These assets were recently popularized in a report titled 'The 4 Investment Assets You Do NOT Have to Report to the U.S. Government' by the Stansberry & Associates Investment Research group, led by Porter Stansberry. This report begins by warning that the apparent calm of the economy will soon erupt into chaos, primarily because of the tax burdens being placed on the very wealthy. The report states that 1% of the population of the U.S. pay 40% of the taxes, and they are being asked to pay more. However, these 1% will not stand by and idly pay more of their money; instead, they will begin taking their money and their business to other countries, resulting in an economic collapse for the U.S.
Stansberry advises people to pay attention to this situation and to take it seriously. There are steps you can take to safeguard your wealth and your family's future – in particular, making use of the following: the four investment assets you do not have to report to the U.S. government.
- Open a foreign bank account - Foreign bank accounts opened with less than ten thousand dollars do not have to be reported under the Foreign Bank and Financial Authority regulations. You only need to report these assets under two conditions - if you have financial interest in, signature authority in, or other authority over bank accounts in foreign countries, or if the sum value of all foreign bank accounts is greater than ten thousand dollars. Each member of a family is able to open their own account. Some foreign banks are able to operate completely online, while others will require that you visit them in person.
- Buy some foreign land - Foreign real estate is not reportable, and if you do not make an income off it, you do not pay any taxes on it either. In some countries such as Costa Rica and Panama, you can invest in land and sustainable timber farms, eventually leading to benefits like a permanent visa and citizenship.
- Establish a foreign Trust - Trusts are organizations where one party holds property for the benefit of another party. They hold only securities and assets, and can help you generate tax-advantaged income and protect your assets. It is a popular move to buy and use life insurance through a foreign trust. Foreign trusts are fairly complex, so be sure to speak to a lawyer before proceeding with this.
- Stockpile precious metals in foreign accounts - Precious metals are not reportable and do not create taxable income until sold. Out of the 4 investment assets you do not have to report to the U.S. government, this is the favorite of the research group that created the report. If you do not want to physically ship metals around the world, you can look into the Switzerland Zurcher Kantonalbank exhange-traded gold fund.
Photo Credit: Bullion Vault