9 Fabulously Wealthy People That Reportedly Keep Money Offshore

One thing's for sure — no one knows where all the world's money is.

It can be tucked away in investment vehicles, funneled through holdings companies, sheltered in tax havens... we've heard the stories. It's a huge problem for governments.

To better understand the gravity of this situation, journalists from The Guardian, Huffington Post, The BBC joined the International Consortium of Investigative Journalists in sifting through thousands of documents about tax shelters, who owns them, and how they work. You can see the full result over at Huffington Post.

The investigators found staggering names and numbers. There are politicians, wanted fraudsters, royals, and heads of dynasties on the list. 

They use companies like Singapore-based Portcullis TrustNet and BVI-based Commonwealth Trust Limited (CTL) to help them set up offshore investment vehicles.

What it all drives home is that this is something that is done. James R. Mellon (of the Mellon banking dynasty) put it this way:

“I just heard of a presidential candidate who had a lot of money in the Cayman Islands,” Mellon, now a British national, said alluding to former U.S. presidential candidate Mitt Romney. “Not everyone who owns off shores is a crook.”

There's a thought.

Imee Marcos, a Philippino Provincial Governor

Imee Marcos is the daughter of late dictator of the Philippines, Ferdinand Marcos, and is a provincial governor in the country.

According to the ICIJ she's the beneficiary of a $5 billion British Virgin Islands (BVI) trust amassed while her father was in power. 

Russian Deputy Prime Minister Igor Shuvalov's wife, Olga

The ICIJ reports that Shuvalov's wife, Olga has BVI accounts in her name as do two executives at Russian state energy company, Gazprom.

That's significant because Shuvalov has come under fire for his dealings with Gazprom (and putting the cash from those dealings in Olga's name) before.

Here's what Bloomberg reported about Shuvalov a year ago:

 ....when the international media last week reported such dealings by Russian Deputy Prime Minister Igor Shuvalov, one might have expected a public outcry.

In Russia, however, things are much more complicated. Plenty of commentators, including President-elect Vladimir Putin's spokesman, have defended Shuvalov, and it appears that he truly has not broken any Russian laws, such as they are.

The facts, denied by no one, are as follows. In 2004, a Bahamas company called Sevenkey Ltd. entered into two stock market trades. It invested $17.7 million in the Russian natural gas monopoly Gazprom with the help of billionaire Suleiman Kerimov, and another $49.5 million in European steelmaker Corus via another billionaire, Alisher Usmanov. In 2007 and 2008, Sevenkey exited the trades with a profit of almost $200 million. Shuvalov's wife, Olga, is listed as Sevenkey's beneficiary. Both deals were consummated when Shuvalov was an economic aide to Putin. 

Baroness Carmen Thyssen-Bornemisza

The Baroness is an art dealer and socialite from Spain. She became a royal when she married Baron Hans Heinrich Thyssen-Bornemisza in 1985.

ICIJ found that she used a company on Cook Island to purchase art from Sotheby's and Christie's, including Van Gogh’s Water Mill at Gennep.

See the rest of the story at Business Insider

Please follow Clusterstock on Twitter and Facebook.

Read More

Artem Smao, 14, Donates His Own Money To Unemployed Stranger (VIDEO)

Last month, 14-year-old Artem Smao was selling newspaper subscriptions to fundraise a trip to Tahoe, a popular West Coast ski destination. In a twist of events, the California teen ended up donating all of his money to a complete stranger when he knocked on Robynn Fried's front door.

Fried, a Lodi resident, told CBS News in Sacramento that she was unemployed at the time and two weeks away from being homeless when Smao approached her for a donation. When she explained that she could not afford to, the teen did not hesitate to hand over his envelope full of cash.

"That's just something you don't expect out of kids these days," Fried told the Lodi News-Sentinal. "He was trying to win a trip to Tahoe, so when you're trying to earn something, it's really unbelievable to have that person turn around and offer what they're trying to earn."

Read More...
More on Good News

Read More

5 Habits of Highly Effective Savers

Saving money for a specific near-term goal, say a dream vacation or a home, can be easy.

You know what you want, you know about how much you need, and you know when you need it. Becoming a lifelong saver, however, requires a bit more discipline and a commitment to changing spending habits.

According to the Consumer Federation of America, just half of Americans think they have good saving habits and are prepared for the future. Saving for tomorrow is a necessary evil some seem to have difficulty embracing, so instead of making a short-term goal, ask yourself how do really effective everyday savers do it? Below are five habits super savers adopt:

1. Know how much money you have.

It sounds simple, but are you keeping track of each penny? Many rely upon online banking to do the work, but consider the importance of balancing your checkbook: You may catch checking account errors the bank might not, you can note fees erroneously charged to you, and you can have an immediate balance that accounts for all expenditures and deposits in real time.

2. Choose the right savings vehicle.

The highest interest rate is appealing, but smart savers have their money in account types that makes the most sense for their lives. Traditional savings accounts, money market accounts and CDs all offer a return on your investment, but at different rates, and with different penalties for accessing your money. Make sure you allocate your savings appropriately so that you gain the highest return on funds you are least likely to need in the short-run while preserving access to other cash to handle unexpected bills.

3. Don't spend emotionally.

Good decisions rarely happen when you're upset, but some long-lasting bad ones can come if you spend while emotional. The phrase "retail therapy" was coined to indicate a spending spree intended to result in a better mood. However, that better mood might soon come crashing down as the bills arrive. Find other ways to lift your spirits, like walking the dog or spending time with friends.

4. Keep your eye on the prize.

One of the biggest hurdles for new life-long savers is the commitment. An article in Psychology Today reveals it can take as long as 66 days for a new behavior, like bringing your own lunch instead of buying a meal, to become a habit. So how do you stick with it? Written notes of inspiration displayed where you do your spending (at night on the computer, for example) can help, as can enlisting friends and family to help keep you on track. Think of saving like a new eating discipline and employ the same motivational efforts.

5. Watch for opportunities everyday.

No need to be cheap, but ways to eat healthy on a budget or cut back on your phone bill can present themselves at any time, if you're looking for them. Keep an eye out for discounts, promotions and lower-cost alternatives, such as generic medicines.

Is anyone perfect? No, even Super Savers slip once in a while when faced with a "got to have it now" purchase. But with time, effort and support, your new savings habit can become second nature.

SEE ALSO: Take a tour of Graham Hill's tiny SoHo apartment >

Please follow Your Money on Twitter and Facebook.

Join the conversation about this story »

Read More

CHART OF THE DAY: How App Makers Make Money (AAPL, GOOG)

App revenue comes largely from in-app purchases made in free games, according to a new report from Distimo. Right now 76 percent of revenue comes from in-app purchases made in paid and free apps. That's up from 53 percent a year ago. If you're an app-maker, it looks like the best plan for making money is to give away the app, then charge people once they start using it.

Please follow SAI on Twitter and Facebook.

Join the conversation about this story »

Read More

Jennifer Lawrence Is Cheap Because 'I Was Raised To Have Value For Money'

Jennifer Lawrence currently graces the cover of UK magazine Fabulous and inside talks about her views on her newfound fame and fortune.

At just 22-years-old, the Oscar winner already seems to be responsible with her finances.

“I was raised to have value for money, to have respect for money, even though you have a lot of it," she tells the mag.

“That’s why mini-bars are difficult, because it’s like yes, I can afford a $6 Snickers bar, but there’s just something wrong with that!" exclaims the actress. "I still drive my same car I’ve been driving for a long time and I haven’t bought a house yet."

And despite being the current face of Dior, she hasn't even embraced couture clothing or fashion.

"I’ve hated shopping my entire life," adds Lawrence. "My mom used to drive me to TJ Maxx and I would almost faint out of boredom."

But while the actress may not feel different from her former, non-famous self, she says that people do look at her differently now.

“I don’t ever walk around feeling famous. I walk around feeling the exact same way I have walked around my entire life,” says the "Silver Linings Playbook" Oscar winner. "But it’s not until I talk to somebody and see in their eyes that I’m different. It makes me feel weird.”

In fact, Lawrence says her fame makes her feel incredibly awkward and uncomfortable, comparing herself to a scared Chihuahua.

"Making movies is where I belong. I shouldn’t be heard just talking," Lawrence explains. "So, when I’m doing movies, I’m really happy. That’s where I’m comfortable, that’s my home. When you put me on a red carpet or on a stage, I turn into chihuahua Jennifer.”

As for who keeps the star sane, she fully credits her family, who let her move to New York to pursue acting at age 14.

Of that time period, Lawrence says "I think my mom saw the same thing and didn’t really want to send me back to school, where I wasn’t very happy. She saw how happy I was, living in a rat-infested apartment by myself, just auditioning.”

“My family is not the kind of family that would ever let me turn into an a--hole or anything like," adds Lawrence. "So I am fortunate to have them.”

SEE ALSO: The 12 most frugal celebrities >

Please follow The Wire on Twitter and Facebook.

Join the conversation about this story »

Read More

JIM ROGERS: 'You Better Run For The Hills'

The EU/IMF raiding bank accounts in Cyprus to bail out the country's financial system sets a dangerous precedent and investors should "run for the hills" said investor Jim Rogers, chairman of Rogers Holdings, on "Squawk on the Street" Thursday. 

Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned.

"What more do you need to know? Please, you better hurry, you better run for the hills. I'm doing it anyway," Rogers said. "I want to make sure that I don't get trapped. Think of all the poor souls that just thought they had a simple bank account. Now they find out that they are making a 'contribution' to the stability of Cyprus. The gall of these politicians."

"If you're going to listen to government, you're going to go bankrupt very quickly," he added.

"I, for one, am making sure I don't have too much money in any one specific bank account anywhere in the world, because now there is a precedent," he said. "The IMF has said 'sure, loot the bank accounts' the EU has said 'loot the bank accounts' so you can be sure that other countries when problems come, are going to say, 'well, it's condoned by the EU, it's condoned by the IMF, so let's do it too.'" 

Jim Rogers, a voice closely followed by market participants, began shorting financials, home builders and Fannie Mae in 2006, and is famous for co-founding the Quantum Group of Funds with billionaire George Soros. Quantum is famously regarded for "breaking" the Bank of England and forcing a devaluation of the pound.

Rogers said that he has started the process in several European countries to get his bank accounts under the insured amounts. "Everybody should do the same thing too, because they're going to go crazy the next time around," he said.

In Europe, Rogers said that he owns Swiss francs and several long-term investments he's had for decades, but added that he is "certainly not buying there. It's pretty scary what's going on in Europe, especially when they're taking money out of people's bank accounts."

On the stock market hitting all-time highs, Rogers said that "it is very artificial. If you give me a trillion dollars, I'll show you a good time too and a lot of people are having a good time. I'm somewhat skeptical because I know it's going to end badly." 

"I'm certainly not investing in the U.S., because the U.S. is making all-time highs based on money printing," he said, adding that he's put money in Russia and Japan recently. "The whole world is benefiting from all this money being printed, but there are better places than where the all-time high is." 

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

 

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

Read More