The Third Attack On Your Retirement Plan- Legally hold retirement plan assets offshore
The Lost Decade Has Wiped Out Retirement Dreams For Millions
I know it might seem a bit far-fetched but that's what is happening to your retirement plan. For the last 10 years investors have either lost money in their IRA's and retirement plans or made nothing. It is being called the lost decade and yet many investors still are doing nothing about it. They sit paralyzed or worse believe the lie their traditional advisors and Wall Street feed them. How many times have I heard things like, "You need a long-term perspective", "It will be different this time", "Just hang in there it is bound to come back", "This it the year it is going to turn around", and on and on.
Let me tell you we are in really perilous times and I am frightened by the complacency I see around me. I don't know if everyone is just numb after so many years of a difficult economy and a bad market or if they have been lulled to sleep, meanwhile their retirement plans are being sucked into a black hole .
The Global Economy Continues to Slow-
The evidence is mounting that the global economy is slowing, not growing. By now we are all familiar with the turmoil in the Euro-zone. The debate rages as to whether Greece will leave the euro or will stay threatening the entire system. It almost doesn't matter anymore as it is clear Europe is in for some very tough times as it tries to get its economic house in order. And now the evidence continues to mount that China is also experiencing a slowdown. There also seems to be ample evidence the U.S. "recovery" (if there ever was one), has reversed direction and may also be headed back towards the abyss.
What does this all mean for you the retirement plan investor?
Does anybody really know the right currency to hold or where to invest their money anymore? In times like these it is critically important to have diversification and this diversification should extend beyond what might normally be considered. In this environment you want to hold multiple currencies and even more importantly you want these assets held in multiple global accounts. Finally, I believe you should consider exposure to non-traditional assets like real estate, precious metals and alternative investments that are not as highly correlated to the traditional market.
Currency Wars Have Kicked Into Gear and Your Wealth Is At Risk
A famous author once said, "The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought,........". I have repeatedly been trying to raise the alarm about the crisis in Europe, which threatens to destroy the euro and now we have a new coordinated attack on the dollar at the same time. Russia and Iran have signed an agreement stating they will no longer trade in dollars when doing business with each other. China and Japan just did the same thing indicating they will do business with each other in their own currencies and not use the dollar.
Traditional Long Only Investments Are Very Risky In This Market
You just don't want to be in traditional long only investments in a market that has this much risk. You need to give serious consideration to holding non-traditional investment like precious metals; real estate, timber and other assets that can help you avoid the risk of a total meltdown.
Complacency Can Kill You- Feb.
I really hope you are not sitting there thinking none of this matters because it does. The worlds financial system is getting sucked into a black hole and it might seem like you have a long time to act but remember it will suddenly happen much faster than you think.
I have had prospective clients over the years who have asked me to call them when I think it is time to get their retirement plans offshore. I think it is kind of cute really, evoking an image of the school bell ringing when recess is over and it is time to run back to class.
Larry the Leader of the Global Financial System is on Line 2
I wish it were going to be like that where one day my assistant says- "Larry the leader of the global financial system is on line 2", I pick up and they say, "Hey Larry you might want to let your clients know now is the time to move their retirement assets offshore because we are going to be sucked into the black hole in 3 months". Not going to happen! "and then it happens much faster than you would have thought....."
How to Protect Yourself (While You Still Can)
Option #1: Move Your Funds to a Non-U.S. Bank
You'll get relief from the clutches of greedy bureaucrats, lawsuit-hungry lawyers and data-mining snoops.
Privately traded stocks, bonds, mutual funds, CDs, precious metals and currencies. Buy into elite mutual funds, managed by analysts who have consistently outperformed their American counterparts.
Option #2: Purchase a Non-U.S. Annuity
Prevent creditors from gaining unwarranted access to your funds. Participate in investments that are normally unavailable to U.S. citizens. Hold your assets in a safe offshore haven without violating IRS regulations.
Note: To buy an offshore annuity, you must work with an adviser who has been approved by the insurance company. These investment vehicles are not self-directed - so it's important to choose an adviser carefully.
Option #3: Form an International Business Company (IBC) or Foreign Corporation
This adds a significant layer of asset protection and privacy to your business (if established in the right jurisdiction).
It can also be used to open a foreign banking/trading account, purchase an annuity, make foreign investments directly or purchase real estate.
Physical possession of your funds rests with a non-U.S. company that may not recognize judgments awarded by U.S. courts.
Note: Your IRA would be the owner or member of the corporation depending upon the structure and YOU would be the manager with complete control over where the corporation does business. The custodian will, of course, insist on an annual statement of the corporation's activities and assets it owns.
Option #4: Direct Foreign Investment
In some instances you are able to make a direct foreign investment thereby moving your assets offshore. A good example of this type of investment would be the purchase of real estate in a foreign country.
There are other direct foreign investments available to the holders of retirement plans. These types of options continue to dwindle as our government pressures them to become, in effect, extensions of the IRS.
What have other clients done with their offshore retirement plans when they are concerned about an attack, confiscation, nationalization or other threat?
My company doesn't provide investment advice.Instead we provide our clients with a totally self-directed platform.
The number one asset protection strategy for an IRA or other type of retirement plan involves the use of a non-US LLC or some other type of foreign corporation. It is formed by and owned by the IRA and the IRA alone making it an investment within the IRA. Initially it is managed by the client/IRA participant giving them complete control. In most jurisdictions an LLC has significant if not bullet proof asset protection. The manager of an LLC can resign at a moments notice and appoint another manager. If the IRA comes under attack, the manager would simply resign and appoint someone outside of the U.S. as the manager of the LLC. It could be a friend, relative, attorney, banker, advisor, trust officer or some other professional you trust. No one would be able to force them to do something with your IRA that you did not approve of.
If and when you decide to take a distribution the LLC has additional advantages that come into play. Instead of being forced to liquidate that beachfront property in the islands you purchased inside of your IRA/LLC, you would simply re-register the shares of your corporation into your name personally and pay the tax on your distribution. (The shares are actually called membership units.) This is a great way to retain your investment, leave it offshore and still remain compliant. Many clients have chosen to hold real estate or precious metals in this way to prevent forced liquidation of their investments in the future.
Defend Yourself Now!
There really is no downside to moving your retirement plan offshore. After all, even with your account offshore you can still invest in everything you own today. Not only that, but you actually gain investment flexibility, acquiring access to virtually all of the global markets.
The logistics involved in trying to force offshore or illiquid assets to repatriate probably won't justify the expense and time involved. It is far more likely the government will adopt some type of grandfather clause covering existing accounts that are invested in illiquid assets.
The Bell Is Ringing
Your time is limited. Don't take any chances - there's no time like the present to liberate your IRA or other retirement assets.