Wealth Protection

QUESTION: I subscribe to a variety of financial newsletters. Several have suggested for more then several years that it would be “prudent” to open a foreign bank/brokerage account so as to move a portion of one’s liquid assets “offshore” (out of USA). The thinking is that the US dollar is going to flat line at some point in the not too distant future…and that ownership of certain investments (such as gold, gold stocks, foreign currencies, etc) might be outlawed by a us congress/administration that was implementing currency exchange controls, etc. While they also mention trusts as another vehicle to consider, the emphasis is not on protection from creditor lawsuits, etc. It is protection from US govt interference in one’s investment decisions.


I am a believer that the US dollar is due for a significant decline in the next several years…relative to other currencies perhaps, but most likely of all is relative to real money (gold).
I would appreciate any guidance you can give as to where it would make sense to open such a bank/brokerage account…and what additional legal structure would be required to do so. As an example, I am considering opening a brokerage account in panama…but have been referred to several attorneys there for preparation of either a “foundation” or “corporation”. And I don’t have the expertise to determine what makes sense for me and what amounts to a “ripoff”.
I understand that I will have reporting requirements to the IRS … so this is not a scheme to avoid paying my taxes. But I want to protect my assets all I can from the government’s increasingly erratic plan to spend our way to prosperity. I don’t think the plan has worked all that well so far, and the end game may not be far off.
I’d appreciate any guidance you can give me….even a link to article(s) in your site that address my questions would be welcome.
REPLY: In the near future I will be publishing a report that responds to your concerns. The first chapter will be delivered (via email) to my paid subscribers (later today). A more extensive revision will be promoted on my offshorepress.com web site and in the Jacobs Report.
A foreign bank account by itself does not provide any meaningful asset protection either from creditors or from the government.
With respect to the selection of an offshore entity, a foreign trust provides the most asset protection if you are willing to give the foreign trustee complete control over your assets but that exposes you to a different kind of risk. Since many people are not willing to do that, a foreign limited liability company would be my second choice. Another alternative is a foreign variable annuity or variable life insurance policy. The report that I’m working on briefly describes a plan where a U.S. person can buy gold coins through a U.S. depository that actually stores the gold in Switzerland.
All of these and other choices involve diverse costs and tax reporting requirements. My Wealth Protection newsletter provides the kind of information you are seeking and subscribers have access to a large amount of related research on the paid subscribers’ web site. The web site includes a LOT of information about foreign corporations and
Panama foundations, which can be located with a site search engine.
For the free Jacobs Report see
http://www.offshorepress.com/jacobsreport/index.htm
For information about the twice monthly subscription newsletter see
http://offshorepress.stores.yahoo.net/globasprot2.html
Vern Jacobs

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