Here’s how with proper planning, you can greatly reduce the risk your home government presents to your financial and personal well-being.
You’ll see how there are four core areas to consider, some of which you may not have thought about before : your savings, your citizenship, your income, and your digital presence…
By Nick Giambruno
Justin’s note: Today’s essay covers a serious topic that every Dispatch reader needs to clearly understand. I’m talking about minimizing your political risk so you’re not subjected to the whims of any single government.
For more on this, we turn to Crisis Investing editor Nick Giambruno. Nick is an expert on this subject and shares important advice in his essay below…
By Nick Giambruno, editor, Crisis Investing
You probably know it’s a bad idea to put all of your asset eggs in one investment basket. The same goes for holding all of your assets in one country. But how much thought have you put into political diversification?
With proper planning, you can greatly reduce the risk your home government presents to your financial and personal well-being.
International diversification frees you from absolute dependence on any one country. Achieve that freedom, and it becomes very difficult for any group of bureaucrats to control you. The results can be life-changing.
Everyone in the world should aim for political diversification. Though it’s especially critical for those who live under a government sinking hopelessly deeper into financial trouble. That means most Western governments. The US in particular.
To get started, there are four core areas to consider: your savings, your citizenship, your income, and your digital presence.
Diversify Your Savings
It’s crucial to place some of your assets beyond the easy reach of your home government. It keeps that government from trapping your money if and when it implements capital controls or outright asset seizures. Any government can do either without warning.
You can diversify your savings in several ways:
- Foreign bank accounts
- Precious metals held abroad
- Foreign real estate
Foreign real estate is especially helpful. I call it a diversification “grand slam” because it accomplishes a number of key goals at once.
Owning real estate in a foreign country moves a good chunk of your savings into a hard asset. One that’s outside of your home government’s immediate reach. Ideally, it’s located somewhere you’d enjoy living.
Unlike digital financial assets, it’s probably impossible for your home country to seize your foreign real estate.
Owning foreign real estate is one of the very few ways you can legally maintain some privacy for your wealth. In that sense, foreign real estate is the new Swiss bank account.
Foreign real estate often opens up other diversification options. In many cases, owning property in a foreign country makes it easier to open a bank account in that country.
It can also put you on the road to obtaining residency in a foreign country. It can even put you on a shortened path to citizenship in some cases.
Lastly, owning foreign real estate gives you a second home, vacation hideaway, or place to retire. It’s an emergency “bolt-hole” should you need to escape trouble back home.
Diversify Your Citizenship
One way to diversify your citizenship is with a second passport.
Unfortunately, there is no route to a second passport that is simultaneously easy, fast, cheap, and legitimate. But that does not decrease the benefits of having one.
Among other things, having a second passport allows you to invest, bank, travel, live, and do business in places you wouldn’t otherwise be able to.
There’s another important reason to get a second passport.
No matter where you live, your home government can revoke your passport at any moment under any pretext it finds convenient. Your passport doesn’t actually belong to you. It belongs to the government.
Having a second passport means that you can always escape your home country without having to live like a refugee.
Diversify Your Income
Income diversification means structuring your cash flows so you’re less dependent on any one country for your income. The goal is to create multiple sources of revenue from international investment opportunities and trends. Bonus diversification points if you do all this through your own offshore company domiciled in a favorable jurisdiction.
Diversify Your Digital Presence
Moving your digital presence to ideal foreign jurisdictions also adds significant political diversification benefits.
This commonly includes your IP address (which often pinpoints you to a precise physical address), email account, online file storage, and the components of personal and business websites.
Plan for Bigger Government
Somehow, someway, your home government will keep squeezing your pocketbook harder and keep subjecting you to escalating, arbitrary, and burdensome regulations and restrictions. Expect more government and less freedom all around.
The window to protect yourself closes a bit more with each passing week. The good news is you can start to diversify internationally without leaving your home country, or even your living room.
Still, it’s essential to take the necessary steps before the government slams your window of opportunity shut. If history is any guide, it won’t be open forever.
It’s much better to have developed and implemented your game plan a year early than a minute late.
International diversification is a time-tested strategy to protect you from desperate and out-of-control governments. Wealthy people around the world have used it for centuries to effectively protect their money and their families. Now, thanks to modern technology, anyone can implement similar strategies.
Editor, Crisis Investing
P.S. Taking the simple steps above is now more important than ever. As you’ll see, widespread economic chaos is coming… America is about to enter a crisis far more severe than what we saw in 2008–2009.
Most investors aren’t prepared for what’s coming. But Doug Casey and I know how to turn these types of situations into huge profits. And in this video, we share need-to-know information about the coming global economic meltdown.