The Four Pillars of Going Offshore

by William Cate

The Four Pillars of Going Offshore By William Cate

You see the handwriting on the wall. The Government is becoming more authoritarian as the Bill of Rights is becoming less relevant. The American Economy is slipping. All American Flag Airlines are either in bankruptcy or have recently emerged from bankruptcy. Ford & GM are tittering on the brink of bankruptcy. House prices, which have been the economic salvation of the middle-class are going into recession. The economic implications of environmental problems from global warming to adequate food and water supplies seem insurmountable. It's time that any prudent person moves some of their assets offshore. Only the foolish wait for the end of the good times without a plan.






What Are the Four Basic Steps that You Should Take to Go Offshore?

Pillar I - Dual Citizenship

You need a second passport. If you share the Jewish faith, you are automatically a citizen of Israel. Get their passport. If your parents or grandparents were born in Ireland, get proof if their birthplace and present it to an Irish Consulate, you will get an Irish passport.

If you are interested in Canadian citizenship and want to legally avoid income taxes for the rest of your life, I can show you how to do it without investing in Canada. You can buy citizenship in many countries, included America, so if all else fails, buy a second passport.

Pillar II - Have Access to Money Offshore

The money should not be in U.S. Dollars, but in a major world currency, like the British Pound, the Euro or the Japanese Yen. You need enough cash to support your family for six months. However, opening a foreign bank account doesn't work for two reasons.

1. In every country, bank interest rates are well below the country's real inflation rate. Usually, the country taxes interest income. For instance, the real U.S. inflation rate is around 8.4%. In California, State and Federal income taxes on the interest your bank account earns are about 40% of the interest income. On one ear CDs, banks are paying 4%. This means you are earning 2.4% after tax income. As a depositor, you are losing 6%/year on the buying power of your money in a bank CD. In 12 years, all that cash in your bank account will buy half of what your cash would have purchased when you opened the bank CD. Inflation and taxes vary by country. However, the net you earn on any bank account is always a negative number.

2. The U.S. 1040 Form asks you if you have signatory control over an offshore account with more than US$10,000 in it. You can't say no by having a series of accounts with less then $10,000 each therein. The Courts have held that the question relates to the total amount of your offshore deposits.

If your second currency of choice is the Japanese Yen, I have a solution that solves both the objections to an offshore bank account. Contact me.

Pillar III - Own Offshore Cash-Producing Assets

The standard tactic here is to buy a rental home, duplex or flat. You will save tens of thousands of dollars, if you go to the country of choice, rather than buy something off the Net. There are many crooked offshore websites. Do it yourself should be your rule. Hire a local agent, after checking references, to manage your income property. If worse comes to worse, you have a place to live outside the USA.

Don't have your real estate and cash accounts in the same currency.

Pillar IV - Find An Offshore Low-Risk, High Reward Investment Strategy

GVIC [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/] uses PIPEs. However, you may prefer some other speculation. Whatever strategy you chose, investigate, investigate, and investigate BEFORE you risk your money.

Here's an example of the Four Pillar Strategy. Get an Irish Passport. Put your safety offshore account in Yen. Buy a home in Canada. Join GVIC.

A Lesson From History

In Germany, after WWI, it was evident that the economic trends were going against reason, logic and justice. The wise started to plan an exit and most left by the time Hitler rose to power. For those who did not see the potential future and plan accordingly, there were the Concentration Camps and WWII. In the 20th Century, not only have the Jews suffered a Holocau7st. There were the Armenians, the Kulaks, the Ukrainians, the Russian Communists, and the Tutus to name a few. In the 19th Century, the American Indian didn't fair better than the victims of other efforts at ethnic cleansing. There is every reason to believe that governments in the 21st Century will not do any better than past governments under economic stress.

There are signs of coming serious trouble. Plan for the worst and hope for the best.


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About the author
He is the Managing Director of Beowulf Investments. He's the Executive Director of the Global Village Investment Club He's a Venture Capital & Equity Finance Consultant>





Published at Sep, 21 '06 ; read 766 times;

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