Today's
comment is by Larry Grossman, Certified Financial Planner, managing
director of Sovereign International Asset Management Inc., and member
of The Sovereign Society Council of Experts.
Dear A-Letter Reader:
I just returned from The Sovereign Society's Wealth Protection
Summit in Ireland, where I was asked to consult with every participant
to help point him or her "in the right direction," for their wealth
protection plan. Part of that process was getting to know the
attendees, so I could understand their wealth concerns and goals.
Amazingly, every participant voiced the same concerns: the
deteriorating U.S. economy and the future of the U.S. dollar. They were
all looking for an individualized plan which would help them not only
protect their assets, but also allow them the flexibility to invest
their assets on a global basis.
My personal role at the conference was to address IRA and pension
plans. Most of the participants had some type of retirement plan and
were pleasantly surprised to learn they could move that retirement plan
offshore. I explained that there are countless reasons to do this, but
the main reasons are:
1. Nearly Impenetrable Asset Protection
2. Greater Investment Flexibility
It's Not Just Creditors You Need to Worry About
When people think about asset protection, they typically think about
protecting themselves from frivolous lawsuits or creditor attacks. And
while these are legitimate concerns, you also need to protect your
retirement plan from even scarier prospects - namely, a weakening U.S.
dollar and poor investment options.
If the U.S. dollar suddenly plummeted (which is a very real
possibility), every dollar-based investment (including your retirement
plan) would decrease in value. Plus, you would face a significant drop
in your purchasing power. But you can protect your assets, including
your retirement plan, from this nightmare scenario by holding your
retirement plan offshore in a basket of different currencies. (The old
saying about "not keeping all your eggs in one basket" definitely
applies here.)
You also need to protect your assets from poor investments. But it's
difficult to protect your portfolio from bad investments and bad
investment advice if you are only dealing with traditional U.S. based
stockbrokers. They tend to recommend investments that help their firms,
not necessarily your portfolio.
Going offshore solves this problem. How? Non-U.S. banks (who can
manage the investments in your retirement plan) are far more secure and
have long histories of safety and security. U.S. banks are also
far more leveraged then European Banks. European banks are much more
conservative, with asset managers that protect your portfolio against
poor investments.
The Unlimited Investment Potential of Millionaires
Most of you have probably heard this story by now. You should have
part of your portfolio invested outside of the United States. The U.S.
markets are not always the best places to invest and a properly
diversified global portfolio can actually reduce your risk from the
volatility in the domestic markets.
Well that's true but it's only part of the story. The truth is most
of the best investment managers on the planet are located outside of
the U.S. and can only be accessed by non-U.S. accounts (like your
offshore retirement fund). Frequently these managers just don't want to
deal with the incredibly complex regulatory system in the United
States.
Don't get me wrong - these managers don't operate their businesses
in a vacuum. Many operate from highly regulated jurisdictions and just
don't want to deal with yet another list of regulations just to operate
from the United States.
And many of the best investments with superior consistent
performance are only available outside of the United States. The Hedge
Fund industry recently announced they are now managing over 1.3
trillion dollars. Individual investors can only invest in these hedge
funds through an offshore entity, like a retirement account.
The "bursting real estate bubble" seems to be the buzzword of the
press these days. But did you know you can invest in real estate
anywhere in the world with your retirement plan? Imagine owning your
own tropical waterfront paradise with pre-tax dollars. It can be done
if you work with the right custodian.
To Wrap Up
I urge you to take action. Move at least part of your retirement
plan offshore while you still can. Protect it from frivolous lawsuits
and greedy creditors. Diversify outside of the dollar to protect your
purchasing power and invest in the best investments available around
the world that aren't dependent upon a climbing U.S. stock market. Stop
having unnatural and unnecessary investment restrictions put upon you
by a custodian who puts their interests before yours!
LARRY GROSSMAN, our "Retirement Guy"
and President of Sovereign Asset Management Inc.
lgrossman@worldwideplanning.com
http://www.worldwideplanning.com/
P.S.
In Lesson 5 of Offshore Advantage: A Beginner's Guide to the Offshore World,
The Sovereign Society research team explains why taking your retirement
plan offshore can help you triple the size of your retirement fund,
save on taxes, and protect your retirement fund from creditor attacks
and lawsuits. The attendees of our Offshore Advantage Seminar next
month will receive the first copies of this book at the event. See www.offshoreadvantageacademy.com
to find out how you can join us in Puerto Vallarta, Mexico next month.
