7 Surprising Ways to Legally Keep What s Yours

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Moris Ambrose Ward
5 years ago
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1 7 Surprising Ways to Legally Keep What s Yours

2 7 Surprising Ways to Legally Keep What s Yours IN November of 2013, the International Monetary Fund (IMF) issued one of the most terrifying statements of its entire existence. Proposing to cut back global debt to sustainable levels, they stated: The sharp deterioration of the public finances in many countries has revived interest in a capital levy a one-off tax on private wealth as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance, is possible [as long as] there is a belief that it will never be repeated The tax rates needed to bring down public debt to pre-crisis levels [are] about 10% on households with positive net worth. The uproar was fast and furious. The IMF subsequently issued a kind of retraction, in which it said the IMF emphatically does not recommend a wealth tax. Despite the IMF s claim of innocence, their terrifying suggestion of a one-time wealth tax shows that wealth confiscation is a very real threat, especially here in the U.S. In this report, I ll show you the seven surprising ways you can keep what s yours one of which, though unexpected, is a reliable way to grow your wealth and shockingly lucrative. How Would Wealth Confiscation Work? The proposed wealth tax, as the IMF sees it, would be a one-off statutory procedure to seize a proportion of private wealth for the public treasury, a measure to reduce public debt rapidly and return a country s economy to a sounder financial footing. A wealth tax could be imposed on the net worth of all income-positive households. Because this would pose serious liquidity problems for many people, and equally serious enforcement problems for governments, the more likely scenario is a levy on personal bank balances. Such a mandate would be quick and easy to enforce. Banks would simply be instructed to deduct a certain percentage of the balance of each savings, checking or deposit account and transfer it to the government or central bank. To get around deposit protection laws, such as the Federal Deposit Insurance Corporation, only bank balances above the insured threshold would be targeted at least, in the first instance. You may well argue that such a radical and drastic move by the federal government would require an act of Congress. But consider that President Obama repeatedly has issued scores of executive orders that have bypassed Congress and changed statutory law, in effect imposing new presidential laws. Make no mistake about it: Wealth confiscation is coming to America. But you don t have to take it lying down. There is no need to be a lamb to the slaughter. There are seven surprising ways (one very lucrative) you can protect your hard-earned assets. 1

3 Seven Ways to Beat the Cash Grab There are seven ways you can outsmart the wealth confiscators and grow your wealth at the same time. Solution No. 1: Keep Your Bank Funds to a Minimum The easiest way for the government to steal your money is simply to instruct banks to slice off a percentage under guise of a wealth tax or some other ruse. Your bank accounts are easy targets. Everyone, no matter your net worth, should take steps to reduce their bank balances, both U.S. and foreign including checking, savings and certificate of deposit (CD) accounts. And be careful where you keep the money you do leave in a bank. If a bank pays a better rate of interest, as a number of online overseas banks do, it is often because it has to pay more to attract capital, suggesting balance sheet weakness. A stronger bank can afford to pay less. Of course, removing funds from bank accounts raises the question of what to do with the money Solution No. 2: Get a Good Home Safe Forget the proverbial mattress. Step No. 2 which should occur simultaneously with Step No. 1, if not before is to acquire a sturdy and serious safe. I don t mean a small one that some opportunist might be able to carry off on his shoulder, but rather a built-in and bolted-down safe that would require a team of horses to move. This is one of the simplest, most common-sense ways to protect your wealth and yet almost no one does it! Your safe should be fire-resistant, offering at least 30 minutes protection against 350-degree external heat, with a maximum internal temperature of 125 degrees (Rating: Underwriter s Laboratories Class 125). It should be rated class UL TL-30 or above, which means that it will take a minimum of 30 minutes for someone to cut into it with most power tools. Underwriters Laboratories (UL) is a nonprofit organization that tests hundreds of thousands of manufactured products to ensure they perform at high security standards. Steer clear of cheap equipment with manufacturers or non-independent ratings. Your safe should also be waterproof. And it should be big enough to contain what I m going to recommend you put into it Solution No. 3: Convert Your Bank Balances Into Cash Many of us are so conditioned to banking and electronic transactions that we ve forgotten that cash is king. Cold, hard cash should be a key part of any wealth protection strategy. With real interest rates on U.S. bank balances in near-zero to negative territory, keeping cash isn t a wasted opportunity. As with any wealth protection strategy, a portfolio approach is best. In addition to the U.S. dollar, keep cash in other stable currencies as well, such as the Canadian dollar, Swiss franc, Singapore dollar or Danish krona. Remember, the goal here isn t to earn a return on these currency holdings, but to hold cash that is reliably stable over time as part of your risk-mitigation strategy. Bear in mind, though, that the greenback is likely to depreciate rapidly against other currencies if wealth confiscation occurs here, as people scramble to acquire other currencies and offshore assets. So besides acting now before the rush you must also stock your safe with non-currency assets Solution No. 4: Move Your Investments Into Physical Assets In addition to multiple currencies, your safe could contain gems, rare coins, gold, valuable artwork and even physical shares in stable companies. Again, the goal isn t necessarily to own items that tend to appreciate in 2

4 value (although this is a good thing), but rather things that have a high and stable value to size/weight ratio, and are easy to convert into liquid cash. For example, it will be easier and less obvious to take small gems discretely abroad with you than gold bars. Our associate Geoff Anandappa of Stanley Gibbons, a London-based stamp and rare coin dealer in business since the 1850s, points out that collectibles were an investment that beat the stock market during the 2008 to 2009 crises, appreciating a solid 38.6%. Solution No. 5: Secure Your Hard Assets in an Offshore Vault The next step up the ladder of physical wealth protection is to store gold, silver, gems or other valuable physical items in a secure offshore vault. Many countries now host secure storage facilities that can accept anything from a handful of diamonds to a fleet of fancy cars. Most of these are located in tax-free customs zones, so assets within them are not taxed until they are removed. Those are an option but our goal here isn t tax minimization, but rather security and ease and speed of access. For example, Miles Franklin Precious Metals of Minnesota, a company on which I have carried out due diligence, can arrange the purchase, transfer and storage of precious metals, coins and other items in a secure Brink s facility in Canada. All holdings are subject to semiannual external audits performed by the Inspectorate division of Bureau Veritas, one of the world s most experienced vault auditors, and insurance coverage that is provided by Lloyd s of London. This company can ship your existing holdings or purchase new items and transfer them to your Brink s account without customs or duties, because it has an import/export account with the Canada Revenue Agency. When the time comes, Miles Franklin can either liquidate your items (sending you a wire within 48 hours of receipt) or have them shipped nearly anywhere in the world, via Brink s or UPS. Solution No. 6: Get an Offshore Dirt Bank The ultimate wealth protection strategy is to put some of the assets into an offshore dirt bank. In other words, invest in land holdings in countries with stable, pro-individual governments and investment-friendly legal systems. There are two reasons for this: First, land is one of the most resilient of all assets, typically maintaining its value over long periods of time. In some cases, such as agricultural land or land in desirable urban areas, its value can appreciate rapidly. And there is always a ready market for land, especially in countries that have strong traditions of protecting property and other individual rights. Second, foreign land holdings are not reportable to the U.S. government. Foreign real estate is not a specified foreign financial asset under IRS Form 8938 required by the Foreign Account Tax Compliance Act (FATCA) or the annual Form TD F , report of Foreign Bank and Financial Accounts (FBAR). If foreign real estate is held through a foreign entity, however, such as a corporation, partnership, trust or estate, your interest in that entity is reportable but the real estate itself is not. That means that although Uncle Sam might know that you have interests in land abroad, and how much they are worth, they don t necessarily know where they are. Solution No. 7: Diversify Your Wealth Into Rare Stamps Wealth confiscation is rising on government agendas around the world. In my view, rare stamps can be one of your most effective defense strategies. Although they are an asset class you don t often hear about, very few rare stamps have ever declined in value which makes them the ideal investment to outsmart those pesky wealth confiscators and perfect as a rainy-day investment. 3

5 Protecting your wealth through rare stamps is unusual but profitable. It s so reliable, so private and so lucrative that even the Queen of England uses it to protect and grow her money! Rare stamps overall values have risen more than 11% a year for the past 10 years straight enough to more than triple your money even in spite of the financial crisis. Stamps even hold their value in the midst of a financial crisis (which would surely strike if the U.S. government suddenly decided to seize its citizens wealth). While stocks, housing prices and even gold plunged between 2008 and 2009, the peak of the financial crisis, rare stamps were still rising. (Of course, it s important to stress that these rare stamps were rare, investment-grade stamps not ordinary collectible stamps.) So how do you protect your wealth from confiscation with rare stamps? Simple build a portfolio with a reliable dealer. I recommend the world s premiere stamp dealer Stanley Gibbons Ltd. The company has a dedicated investment department with offices in London, Hong Kong and the Channel Islands. The sole purpose of this specialist department is to work with clients who have no particular interest in collecting stamps, but want stamps as an investment or as portfolio protection. The first step to hedging your portfolio against confiscation is to decide how much of your portfolio to devote to rare stamps. This is a personal choice. If you re investing as part of a hedging strategy against wealth confiscation and currency collapse, however, the proportion you devote to collectibles, like stamps, might be higher than if it were part of a standard investment portfolio. To put together a recommended portfolio of rare stamps, you may contact Geoff Anandappa of Stanley Gibbons. He s worked with members of The Sovereign Society for years, and can certainly help you create your own rare stamp investment portfolio. Contact: Geoff Anandppa, Investment Portfolio Manager Stanley Gibbons Ltd. ganandappa@stanleygibbons.com London: U.S.: Preparing for the Worst Nobody expects the worst. But those who prepare for it are usually better for it. Indeed, the signs point to wealth confiscation in the near future. But with a little sensible protection, you can be one of those who weather the storm. And with these seven strategies, you can legally protect and keep what s yours safe from the greedy hands of Uncle Sam. Regards, Bob Bauman JD Chairman, Freedom Alliance 4

6 The Sovereign Society 55 NE 5th Avenue, Suite 200 Delray Beach, FL USA USA Toll Free Tel.: Website: Legal Notice: This work is based on what we ve learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It s your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don t trade in these markets with money you can t afford to lose. Sovereign Offshore Services LLC expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, Sovereign Offshore Services LLC, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail. (c) 2015 Sovereign Offshore Services LLC. All Rights Reserved; protected by copyright laws of the United States and international treaties. This Report may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Sovereign Offshore Services, LLC. 55 NE 5th Avenue, Suite 200, Delray Beach FL

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