By Patrick Bove
"So, what's the difference between a great safari and a bad one?"
Last night as we gathered on Sunset Beach to sip margaritas, toss back some mini-burritos and watch the stars burst to life over the Sea of Cortez… I had the pleasure of asking this question of two well-traveled sovereign individuals.
"I imagine, a great safari would involve watching lions track their prey. But a bad safari?
That's when a fly-by-night guide leads you to become their dinner."
And it's the same way in the offshore world. A well-trained… experienced guide can make all the difference. Luckily we have 36 such men and women here to show you the way forward.
Today, we got a chance to hear from thirteen of them.
Let's start with the "head-turner" of the bunch, Larry Grossman…
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*Fair warning, this opportunity expires Tuesday, November 10, 2009.
Don't Look Now… Buffalo Bill is About to
Ride off With Your Retirement Plan
Is the Federal Government secretly planning to confiscate your retirement plan?
According to Larry, the answer is… yes.
He compares this shocking attack to a classic battlefield maneuver from the late 1860s. At the time, the U.S. Government's chief domestic threat was Native Americans.
But instead of going after the Indians directly, the U.S. government decided to kill off their chief food source: buffalo.
This strategy was wildly successful.
And today, Larry believes the FDIC will use a similar approach to deter offshore investment. Recently, the agency fired a warning shot - announcing an audit of all IRA Custodians in 2010…
By declaring offshore investments to be "high risk," they're effectively ratcheting up the pressure on banks and IRA custodians… and forcing them to rethink their involvement with anything offshore. At some point, Larry says, the expenses associated with offshore investments may explode - forcing custodians to cut off access.
And like the once mighty buffalo, they'd be killed off.
Think that's bad? Well you're right. But it could get even worse!
A second threat is also moving into view. There’s mounting evidence that the government will use the current financial crisis to "prove to you" they can manage your retirement plan better than you.
There have been hearings in the House of Representatives where the phrase "confiscation of retirement plans" has been uttered.
The effect could be disastrous… with aggressive investment restrictions imposed by a "retirement plan czar"… that could force Americans to accept 100% exposure to the dollar. Worst-case scenario - everyone's retirement plan would be invested in 30 year Treasuries.
Think it can't happen?
Maybe you're right. But if Larry's prediction comes true and your wealth is not safely offshore, the damage could be irreversible.
That said, in any battle, if you can recognize your enemy's tactics early on, you have the best chance of winning. And boy, have we got some powerful (yet legal) weapons to choose from. To read Bob Bauman's call to arms and lock 'n load today, click here.
How to Scramble to Safety… Without Stubbing Your Toes
If you're thinking of taking your assets offshore - or relocating entirely - you're not alone. Millions of Americans are planning to do so in the next year.
But before you move a penny… or twitch a muscle… you need to get the basics down pat. That's where our first Professor of the day, Erika Nolan, came in.
So… what is "offshore" exactly?
Put simply: anywhere other than your home country… Here are a few examples:
- Panama, for instance, is a low tax haven… If you set up shop there, they won't require you to pay local income tax.
- Switzerland is somewhat different. It's an asset haven with much stricter banking privacy and asset protection laws.
- Then there's Italy… where you'll find all the charms of Old Rome and zero asset protection or tax advantages. No reason to look there for anything but a fine vacation.
When you place assets in the confines of a respected asset haven, you'll typically enjoy:
- Iron-clad privacy (from identity thieves, snoops and ex-spouses).
- Protection from U.S. legal judgments or frivolous lawsuits.
- An impressive range of investment options - typically unavailable to 99% of Americans.
- Plus, the ability to quickly diversify your wealth into more stable foreign currencies and gold.
The best part is… it's all 100% legal. But there are reporting requirements. And sadly, most U.S. based advisors and CPAs are not equipped to deal with them. (More likely, they're not MOTIVATED to help you because they're cut out of the loop.)
Erika's presentation included several important points you must know to safely do business offshore, including…
- · Six questions you MUST ask when choosing an offshore bank…
- · The top seven jurisdictions for offshore banking… with account minimums as low as $50,000.
- · Critical paperwork that's required to open and fund an account… (from utility bills to your choice of beneficiaries).
- · The three safest ways to transfer money offshore
To find out how you can get all these answers plus the entire set of video recordings and PowerPoint slides from Offshore Academy 2009… and every future event we hold, FREE (no joke), click here.
We also heard from a quartet of experts from two of the world's most trusted asset havens; Switzerland, Austria and Panama.
Swiss Banking is Alive and Well
Rob Vrijhof of WHVP shared with us the Swiss concept of bank secrecy:
"Banks are required to maintain silence on financial affairs of clients… The owner of the information is the banking client, NOT the bank."
If that sounds good… get a load of this…
Robert also told us how anyone can set up a Swiss bank account, with a minimum balance of $100k… a service performed free of charge for Sovereign Society members.
Greetings from the Land of Austrian Economics…
If you're looking for another rock solid asset haven, Austria should be on your short-list. Patrick Doherty of Valartis Bank gave us a compelling history of the nation and the banking system that it has produced.
Much like Switzerland, Austria offers maximum privacy, thanks to Title IX, Article 38, which prevents credit institutions and their members from divulging secrets revealed by their customers. And as an added bonus, Forbes magazine rated its capital, Vienna, one of the best cities in the world to live.
Doing Business in Panama
Adviel Centeno and Ramses Owens of Mossack Fonseca talked about the many benefits of investing in Panama. I could hardly keep up with them… but each point they made was more impressive than the last.
For starters, Panama is the largest international banking center in Central America. They charge zero taxes on interest bearing accounts and reward retirees with generous benefits from reduced medical expenses to theater performances to restaurant meals through their Pensionado Program. Plus, as a local homeowner, you can say "hasta la vista" to property taxes for 5-20 years, depending on the value of your abode.
Legal Entities to Protect Your Wealth
Once you've decided to go offshore… and selected a jurisdiction… the next question is: Which entity is right for you?
Luckily, we have Legal Counsel, Bob Bauman to point us in the right direction.
Now… as Bob will tell you… There are NO tax savings for Americans offshore. Uncle Sam demands that you file returns and pay taxes in the USA no matter where you live.
But you can structure your wealth for maximum privacy and protection… One of the most popular ways to do that is through an asset protection trust… APT for short.
This structure allows you to build a wall between your assets and people who might make claims against them.
For full details on the range of legal entities available to you, pick up a copy of Offshore Asset Protection Trusts in the Sovereign Society bookstore - or claim a FREE copy by joining our Freedom Alliance. (Here's how…)
A Fountain of Forbidden Knowledge
As you can see from all the details above, I can't possibly reproduce the entire day's talks here in the A-Letter.
We heard from Josh Bennett, Esq. on Offshore Asset Protection Trust Planning vs. Domestic Planning… Patrick Trainor of GCSL on how to build a "rainy day trust." Michael Chatzky and Heidi Scholz-Perez demonstrated how a trust can get your estate in order and quickly distribute your estate to the people and charitable causes most close to you - without the headache of lawsuits or probate.
Colin Bowen of IOMA conferred the many benefits of variable annuity insurance - from asset protection to tax deferral in the AAA-rated jurisdiction of the Isle of Man.
And Marc Sola revealed why an offshore bank account cannot protect you all by itself… and introduced a compliant, easy solution called a Private Placement Policy. This little wonder can give you access to the entire offshore investment universe with no restrictions due to citizenship… utmost privacy… rock solid asset protection …and years of tax-deferred or tax free growth.
Tell you what…
The buzz here in Los Cabos is contagious. (And I'm NOT talking about the free flowing margaritas.) There is a feeling of renewal… purpose in the air. Everyone seems to be excited and focused on self-improvement.
And that makes me proud. Because over the last three years, the Sovereign Society has been fine-tuning this program, based on feedback from attendees… people just like you.
Truth be told, there will always be financial fraudsters, identity thieves, frivolous lawsuits, spendthrift children and estranged spouses to make life… well… "interesting". But with the knowledge unfurled at this fourth annual Offshore Advantage Academy, it's safe to say, these threats don't stand a chance.
To make sure you get your own digital copy of every speech… every play… every solution, for FREE, click here… and consider joining our newly-formed Freedom Alliance. (It could be the best money you never spend.)
Until tomorrow,
Your Offshore Advantage Insider,
Patrick Bove
P.S. Can't wait for tomorrow! That's when we'll get to hear from our entire offshore investment panel. The line-up includes Eric Roseman, Andrew Packer, Ashish Advani, Sean Hyman and ten other experts on such varied investments as natural gas, rare stamps… and yes, tequila! Stay tuned for my full wrap-up in Monday's edition of the A-Letter.