Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Events
    • Shop
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • United Kingdom
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Events
    • Shop
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • United Kingdom
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
👤

THE NUMBER ONE SOURCE FOR EXPATS, DIGITAL NOMADS, AND DREAMERS.

This field is for validation purposes and should be left unchanged.
  • Finance

How to Increase your Retirement Savings

  • BY staffwriter
  • June 24, 2018
Total
0
Shares
0
0
0

How much have you socked away in your IRA or other retirement accounts? Do you have enough to be comfortable in retirement? If not, here’s how to increase your retirement savings by going offshore.

According to Fidelity, you should have about 7 times your annual salary in your IRA by the time you hit 55. So, if you’re earning $120,000 a year you should have nearly $1 million in your retirement account.

Most Americans aren’t even close to this amount. We are horrible savers and need to find ways to quickly boost our IRAs.

The Economic Policy Institute reports that, for households between 50 and 55, the average savings balance is $124,831. For those between 56 and 61, that number comes in a bit higher, at $163,577.

According to the Motley Fool, “these figures don’t tell the whole story. Because a select pool of strong savers can bring up the average and compensate for poor savers, it’s often more helpful to look at the median savings amount for these age groups. For households between 50 and 55, the median retirement account balance is just $8,000. For those between 56 and 61, it’s $17,000 — not much better. And when you have a situation where the median is considerably lower than the average, it means that most 50-somethings have less than average.”

Most of us have a lot of catching up to do. Unless we want to work into our 90’s, we had better begin to think outside of the box. The amount you can contribute to your IRA is fixed by law. Big increases will come from taking some risks and finding higher returns with your investments.

I suggest that the best investments for your IRA are found outside of the United States. Whether it’s real estate, stocks, physical gold as a hedge, ICOs or cryptocurrency, the highest returns are now only available offshore.

Let’s take ICOs as an example. The United States has pushed all the best ICOs offshore. By regulating ICOs as they do IPOs, the US SEC has added all kinds of costs and burdens on to ICOs that make them impossible to complete.

If ICOs have to go through all the headaches of an IPO, and spend millions of dollars on compliance, why do an ICO at all?

And because ICOs are typically for “portable” businesses, most have decided to leave the US and offer their tokens in a more friendly environment. As someone on the front lines, I can tell you with certainty that all the best ICOs are being done outside of the United States.  

The US also wants to know where every coin is coming from and whether you have paid your taxes. In fact, the IRS has been using Bitcoin tracking software since 2015.

Also, the IRS issued a John Doe summons to Coinbase demanding records of all US holders. If you invest or hold crypto in the United States, the government wants to know about it.

Another reason to increase your IRA offshore rather than in the US is your ability to use leverage. Most US brokerages don’t allow you to use leverage in your US IRA. This is because you pay US tax at 35% on any gains from that leverage and it creates a real headache for custodians and IRA investors.

For example, let’s say you buy US stocks in your IRA using 50% leverage. You take $100,000 from your IRA and your brokerage firm gives you $100,000 non-recourse loan. You buy $200,000 of Microsoft stock.

This stock goes up by 40% over a couple of years, netting you a gain of $80,000. Under IRS rules, 50% of that gain flows into your IRA tax free and half is taxable as Unrelated Business Income (UBI) at 35%. For a more detailed explanation, see: What is UBIT in an IRA?

Take this same transaction offshore, and setup up a UBIT Blocker with your IRA LLC, and you eliminate this tax. Buy with a non-recourse in the US and pay 35% tax in the gains from that loan. Do the same offshore and pay zero. For more on UBIT blockers, see: Eliminate Tax on Leverage in your IRA with UBIT Blocker.Consumer Resource Guide

In order to increase the value of your retirement savings offshore, you need to first setup an offshore IRA LLC. This is a specially constructed international Limited Liability Company that can hold your US IRA or 401-K. A husband and wife can use the same offshore LLC.

You then move your retirement account from your current custodian to one that allows for international investments. Providers like Fidelity don’t allow for offshore investments because they make money selling you their bonds and funds. When you go offshore, you’re in control and don’t need to pay a commission to any US provider.

This custodian transfers the money into an offshore bank account under the name of the offshore IRA LLC. From here you manage the investments of your retirement just like a professional investment advisor would

For more information on how to take your IRA offshore and earn higher returns, see: Here’s how to take your IRA offshore in 6 steps.

I hope you’ve found this article on how to increase the value of your IRA offshore to be helpful. For more information on taking your IRA offshore, please contact me at info@premieroffshore.com or call us at (619) 550-2743. All consultations are free and confidential.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Previous Article
  • Food + Culture

The Singaporean Food Scene

  • BY EA Editors
  • June 12, 2018
View Post
Next Article
  • Digital Nomadism

Countries with easy immigration laws

  • BY staffwriter
  • October 9, 2018
View Post
You May Also Like
The Tale of the Tael - A timeless store of value across centuries
View Post
  • Finance
The Tale of the Tael’s: A Hard Lesson about Hard Money
  • BY Michael Checkan
  • September 24, 2025
Craggy cliffs and quiet harbors frame life in the Isle of Man
View Post
  • Your Escape Plan
Life and Opportunity on the Isle of Man
  • BY Aneesa Marufu
  • September 19, 2025
Central America’s strategic position is reshaping the global offshore banking map
View Post
  • Plan B
The Future of Global Finance Runs Through Central America
  • BY Luigi Wewege
  • September 17, 2025
Global Diversification Tips from Experts
View Post
  • Plan B
Staying in One Country Could Be Your Biggest Financial Risk
  • BY Isha Sesay
  • September 3, 2025
Low-Tax Countries to Save Money in 2025
View Post
  • Plan B
Where Expats Are Moving to Keep More of Their Money
  • BY EA Editorial Staff
  • August 27, 2025
Belize Offshore Banking
View Post
  • Plan B
Why Belize’s Waters Run Deep in Offshore Banking
  • BY Luigi Wewege
  • August 20, 2025
International Banking Structures
View Post
  • Plan B
Tax-Friendly Banking Solutions for International Investors
  • BY EA Editorial Staff
  • August 13, 2025
View Post
  • Interviews
Meet the Legal Strategist Guiding Portugal’s New Wave of Expats
  • BY Isha Sesay
  • July 19, 2025
Trending Posts
  • Hungarian Citizenship by Descent Journey from Amercia 1
    • Second Citizenship
    Our Journey from America to Hungarian Citizenship
    • October 1, 2025
  • Buying a Property abroad 2
    • Your Escape Plan
    Why More Investors Are Buying Homes Offshore
    • October 8, 2025
  • Abkhazia jewel of Soviet summer escapes 3
    • Field Notes
    Secrets of the Soviet Riviera
    • October 3, 2025
  • Expat Child Syndrome 4
    • Wellness
    The Untold Story of Expat Kids
    • October 6, 2025
  • Every relocation begins with intention: a checklist, a map, a plan, and the clarity to choose the country that fits your next chapter. 5
    • Plan B
    Where to Move Next: The Best Expatriate Countries in 2025
    • October 7, 2025
Subscribe
Know Before You Go
  • Belize Language Reality: Multilingual Life Beyond Official English 1
    • Belize
    Belize Language Reality: Multilingual Life Beyond Official English
    • October 11, 2025
  • Cost of Living in Portugal 2025: What It Really Takes to Live Well 2
    • Portugal
    Cost of Living in Portugal 2025: What It Really Takes to Live Well
    • October 11, 2025
  • Cost of Living in New Zealand: 2025 Complete Guide 3
    • New Zealand
    Cost of Living in New Zealand: 2025 Complete Guide
    • October 10, 2025
  • Costa Rica Cost of Living Guide: Prices, Budgets, and Tips 4
    • Costa Rica
    Costa Rica Cost of Living Guide: Prices, Budgets, and Tips
    • October 10, 2025
  • Living in Paris: Digital Nomad Guide 5
    • Digital Nomadism
    A Digital Nomad’s Guide to Living Like a Local in Paris
    • October 10, 2025
Learn More
  • About us
  • Contact
  • Advertise
  • Subscribe
Why Subscribe

The newly imagined Escape Artist brings you fresh content with a global focus, and sharp, up-to-the-minute coverage of the joys, challenges, and opportunities of life abroad.

For a limited time, we’re offering a special discount on all subscription deals, so be sure to lock-in these incredible savings and start receiving top-notch travel and expat content today!

Sign up for the EA Newsletter

Get important news delivered directly to your inbox and stay connected!

This field is for validation purposes and should be left unchanged.
Escape Artist
  • Terms & Conditions
  • Privacy Policy
  • Cookies Policy
  • Disclaimer

Input your search keywords and press Enter.

Newsletter Subscription
Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/