For many, this conjures images of the stereotypical Colombian drug lord laundering money in some offshore bank account in the Caymans. For others, it may bring forth images of former Enron executives with their money stashed away in Bermuda. And while this may be true for some, there are many legitimate entrepreneurs and investors at all levels who take advantage of legally protecting their assets from the very real threats that exist today.

Asset protection, simply put, involves legally protecting your assets from the threats that prevail in today’s society. There are two main threats to your wealth; litigation and government interference.

In 2008, there were nearly 1.2 million lawsuits filed in the US. If you consider there are approximately 300 million people, half of them in the workforce, this leaves about 1.2 million lawsuits for every 150 million people. But from 150 million people, less than 20% of them are really at risk to lose something in a lawsuit. That leaves 30 million people at risk. In this simplified example, 1 in every 25 at risk people were sued in 2008. 1 in 25. Not very good odds…

Are you a real estate investor? You can count on that number going much, much higher. You just never know when your next tenant opens a meth lab in the basement and blows the house up and kills someone. Are your remaining assets at risk in this case? Are you willing to risk your entire future on an event of which you have no control?

Asset protection involves anything from simple domestic LLC, up to a complex strategy involving offshore trusts and IBC’s. The strategy varies widely and is very specific to each situation. This is where proper counsel is crucial. You don’t want to find yourself on the wrong side of the law with the government. But a properly developed asset protection strategy will protect your wealth for future generations and give you that much needed ’sleep at night’ insurance.

I will discuss government interference at another date as that is too deep of a topic for one reading. Until next time, live well.

I will not overburden you with too much explanation here, but suffice to say, the article in the link below is one of the best articles I have read about Obama’s agenda.  I aligns with my belief that we are witnessing a historic change in American politics and potentially a world shift in power.  The US cannot maintain its leadership role if you remove the incentives for productivity.

Anyone truly interested in asset protection and diversifying your wealth should seriously take precautions and educate themselves on what is going on around them.  Whether you agree with this article or not, you should seriously consider the possibility that the author is correct in his assessment.  Our role in assisting clients with asset protection strategies involves the avoidance of risks that may befall you.  One of those risks is government interference.

Obama and ‘Redistributive Change’

The following is an excerpt from the IRS specs on sources new armaments for the officers.  Hmmmm, now why would IRS agents need to be so well armed?

The Internal Revenue Service (IRS) intends to purchase sixty Remington Model 870 Police RAMAC #24587 12 gauge pump-action shotguns for the Criminal Investigation Division. The Remington parkerized shotguns, with fourteen inch barrel, modified choke, Wilson Combat Ghost Ring rear sight and XS4 Contour Bead front sight, Knoxx Reduced Recoil Adjustable Stock, and Speedfeed ribbed black forend, are designated as the only shotguns authorized for IRS duty based on compatibility with IRS existing shotgun inventory, certified armorer and combat training and protocol, maintenance, and parts.

You really have to wonder why they are buying more guns for their officers.  Or I guess I should say, why WE are buying more guns for IRS enforcement officers.  Are they concerned with their ability to collect all their proposed tax increases?  Do they really intend to show up in your office with an armed officer at your next audit?

With Obama’s $1.9T tax increase for the wealthy, maybe they plan on doing raids of your office before you flee the country with a suitcase of cash.  Who knows what they are thinking, but I seriously question my governments decision to force me to pay tax at the end of a gun.

If asset protection is important to you, now is the time to diversify.  Whether you pursue a domestic or an offshore asset protection structure, now is the time to act.  When your government is arming itself to collect your money, you should really take steps to protect your assets.  Live well.

I found this video on the internet and thought it was pretty humorous.  Let me know what you think. 

This week I am attending an investment conference in Zurich called Fonds 2010.  I spent the day walking through the exhibitor area speaking to Swiss private banks, investment firm managers, hedge fund managers, and most any other type of investment professional you can think of.

I approached one unnamed banker and asked if his company accepted US clients.  There were four of them standing in the area when I asked the question, and after asking, three of them scattered as if I dropped a grenade in the middle of them.  The remaining guy apparently was the low guy on the totem pole so he stayed to chat a bit. 

He told me that if I walked into his bank with a briefcase full of 100 dollar bills, he would have to ask me to leave.  He said it was just too burdensome to accept a US client.  They just weren’t interested.  He said the amount of money I would need to deposit and the fees they would have to charge, would be so high, it would offset any possible benefit.  The Swiss don’t want  your money.  And this is new under the Obama administration.

This was a common theme today.  I found investment advisors and bankers throughout the day that turned quite cold when they realized I was American.  I spoke to one very nice woman who worked for another unnamed Swiss bank who asked me to talk softer once she found out I was American.  She told me it her bank wasn’t interested in US clients no matter what the deposit amount would be.

I did however, find 2 banks willing to accept US clients.  I spoke with one of them at length today and have another meeting again tomorrow with them to discuss more details.  I have a meeting with the other arranged for later in this week.  Hopefully I can find a solution for clients interested in legal banking relationships in Switzerland.  I will update you again later this week.

For those of you serious about asset protection, you should seriously be considering a banking relationship outside of the US.  Maybe Switzerland is right for you, maybe not.  There are other countries where this is still possible, but I find it increasingly difficult to find banks willing to accept US clients. 

I am not suggesting tax evasion or hiding money, but keeping a portion of your wealth, legally, in a non-US bank makes it virtually impossible for  your account to be reached by creditors pursuing unscrupulous lawsuits.  And it gives you investing opportunities you may otherwise not have access to.