To many, it’s the stuff of James Bond or Jason Bourne. When I tell people I write about internationalizing their assets, they act like it’s the stuff of legend.

But offshore banking, second passports, and offshore corporations aren’t just for Hollywood spies or the villains they chase. The reality is, almost anyone can internationalize their life and their money through a series of steps.

The concept is called “planting flags”. Most people are born in one country and live their entire lives there, having a job, bank account, retirement account, business, passport, driver’s license, and everything else in that same country. Perhaps they travel abroad one week a year if at all.

But imagine living in the United States, having bank accounts in Singapore and Norway, a second passport from Ireland, resident status in Panama, a trust in New Zealand, gold stored in Hong Kong, your corporation based in Malaysia, and a web host based in the Seychelles.

The point behind all of this is diversification. Just like you wouldn’t put 100% of your net worth into one company’s stock, you shouldn’t put every egg you have into the basket of one country. In today’s amazingly connected world, you can diversify away from this one country system. And the reasons to do so are growing.

In the United States, lawsuits are on the rise. I read recently that the market for lawyers is shrinking, leaving many scrambling for something to do. Do you think your odds of getting sued for something frivolous might go up because of that? If you got sued, are all of assets sitting somewhere waiting to be scooped up with no warning? Do you have a trust entirely under the control of one country’s courts?

What about when the government goes mad? While I’m not saying to break the law in your country, there are steps you should take so that some bureaucrat can’t freeze all of your funds. Several years ago, a state I did business in thought I owed them thousands of dollars. (They forgot to make a note when they cashed my check for the exact same amount.) One day I woke up to find my business checking account had been looted. Only, the perpetrator wasn’t a criminal or those identity thieves you hear about – it was the California Franchise Tax Board.

I eventually straightened the situation out after a day and a half on the phone and endless records, but what if I didn’t have those records? It was entirely up some guy in Sacramento to give me back my money. And I was still out over $100 in bank fees and endless wasted time.

Even worse, some people get their bank accounts frozen indefinitely. One business that sold raw milk and organic foods got raided by the FBI, had all of their equipment seized, and their funds looted. I’ve seen countless examples of religious groups where this has happened as well. If the government decides it doesn’t like you or thinks you’ve crossed its path in some way, it can lower the boom on you and leave you without recourse.

In the United States and many other “free” countries, proving your case is YOUR burden when it comes to money issues. So much for innocent until proven guilty.

And while you may not believe your home country is about to crumble anytime soon, just think what people who lived in the Weimar Republic, Nazi Germany, Imperial Japan, Rhodesia, and other once successful countries that fell into chaos said when things were rosy there.

Internationalizing your life is all about diversifying your sovereign risk. If part of your savings is held in Singapore dollars with a bank in Singapore, you won’t go broke if your own currency falters or if your government pulls a Cyprus on you and steals some of your money.

By storing your gold offshore metals in a vault in Austria or Hong Kong, they will be safe from people or governments that want to steal them. And if you ever need to escape your country, your gold will be waiting for you after you escape.

As an entrepreneur, I’m always sensitive to opportunity. As a frequent traveler who has visited dozens upon dozens of countries, I’m fortunate enough to see great opportunities in a lot of places. I firmly believe we owe it to ourselves to go where we – and our money – are treated best. Much of the western world is deep in recession these days, but places like southeast Asia, South America, and Australia often offer much better environments for you to start a business.

Your ancestors left their country because it provided them too few opportunities. Rather than complaining about the lack of jobs or how hard it is to start a business, why not seek greener pastures? Whenever I travel to places like the Philippines or China or Romania, people are optimistic about their futures. Their countries have growth. And they’re making money more easily than a lot of American business owners I know.

If you think starting the process I’m talking about is hard, it’s not. Want to set up a second residence overseas? Panama lets US citizens – and many Europeans – get permanent residence by putting $5,000 in a bank account and setting up a small business. That’s just one example.

Think offshore banking is hard? Think again. While many overseas banks require you to go there to open an account, consider it a vacation. The interest you’ll get – as high as 15% in some frontier markets and 3-6% in more developed countries – just might pay for your trip. And there are a few banks that will even open accounts online.

I even have a contact that will let you buy gold with him online and he’ll store it in his vault for free. You can check on your gold at any time. (Of course, a little due diligence is always recommended.)

The point is, you don’t have to settle. Don’t think that your country is the be-all and end-all of the world. Many of us are nothing more than frogs in a pot of boiling water. Our freedoms are being taken away slowly enough that it’s hard to tell. Having a backup plan that goes beyond your country’s borders will make sure you, your family, and your money stay safe.

I talk about strategies just like these every day, reporting from the field as I travel all around the world reporting on economic freedom. For more ways for you to protect yours in today’s tumultuous times – and for free “Seven Steps” freedom report – visit www.nomadcapitalist.com.

Print this page.

Advertisements