benefits. In our case, we are |
| may have difficulty in coordination with your local | | | | more concerned with the convenience of the |
| bank. You can however use that account to park | | | | account. HSBC, for example calls itself "the world's |
| your money and transfer it electronically to your new | | | | local bank", and serves customers in over 200 |
| country as you need it. This is a common practice | | | | countries. |
| with those retirees who wish to continue having their | | | | As a retiree, such an account gives you easy |
| retirement funds directly deposited. You can also use | | | | international access to your money, especially if you |
| an ATM to transfer your money, but some countries | | | | live part of the year in one location and part of the |
| are not as accessible as others in the availability of | | | | year in another. An advantage is that you can open |
| ATM machines. | | | | an account in various currencies and have access |
| Starting a new account in you new country. It is not | | | | through the internet around the clock. The biggest |
| as easy to establish bank accounts in some countries | | | | drawback in some cases may be the required |
| as in the United States. In many countries, the red | | | | balance to open such an account. You need to check |
| tape seems to take forever. In addition to the | | | | with banks that serve your new country to |
| bureaucracy, oftentimes you need a local to "vouch" | | | | determine if they fit your banking requirements. |
| for you. In some, this could even mean the use of an | | | | Actually, there is a fourth option, that of using a |
| attorney. I am not trying to discourage you, since my | | | | combination of the other three options. Once you do |
| personal preference has always been to have a local | | | | your research on the availability and convenience of |
| banking relationship. I only wish to point out that | | | | each banking option for your new expatriate |
| some research into establishing a banking relationship | | | | destination, you will know what is best for you. |
| should precede your move. | | | | |