January global markets were an omen for a year of dramatic change, like a very loud wake-up call for anyone who thought we could live in a world of perpetual economic growth. It’s time to invest offshore.
Sovereign debt is perhaps the most misunderstood issue in all of finance, even by the supposed experts. The point is; the day of reconing when the accounts must be settled, with all and/or any debt, eventually arrives. Now we’ve reached that point in time, where the Sovereigns (country, city and state governements), have to pay-up on the money they have borrowed, in many cases for energy loans when oil was $100/brl.
You now have an opportunity to be on the winning side of what will become the largest transfer of wealth in all of human history, the global stock market collapse of 2016 — Prepare yourself accordingly!!
The above was the opening paragraphs of Invest Offshore Newsletter #99. Since 2011 we’ve been providing valuable, actionable information, that’s proven to be 100% accurate. FATCA was a game-changer, we informed our readers that it was not like previous laws, way back when it was first drafted. We saw the writing on the wall and told people the truth, whether they wanted to hear it or not. In the case of many of our contemporaries, they did not want to hear what we were saying; the world of offshore investment, as we knew it, ended.
Our Offshore Asset Protection Structures work because they are “grandfathered” in through government treaties that were consummated prior to FATCA. The Treasury Department and IRS used a broad brush, with the term “Passive Foreign Investment Company” (PFIC) to term everything that isn’t specifically not a PFIC, to be a PFIC and therefore subject to 39% taxation plus fees and fines. This broad brush stroke was aimed at Trusts, IBC’s and Gold Storage accounts but the Law-makers had to “carve-out” the foreign Pension law agreements which had been ratified prior to the birth of FATCA, so they left one last bread-crumb trail for American’s to privately, securely hold assets overseas, or as we used to say “invest offshore”. That is the 402(b).
So, if we were to provide 3 pieces of wisdom to our American readers, We would say 1) move your 401(k) into an IRA 2) Move your IRA offshore 3) Begin developing a real legitimate legal basis for why you need a 402(b) overseas retirement account. There’s no-need to Expatriate immediately and forget about denouncing your citizenship but consider that the most patriotic thing you can do is protect your assets outside of the USA because the future is very uncertain. One thing is certain; more eggs in more baskets, is a good idea.