Today's comment is by Erika Nolan, Managing Director of The Sovereign Society for the last 10 years, and co-author of Offshore Advantage: A Beginner's Guide to the Offshore World. 

One way to beat the restrictive U.S. retirement systems of IRAs, 401Ks and other plans is to move your retirement plan offshore.

It's a little-known approach, but it can spew out huge profits. An offshore retirement plan also demands fewer taxes and plays a greater role in producing and managing your future income.

You're probably scratching your head right now. I don't blame you. I did that too in the beginning. I won't bore you with the details of the Internal Revenue Code that can give your retirement plan some very attractive advantages. Rather, I'll share with you the threats and challenges you potentially face as you approach retirement and the solutions open to you.

The harsh truth is there are two very real threats to your retirement account.

The Survey Says:
"Don't Even THINK of Retiring Now!"

The first is that you won't have nearly enough income to sustain yourself in your post-career years.

Surveys repeatedly show that we are NOT financially ready to retire. In a country with a negative personal savings rate, millions of so-called future retirees are simply not planning for the future...especially when US$4 gas, rising food costs, and a flat-out credit crisis are eating away at their savings.

Second, your retirement assets are exposed to several types of risk. Over the past few years, all types of retirement plans have come under attack in the courts. Certain lawyers have made careers out of going after retirement plans just like yours.

In fact, one very well-known attorney in the asset protection field said, "The successful attack on retirement plans is one of the fastest-growing areas of the legal profession."

Beware of Uncle Sam and His IRS Agents

And it's not just lawyers you should be concerned with. The IRS continues to take more than their fair share out of retirement plans if you make a "mistake" in reporting.

Our friend and expert retirement professional, Larry Grossman told us a story about a small business owner he knows. This small business owner had the misfortune to have the IRS audit his retirement plan. The IRS agents looked at all his investments over the years and all his paperwork.

The IRS said in effect: "Congratulations. Your investments have been perfectly in line with the rules." But then the IRS agent asked for a piece of paper dating back to 1981 - a plan amendment required by a 1981 law. The business owner had no idea what they were talking about. (Imagine if the IRS asked you for a paper that was over 25 years old!)

So because of a missing piece of paper, the IRS ruled the business owner's plan was disqualified and was now fully taxable. The plan totaled US$145,000 and the IRS wanted to take US$60,000 penalty! The owner was forced to settle with the IRS for US$10,000 and got stuck with US$13,000 in legal fees.

As you can see, it's sink or swim when it comes to planning your retirement. 

And What About the U.S. Dollar?

You may think you have plenty stashed away for a post-career rainy day, but if your assets are denominated in U.S. dollars then your retirement plan is already in trouble. As I'm sure you know, the U.S. dollar's long-term outlook is pretty grim. If the U.S. dollar continues to plummet, then the value of your retirement plan will plummet right along with it.

That only increases your chances of running out of retirement savings half way through your golden years.

Fortunately for you, there are ways to maximize the potential benefits of your retirement plan to ensure these threats don't affect the quality of the rest of your life.

If you seek positive investment returns, financial privacy, and a secure and prosperous retirement, it's time to move your retirement plan offshore.

ERIKA NOLAN, Executive Director

EDITOR'S NOTE: To get the full story on how to take your retirement plan offshore for greater asset protection, investments and privacy, check out Erika Nolan's newly updated book, Offshore Advantage: A Beginner's Guide to the Offshore World (now selling at a 25% discount). Or join us in Mexico this fall to learn everything you need to know to take your retirement plan offshore at our third annual Offshore Advantage Academy. We'll have offshore professionals from around the world on the scene to map out the best strategy for your retirement plan. You'll even receive a copy of the Offshore Advantage: A Beginner's Guide to The Offshore World, as your course manual for this seminar. Get all the details on this event.

"This is the last book Washington wants you to read…"

– Bob Bauman former US congressman

Washington wants you to believe these inner sanctum techniques are un-American.

But they’re full of it…protecting your wealth and your family is as American as baseball…

Click here to discover the secrets to protecting your wealth.

Let's Add Another Few Hundred Billion
to Our Deficit, Shall We?

Housing legislation in the United States moved closer to becoming law this week.

The majority 272 Congressmen voted in favor of a rescue package versus 152 against. The bill was just introduced in the House of Representatives and now moves to the Senate. It's highly likely the Senate will give this bill a green light before the Presidential elections this fall.

The bill would authorize the government to invest US$30 billion in Fannie Mae and Freddie Mac while insuring up to US$300 billion in refinanced mortgages. The housing crisis is now in its second year, and shows no signs of stopping. This crisis also triggered the sub-prime mortgage debacle 12 months ago. Other assets, including stocks, bonds and some commercial real estate sectors have all deflated since mid-2007.

So what's the bottom line for the United States and investors?

As a result of footing this enormous bailout, the government will raise its debt ceiling to US$10.6 trillion dollars from the current cap of US$9.8 trillion dollars. Heck, what's a few hundred billion dollars when you're the Fed and you print your own fiat currency?

The nationalization of American housing has therefore begun. And not everyone in Congress and the public is pleased with this new legislative proposal.

Dissenting Senators exclaimed the bill would ultimately cost taxpayers more than US$1 trillion. Adjusted for inflation since 1991, the last rescue (Savings & Loans) cost about US$400 billion.

Also, once again the government is coming to the rescue of big financial firms. These giants, like Bear Stearns, are too big to fail. The sad truth is that if the government did NOT bailout Bear Stearns and rescue Fannie and Freddie, the global financial system would suffer a severe blow. Banks would tumble like dominos, a string of mortgage defaults would occur nationwide and a hard recession or worse would ensue.

Morale hazard argues against government bailouts. But at what point is a bailout justified if it saves or delays the economic day of reckoning? Is a government bailout warranted if it saves the financial system?

ERIC ROSEMAN, Investment Director

Why Day Trading Is for Professionals ONLY

Not everyone is cut out to be a day trader in the foreign-exchange markets. That's because a true day trader enters and exits trades within a day's time. A day trader VERY rarely holds a position for several days.

I meet many newbie currency traders who want to become day traders. But just like many people would love to race cars or model professionally, you need certain prerequisites to be a day trader.

Day traders are also strictly technical traders. They love charts. That's because there's really nothing fundamentally that moves currencies over 30 minutes to an hour or so periods. It takes time for fundamentals to affect currencies. And time is exactly what day traders DON'T have. So they're all about the indicators, short-term timeframe charts like the five minute and 15 minute timeframes.

Day traders may trade fundamental news announcements but they're only looking for the short-term pops that react to the news. They're not looking for news items that will affect the long-term fundamentals of a currency.

You have to know that when you enter into the day trading arena. That takes incredible skill, and not everyone can learn to do it. In fact, most people can't. However, if that's your long-term ambitions, it doesn't mean you can't go for it. But I compare it to becoming a pro athlete, rock star or professional actor. People jump into those amazing careers everyday, even if it's not a huge amount of the population.

If you want to hop into the arena with the day traders, please take my advice — only use capital that you can afford to lose.

Otherwise, follow the intermediate to long-term trends in the foreign-exchange market. Leave the day trading to the professionals...who don't have another day job.

SEAN HYMAN, Currency Analyst

P.S. Day trading is really not for everyone. That's why my colleague, Jack Crooks introduces several trading styles in his foreign-exchange trading service, The Money Trader. Jack holds positions anywhere from several days to several weeks. He takes this slower approach specifically so you can easily execute each trade. Find out more about his masterful trading strategy here.

Bernanke's Secret Pain

Which lever will he pull this month?

Raise interest rates: Save the dollar... kill the stock market and kick millions of Americans onto the streets.

Lower interest rates to 1.75%... even 1% or less: Kill the dollar... save the stock market... keep home owners above water AND...

Unwind the world's biggest bet.

Click here to learn more.