Reporting from the Total Wealth Symposium at the Intercontinental Playa Bonita Resort in Panama.
Dear A-Letter Reader:
Today's symposium sessions had a clear message: protect you wealth before someone decides they need it more than you do!
The good news is there are little-known yet highly effective ways to safeguard your wealth and privacy. And some of the very best of these offshore asset protection techniques were revealed in today's session of the Total Wealth Symposium at the Playa Bonita Resort & Spa, just outside of Panama City, Panama.
Is Silver The New Gold?
If you've been with us for a while, you've probably read some of Michael Checkan's articles on the Perth Mint Certificate (PMC). It's a warehouse receipt acknowledging your ownership of precious metals stored in a government depository in Western Australia. You get all the benefit of owning physical precious metals, with none of the headache. No need to find storage or pay storage fees - although if you choose to take physical possession of the precious metals you own, you can. Plus, it's the only AAA-rated government-guaranteed precious metals program in the world.
Today, we learned that Michael is now especially bullish on silver. Silver prices have already increased by 175% in the last five years, due to many of the same factors that make this the "decade for commodities" - the increasing demand for physical commodities, the diminished supply resulting from the severe 20-year bear market from 1980-2000, and the huge fiscal and foreign trade deficits making precious metals an important hedge against the falling dollar.
But consider this: while gold has doubled in price in the last five years, silver prices have almost tripled. Gold's all-time high is $850, and we're getting close to hitting that price in today's market. But silver's all-time high is $50 - far above its current price in the $12-$13 range. That leaves many multiples before we get to the top. The correction of precious metals prices in the last few days only provides an excellent buying opportunity.
Because of its ease and government guarantee, Michael recommends the PMC Silver Certificate as the safest, most efficient way to profit from the new silver bull market.
In fact, there is a strong consensus emerging among the mostly contrarian financial and investment advisors speaking at the conference. Almost without exception, they are bullish on precious metals - and silver is perhaps the emerging favorite. In the eyes of veterans like Michael Checkan and Eric Roseman, precious metals prices could at least double from current levels.
But the value of precious metals in today's market is two-fold, because they can deliver both profits...and protection against a plunging dollar and unraveling stock markets.
And while silver may be an excellent form of portfolio insurance and a very profitable investment, we are at the Total Wealth Symposium , after all. So, in addition, to learning how to protect their money and investment prudently but profitably, investors are also learning how to save a great deal of money.
For instance, Larry Grossman of Sovereign International Asset Management, today delivered a tax-saving tool that could knock off as much as 40%-50% of your income tax bill.
Saving and Protecting Money Too
This particular tax-saving tool is called a Defined Benefit Plan. If you are self-employed, especially, you could end up with radically higher tax-deductible contribution limits. For instance, in one scenario Larry shared, you could tuck away $177,000 out of $350,000 in income... and under certain circumstances you could even sock away an additional $20,000 tax-deferred!
Next up was Derek Sambrook. Derek shared with the group simple, affordable and effective ways that can achieve your personal estate planning goals. You can see to it that your loved ones receive prompt and correct distributions, and make sure your estate stays out of probate -- usually without using overly-complicated structures.
Some may even be able to achieve their estate planning goals with a simple one page document that costs less than $1000 to set up. For most, however, the more comprehensive - yet still very affordable and easy-to-understand - offshore trust or a Panamanian foundation can better help them achieve all their estate planning goals.
When Mark Nestmann next took the podium, he showed the group how important it is to protect your financial privacy. He revealed a couple threats to your wealth you may never even consider. One is the legal concept of civil forfeiture. This is a set of 300 or so laws that give the government the right to confiscate your property. Many of these laws are so obscure that an unsuspecting person wouldn't know about them until the government shows up at your door to relieve you of your property.
Another of these legal traps is the Ink Drop Doctrine. This allows a government authority to take control of all the money in your account or estate if they deem just one dollar was ill-gained. Worse, local police or as Mark says "forfeiture squads," can seize your assets on the scene of the supposed "crime," making police less like law enforcers and more like bounty hunters.
To illustrate how these insidious doctrines work, Mark told the story of one Southern California ophthalmologist who was being investigated about patient billings that totaled $46,000. When they determined that these billings were not handled properly, they used the Ink Drop Doctrine to relieve him of his entire $16.2 million personal fortune.
Fortunately, Mark presented dozens of solutions to such threats. He calls them his "lifeboat" strategies...and he revealed quite a few of them today. He also shared a 17-point test to find out if your wealth and privacy are vulnerable to some of the worst possible attacks. It's a quick assessment that could provide very big benefits to you for a very long time - forewarned is at least forearmed.
Following Mark was his former neighbor in Austria, Peter Zipper of the Anglo-Irish Bank. Peter dispelled a few notions about offshore banking. For instance, there is no such thing as a nameless, numbered account anymore. There are know-thy-customer rules that banks in offshore havens must adhere to. And there are reporting requirements you must follow when you move your money offshore. Try to skirt these requirements, Peter warns, and you may end up trading your Armani for an orange jump suit.
And it's not necessary. Playing by the rules offshore, you can achieve far greater financial privacy and legal asset protection than you're used to at home. Austria, after all, guarantees bank privacy in its constitution, and has done so for the last 60 years. A banker could go to jail for revealing your information without a court order. Given the Austrian commitment to banking privacy, it's going to be a long-shot for any foreign predator to get a court order in an Austrian court allowing them to see or seize your assets. And that's in the equally unlikely event they can find out about your offshore assets in the first place.
As a final touch, Peter even mentioned you can choose to have no bank statement sent to you - so it would be impossible for anyone to stumble upon your bank statement en route in the mail or over the internet. You have the option, in other words, to set up your accounts so you get your financial information only when you request it.
It's a far cry from the U.S. financial 'fishbowl' banking system.
Michael Chatzky wrapped up the day's sessions with an illustration on the vast difference between the U.S. approach to privacy, and what you'll find at some of the best asset havens around the world. In Turks and Caicos, for example, if anyone comes to check out your account...he will end up in jail. Seriously.
Let's say an IRS agent were to walk into a financial institution where you have an account at Turks and Caicos and ask to view your personal information for official purposes. The bank official would politely offer him some tea and ask him to repeat his request to make sure they got it right. Then, the official would excuse himself for a moment to place a well-timed phone call to the local constable. The constable would promptly come round and arrest the fellow for even asking such a private financial question about you without your permission.
That's right - as the U.S. places more and more laws on its books that breach your privacy, asset havens like Panama, Switzerland, Austria, Turks and Caicos and other leading havens place your wealth and your privacy in an infinitely more protected position.
Coming Up Next...Grow Your Wealth
Stay tuned for a big day tomorrow - especially on the global investments side of the Total Wealth equation.
Eric Roseman will share his analysis of the one emerging market perched to soar by 30% - 40% in the coming year. While most emerging markets around the world are over-heated and ready for a fall, stocks in this market are trading at 50% below their highs two years ago. Eric will reveal exactly how to make a fortune as this economy makes its way back up.
Boris Schlossberg and Kathy Lien, editors of the Money Trader and winners of "World's Most Accurate Currency Forecasters" two times in the last year, arrived today. They will open attendees' eyes to how accessible the $1.9 trillion currency spot market is, and how simple and extremely inexpensive it is to trade the FX market. They will share their strategies for profiting from the current market volatility. Plus, you'll hear how the end of the Fed's tightening cycle - and the beginning of the end for the dollar later this year - can be a highly profitable for those who know how to trade in the FX market.
And Sovereign Society Chairman John Pugsley will show how he finds deep-value stocks with tangible assets that are poised to rise sharply in the next 2-3 years. Hint: these are the kinds of companies you won't hear about anywhere else. They are small and sometimes even nano-cap stocks. They are in highly regulated or even unpopular industries by mainstream standards. Many of them are offshore, or not listed with the SEC so your broker can't share them with you - even if he was in the know.
A revealing - and potentially profitable day ahead - and I'll bring you as much of it as I can. But of course, there's so much more being said than I can possibly include here.
But you can get all of the insights - including the specific investment recommendations and other details revealed during the conference session - if you take a moment before you sign off here to pick up the audio recordings as part of the conference special, Total Wealth Havens Bundle . You'll receive the complete conference recordings, plus a library of offshore investment publications on the leading asset havens that have been discussed here at the conference - but with even more specifics included.
The price changes when the conference ends...so click here to save over $200 and find out more about the exclusive Total Wealth Havens Bundle .
Until tomorrow...
Your Conference Insider,
Monica Day
EDITOR'S NOTE: Coverage of the 2006 Total Wealth Symposium will resume on Monday, May 22nd.