The Best Offshore Banks 2016

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This topic contains 10 replies, has 4 voices, and was last updated by Profile photo of Laura del Río Laura del Río 5 months ago.

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  • #3256
    Profile photo of Streber
    Streber
    Keymaster
    #3290
    Profile photo of Mickey
    Mickey
    Participant

    Very good article, I was waiting for this one.

    Which would be minimum for personal banking with DBS?

    I am looking to open personal banking account in Singapore. Which would be banks with whom you had good experience, with low entry limit, except DBS? I’m looking at something like 50000USD or lower.

    #3291
    Profile photo of Streber
    Streber
    Keymaster

    I’m not sure but you can probably find that information on their websites. Banks in Singapore (and Hong Kong) tend to be pretty open and clear about these things. It would surprise me if anyone require above 50,000 USD for personal banking, provided you’re not a national or resident of a very high-risk jurisdiction.

    I remember DBS in Hong Kong raised their minimum to 100,000 HKD quite suddenly a while back and that was considered a high minimum for non-resident personal banking in the region at the time.

    #3293
    Profile photo of Mickey
    Mickey
    Participant

    That sounds reasonable.
    Any reason why you didn’t mention Audi? They were on your previous lists. I presume their limits are still set much higher?

    #3296
    Profile photo of Streber
    Streber
    Keymaster

    Bank Audi is still great but banking in Lebanon as a whole has become a little difficult (as it does whenever the region flares up; usually calms down pretty quickly once the dust settles) so it and other Lebanese banks didn’t make the cut for that reason. If I had gone for top-10 or maybe even top-6, Audi would probably have made it.

    Their minimums are much higher than 50,000 USD for non-residents, since they practically only do private banking and wealth management for non-residents.

    #3315
    Profile photo of Mickey
    Mickey
    Participant

    Sorry, I used wrong word, should’ve wrote private banking instead of personal.

    Hence 50 000 USD from first post, I have a feeling I can hardly go lower than this.

    #3328
    Profile photo of NewLife
    NewLife
    Participant

    Glad the articles are back!

    Let me ask, and this is a totally genuine question, I’m not trolling:
    Is private banking for those people who think a no name asset manager will outsmart the Warren Buffett’s of the world? Who can’t buy a simple stocks-bonds index fund portfolio on their no frills personal brokerage account? (Think of US 401k and similar retirement accounts in other countries)

    Frankly, I never really understood this concept. Maybe I’m too young for this. Younger people bank differently. It’s us all these new fintech products are for.

    There’s also lots of good education online in the personal finance field these days most people were unaware of in the past.

    I put this here: http://www.forbes.com/2010/05/24/private-bank-trust-personal-finance-conflict-of-interest.html

    #3329
    Profile photo of Streber
    Streber
    Keymaster

    I wrote an article on private banking a while back, which might answer some of your questions.

    Wealth management in the sense of investing the funds on your behalf is just one piece of private banking. The account holder can be involved to different degrees, from not ever touching the funds once deposited to working closely with their personal banker on each investment transaction. Typically, though, the client isn’t very involved once things like ethical limitations, risk profile, and goals have been defined.

    The success of these investments obviously vary due to a plethora of reasons. They usually do quite well, but if you are a skilled trader with enough time to spare, it’s possible you could outperform them.

    Many private banking clients turn to private banking because they want to see their funds grow and they simply don’t have the time, skill, or interest to engage in investments themselves. If you’re sitting on the board of a dozen or so companies, you might not have time to log in to you brokerage account every so often to move funds around in an informed manner.

    But there is more private banking: inheritance structuring/family wealth planning, tax advisory, financial advisory, various concierge services, trust arrangements, and so and so forth. It’s not for everyone and certainly not all wealthy people make use of private banking.

    #3331
    Profile photo of NewLife
    NewLife
    Participant

    Streber, we may hold starkly different views on this one. 🙂

    I have a few well off acquaintances, and the general consensus is this: private banking only exist to scam high commissions out of wealth people who are not as financially savvy as they should be at their level of wealth & success, for no good reason.

    Details below:

    I wrote an article on private banking a while back, which might answer some of your questions.

    Which I’ve read back then, which I didn’t get back then, and I wonder if that article is on your list to being updated, maybe to include different views on the subject, such as views people like me and a growing number of people hold.

    The success of these investments obviously vary due to a plethora of reasons. They usually do quite well, but if you are a skilled trader with enough time to spare, it’s possible you could outperform them.

    Many private banking clients turn to private banking because they want to see their funds grow and they simply don’t have the time, skill, or interest to engage in investments themselves. If you’re sitting on the board of a dozen or so companies, you might not have time to log in to you brokerage account every so often to move funds around in an informed manner.

    The point of personal finance is that you don’t outsmart the market. Every financially savvy person should have exactly one minute in a year to rebalance their portfolios. One minute per year: no more. Or, you can have an arrangement where your portfolio rebalances itself automatically, so you may even save that minute.

    Okay, the middle class is going away globally, but every major university – at least in the US – is now offering a personal finance 101 course. You can find them where free online courses from leading American universities are offered (https://www.coursera.org/ / https://www.edx.org/)

    Or, if I go to YouTube, type in “personal finance” in the search filed, this is the first video I got, it will make for our example: https://www.youtube.com/watch?v=wvLafhB_xBU
    You may want to check out the related videos as well, or, simply find a good book on Amazon by the educators popping up on YouTube. Just one good book (or course) makes all the difference.

    But there is more private banking: inheritance structuring/family wealth planning, tax advisory, financial advisory, various concierge services, trust arrangements, and so and so forth. It’s not for everyone and certainly not all wealthy people make use of private banking.

    Premium cards are nice, but you can get them without private banking. In fact, I suspect no person has or should have a private banking arrangement for the cards only.

    For all other services you mentioned, private banking may entail serious conflicts of interest, as the Forbes article above points out. If you are a wealthy individual reading this and you at least occasionally read Forbes, don’t say you haven’t been warned!

    The bottom line is, not only the wealthy, but every average person who is at least striving to be middle class (the old world in a way going away, but that’s a different story) can’t get away without having basic financial education in this day and age. If you are wealthy, I’d call, with the financial educators above, this ignorance even dangerous. The world of finance has become much more complicated than it was 50 years ago. Financial products offered today to the average person (not only to the wealthy, far from it) are much more sophisticated; you will not survive without having a basic education. The poor are the poor (among other reasons, but this is a reason) because they lack this basic understanding about money.

    #3373
    Profile photo of NewLife
    NewLife
    Participant

    I don’t want to bore you to death with this. But this special episode on retirement planning with comedian John Oliver was pretty insightful: https://www.youtube.com/watch?v=gvZSpET11ZY
    It’s worth noting in this context.

    #3463
    Profile photo of Laura del Río
    Laura del Río
    Participant

    Thanks I was waiting too!

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