Still early in 2017, we’ve seen and heard
so many uncertainties: Anti-Trump rallies – not only in the US but
outside the US; the post-Brexit aftermath has
been felt by British businesses; The Governments of the world are falling
deeper into insolvency – i.e. the hyperinflation in Venezuela, which has
led to the issuing of new, bigger bank notes; the war of the world; your
own country’s problems. Oh, my.
Those events have overwhelmed investors worldwide. Gillian Tett wrote on FT, arguing that political risk means all 2017 investment bets are off. Written with the US market in mind, Tett’s arguments in the article resonates with many markets of the world, which collectively leads every one of us into recession.
Indeed, we’re heading into a (massive) global recession. Mike Maloney, an expert in gold and silver
investing, even stated that we are, indeed, already in the midst of
a recession. And it’s caused largely by
Doug Casey, the founder and chairman of
Casey Research, have said over
and over again: The biggest risk that any of us face today is not market or
financial risk, but political risk – risk that’s coming from your own
How to protect your wealth
So, what should we do with our assets? How
to protect our wealth, our personal financial future, and the prosperity of our
children – in the midst of global uncertainties driven by the rise of political
As always, the best option for you is
‘diluting’ your political risk. The big
question is: How?
One major strategy adopted by many is by opening an
offshore bank account(s.) The idea
is to spread around your savings so that there is just enough left in your home
country for covering your day-to-day expenses and maintaining your standard of
The ‘golden rule’ in diluting your
political risk is by keeping your savings low in your home country, in such a
way that you’re not ‘targeted’ by your Government as someone to rely on when
things go wrong via wealth confiscation. Yes, that happened in the past, and that
could happen to you, too.
Unfortunately, that alone won’t help you
much today. ‘Thanks’ to AEoI – and the
similar arrangements like FATCA and CRS
- your offshore bank accounts are now
revealed to your Government – automatically.
Before, you can just protect your assets in
offshore banks, and yours will be safe and sound. And yes, this is perfectly
legal. Today, those who are engaged
in offshore banking are deemed as wrong-doers.
Well, the ‘race’ toward global transparency
has led the decline of many offshore jurisdictions worldwide. Switzerland gave
up the long-standing reputation as the best offshore jurisdiction for
privacy and protection. Singapore’s
private banking sector is
declining, forcing the country-state to starts shifting from its reliance
on private banking to fintech. Smaller offshore jurisdictions suffer an ongoing
decline in asset managed.
Any other options?
Offshore banks are still playing important
roles in your offshore wealth protection endeavor. However, just like risk management in
investing, you need to diversify.
- Obtaining residency status abroad,
- Obtaining a second passport,
- Investing in physical precious metals and store them offshore in a private security facility,
- and so on.
Indeed, in the age of uncertainty,
challenges abound, and many people’s well-being is in crisis. Many would fall and succumb to the pressure,
but that doesn’t have to be your reality.
Remember, “crisis” in Chinese is comprised
by two alphabets, which can be translated individually as “danger” and
“opportunity.” That said, you can
definitely consider the global uncertainties as opportunities, not only to
protect, but also to grow your wealth.
Just like businesses that serve the growing
niche market of doomsday preppers, you can take advantage of the trend to start
thinking the way the prepper think, which means securing your assets from the
prying eyes (of your Government, competitors, and so on) – just in case.
Don’t let uncertainties catch you off guard. Be prepared, and stay vigilant.