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12.20.05. A Captive May Be the Answer.
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| Tuesday, December 20, 2005 - Vol. 7 No. 254 |
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In Today's Letter:
Comment: A Captive May Be the Answer.
Wealth: Offshore Investments Get Best Returns.
Offshore: Bush's Panama Surprise.
Privacy & Rights: Destruction of the U.S. Constitution.
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A Captive May Be the Answer
Dear A-Letter Reader:
There are many good reasons why a US person may wish to move all or part of their financial affairs offshore, including wider access to better investments, far greater financial and banking privacy or possibly a new residence in an attractive foreign land.
But a major theme among Sovereign Society members when asked why they decide to go offshore is -- asset protection.
Especially for Americans, lawsuits are a real hazard. With more lawyers and lawsuits per capita than any other nation, US persons are more susceptible to being sued than they are to the flu. Anyone who conducts a business in the US becomes a target for litigation. One professional group that has been a special target for contingency fee lawyers are health care providers -- doctors, dentists, nurses, hospitals, clinics and pharmaceutical companies.
The reason? Lawyers see them as sources of cash with deep pockets for settlements or jury verdicts. Not to say that doctors don't make mistakes, but personal injury lawyers have filed thousands of questionable lawsuits against health care providers, forcing all Americans to pay a price in higher costs for medical treatment, hospital stays and drugs. According to the actuarial firm Tillinghast Towers Perrin, tort costs in 1994 totaled $152 billion, up 125% from the 1984 level of $67 billion.
All these lawsuits have driven the cost of malpractice insurance beyond affordability for many medical professionals. In many areas medical specialists especially vulnerable to being sued simply have moved away or even stopped practicing. This year the American Medical Association identified 20 states facing a "medical liability crisis," where medical malpractice insurance costs are so high that many physicians have to abandon their practices or "go naked" without malpractice coverage.
Looking for ways to provide alternative insurance coverage, medical professionals (and many other business and professionals groups) have found an excellent alternative - a captive insurance company, owned and operate by those it insures. And under US tax law captives enjoy special tax breaks only available to insurance companies.
There are now over 5,000 captive insurance companies in operation, a large number of them domiciled in Bermuda and other offshore jurisdictions where laws are tailored for captives and more reasonable regulations enable them to operate with a realistic level of capitalization that matches the risk involved. These specialized offshore jurisdictions provide better asset protection and insulation from domestic US lawsuits as well.
Captive insurance is big business. More than 40% of the Fortune 500 corporations and many multinational companies own one or more captives. Captive insurance is not just for large companies. It can be cost effective for small businesses and professional associations, such as physicians, dentists, medical group practices and hospitals. If you own a business or a professional association with annual insurance costs of US$200,000 or more, forming or joining a captive insurance company may provide you significant cost savings, plus far better management and settlement of claims.
That's the way that it looks from here.
BOB BAUMAN, Editor
PS: I've just completed a new study on captive insurance and how it can save you money; click here:
LINK: https://www.isecureonline.com/secure/form1.cfm?pubcode=190SCAPT&pcode=E190FC29&alias=all&o=214644&u=11639085&l=781971/
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The Greenspan Grace Period Is Almost Over!
On January 31st, 2006 Alan Greenspan steps down after 18 years of near-criminal monetary manipulation. Incoming Fed Chair Ben Bernanke wont be the only one left holding the bagso will every other American who has not protected themselves against the massive dollar drop thats coming
Dont let this year end with your assets flapping in the wind! Find out how you can take cover todayand start making immediate profits off the downslide, too.
Because there should be some cheer in the holiday season, even with such bad news looming, heres a special offer you wont want to miss: If you act by midnight, December 31st youll receive an instant $250 gift certificate
http://www.isecureonline.com/reports/MTR/EMTRFC03/
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Offshore Investments Get Best Returns
Mark Nestmann writes: "The Wall Street Journal finally acknowledges what The Sovereign Society has been saying since our inception in 1998: a portfolio that combines US and international stocks tends to produce the best returns with lower risk. According to a study from Northern Trust, a portfolio with 30% of its assets in the EAFE Index of global markets and 70% in the S&P 500 would have returned 11.18% annually since 1969. That's almost identical the return of a 100% S&P 500 portfolio. The important distinction is that the portfolio, which included global markets, had less volatility than a US-only portfolio.
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President Bush Was Surprised
PANAMA CITY: When he visited here for a few hours last month, Pres. Bush expressed surprise at the size and number of all the skyscrapers, many of them now under construction. Fact is, Panama City has the greatest number of skyscrapers, according to Skyscraper, an Internet site that measures the ranking of countries with the most high buildings in the world. It claims that Panama is the city leader in Latin America, followed by Mexico City.
The President's surprise is typical of fist time visitors who expect to find a jungle with a canal running through it. Modern Panama City is a vibrant international financial and social hub with everything any city dweller might want. For more information, click here: http://primapanama.blogs.com/_panama_residential_devel/2005/12/panama_a_skyscr.html#more
For more information on how you can unlock Panama's financial secrets, click here:
http://www.web-purchases.com/190SPMON/W190H750/
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Destruction of the U.S. Constitution
Even as I write this, I am listening on the radio to Pres. Bush attacking US Senators who had the guts to fight to curb the worst excesses of the PATRIOT Act by holding up consideration of the Act's extension in the Senate. I think those Senators from both parties who are insisting that the law reflect the rights embodied in the US Constitution, rather then destroy them, should be commended. This attack by a President who seems to think the Constitution means what he says it does, is pure demagoguery. If you want to know the truth about the PATRIOT Act and why it should be curbed, click here, LINK: http://www.lewrockwell.com/orig6/napolitano2.html
Click here for more information on the Patiot Act: http://www.isecureonline.com/reports/190SPATY/E190FC36/
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Options Buyers Lose Money 85% of the Time... Here's How to Turn Their Losses Into YOUR Gains!
A brilliant mathematician has unleashed a "secret weapon" that can give YOU the "house advantage" every time options buyers roll the dice. And if you have just 3 minutes a week, you could use his system to turn $10,000 into $210,582. Here's how you get in...
http://www.earlytorise.com/tmt/IL
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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER .
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