The COVID-19 has caused great harm to economies around the world. In the U.S., the Federal Treasury (also known as the Fed) continues to print out currencies (or by keystrokes, as currencies are now mere numbers on computer screens) so the government can bail out big companies and keep the economy and stock market afloat. Meanwhile, the citizens of the United States, as well as people around the world, are going to feel the impact as they see currency values continue to lose value over time. This is obviously problematic for anyone who wants to preserve their asset value.
The good news is that there are still ways you can preserve the value of your assets, and the key to this lies in taking your assets offshore.
There are several ways you can take your values offshore
1. Buying Precious Metals with USD and Storing Them Offshore
Looking back, we see that precious metals have performed well no matter the economy. In fact, gold has historically increased in value during stock market crashes. That tells us that diversifying your assets with precious metals is almost always a solid strategy.
One obstacle, however, is storing precious metals. Storing them in your home or locally isn’t ideal in the current economic environment, but storing precious metals offshore is the perfect way to protect your asset value.
They key is finding a jurisdiction with a stable history of depositor protection and a stable government and economy. For instance, jurisdictions including Singapore and Puerto Rico are ideal for storing precious metals. It’s also important to choose a company that specializes in precious metal storage and security.
2. Buying Bitcoin and Other Cryptocurrency with USD
Cryptocurrency has risen in popularity due to its value, with bitcoin being the most popular of cryptocurrencies. Bitcoin and cryptocurrency were originally on investors’ radars because they offer security and anonymity, but now, people are seeing cryptocurrencies as a digital offshore investment. But how to get started with this?
The first step is to choose the broker where you’ll buy it and what kind of cryptocurrency you want. Then, decide how you will store it (there are differing wallet options available). Once you know how much you want to invest in cryptocurrency, then you can decide what your long-term plans are for your investment. For instance, you might decide to just sell when your value goes up and then invest in something else, or you might decide to leave your assets in one spot until the economy begins to show signs of recovery.
3. Setting Up an Offshore Corporation
This is a relatively simple way to protect assets and has long been used by offshore investors as a part of their asset diversification strategy. Why set up an offshore corporation? Not only is this a great way to diversify your assets, but it’s a great way to lower your tax liability.
As it stands, corporations pay the least taxes of all tax brackets, so setting up an offshore corporation can greatly reduce or even eliminate your taxes. You’ll first need to choose your entity, which might be a S corporation or LLC. You will want to be sure that all your paperwork, from bookkeeping to contracts and business insurance, are in place.
You might also need to consider moving some of your assets out of your name to protect them from creditors, as well as other tax reducing strategies such as the homestead exemption.
4. Gaining a New Citizenship
Renouncing your citizenship might seem drastic, but it might be the best way to protect your asset value right now because it can completely separate you from your local economy and government. This gives you the option to choose a new, stable jurisdiction where you can protect your assets.
You could also obtain double citizenship, which gives you free range in investments between both of your countries of domicile.
5. Citizenship Through Investment
In citizenship through investment, you gain a second citizenship and passport when you make investments in a new jurisdiction. These special programs equate to gaining a second citizenship faster than through other means, which means that you can make investments quickly and efficiently.
This is a great way to protect your asset value and access tax savings quickly, especially in times when the domestic economy is volatile.
Takeaway
As the U.S. government continues to unveil new stimulus packages and bailouts, the economy continues to suffer. Over time, the economy will quite likely continue to suffer as currency value is diminished.
Serious investors are anticipating this and are looking to move their assets with offshore strategies such as these. It’s not too late to protect your asset value.
MAY
2020
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