Montreal, Canada
Big Brother is going to choke taxpayers this decade. He's broke, and looking for income any way he can find it. He'll also attempt confiscation of your wealth and declare this directive as a "political imperative" amid socioeconomic chaos. This is already happening in parts of Latin America (Argentina, Venezuela) and I suppose it's also going to occur someday in Europe as governments boost tax rates to supplement stagnant revenues.
And unless the United States gets its finances under control, it'll happen here, too.
Since its inception more than 13 years ago, the Sovereign Society has urged members to move a portion of their assets offshore. That window of diversification is vital in the age of violent capital markets, rising taxation and growing uncertainty as government attacks big business.
Of course, these days there isn't a tax incentive to deploy assets overseas – unless within the auspices of an offshore variable annuity. The reason we move some wealth offshore is for "peace of mind."
For most individuals, having some personal wealth stashed overseas makes good sense. It's also a privilege that I believe is drawing to an end as some sort of financial exchange controls or restriction on the movement of capital lies ahead as government finances deteriorate further amid growing austerity in the West. We are living beyond our means and we need to cut down on consumption; but the government will struggle in this quest and instead, will probably turn to taxation to fund its coffers.
I recall a presentation made by Isle of Man Assurance managing director and personal friend, Colin Bowen, several years ago at one of our conferences abroad. Colin urged delegates to get some money out of their respective domiciles because foreign exchange controls were a growing possibility. He reminded investors that Britain in the mid-1970s was basically bankrupt and required IMF financial assistance. He also stunned the audience warning that FX controls could happen again as they did in Britain. At one point in the early 1970s, the British were not allowed to leave the country with more than £25 pounds.
It's still legal to open a foreign bank account. Don't wait much longer.
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