The road to building wealth is not an easy one. It takes time, planning and consistency of effort. Warren Buffett did not wish himself into his billions and neither did it come to him by happenstance. He submitted himself as a youth to studying the behavior of stocks and this is why his wealth has endured, and survived even the harshest of environments such as was prevalent during the global financial crisis. As his wealth grew, he began to diversify into other forms of investment such as commodity and currency investments. Currency trading as an asset protection strategy is one of the ways that an ordinary investor can build and more importantly, sustain wealth over a period of time.
Well-renowned hedge fund trader Nicholas Vardy popularized the slogan: “there is a bull market somewhere”. A quick look at the way profits are made from currency trading shows very clearly that there is always money to be made from forex trading. Even when stock markets were taking a freefall and sending many billionaires into the uncharted and frigid waters of poverty/bankruptcy, many currency traders were smiling all the way to the banks. In currency trading, all you need to know is the effects that the prevailing economic situation will have on a currency, take position, control your risk and ride the profits.
Due to the fact that the financial markets are interconnected, you may not only take positions on currencies, but also use currency correlations to take trades in Exchange Traded Funds (ETFs), currency correlated commodities such as crude oil, and other currency derivatives such as forex binary options.
Broadening the investment base is not the only strategy for building wealth and protecting the asset base of an investor. Securing tax breaks is another. Some countries have very notorious taxation policies that make it look as if the investor has spent all his time, effort and money just to feed the federal government. Indeed, some taxation laws almost make it look like it is a crime to be rich. One way of getting around this problem is by domiciling your investment accounts in countries with more investor-friendly tax laws; the so-called tax havens. The US Inland Revenue Service has tried to break the back of tax-haven investing by enforcing and expanding the reach of the Foreign Assets Tax Compliance Act (FATCA). However, some countries have not acceded to the demands of the IRS, and so are open for use by investors seeking asset protection. It is not illegal; merely exploiting a loophole in the tax law.
A more extreme measure adopted by some persons is by opting for a second nationality, or dropping the citizenship of the country with an undesirable tax policy completely. We see an example of the latter in the case of one of the Facebook co-owners, who renounced his US citizenship in order to avoid having to pay millions of dollars in taxes.
One way of being able to take advantage of the various bull-market opportunities that abound in several currency-related investment vehicles is to open an account with an offshore broker that provides the opportunity of investing in all these instruments from a single offshore account (you can compare such brokers at www.ForexAccounts.net). So whether you are buying gold in South Africa, trading foreign company stocks on the NASDAQ, or purchasing a stake in a Russian oil firm or a mining concern somewhere on the globe, you will always have a chance to build and sustain wealth, and be able to protect your assets from the prying eyes of tax-hungry governments who want a very large piece of your pie. We are not advocating that you cheat on taxes that you should legitimately pay, but why pay more when you can legally pay less?
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