Your Retirement Plan Is In Jeopardy Take Urgent Action Now
Your Banker Has Been Turned Into An Agent Of The Federal GovernmentWith Potentially Devastating Consequences!I urge you to pay close attention as this has the potential for affection your future retirement and investment assets more than anything I have encountered so far.
You MUST get your retirement assets out of the country while you can, (of course I believe you should move personal assets as well). The window of opportunity is now more than ¾’s of the way shut and could be closed at a moments notice by a simple decree of the government. The government now has the ability to turn your banker into a federal agent who could confiscate your funds in the blink of an eye. You have to know if you have read my articles over the years I am not a reactionary and not someone who try’s to scare you but this is worthy of serious attention.
I really don’t like to tout my record but something has just happened I need to tell you about. But first I am going to tell you about some of the “predictions” I have made over the last 2 years. In the fall of 2006 I spoke at the Investment University Conference in Vancouver where I said I was more concerned about the market than I had been in 20 years. My decision at that time was based upon market valuations, a rising interest rate environment and a number of other factors all of which led me to believe we were in store for another major correction. Of course the markets continued to go up until the later part of 2007 but I was right on target.
In November of 2007 I was asked by the Sovereign Society to give them a brief description of my presentation scheduled for their conference in St. Kitts. I said the following- “I have been in the financial services business for over two decades and I have to tell you I am worried. I think this is potentially the biggest financial crisis the markets have ever faced! Some of us in the business think this could be the perfect storm of the financial world.” I went on to talk about what investments you should hold in the perfect storm and how you could protect yourself. I knew the storm was going to be bad…..
In May of this year I wrote another article for the Sovereign Society talking about something called the Basel II agreement and I wrote the following- “I bring this up not just for academics reasons, but because many of these institutions may not be ready for the 2009 implementation which means additional write-offs by the financial services sector, more disruption in the market while they try to unload bad securities, little or no lending while they try to create a cushion and further investments from Sovereign Wealth Funds (translation selling away America’s financial independence).
All of this will likely depress the market further and could contribute to a continued slow down in the current economic cycle. It could also mean this cycle will be stretched out a little longer than some of the past economic/market cycles meaning a difficult stock market for the near term.”
Granted things had already started to look problematic but few analysts were talking about the real problem and its potential to seriously disrupt the system. I have to admit I didn’t know it would spiral out of control and almost cause a meltdown of the entire system but I knew it would be bad for you and I as investors.
The following language is buried in the new TARP bailout and as they say the devil is in the detail-
NECESSARY ACTIONS.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation, the following: Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may berequired.
Broad sweeping authority to do whatever they want to do! What does this mean to you and your retirement plan? Well here are a few potential scenario’s- Let’s say foreigners stop buying treasury bonds because they become even more nervous about the future of the dollar or the uncertainty in our banking system. Face it, we can’t survive without their continual purchase of treasuries and the government would have to do something to finance the debt.
Fear Factor 1- the government tells your banker to purchase U.S. Treasuries with 50% of your retirement plan, or worse how about 100%.
But that doesn’t work as well as they want so they have to figure something else out.
Fear Factor 2 your banker is told, stop any transfers outside of the U.S. No more offshore accounts!
Things continue to go downhill and they become even more and more desperate.
Fear Factor 3 your banker is told to confiscate all gold in retirement plans or the good of the country!
And finally the “Nuclear Option” we get a president who decides the right thing to do is redistribute the wealth.
Fear Factor 4 your banker is told to confiscate all retirement plans over $250,000 so we can redistribute the wealth! (But don’t worry we are goingto have universal health care and they will take care of us so you don’t need it anyway.)
Once again and maybe even for the last time I URGE YOU GET YOUR RETIREMENT ASSETS OUT OF THE COUNTRY WHILE YOU STILL CAN!!!!
The question is how can you get your retirement plan offshore? There are basically two types of retirement plans, Qualified and Non-Qualified. Non-Qualified include IRA’s SEP’s and Keogh’s. Qualified plans cover all of the rest and are handled in a slightly different manner.
IRA’s require a U.S. Custodian and this is the biggest challenge. There are very few custodian’s who allow you to totally self-direct your account including using non-U.S. investments and taking it offshore. If you want to take your IRA or pension plan offshore you must use a totally flexible self directed custodian who will allow you to take your account offshore. Just ask them- “Can I take my plan offshore?”
How do you do this? Transfer your plan The following methods are allowed: a direct purchase of non-US real estate, a foreign bank account, a non-US annuity, a foreign corporation or in some cases direct investment into a non-US investment. There are a couple of other custodians who will allow one or more of these to be used but I am only aware of one company who allows all of them. This my be important if you want to use several different methods of transfer or want to make multiple kinds of investments and you want to do it all through one custodian to keep things simple.
Qualified Plans require a U.S. based administrator and “the indicia of ownership” remain within the U.S.. They are in some cases simpler and in others more complex to deal with than an IRA. I have reviewed hundreds of plans and the language within the plan is critical as well as who is your plan administrator. I recently discussed a case I was involved in where the plan document allowed for the purchase of real estate and for non-US investments but when the plan trustees tried to make such an investment the plan record keeper refused. After a good deal of back and forth on my part with the trustee and record keeper I wasfinally able to convince them to allow the investment.
Let me be a little more specific-In both cases if you want to have a foreign bank account in your retirement plan it is allowed. I am currently aware of 3 banks that will allow a retirement plan to open an account with them. You would work with your banker in developing an investment strategy using their expertise and services. A retirement plan is also allowed to be the owner and beneficiary of an annuity and in this case we would suggest a foreign annuity. Currently I am only aware of 4 companies who will allow a US retirement plan to establish a non-US annuity although there may be others. I should point out annuities also offer an extra level of asset protection.
I recently wrote a lengthy article on the use of foreign annuities and retirement plans for the Sovereign Society, which should be available in their archive section. LLC’s and corporations are allowable investments within a retirement plan and the ultimate in asset protection can be gained by using a Nevis LLC as the primary asset in your retirement plan. It can in turn bank and invest anywhere in the world just as say a Delaware or Nevada Corporation would but with a much higher level of privacy and protection. Real estate on the other hand is an easy proposition; you simply take title to the property in the name of the plan. Some jurisdictions may require the use of acorporation but this is also a simple process.
The bottom line is you need someone qualified to review your plan document and to assist you in structuring the investment in a compliant manner. Timing doesn’t allow me to discuss in much greater detail the specifics of taking your plan offshore. For now you need to be aware you can do this regardless of what you have been told and I am more than ever convinced there isn’t much time left to take advantage of this incredible opportunity.
My firm, Sovereign International Pension Services is a totally flexible self-directed IRA Administrator who provides all of the services and flexibility mentioned above. If we can help you get your plan offshore please let us know. As always I am prepared to answer questions or assist you in the process. Feel free to contact our office for additional information.