Obama’s Offshore Vendetta

A few weeks ago I attended the Fonds Fair in Zurich.  I was there primarily to listen to a few key presentations including Jim Rogers speaking on the future of the commodities markets. While at the conference, I also attended a presentation given by the CIO of Blackrock discussing the energy market. It was quite enlightening and there will be lots of changes over the next 10 years in the energy market.

One of the most interesting things from the visit was the complete lack of interest in dealing with American clients when talking to Swiss private banks and investment advisors. Certainly you have all watched the news sometime in the past year and have heard about the situation involving UBS. This has had a profound effect on the offshore banking industry in Switzerland as the US tax department has bullied their way into getting the Swiss to break their own laws in order to not anger the beast.

And of course you can’t help but notice Obama’s vendetta against wealthy Americans who bank and do business offshore. He is trying to create a criminal image for anyone unpatriotic American who chooses to bank and do business offshore as part of their asset protection planning. Not to mention his proposed $1.9T (yes, that’s a T) tax increase on the wealthy.

Have we now produced the modern day Robin Hood? What you need to be aware of is that it is neither illegal nor immoral to diversify your assets offshore. In truth, offshore banking is one of the most prudent things you can do as part of your asset protection planning.  And with the internet and communication technology what it is today, it isn’t even difficult.

But you need to tread carefully in this water. There are many pitfalls you must be aware of. In order to maintain complete transparency, there are several details that must be attended to in order to make sure you don’t run afoul of any government agency. Properly set up entities and proper tax planning can reap huge rewards in both tax savings, investment opportunities, and asset protection. It seems the perfect storm is brewing for you to not just want, but need to diversify your assets offshore.

As I wrote about previously, there are legal ways to defer (not evade) taxation on your business and investments. There are also ways for you to move some of your banking offshore. The benefits from the tax savings alone can more than pay for your proper advisors to help manage this process for you.

Imagine compounding your earnings tax free for 10 years. What is that worth? With the increased taxation and likely stricter restrictions on moving assets offshore, now is the time to make this move. While this may seem complicated and not beneficial to some, it is really just an irrational fear.

Actually, many banks outside of the US are much safer than US banks. Many European banks keep 30% in reserves versus 10% reserves for US banks. And they are all guaranteed deposits by the ECB. And there are Asian banking options that are even more attractive.  If there is a run on the bank, who do you think is most able to weather the storm? If you wish to discuss your personal situation, I can advise you to your options. Contact me today for your free 30 minute consultation.

Comments

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