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Global Uncertainties: How to Protect your Wealth

Illustration for article titled Global Uncertainties: How to Protect your Wealthem/em

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 political risk.


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 government.

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 risk?


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 living.


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.

How so?

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.


There are other options that you should consider, which we have covered in one of our previous articles about practicing the flag theory and internationalization. To recap, these are the options:

- Set up an offshore corporation,

- Obtaining residency status abroad,

- Obtaining a second passport,

- Investing in offshore real estate,

- 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.

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