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Independent Member
Web
Site
Official Prosper
International site can be found
HERE |
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| MYTH: |
International (or offshore) banks aren't
regulated, so you run the risk of losing all of your
money. |
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| FACT: |
Nothing could be further from the truth.
Every country in the free world has laws, rules and
regulations governing banks and financial institutions. In
fact, in an age when U.S. banks have failed right and
left, maybe you should wonder if your money is safe in the
U.S. The FDIC is currently reporting that approximately
1,500 banks in the U.S. are unstable. Even on a per-capita
basis, there is no such dismal record anywhere else in the
world. |
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| MYTH: |
The FDIC insures all of your deposits. |
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FACT: |
Fact: The FDIC only insures
your deposits up to $100,000. If you and your spouse have
an account with a $200,000 balance you will not receive
more than $100,000 should the bank become insolvent. You
may wish to maintain two separate accounts of $100,000
each. While it is true that the FDIC insures participants'
bank accounts up to $100,000, it is also true that the
system would be hard-pressed to make good on its promises
in the event of widespread bank failures. Look back at the
Savings and Loan fiasco of a few years ago. If not for
heavy government intervention through taxation there would
never have been sufficient funds in the insurance to cover
the loses. As a matter of fact the FDIC had a reserve at
the end of 1999 of a little more than 1% of the funds on
deposit in US credit institutions .
Self-insured international banks can be more secure than
FDIC insured U.S. banks. The reason is that FDIC insured
U.S. banks are allowed to maintain a liquidity factor of
as little as 10% of their public deposits. This means that
they have invested or loaned out up to 90% of the funds on
deposit. International banks tend to maintain a much
higher liquidity ratio. |
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| MYTH: |
International banking is only for people
with a lot of money. |
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| FACT: |
Today, an international savings or checking
account can be opened with a minimum deposit of as low as
$500 USD. The simple fact is, most Americans could benefit
by owning a foreign bank account. If you could take just
one step to protect your assets, it should be to open an
account at a foreign bank. A foreign bank account gives
the prudent investor the opportunity to synchronize the
benefits of various banking activities and blend them into
a unique profit-making and tax-saving financial strategy
affordable for all! |
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| MYTH: |
Opening an international account is
complex, and you can't get your money back when you need
it. It's extremely difficult to do international banking! |
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| FACT: |
Opening an international account is no more
complex than opening an account with a money market fund.
Getting your money back is just as simple. Now with the
age of the Internet, it will be practically as easy as
banking around the corner. New accounts are opened in
international centers on a daily basis and millions of
legitimate dollars flow through them annually, all without
the slightest problem.
Many international banks will allow you to have your money
held in the currency of your choice-such as Pound
Sterling, Swiss Francs, Deutsche Marks, or U.S. Dollars.
Secured credit cards are the norm with international banks
because they do not ask for your social security
information nor complete a credit check on your finances.
However, once you've received your offshore card, you can
charge on it the same way you would a domestic credit
card. The added benefit to you is that the records of
these transactions are now overseas, protected from prying
eyes. |
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| MYTH: |
You have to travel abroad to invest
internationally. |
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| FACT: |
International investing does not mean that
you have to live or even travel abroad. International
investing can be done from your own home through qualified
professionals who will function on your behalf with
reputable international banks and professional firms.
Investments within your country of residence can be
purchased on your behalf from an international location. |
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| MYTH: |
You have to be a millionaire to invest
internationally. |
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| FACT: |
Definitely not! If you're going to explore
international investment, you may want to start with
$3,000-$5,000 the more the better, of course.
One reason so little is known about international banks is
that they are prohibited from advertising in the
U.S.---unless they are willing to be governed by the same
regulation as U.S. banks, which, of course, would negate
the whole advantage of investing internationally.
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| MYTH: |
The only people who use international tax
havens are drug dealers and corrupt people. |
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| FACT: |
Every major U.S. corporation has some type
of international presence. American Express, Boeing,
Exxon, Rockwell Industries, Sears, Citibank, Bank of
America, and many prominent families such as the
Rockefellers, the Kennedy's, the Gates, and more.
For example, in 1970, the Bank of American earned 19% of
its total income from non-U.S. sources. By 1980, its
profits from international operations amount to 50% of
total corporate profit. That same year Citibank earned
almost 75% of its income overseas.
Yes, because of the privacy factor, there has been money
laundering, and other illegal activities, which has
received sensationalized reporting. But there is much more
legitimate money resting internationally than
illegitimate. The primary
reasons corporations and individuals place wealth
internationally is privacy, asset protection, tax planning
and estate planning. |
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| MYTH: |
You will be a target of the IRS and will be
considered a tax evader. |
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| FACT: |
Supreme Court Justice, Judge Learned Hand,
stated: "Over and over again, the courts have said
that there is nothing sinister in so arranging one's
affairs as to keep taxes as low as possible". Tax
avoidance is legal and is practiced often. By visiting an
accountant or CPA to help reduce your taxes, you are
employing tax-avoiding techniques. Tax evasion is the
lying about your financial affairs and it is illegal.
Employing international vehicles to legally reduce or
avoid paying taxes is not illegal, and is not considered
tax evasion. The asset protection strategies that we
suggest are designed to be 100% legal. There is nothing
immoral, unethical, or illegal in conducting business
activities internationally. |
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