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Defer Taxes, Invest Globally, and Secure
Privacy
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Monday, January 8, 2007
Vol. 9 No. 7 |
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In Today's Letter:
Comment: One Stop Solution to Wealth Needs
Offshore: Keeping New Year's Resolution #3
Sovereignty: French Elvis Seeks Sovereignty Abroad
Privacy: Opening Mail without a Warrant Now?
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The One-Stop Solution to Your Offshore Investment Needs
Today's comment is by Erika Nolan, Founding Publisher and Executive Director of The Sovereign Society.
Dear A-Letter Reader,
I'm going to let you in on one of the sacred rules of offshore investing... If you plan on investing in offshore funds as an American, you absolutely MUST use a tax-deferred vehicle.
I've written and repeated this rule so often, that it's become second nature to me. In fact if you read the A-Letter regularly, you probably already knew this rule.
But unfortunately, some misguided individuals either don't know this rule, or they discard it. Instead, they just go ahead and invest in global funds through an offshore bank. That means that every single year, they're taxed on the global funds' gains. They're stuck with huge penalties. And worse still, offshore banks won't necessarily inform misguided investors as to these penalties... the investors have to figure that out for themselves. And if they choose to ignore these taxes, they face even larger fines with the IRS down the road.
But if you choose a tax-deferred vehicle, you can avoid all of this. With a tax-deferred vehicle, your funds investment profits grow tax-deferred until you're ready to spend them.
So you can see why a tax-deferred vehicle is so important, if you're interested in global funds. I call my favorite tax-deferred vehicles "one-stop solutions" because they do a lot more than just defer taxes.
The First of the One-Stop Solutions: the Offshore Annuity
In reality, a variable annuity is just an insurance policy. You buy an annuity contract from an insurance company. Then the insurance company invests some or all those funds keep investment strategies you approve.
Most offshore variable annuity policies require a minimum of US$50,000 to start.
The beauty of these investments is that insurance companies (specifically offshore insurance companies), have access to the entire range of global investments, including many investments Americans can't touch.
The insurance company can invest your annuity fund in global equities, foreign currencies, bonds, and commodities. And sometimes, your annuity can invest in alternative investments like hedge funds and managed futures funds. And all annuity investments are tailored for a long-term investor, because most annuity investors hold their annuity for at least five years. There is one caveat - you may not specifically direct the investments. Rather, you pick an investment style or area you prefer and the investment selection will be made for you.
But in addition to investment potential, there are many added perks to variable annuities such as...
- Your annuity assets grow tax-deferred until you're ready to take income from them.
- Variable annuities are extremely liquid, so you can take cash from them after the very first day (but you must pay taxes on them).
- Nearly impenetrable asset protection. Your annuity is protected from ex-spouses, angry business partners, creditors, lawyers etc. etc. etc.
- Greater privacy because your annuity funds are not recorded in any public record anywhere.
Nearly unlimited investment potential, asset protection, privacy, liquidity, and your funds grows tax-deferred, so you can avoid the harsh tax penalties - that's why we call annuities "one-stop solutions."
ERIKA NOLAN, Executive Director
On behalf of The Sovereign Society
P.S. If you're interested in an offshore Swiss annuity, NMG of Switzerland can help you. You can contact them at info@nmg-ifs.com . The President of NMG, Marc Sola, also spoke at our Offshore Advantage Seminar last November. You can hear all his secrets on offshore Swiss annuities, by ordering our Offshore Advantage Seminar Audio Recordings today.
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How to Legally Obtain a Second Passport and Live the Life of Your Dreams
Own a 16th century farmhouse in the French countryside...a villa along the Spanish or Italian Riviera...an oak beamed cottage on a secluded mountain range in the center of Europe...
Countries all over the world are filled with extraordinary possibilities - most of which are never even explored, considered or carried out by the average individual.
Find out more about what a second passport can do for you, click below.
LINK: https://www.sovereignsociety.com/catalog/product_
info.php?products_id=36
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New Year's Resolution #3:
Invest Your Assets Outside the U.S. Dollar, While You Still Can
You'd think I'd just won the lottery.
Just before Christmas, one of my editors waltzed into my office to announce the euro had just risen against the U.S. dollar... again.
I broke out in a grin, shot my fists in the air, and let out a "YES!" Why? Because as the dollar sunk... my euro- denominated assets were worth even more. Don't you love making money doing absolutely nothing? It's pretty easy if you diversify...
That brings me to our third suggestion for your New Year's resolution: "Invest your assets outside the U.S. dollar, while you still can." There are several ways you can do this, either by going offshore or even staying in your native country.
Here are my top three ways to keep this resolution. Then just sit back and watch the currency markets work their magic...
1. Open a multi-currency account. This involves simply opening a bank account in another currency. It's fairly simple, and you can do this in your native country or offshore.
2. Play the currency markets. From long-term investments in currency exchange-traded-funds (ETFs) to quick day trades in the spot market, there are many reasons to trade currencies.
3. Invest your dollars in foreign securities. If your investments make a profit, you get an additional profit in currency appreciation. For example, The Sovereign Society recommended members buy a certain Swiss stock back in 2001. Though the stock lost 22% of its value in Swiss francs, the foreign currency's appreciation netted us a 17% gain. That's just because the Swiss franc rose so much against the U.S. dollar over the last 5 years.
ERIKA NOLAN, Executive Director
P.S. Want some help diversifying your assets? Our Currency Director, Jack Crooks has a currency trading investment service specifically designed for long-term beginning currency investors. Click here to read more about this service.
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French "Elvis" Enjoys Low Swiss Taxes
A few weeks back I noted that veteran French rock star Johnny Hallyday had abandoned his native France for residence in Switzerland, in order to avoid paying high French taxes. Hallyday, 63, now has moved his family to the exclusive Swiss skiing resort of Gstaad where he will live for six months and one day every year in order to maintain Swiss residency.
Simple arithmetic shows why Hallyday made his prudential tax move. In stark contrast to tax hungry France where heavy taxes punish big earners, Switzerland imposes no wealth tax and the state takes only part of the annual income of rich foreigners. In addition, individual Swiss cantons can arrange single "flat tax" arrangements with the very rich.
Hallyday joins an estimated 100,000 French citizens, including tennis star Amelie Mauresmo, racing driver Alain Prost and singer Charles Aznavour, now enjoying fondue, the Alps and fine watches (Gstaad boasts Rolex, Cartier and Patek Philippe shops).
According to Francois Micheloud, a Swiss tax expert, Hallyday otherwise would be paying up to 60% of his estimated US$7.8 million annual earnings to French tax collectors. His tax bill in Switzerland is certain to be considerably less - it could be as low as $206,000.
As we always say, tax competition among nations is an excellent idea, since it gives the right to choose and the possibility of lower taxes. Of course it would never occur to obtuse French politicians to lower confiscatory taxes in order to keep wealthy Frenchmen at home.
LINK: http://observer.guardian.co.uk/world/story/0,
,1980510,00.html
BOB BAUMAN, Editor
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Mr. President Says They Can Open Your Mail Without a Warrant
While the "talking heads" on television news blather away about the economy, the death of former President Ford and the new records being set almost daily in the Dow Jones Industrial Average, our right to privacy is slowly disappearing.
The latest "disappearing act": postal privacy.
Federal law has long required a search warrant to open first class mail unless postal inspectors suspect it contains something dangerous, like a bomb or a hazardous chemical, or contraband such as narcotics. But on Dec. 20, 2006, President Bush quietly asserted a new government prerogative to open domestic mail without a warrant, probable cause, or even suspicion that it contains dangerous materials or contraband.
Bush did this though a mechanism known as a "signing statement." This is a statement issued at the time a new law is signed claiming that the president has the authority to ignore certain of its provisions. Bush has issued at least 750 signing statements during his presidency, more than all other presidents combined.
On Dec. 20, Bush signed the Postal Accountability and Enhancement Act, a law that revised postal regulations. The new law explicitly reinforces protections of first-class mail from searches without a court order. But Bush's signing statement declared the president has a right to open mail under emergency conditions, contrary to existing law, and contradicting the bill he had just signed.
I've long suspected that the government has been secretly inspecting first-class mail contrary to existing law. The purpose of the Bush signing statement may be to place a veneer of legality on this practice.
Legal or not, the authority of the government to open anyone's mail, under any "exigent circumstances" as defined solely by the government, with zero accountability, is just one more step on the road to tyranny.
Let's hope the new Congress puts a stop to this practice-although I'm not holding my breath in anticipation.
MARK NESTMANN, Wealth Preservation & Tax Consultant and
President of The Nestmann Group
www.nestmann.com
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Defer Taxes. Invest in Forbidden Markets.
Protect Yourself From Losing Everything in Court
And pay a fraction of what you'd expect to pay for these benefits...
- Gaining access to top-performing investments that are unknown to most investors
- Protecting yourself from the devaluation of the dollar...even doubling your purchasing power as the greenback crumbles
- Locking your wealth out of reach of unscrupulous lawyers
Click below to learn more:
LINK: https://www.sovereignsociety.com/catalog/
productinfo.php?products_id=42
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