Using Geo-Arbitrage to Stop the Acceleration of Destruction

After last week’s asset protection newsletter, “The United Corporate Statism of America”, the resulting backlash from readers was to be expected.  It seems some people, regardless of the clear patterns in government today, remain sheeple and think the president deserves a certain level of respect exclusively linked to his position of power.

It just seems strange to me that people think the Obamessiah deserves respect solely because he was elected as president.  My viewpoint is that no one deserves respect, but must earn it from those they wish to impact.

Before I get the typical anti-Republican banter claiming that Obama is fixing the mess of his predecessor, you should know that I am an equal opportunity hater.  Bush was the most destructive president in history in 2008, unfortunately it seems Obama has taken the torch from Bush and picked up the pace of destruction.

One of the more amusing comments I received was:

  • Rubbish. And how childish of you to resort to calling our president names. If you disagree with his policies, say so. Don’t throw playground taunts.

Seriously?  Did anyone read my asset protection newsletter last week and think I was on the fence with the president’s policies?

Ok, moving on.  This week I am in Phoenix, Arizona for a conference.  If any of my readers are in the area, please let me know.  I always enjoy meeting readers face-to-face.

The conference is a small gathering of entrepreneurs here to discuss and share ideas on growing our businesses.  There will be several presentations about various topics ranging from real estate investing, internet marketing, and lifestyle.  I will most likely present, “Pros and Cons of Developing Your Own Geo-Arbitrage Strategy”.

As you certainly are aware, I am a firm believer in developing your own geo-arbitrage strategy.  This is also known as the multi-flag or 6-flag strategy.  The typical 6-flag strategy promoted by many PT writers is:

1.      2nd Passport

2.      Residency in a tax friendly jurisdiction

3.      Business in a low or no tax jurisdiction

4.      Banking in a good privacy jurisdiction

5.      Investments in a money management center

6.      Playground in countries where you enjoy spending time

For those of you new to this or still just exploring the possibilities here, don’t get overwhelmed.  You don’t need to tick off every box if you don’t want.  These are merely guidelines.

Ultimately though, the more boxes you check here, the more effective your asset protection plan is.

By having a 2nd passport, you are opening up your travel and business options tremendously.  For example, most all South American countries have expensive visas for Americans.  Some of them must be obtained before traveling to the county; others hit you up for entry visas upon landing at the airport.  Either way, it’s expensive to have an American passport.

Over the past 2 weeks I have been looking for a partner in the Isle of Man for company and bank account clients of mine interested in this option.  Out of the local providers I contacted, not one was interested in working with Americans.  Not one.  A 2nd passport would come in handy here.

Setting up residency in a tax friendly jurisdiction can legally save you an enormous amount of money on your taxes (as an American).  For example if you are a bona fide resident in another country, you can qualify for the earned income exclusion which gives you about $92,000 in tax free income plus a generous housing allowance.

Establishing your company in a tax free jurisdiction (we have special promotion right now for a Seychelles Offshore IBC, email me here for details) gives you the possibility of running your legitimate offshore company tax free.

Linking your offshore company with a good offshore bank (or 2) in a jurisdiction that still respects its clients’ privacy allows you to run your business and manage your assets as it should be done – privately.

Once you build a good size nest egg, you can place these funds under management outside the US giving you the opportunity to take advantage of investments you wouldn’t otherwise have access to.  There are several offshore money managers outside the US that generate 15-20% annualized returns year after year for their private clients.

But these investment opportunities aren’t even available to US citizens.  If you have a retirement nest egg and you aren’t implementing an offshore asset protection strategy, you are missing out on some tremendous opportunities (I have one Panama credit union that pays up to 9% on cash deposits, email me here for details).

And lastly, your playground.  This is primarily where you spend your time.  Ideally you don’t want to overstay your welcome in any of these countries and effectively become a legal resident.  This is where the PT, perpetual tourist, concept hold true.  Some countries consider you a tax resident once you have been physically present in the country for more than 183 days per year.  The idea here is to have multiple playgrounds and never fall into that trap.

Keep in mind, there is nothing illegal or immoral about structuring your life in this manner.  I am not suggesting any type of illegal activity or tax evasion strategies.  Geo-arbitrage involves taking advantage of local laws and regulations and implementing offshore planning into your asset protection strategy.

It is a tried and true method for becoming a free man outside of the control of any one government.  Geo-arbitrage is just internationalization of you and your assets to ensure you are not under the thumb of any one country.

For those of you interested in making the move, I will take a limited number of personal clients who need detailed assistance in developing their own geo-arbitrage strategy.  For my coaching clients, I will hold your hand for each step of the journey and help you develop the plan that works best for your personal situation.  Email me here for details.

At our upcoming conference, “Global Escape Hatch – Panama 2012” we will also address these ideas with experts from around the world.  You will be able to talk directly with experts in obtaining 2nd passports, opening offshore companies and bank accounts, completely private banking options, residency in tax friendly jurisdictions, and investment opportunities you will never hear about in America.  To be on our early notification list, email me here.

Until next week, live well.

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The United Corporate Statism of America

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