Asset protection means different things to different individuals. It means financial independence for most. Protection against frivolous lawsuits, from undeterred ex-lovers, revengeful past acquaintances or business partners, are some common themes. And protecting against government threats, confiscation of assets, and safety from economic risks are also increasingly important. Asset protection also means planning for retirement, or providing for loved ones after you're gone.
Protecting assets has a strong connection to those who cherish independence and freedom to do with their assets what they want, without interference from others.
And protecting assets means that you take responsibility and the necessary steps to do what's required to prevent these threats from separating you from your assets. In many ways, it means becoming a sovereign individual instead of following the crowd.
Independence & the Sovereign Individual
It can be a challenge today trying to find individual sovereignty - or maintain financial independence - as governments desperately look to empty your pockets in the form of more taxes, more regulations, and more restrictions to the free movement of individuals and their money. Heavy and onerous tax burdens are only part of the problem, as central social planning appears around every corner.
Yet for some, the dream of freedom from government burdens, excessive taxes, and infringements on personal independence and privacy, is a living reality, free of unwanted intrusions.
In addition to burdensome taxation and heavy compliance on offshore activities, one of the most troubling on the list of infringements is the growing problem of currency controls restricting the legitimate movement of money offshore. The free movement of people and money is a natural right. And laws are not needed to grant these rights.
Notwithstanding, the noose continues to tighten. This is true today throughout Western democracies, especially against Americans. Not just at home, but on a global scale.
In search of a special place
In past newsletters, I've shared my thoughts about the book Atlas Shrugged, written by Ayn Rand in 1957. If you've read the book, or the past newsletter, you know that free markets and personal freedoms are located in a ‘special place.’ That special place is free of socialist government, free of government intrusion, and free from increasingly confiscatory taxes.
Atlas Shrugged is the story of an industry leader who organized a global strike with other industry leaders as the world was suffering from an onslaught of socialism. John Galt - our hero - believed that if business leaders withdrew their participation in the system and moved from an increasingly corrupt society, then the system of freeloaders and socialism would collapse in on itself with no one to support it.
Galt eventually persuaded people of talent to withdraw from the system and move to a secret, high tech enclave in a hidden valley called Galt’s Gulch. The wealth creators were able to withdraw from socialism, recharge their energies, and reshape their lifestyle to what they once enjoyed, and which they hoped would again become a reality across the world.
The free market principles in Rand’s book have inspired generations of freedom seekers. It deals with timeless issues, and portrays the epic struggle between good and evil, and between individualism and collectivism. Rand re-introduces a fresh philosophy of rational self interest which supports a free market system.
The book’s core - free market thinkers vs. collectivism - is the constant struggle of the individual against group thinking.
Throughout history the individual has generally been subservient to the group: the family, the village, the city, or the nation. And this collectivist philosophy is always underpinned by a morality of self-sacrifice preached by all religions and societies.
The novel is timeless because it deals with issues that are as old as humanity, but very current in today’s evolving environment. Importantly, the ‘citizens’ of Galt’s Gulch were truly sovereign individuals, self-contained and autonomous persons, who were fully responsible for their own actions, and their lives. Literally, self rulers.
A sovereign individual is part of an inherent element of being human. That means when you were born, you were given free will by your creator. Thereafter, that free will only becomes limited by the government where you choose to live, and where you consent to be governed.
Today, it's still possible to ‘leave’ a corrupt system, and let it fend for itself. Just as in Atlas Shrugged, it’s possible to join the ranks of sovereign individuals and create a Galt’s Gulch for yourself.
Where is that special place?
How the sovereign individual finds freedom
The original concept for the sovereign individual was first inspired by author Harry Schultz. He coined the terms PT, for the perpetual traveler in the 1960s. Later, similar concepts were picked up by an author using the pseudonym W.G. Hill, who wrote a series of books including PT1, PT2 and The Passport Report.
When I first read these books as a young man they seemed intriguing. The more I considered them, it became apparent these were realistic and useful starting points for the process of becoming a sovereign individual.
The core of the books begin with having citizenship with a country unconcerned about what its citizens do outside its borders. Then creating income revenue in a venue other than where you live. Next is to reside in a venue where individuals can be free to be creative, live, relax, and prosper, and with a high level of privacy. Further, maintaining assets in still another competent jurisdiction that respects the rights to property, and with competent financial and banking advisors. Finally, having one or more ‘playgrounds’ elsewhere, where you can live the good life.
Part of the philosophy includes keeping a low profile.
But keeping a low profile doesn’t mean breaking the law or becoming a tax cheat. And it doesn’t mean you need exactly five nations to succeed. It does, however, mean that to maximize the benefits, you will need to position yourself with different venues for a better future.
For many forward thinking individuals, these steps are well worth the effort.
Today, you can add to the above the benefits of managing your life and assets electronically, regardless of where you reside, where you are traveling, or where your assets are located.
Naturally, you are always subject to the laws of the country where you reside, transact business, travel, and locate your assets, but you are free to relocate yourself and your assets at will. With proper planning, there are even better opportunities to keep assets - and the income they generate - outside of burdensome tax regimes. Keeping a low profile is an effective way to maximize personal freedom.
And an international trust is an excellent way to hold and control your assets as part of these objectives.
The good news is that there is no one, perfect beach, a no-fail, high-yield financial advisor, or a perfect hidden valley. And what may be a culturally rich and diverse environment for one individual, is a cultural shock akin to living in Hell for another.
Where and how you create your hidden valley, is left only up to you and your creative mind, operating in a complex world of diverse rules as to where you choose to be governed. Getting lost can be half the fun. But there is something very liberating about being in control. Read this paragraph again.
The lifestyle begins with a state of mind. But it’s more than just a virtual reality. It’s enhanced by your long-term objectives, limited only by your resourcefulness, and knowing the rules to follow.
For some, it’s limited by money, but with ingenuity these individuals overcome financial handicap by selling their time, labor and skills to the highest bidder somewhere else. Freedom begins with the choices you make. If you don’t accept being dictated to, or being taxed to death by those that govern you, then why choose to do nothing?
It’s your choice, but only if you take responsibility and control over your life.
So, how can you become an independent, sovereign individual?
In a nutshell, a sovereign individual arranges his or her business and personal affairs by unfurling various flags or national ties, and by treating governments as service providers instead of rulers.
For example, there is the citizenship flag where a second passport is located, an official residence flag, a banking flag, an income earning flag, and so on. Each of these are in different jurisdictions. That way, you are not bound to any particular country. It doesn’t matter exactly how many nations’ flags you unfurl, as the diversification of nations for different purposes is the key.
The ultimate goal may include not being a tax-resident in any jurisdiction. Or maximum freedom. Or complete privacy. Or all of the above.
By living in a jurisdiction that does not tax income earned offshore, and making no income where you reside, you can avoid being a tax resident in that nation. Or by residing in the jurisdiction for less than the number of days that meets the tax residency status - commonly less than 183 days without connections in any nation - you can stay out of all tax regimes.
For example, you might spend five months of the year in one jurisdiction, five months in another, and a couple of months vacationing, visiting friends or family, or taking a cruise in between. That way each country treats you as a tourist and doesn’t consider you a tax resident, if minimizing taxes is one of your ultimate goals.
Keeping all of your assets located in one or more offshore jurisdictions other than where you reside can result in low or no tax on the interest or dividends on the investments. As noted inOffshore Living & Investing, 2nd edition, some countries have non-resident withholding tax rates of only 2% or 10%. And many other countries have non-resident tax rates of 0%.
Then, earn your retirement income through an Internet based business in one or more other countries. Depending on how and where your business is structured, you could legally avoid income on your Internet business, or at least a very low tax base, if situated in a jurisdiction where there are generous business expense write-offs against the income.
The real beauty of your own hidden valley is in its simplicity
Whether you have three, four, five, or six flags is not important. The key is that you, your assets, your income, your residence, and your citizenship obligations are diversified and segregated from prying eyes.
You could always appear to be from somewhere else. You can often live and travel in better comfort and for less money than it costs to remain where you are. You can also choose to enjoy places which encourage the lifestyle and social norms you have always desired.
With some extra steps you could live totally tax free - or at a very low tax level - and it would be completely legal. Owning vehicles, real estate, and liquid assets held in company names (within your international trust) would also allow you to avoid appearing on government databases, enhance asset protection with integrated estate planning, create greater privacy, and avail opportunities for premigration planning to other destinations.
Better yet, the international trust provides superior asset protection planning than found elsewhere.
The sovereign individual appeals to a wide spectrum of people who dream of being able to live under the radar screen and live life in a manner suited to their needs, while protecting their hard-earned assets.
You control your own life and your assets. Using the diverse concept of hailing flags from different nations places a significant distance between you and bureaucrats who want to determine how you should live your life, and what’s best for you.
Whether you and your money stay at home, or go offshore, there are superior international planning strategies found in the book How to Legally Protect Your Assets, 2nd edition, See why here.
And both How to Legally Protect Your Assets, 2nd edition, and Offshore Living & Investing, 2nd edtion, are available in either quality softcover or in eBook formats, meaning Kindle or pdf., at reduced prices. To learn more, go here.
And if you wish to start now and learn how to proceed with a personal consultation to review your situation to accomplish your objectives, then contact me here.
But whatever you do, don't wait until it's too late.
Until next time……
David
David A Tanzer, Esq.
JD, BSc, Ph.D (Hon)
For more information visit www.DavidTanzer.com or email to Datlegal@aol.com. David is the author of “How to Legally Protect Your Assets” and “Offshore Living and Investing.”
David A Tanzer & Assoc., PC.
Datlegal@aol.com
DAT@DavidTanzer.com
www.DavidTanzer.com
Vail, CO USA:
Tel. (970) 476-6100
Fax (720) 293-2272
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(Licensed to Practice Law in U.S. States & Federal Courts; (Former) Member Auckland, N.Z. District Law Society - Foreign Lawyer; & Assoc. Member Queensland Law Society, AU - Foreign Lawyer)
The comments herein are not intended to constitute a legal or tax opinion regarding any specific legal or tax issue as additional issues may exist; does not reach a conclusion with respect to any specific legal or tax issue addressed herein or any additional issues not included; and cannot be used for the purpose of avoiding legal or tax obligations or penalties with respect to issues in or outside the scope of matters discussed herein.
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