This article is designed for investors who are willing to look beyond the asset diversification recommendations issued by ‘traditional’ banks, brokers, and financial advisors (usually all in U.S. dollars), and consider the added diversification of ‘Internationalization’ by converting most of their assets into safer foreign currencies, trust arrangements, and nations. The expected benefits would be lower taxes, few or no capital controls, low risk of confiscation, multi-generation succession, and worldwide investment choices. I hope this article helps you grow and protect your assets
Most governments worldwide are adding new laws and methods to increase their revenue as they approach economic collapse due to excessive debt and spending. FATCA becomes effective July 1, 2014 and will restrict export of capital, and broaden tax ‘grabbing’, etc. The USA condition is ‘worse than Greece’, but we have postponed our crash since the US$ is the world’s primary reserve currency (but falling) so we can still pay our bills by creating new money. The best way to protect your assets is to set up a foreign investment trust to own and manage them. This will minimize taxes and avoid capital controls and confiscation. This has happened many times. A more simple way to get partial protection is to buy stock in foreign firms (preferably not denominated in USD) and store your precious metals abroad. The info below will give you ideas. Notice; ‘I am not a licensed Financial Advisor’. This is just info to help you develop a plan.
Jeff Berwick, CEO, tdvmedia.com, said it well:
If there has been a more dangerous time for your wealth in human history we are unaware of it. There have been individual or even entire nations of people who have been wiped out in the past but never before has there been such risk to assets across the entire globe. … what happens when the US dollar, the world’s reserve currency, and all other fiat currencies collapse? It’s not if but when. Anyone who has done any research into the financial state of affairs of the western nation-states knows that it is not only inevitable but imminent. And those who have studied the history of currencies, specifically fiat currencies (not redeemable for gold), know that they all eventually reach their intrinsic value of zero and rarely ever last more than forty years, an anniversary that passed on August 15, 2011 which marked forty years since Nixon took the gold backing away from the dollar.
In addition to the traditional investment diversification of asset classes, the concept of ‘Wealth Management’ considers protection from;
1) The ongoing decrease in purchasing power (PP) of the US$ (as revealed in pricing of goods and services, and foreign exchange rate), and
2) The threat of increased taxes, capital controls, and confiscation by the U.S. government.
This article offers two approaches;
1) ‘Internationalization’ of assets into nations with strong economies, low capital controls and taxes, and a stable monetary and legal system, and/or
2) Creation of a ‘Multi-Generation Succession Program’, managed by an ‘International Business Corporation’, and use of ‘Charitable Trusts’ for tax minimization.’
I define ‘Internationalize’ as; “The process done by investors who are concerned about decline of their domestic currency values, and increased taxes, capital controls, and confiscation. At a minimum, they convert their assets to denomination in a stronger foreign currency in an ‘investor friendly’ country, but this does not help minimize U.S. taxes, etc. A more complete approach is to work with a professional (lawyer, accountant, Wealth Management Financial Advisor) to set up an International Business Company (or Limited Liability Corporation), a tax minimization trust, and banking, in one or more offshore jurisdictions (nations)”.
This approach requires a Wealth Management Plan which considers the economic trends and monetary and fiscal policies of many nations, and which ones to deal with based on whether the PP of their currency, and value of real estate and securities is likely to rise or fall.
Wise investors will study the history and problems of our monetary system (this aids investment thinking), and then consider non-traditional strategies (mostly avoid the US$ !) to increase their wealth, and reduce risk and taxes by internationalizing their assets with a Wealth Management Plan. See my prior essays at these links;
1) Save the USA by Restoring Government to its proper Role’; http://www.activistpost.com/2011/04/save-usa-by-restoring-government-to-its.html#more ,
2) Empire-USA is Crashing: Loss of Power Over Nations Abroad; Broke and Decadent at Home, Sep. 5, 2013, http://www.activistpost.com/2013/09/empire-usa-is-crashing.html#more,
3) How to Abolish the Fed and Convert to Gold as Money, http://www.activistpost.com/2011/01/how-to-abolish-fed-and-convert-to-gold.html#, and
4) ‘Excess Spending, Taxation, and Controls are Destroying the US Economy, http://www.activistpost.com/2011/01/how-excess-spending-taxation-and.html.
Sources for Safer Investing
1. Precious Metal Dealers: Europacmetals.com, InvestmentRarities.com, Caminocompany.com, Monex.com, JimsCoins.net, Blanchardonline.com, HardAssetsAlliance.com (click on choices at top of HardAssets home page), GoldSilver.com, JMBullion.com, MilesFranklin.com, Gainesvillecoins.com, Goldmoney.com, SwissAmerica.com, sgpmx.com, and NWTmint.com. There are many others.
2. Precious Metal Storage: Once you own some precious metals (PM), where do you keep it? Most dealers work with domestic or foreign ‘vault’ firms you can use. Some have their own (sgpmx.com). But most banks and commercial vaults are not safe (even overseas) because the U.S. government can use ‘lockouts’, ‘bank ‘holidays’, ‘Bail-ins’ like Cyprus, or ‘forced exchange’ for bonds or fiat cash, etc. to prevent access by you. This is ‘confiscation’ (theft?) they claim is legal based on the 1917 ‘Trading with the Enemy Act’!). If you keep it in your possession, it must also be safe from burglars. Most gun stores sell lockable cabinets. A somewhat bizarre, but useful, choice is to bury your PM in a sealed container in a private place such as your backyard. A two to four foot long piece of 4 or 6 inch diameter PVC pipe from your local hardware, with end-caps glued on, will work. Plant a bush over and tell 2 trusted people where it is in case you die, or forget.
3. Precious Metal Mines: These are high risk/reward investments. Credible sources for info are:
a. Doug Casey CEO of Caseyresearch.com, and his staff, are world experts on PM mining; see Caseyresearch.com .
b. ‘Streetwise Reports’ publishes ‘The Gold Report’, that includes info on mines at; theaureport.com/pub/htdocs/38.
d. The ‘World Mining Congress’ (http://www.wmc.org.pl/) has members worldwide and holds annual conventions.
e. The ‘World Gold Council’ (www.gold.org ) is a non-profit association of the world’s leading gold mining companies, that promotes the use of gold. It publishes production data and holdings (tonnes) by nations and banks.
4. Foreign Currencies and Equities:
a. Euro Pacific Capital, Inc. (EuroPacificFunds.com, EuroPac.net) is a broker-dealer that offers a variety of services and products, including seven mutual funds they created (for ‘nation diversity’), and precious metals. Look at all parts of the above EP sites for details. They promote geographic and currency diversification. (Note: Europacificbank.com cannot be used by US citizens)
b. Merkinvestments.com offers 4 foreign currency funds (merkfunds.com), and reports. Also see vanguard.com
c. EverBank Financial Corp. (EVER, Everbank.com) is a U.S. bank that offers savings accounts denominated in foreign currencies. The EverBank ‘Evolving Economies’ Certificate of Deposit (CD) diversifies your money into a basket of currencies that get stronger as the dollar declines.
d. For exchange rate info, transfers, and brokerage, see Forex.com and usforex.com.
5. Wealth Management Consultants and Advisors
a. TDV Media & Services, LLC (tdvmedia.com) was started by Jeff Berwick, CEO, with The Dollar Vigilante newsletter and has grown to a family of services. Michael C. Ross is President of Michael Ross Consultants Ltd., ABM Management Corp., and TDV Wealth Management Inc., which is an international joint venture between TDV Media & Services LLC and ABM Management Corp.
The Wealth Management Services group guides investors into international diversification of assets based on creating an International Business Companies (IBC), Multi-Generation Succession Program, and a Charitable Trust for tax minimization, all developed by their Wealth Management professionals to suit each client. (Notice: I am a Sales Associate for TDV-WM. Please contact me at Dave@SaferInvesting.org to schedule a presentation, and on request a price quote. Thanks). Also see dollarvigilante.com, tdvgoldentrader.com, goldoutofdodge.com (a $45 report), tdvselfdirectedira.com, tdvoffshore.com, bulletproofshares.com. dollarvigilante.com/homegrown, and tdvpassports.com, plus a new rural community in Chile; www.galtsgulchchile.com .
To help implement internationalization, the staff at tdvoffshore.com offers professional services for clients seeking to set up International Business Companies (IBCs), Limited Liability Corporations (LLCs), Trusts and banking in various offshore jurisdictions. There are many reasons to incorporate offshore and numerous great options for TDV Offshore clients to take advantage of, but it is of the utmost importance to understand the wants and needs of those seeking to pursue such things to insure the proper jurisdiction is chosen.
b. There are a variety of ‘traditional’ sources at cnnmoney.com/expert. See ‘101 Ways to Build Wealth’ at: http://money.cnn.com/magazines/moneymag/101-ways-build-wealth/. Also look at marketwatch.com , newworldinvestor.com, and theprudentspeculator.com. Find more Advisors on the Internet; Search for ‘Barrons 40 Largest’.
6. Popular Bullion Coins
As a partial step toward using precious metal coins again, the 1933 law that prohibited private ownership of gold coins and bullion was repealed in 1975. Since 1986 the US Mint (www.usmint.gov) has issued a variety of gold, silver, and platinum bullion coins. Their face values are far below their bullion market value, and thus, though they are legal tender, are not used in commerce. Many other nations offer bullion coins. When the US$ crashes, pre-1965 US silver coins and popular government-issued bullion coins, will be usable as money (by weight) because Sellers will know their content.
Bullion coins posture the owners to use them at bullion value if Congress ever repeals the legal tender laws and allows use of private mints and coins. See former Rep. Ron Paul’s HR-4248. Many US dealers sell the bullion, medallions, numismatic coins, and bars issued by various countries and private mints.
If the above issues seem important to you, and my ideas make sense to you, do your homework, then create your plan. If you own over $500,000 in assets, it will pay to work with a professional Wealth Manager to create a sophisticated plan to help you and your children enjoy more wealth, and less risk and taxation. For more information and details, get my book ‘Better Wealth Management’ at Amazon.com. I wish you Good and Safer Investing!