Protecting your wealth from the risk of war

Political stability often gets overlooked when it comes to managing wealth offshore. The Russian invasion of Ukraine has brought this to light. It has shaken the world, the stock market and sparked concern surrounding personal and business wealth which has, for some, already been affected by rising costs as a result of the pandemic. 

“Historically, Ukraine has experienced a turbulent monetary history, but as the National Bank of Ukraine became operationally independent in 2015, locals had come to trust their own local banks,” says James Turner, Director of Company Formation Specialists, Turner Little. 

“In the midst of the war, anyone who has funds deposited in a Ukrainian bank is at risk of losing their wealth, whilst the country’s assets are also at risk. On the other side, the war has sparked a coalition amongst jurisdictions that have traditionally attracted Russian wealth. These jurisdictions are cooperating to not only impose sanctions, but freeze or seize the wealth of Russian officials, business executives and state representatives — so no one has access to their own wealth,” he adds. 

“Whilst all eyes are on Russia and Ukraine, the reality is there is potential for this to happen anywhere in the world, and is becoming an ever real possibility in Europe. It’s extremely important for those who want to establish their business or manage their wealth offshore to choose a jurisdiction that provides both political and economic stability, without the potential of a crisis. This is where the age old saying ‘don’t put all your eggs in one basket’ rings true, as it is equally important to diversify your wealth globally, which enables you to choose jurisdictions where conflict is unlikely, such as the Caribbean,” he says. 

“Diversifying your money across multiple parts of the world brings the reassurance of a financial safety net. It also reduces financial vulnerability and lessens your chances of getting caught up in a potential economic collapse. When considering how diversified your investments should be, the general rule of 3 is a good place to start. As such, your portfolio should include a minimum of 3 different investment types to shield your assets from market changes. Another option is to simply hold your money in an offshore account to protect it from potential threats, such as divorce lawyers, creditors and legal action. With all these factors to carefully consider, we recommend seeking professional advice from reputable offshore banking experts,” adds James. 

As specialists in offshore banking, Turner Little can arrange a bespoke, offshore account that works for you and your needs, regardless of your country of residence. So pick up the phone or get in touch today.