Hiding money from the IRS

[Onestopbrokers Directory]

Really do not understand people to hiding money in "secret locations" and accounts. As onestopbrokers.com posted today from the source Usatoday, an 83-year-old Florida man pleaded guilty Tuesday to hiding at least $1.1 million from the IRS in secret Switzerland and Israel bank accounts for more than a quarter century.
Hiding money means that you don't pay your Taxes and this is against the whole community. And what the reason to hide money and not use them. Just to think with my self that ok I have money in a secret account that I can not use.
Looks crazy to me.

 

[brickshazel]

Actually offshore accounts can offer advantages for those of can afford. In other means they're another way if getting richer.

 

[Onestopbrokers Directory]

Actually offshore accounts can offer advantages for those of can afford. In other means they're another way if getting richer.

Yeah you are right

 

[Samir]

Swiss banks pay much better rates of return. They're not just for crooks in movies!

 

[Onestopbrokers Directory]

Swiss banks pay much better rates of return. They're not just for crooks in movies!

Hi,

As far as I know, maybe I'm wrong, rate of Swiss banks for time deposits e.g 1, 2, 5 years is up to 0.5%.
What I know from Cyprus banks, and this is funny, 2 -3 years ago, they were offering 5% and 6% for time deposits of 5 and 7 years.

 

[Samir]

Hi,

As far as I know, maybe I'm wrong, rate of Swiss banks for time deposits e.g 1, 2, 5 years is up to 0.5%.
What I know from Cyprus banks, and this is funny, 2 -3 years ago, they were offering 5% and 6% for time deposits of 5 and 7 years.

Wow, things have changed since I last checked. I was seeing rates 2-3% higher than the US for similar investments. Looks like even the best investors in the world can really make money in this global economic depression.

 

[Onestopbrokers Directory]

Wow, things have changed since I last checked. I was seeing rates 2-3% higher than the US for similar investments. Looks like even the best investors in the world can really make money in this global economic depression.

What is the rate for similar investments in US?

 

[Samir]

What is the rate for similar investments in US?

About the same.

 

[Onestopbrokers Directory]

About the same.

Hi,
Well, from one part yes is good banks to have high rates for time deposits. Is good for investors who want to receive risk free rates. But on the other hand, isn't better all these high rates deposits banks are keeping, to be invested in the real economy? I mean, an investor, to invest his/her money in companies and start ups that can have higher return. By this way real economy will be benefited. Higher rates on time deposits mean higher rates for Loans.

 

[Samir]

Hi,
Well, from one part yes is good banks to have high rates for time deposits. Is good for investors who want to receive risk free rates. But on the other hand, isn't better all these high rates deposits banks are keeping, to be invested in the real economy? I mean, an investor, to invest his/her money in companies and start ups that can have higher return. By this way real economy will be benefited. Higher rates on time deposits mean higher rates for Loans.

It depends on how much risk you want to stomach. Personally, in this type of volatile and uncertain market, I prefer more conservative investments like time deposits--especially if the yields are good.

Business investments can return much, much better. But they also require a lot of thought and work to determine the risk. And I don't have enough time for that at the moment.

 

[Onestopbrokers Directory]

It depends on how much risk you want to stomach. Personally, in this type of volatile and uncertain market, I prefer more conservative investments like time deposits--especially if the yields are good.

Business investments can return much, much better. But they also require a lot of thought and work to determine the risk. And I don't have enough time for that at the moment.

I agree with you. People invest according the risk they want to take each time.
Personally, I prefer mix investments. Both in time deposits but always try to identify new prosperous companies that can give high returns in mid time.
Speaking about time deposits in banks, I would like to tell you about what happened in Cyprus in March 2013. Banks that time were given rates of 5 - 7% for 5-7 years time deposits. They were paying the interests monthly, at the end or even at the deposit!!! They got the money from people and gave loans mostly in Land developers with 8, 9, 10% rate. The international economic crisis hit Cyprus, Land developers and other risky business couldn't pay their debts and banks were about to bankrupt. The government couldn't "save them" so the European Commission decide to give a loan to Cyprus but had to Bail in Banks. To cut short, people who had their deposits, either in time deposits or current accounts in the 2 major banks lost their money.
Things are changing fast in international economy and I think people must search a lot before making any investments in any financial instruments.

 

[Samir]

I agree with you. People invest according the risk they want to take each time.
Personally, I prefer mix investments. Both in time deposits but always try to identify new prosperous companies that can give high returns in mid time.
Speaking about time deposits in banks, I would like to tell you about what happened in Cyprus in March 2013. Banks that time were given rates of 5 - 7% for 5-7 years time deposits. They were paying the interests monthly, at the end or even at the deposit!!! They got the money from people and gave loans mostly in Land developers with 8, 9, 10% rate. The international economic crisis hit Cyprus, Land developers and other risky business couldn't pay their debts and banks were about to bankrupt. The government couldn't "save them" so the European Commission decide to give a loan to Cyprus but had to Bail in Banks. To cut short, people who had their deposits, either in time deposits or current accounts in the 2 major banks lost their money.
Things are changing fast in international economy and I think people must search a lot before making any investments in any financial instruments.

The old adage still holds true, now more than ever--if it's too good to be true, it is.

In India, the rate of returns on time deposits is 9-10% since loan rates are even higher. And the economy is sustaining this because real-estate is growing at an unrealistic 20-50% per year for the last decade. But most of this growth has been from foreign money coming into the country. As this money dries up as the rest of the world deals with its own crisis, the potential for a serious economic crash there is looming.

 

[Onestopbrokers Directory]

The old adage still holds true, now more than ever--if it's too good to be true, it is.

In India, the rate of returns on time deposits is 9-10% since loan rates are even higher. And the economy is sustaining this because real-estate is growing at an unrealistic 20-50% per year for the last decade. But most of this growth has been from foreign money coming into the country. As this money dries up as the rest of the world deals with its own crisis, the potential for a serious economic crash there is looming.

Is just what happened in Cyprus, Spain and other Mediterranean countries. In Cyprus, the real estate industry was growing the same in unrealistic rates because of the high demand from foreign people ,mainly from Russia and UK creating a "bubble" in prices and now everything is collapsed.

9-10% interest rates in time deposits!!! What is the interest rate for a company to get a loan? This is ridiculous high. Well with such rates, yes definitely is better to anyone keep his money in banks.

 

[Samir]

Is just what happened in Cyprus, Spain and other Mediterranean countries. In Cyprus, the real estate industry was growing the same in unrealistic rates because of the high demand from foreign people ,mainly from Russia and UK creating a "bubble" in prices and now everything is collapsed.

9-10% interest rates in time deposits!!! What is the interest rate for a company to get a loan? This is ridiculous high. Well with such rates, yes definitely is better to anyone keep his money in banks.

Scary. And when you mention this to people in/from India, they just say it will never happen in India. Another adage comes to mind--the person that doesn't study history is doomed to repeat it.

Interest rates for loans is in the 14-15% range. Crazy expensive imo, but in that economy, it seems reasonable. It's a market that if I was forced to invest in, I would simple walk in, get my 20% and walk out as fast as I could. It's like a ticking time bomb.

 

[Onestopbrokers Directory]

Scary. And when you mention this to people in/from India, they just say it will never happen in India. Another adage comes to mind--the person that doesn't study history is doomed to repeat it.

Interest rates for loans is in the 14-15% range. Crazy expensive imo, but in that economy, it seems reasonable. It's a market that if I was forced to invest in, I would simple walk in, get my 20% and walk out as fast as I could. It's like a ticking time bomb.

I wish never happen to India what happened in Cyprus in 2013. From what I read on internet and different financial news sites thinks in India indee goes very well. This is on our website today Modi seeks to revive India’s ‘zombie factories’, not abandon them | Onestopbrokers – Forex, Law, Accounting & Market News from Reuters.

But as you very correct mentioned "Another adage comes to mind--the person that doesn't study history is doomed to repeat it."

Yes I agree, seems that India at this point is not a market for long term investments.

 

[Samir]

I wish never happen to India what happened in Cyprus in 2013. From what I read on internet and different financial news sites thinks in India indee goes very well. This is on our website today Modi seeks to revive India’s ‘zombie factories’, not abandon them | Onestopbrokers – Forex, Law, Accounting & Market News from Reuters.

But as you very correct mentioned "Another adage comes to mind--the person that doesn't study history is doomed to repeat it."

Yes I agree, seems that India at this point is not a market for long term investments.

In India, the politicians are actually the criminals. They steal money that should be used for public service, many times becoming personally wealthy while the country remains poor. Many of the movies highlight this truth that even the common citizen knows, and yet does nothing about it.

It will be interesting to see what direction the new prime minister will take the country. But I always remember--'absolute power corrupts absolutely'--another adage for this thread.

 

[Onestopbrokers Directory]

Hi,
I have also an adage for this thread: The safe way to double your money is to fold it over once and put it in your pocket.
I think politicians in most countries are criminals. I think that they try to make the rich people more rich and poor people more poor to be able to handle them easily. In, Cyprus, ok is a small island but believe me the last 7 years, scandals are coming from everywhere with politicians. Politicians taking money from public competitions, politicians taking money from wealthy business men to do their illegal job, politicians employee in key governmental positions and semi governmental companies their friends and relatives. Ok this is always happened and I'm very pessimistic if this will ever change.
I think that India is a sleeping giant and if succeed to maximise export volumes but also to increase the quality of exported products then India will compete directly with the "traditional" big exporters' countries. Especially now with BRICS union that is getting more active with the establishing the New Development Bank and Contingent Reserve Arrangement.

 

[Samir]

I like that adage.

It's interesting what you mention about Cyprus. Here in the US, I generally feel as if we believe most of our politicians are attempting to truly do good public service, and I've met some local city councilmen and such that are absolutely perfect examples of great public servants.

But India has a long way to go imo to compete with any of the big exporters. Because there is so much of the country that is controlled by gangs, whether within government or without, that legitimate business becomes a pawn for evil. I've seen tremendous growth in all areas there--travel, manufacturing, even retail. But as long as that money is being stockpiled into things like building nuclear plants to build nuclear weapons that these gangs will control vs the country, the country will never get his head out of the third world.

 

[Onestopbrokers Directory]

thank you for the information for both US and India.
I hope things get better for India and all the countries that suffer for corruption and at the end, councilmen become, as you mentioned for USA, great public servants.

 

[Samir]

I hope so too. Even though I am US by birth, there is a strong heart-felt connection to those across the ocean. I just don't understand why they don't realize their own potential and stop allowing those that are in charge to take their life away from them.