Right now, it might seem like there is much uncertainty on the horizon. There is definitely a lot we don’t know about the direction the economy will take, but that’s not a reason to feel helpless. While there is little we can truly do to avoid the current pandemic caused by the novel coronavirus (COVID-19) or the economic collapse that we are currently seeing around the world, make no mistake - there are still options. Perhaps the best option you have right now comes in the form of an offshore diversification strategy.
In an offshore diversification strategy, you’ve got to take a look at the big picture and make the right moves. For instance, you would want to open an offshore bank account, set up an offshore company, go places that ensure availability of resources, and perhaps even live self-sufficiently off the grid. If any of this sounds appealing to you, then we’d like to introduce you to something called Flag Theory.
Flag Theory was conceived by investor Harry D. Schultz, who wanted to prove to people that you could simply go where you’re treated best and get the most out of your money and your life in general. His Three Flag Theory entailed having a second passport, incorporating a business offshore, and spending time abroad where taxes are lower. This was back in the 1960s, and since then, Flag Theory has evolved to include, generally speaking, five flags.
These flags include obtaining a second passport, setting up a business in a tax haven, spending time and money abroad where taxes are lower, obtaining a legal residence in a tax haven, and storing assets in offshore accounts. Essentially, the idea is to plant flags in places around the world that are most beneficial to you, allowing you to best diversify your lifestyle and finances. The bottom line of Flag Theory is that no single government can have full control over you or your finances, and every aspect you can imagine must be take into account. Areas such as medical, politics, lifestyle, taxes, business, law, finances, economy, and even geographical area must be taken into account when considering planting flags.
But still, it sounds easier than it is. To get started in Flag Theory and ensure your offshore survival during economic collapse, there are some steps you would want to take to ensure the best possible outcome. With the right strategy in place, you can diversify your assets with success - even in the current economic situation. Just know, it’s not too late to diversify and take your assets beyond U.S. borders. In fact, there might not be a better time than now.
What You Need to Know About Getting Started With Flag Theory Right Now
The first thing you need to do is consider the offshore jurisdictions you are interested in. Some factors to take into consideration include your overall goals. Do you want to steer clear of reporting requirements? Are you interested in security? Are you looking for lower tax liability? Also, consider how stable jurisdictions are right now, in the midst of everything. How heavily hit has the economy been by the pandemic?
Next, consider what investments you are interested making versus which investments you can actually make to bring in cash flow. Ideally, you want to create one source of cash flow and then move to a second offshore jurisdiction. The goal is to work at creating diversified income in more than one currency. Also, creating a business is a great way to increase cash flow. Incorporating offshore has a number of benefits, including having access to a corporate offshore account. Plus, incorporating offshore puts distance between you and the business, and it can even help attract investors.
Next, you’ll want to go ahead and secure residency. You can set up offshore accounts so that you can transfer money anywhere you go.
Making the Best Decisions for Your Assets Starts Now
There is never a better time to diversify your assets than right now, even in the midst of economic collapse. There are still many uncertainties about the coming weeks and months, but one thing is for sure: if you make the right moves now and protect your assets by instilling basic Flag Theory principles, you only stand to gain in the future.
Imagine if, when the economies around the world rebound, you’d positioned your assets in a way that they will only grow? Even if you’ve never considered offshore banking, now is an excellent time to consider Flag Theory and take the steps needed to secure your assets and position them for growth in the future.
MAR
2020
Table of Contents