QUESTION: I have just left my company and I have $175,000 in my
savings and investment account.It there any was to transfer that money
in an offshore account to grow for the next 15 years,to avoid my heavy
tax burden when that money is drawn out?I am new to this, and with my
low amout I need to capitolize on it to the maximum potential.
REPLY: You did not state whether those funds are in an IRA or other
tax deferred retirement savings account. If they are, I don't know of
any legal way to avoid paying taxes on distributions after you reach
For assets that are not in a tax deductible IRA or similar savings
account, I only know of two legal ways to invest assets offshore
without having to pay tax on the income as it is earned. One way is
with an offshore tax deferred annuity. The other is with an offshore
life insurance policy. Most other offshore investments are taxed the
same as similar U.S. investments -- with some exceptions such as
foreign mutual funds.
There are a variety of legal ways to minmize taxes on investment
income within the U.S. or outside the U.S. I have just completed a
final draft of an update of my book on "Legal Ways to Save Taxes
Offshore and Onshore". It's not ready to release yet because it has
not yet been reviewed by my co-author. Hopefully, it will be ready for
release by the end of this month.
Meanwhile, Offshore Tax Strategies was released early last month and
it includes a description of the tax treatment of most kinds of
offshore investments. See