Securing my hard earned cash...?

Question

Where is a good alternative for those with more then a hundred thousand dollars to keep their cash besides American Banks. I saw UBS is cutting ties with American clients and the IRS and the federal government seem fixated on assuring Americans can't keep their cash in safer economic climes. I'm not looking to cheat the IRS. I'm looking for a way to keep my money in a more stable part of the world.

Answer 1

There is nothing wrong with American banks.  Indy Mac would not have had a run if it had not been for a letter written by US Senator Chuck Schumer questioning  the bank's viability.  Since banks do not keep all of their depositor's money in cash (they make loans with it),  a loss of confidence can cause a bank run even in the most well run, profitable bank.   If you have more than $100K then divide the money between 2 or 3 (or more) banks with a maximum of $80K  per bank.  That way all of your money is covered by the FDIC.  On a personal note, I would never keep more than $80K in any one bank just because I am more comfortable having my savings "diversified".

Answer 2

If you are looking to avoid taxation, but are a US resident, you are pretty much out of luck.  Putting your money in an overseas bank won't free you from taxation.

There's nothing wrong with American banks.  Just make sure your account with any one American bank holds less than $100k in it.  You may end up having to open 2 or 3 accounts at different banks to keep the money safe via FDIC insurance.