Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Retire Abroad and Offshore Your IRA

Personal_Finance / Pensions & Retirement Feb 25, 2015 - 04:10 PM GMT

By: Casey_Research

Personal_Finance

By Nick Giambruno

Money represents your energy and your time: the days, the weeks, the months, the years it takes you to earn it, and all the things you hope to do with it.

In short, money is like stored life.

Taxation, inflation, and artificially low interest rates are therefore similar to a needle and syringe tapped directly into your vein, sucking the life right out of you.


Sure, you can diversify your investments and take actions to minimize your taxes, but that alone is insufficient if the after-tax returns on your portfolio don’t keep up with the real rate of inflation—which is always higher than the cooked “official” numbers—let alone your investment goals.

The problem will only be compounded as politicians the world over look for more ways to tax or otherwise extract stored purchasing power. Investment income and retirement savings will be a juicy target. Just look at how capital gains and dividend tax rates have increased in recent years.

And don’t expect it to stop at just raising existing taxes. Expect new taxes and for them to fiddle with the rules for retirement accounts.

This is what we should prudently expect as long as the US government needs to finance its astronomical spending, fueled by welfare and warfare policies.

As long as your home government spends money, it will find some way to make you pay for it—either through direct taxation, inflation, or debt (which represents deferred taxation/inflation).

It’s as simple as that.

What this all means is that you shouldn’t be surprised that the government will extract an ever-growing amount of money (life) out of you, and that it’s going to result in a proportionally lower standard of living.

This is a particularly unpleasant reality for retirees, who are rightly worried as they observe that increasing taxation and inflation, as well as artificially low interest rates erode the value of their retirement savings—literally a lifetime’s worth of work.

Back in the year 2000, a five-year CD would pay out about 6%. If you had $1 million, you could generate $60,000 per year with very little risk.

Fast forward to today. The average CD now pays 1.5%, which means you would now need $4,000,000 in retirement savings to generate that same $60,000 in annual income—four times as much as would have been needed 14 years ago.

This extended period of artificially low interest rates has obviously eroded the quality of life of savers and retirees. These policies are in effect a wealth transfer from savers to borrowers—the government’s perverse attempt to “stimulate” the economy by making it relatively more attractive to borrow and spend.

It’s no longer a safe bet to build your retirement plans on assumptions of historical rates of return and interest rates. If you do, you’ll likely find yourself needing to take on more risk to generate the same level of returns, or needing to reduce your quality of life to make ends meet.

It’s much better to come to terms with the fact that the old rules of the game no longer apply when it comes to financial and retirement planning.

While the picture is admittedly bleak in the US and most of Europe, there is a huge silver lining—namely, there’s a proven way to increase your quality of life and decrease your cost of living by looking at opportunities abroad.

By finding the right location, anyone can pay just a fraction of their common living expenses (without sacrificing, and in many cases, increasing quality of life) than they’re used to in their home country—like housing costs, medical care costs, food costs, transportation costs, and taxes of all sorts.

This is exactly what Doug Casey and David Galland have done by moving to La Estancia de Cafayate in Argentina. Here’s what David told me about how the move affected his quality of life:

The quality of life is tremendous. This is not just the case for Americans or people who are non-peso based; it’s pretty much for everyone. Food in a place like Cafayate, where we live, is so cheap it’s almost free. You can walk out of a store with a huge bag of fresh produce, and it’s going to set you back only a few bucks. A kilo of fine tenderloin will cost you maybe $5. Back here in the US a couple of days ago I paid $22 for less than a pound of steak. Then there’s the cost of labor. In Argentina, we have an extremely competent maid who comes in for five hours a day, five days a week and does all the cleaning and laundry—drudge work that people in the Western world have learned to view as an unavoidable part of life—and the cost is all of about $40 a week.

Going global isn’t for everyone. You have to be able to step out of your comfort zone and have an appetite for adventure, like Doug Casey and David Galland did in Argentina.

But given the decreasing standard of living, driven largely by the Fed stealing from savers and retirees via artificially low interest rates, it behooves you to look at all of your options to preserve, or increase, your quality of life.

If you don’t want to move abroad, you can still benefit from offshoring your IRA. It can live abroad instead of you—and outside the immediate reach of bankrupt politicians.

Retirement savings are always a juicy target for governments in need of cash.

In just the past six years, retirement savings have been plundered in some form in Argentina, Poland, Portugal, Hungary, and numerous other countries.

It’s incorrect to assume that it couldn’t happen in the US or your home country. History shows us that it’s standard operating procedure for a government in dire financial straits.

Fortunately by taking your IRA investments offshore, you can make yourself a hard target and make it impossible for your retirement savings to vanish at the drop of a hat.

But it’s not just a defensive measure. Offshoring your IRA will unlock a whole world of new international investment opportunities that would otherwise be unavailable.

You’ll find all the details on how it to get set up, along with advice from trusted professionals who specialize in internationalizing IRAs, in our Going Global publication.

 
The article was originally published at internationalman.com.
Casey Research Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in