You probably followed the recent shenanigans that almost resulted in a U.S. government shutdown…
Congress, at the last minute, finally came to a deal to keep the government open and keep paying the United States’ bills… for another few weeks.
In another few weeks’ time… there’ll be the same heart-stopping drama all over again. This is no way to run a lemonade stand. Never mind a government. Never mind the government of the world’s only superpower…
It’s no wonder the Fitch ratings agency downgraded America’s credit rating earlier this year. Would you trust you’d get good service from a business that can’t even keep its doors open?
This kick-the-can method of fiscal governing brings instability to the U.S. government and threatens the status of the U.S. dollar…
These bozos in Washington care more about politics than paying the bills… or being fiscally responsible.
Our politicians are continuing to put America’s credit rating in danger…
You can’t do anything about what’s happening in Washington.
But you can do something to protect yourself from it.
Grow Your Wealth Through Any Crisis
No matter who’s pulling the strings in the U.S. Capitol… No matter how high taxes rise… Or how far the stock market falls…
No matter when the next recession strikes—or how hard it hits…
I am not worried.
And you shouldn’t be either… because none of that has to affect you.
I’ve already taken effective action…
As I see it, it’s the one-and-only action that’s left for any of us to protect our wealth and freedom through any crisis…
In fact, it’s similar to the strategy America’s wealthiest families have followed for more than a century… but with an important twist for the times we find ourselves in.
In this time of global uncertainty, you can’t hang all your hopes on any one country… any one economy… or any one currency. You need to diversify.
Now, maybe you’ve already taken some steps toward spreading your wealth across different asset classes within the United States…
Maybe you hold some stocks… a little gold or silver… an investment property… or you keep a stash of cash at the ready in case of emergency.
Those are the things that most U.S. financial advisors recommend you do to keep a “diversified portfolio.” And, that solution may have done the trick a century ago.
Pulling out of the stock markets and into railroads, oil, precious metals, and Hollywood studios is how America’s wealthiest families sailed through the Great Depression.
But that level of diversification isn’t enough to cut it today.
Frankly, if everything you own is tied to the United States and the U.S. dollar, you’re putting yourself and your future at risk.
You know where I’m heading with this…
To fully protect yourself and your loved ones in the long-term, you need to take your assets offshore. Or, at least, some of those assets…
Diversifying at an international level means that, come what may, you’ll never have to give up the quality of life you’ve come to enjoy…
Not only that but you could substantially increase your wealth over the next decade and beyond… and leave behind a tidy legacy for your loved ones.
It all boils down to these six main strategies, in my view.
Strategy #1: Open A Foreign Bank Account (Or Two)
Offshore banks are available in dozens of jurisdictions. Most people take the approach of trying to choose the “best” offshore banking jurisdiction, but the reality is that the “best” depends on the person and the goals.
More important, you shouldn’t just find one bank in one jurisdiction and call it a day (because your first bank might close your account… that’s happened to me three times).
Strategy #2: Get A Backup Residency
If you were to adopt just one of these six strategies, it should be this. Get yourself a backup residency… and get it as soon as possible.
With a backup residency, you have the right to live in another country should things really hit the fan back home. Like I say, it’s maybe the most important thing you can do to preserve your lifestyle in the event of a crisis…
Strategy #3: Seek Second Citizenship
Faced with a lockdown in the future, where would you hang out? Having a second citizenship gives you more options than mere residency… it means a permanent right to live somewhere else, protection from the state, and even the right to vote.
And, it’s not that hard to get a second citizenship, either. In fact, if you have money, you can even buy your way in…
Strategy #4: Protect Your Assets
Remember when America was proud of its entrepreneurs?
Unfortunately, these days, business owners have become a target… especially for frivolous lawsuits… and this risk has become another important reason to diversify your life, your assets, your business, and your investments offshore.
There are ways to structure your assets overseas, for example, that put them beyond the reach of U.S. court judgements (this is perfectly legal).
There’s no greater deterrent against potential litigants…
Strategy #5: Move Your Business Offshore
Depending on your situation, this could provide huge advantages… Incorporating offshore won’t make sense for everyone. But it might make sense for you.
Using Panama as a base for incorporating your business, for example, can make sense—as the country doesn’t tax entities that aren’t operating in Panama.
You can set up a business in Panama and have an office in the country and still pay no Panama taxes if all your income is derived from outside Panama or if your business qualifies under the rules of one of the special incentive areas…
Strategy #6: Grow Your Wealth Without The Stock Market
Among all these wealth-building strategies, investing offshore—especially in foreign real estate—is the one that makes me tick…
There’s something about having tangible property in other countries that I find comforting.
You have little—if any—negative impact when the dollar crashes… and, because your property is in a foreign jurisdiction, courts in the United States can’t touch it.
Best of all, over the last few years, I’ve discovered some of the easiest opportunities for individual investors to break into… on turn-key developments with significant returns…
For all these reasons… diversifying internationally is the right thing to do. And now is the right time to do it.
Stay diversified,
Lief Simon
Editor, Offshore Living Letter
