Post: #1

The following is an excerpt from an article on the website http://www.sovereignman.com. It is not my own work but is something I strongly agree with.


I’m optimistic about 2010. I know a lot of people in the financial community who think that ‘this is it,’ that 2010 shall bear the worst economic cataclysm in history, causing widespread doom and agony.

Sure the conditions are ripe for stock/bond market crashes, a currency crisis, and multiple sovereign debt defaults. But these are a far cry from a gloomy end of human civilization.

It’s not that I have tremendous faith in world ‘leaders’ (as ridiculous a moniker as that is to use); last month’s debacle in Copenhagen only further underscored how perverse and ineffective the existing political process is, and everyone is really starting to see it.

The Social Contract is deteriorating rapidly, and in the end, the one thing that you can count on is that people will ultimately do what they perceive to be in their self-interest. This is what drives markets and trends.

As the protracted effects of government stupidity become more apparent, one such trend that I see emerging this year is the rise of the sovereign individual– the rebirth of the multiple flags approach.

I’ve talked about this before and I wanted to start off the year with a quick primer since it is a recurring theme of this letter. To be more specific, I absolutely implore you to plant multiple flags as part of your New Year resolutions.

The idea, originally conceived by international finance guru Harry Schultz, suggests diversifying different aspects of your identity across multiple ‘flags,’ or geographic jurisdictions.

As an example, Schultz coined the term ‘three-flags’ in the 1960s, suggesting that an individual should have citizenship in one country, residence in another, and businesses in another.

Later authors expanded on this idea by adding other ‘flags,’ including places to bank, places to ‘play,’ places to house electronic assets, etc.

Many writers today talk about ‘five flags’ or ’six flags,’ but frankly I don’t see a limit on the number of things we can diversify geographically: email, citizenship, residence, banking, brokerages, gold/silver deposits, business registration, e-commerce, customer base, phone/fax, financial instruments, postal mail, etc.

So what’s the point? Why should you do this?

Diversifying geographically increases your freedom, your privacy, your sovereignty, and potentially reduces your tax burden. It protects you against bank failures, market changes, litigation, divorce, overzealous governments, and “NGC’s” (non-government criminals).

Perhaps even more importantly, planting multiple flags expands your existing contact base and opens a lot of doors to new opportunities.

Think of it like a life insurance policy– even if the worst never happens, it gives you great peace of mind and in many cases can rank as a significant asset.

While everyone recognizes these benefits of life insurance, no one actually expects to die anytime soon… so they put shopping for a policy on the back burner, sometimes until it’s too late.

In this case, the time to start diversifying internationally and planting multiple flags is now… before it’s too late– before currency controls are imposed, before tax codes change, before the last remaining foreign banks close their doors to foreigners.

I could cite you examples all day long, but I will list just a few hypothetical cases–

Imagine getting sued, losing the case, and having your financial assets commandeered by the court. Now imagine if your assets were safely offshore in another country.

Imagine being investigated by the government and having your email archives turned over to the authorities. Now imagine if your email server were in another country.

Imagine being robbed (taxed) by the government because your business is structured within its jurisdiction. Now imagine if your business were registered in another country.

Imagine having everything in your home country taken from theft, coercion, and litigation. Now imagine having cash and gold locked away in a secure, private vault overseas.

Imagine the social decay in your city getting so bad that riots and violent crime are a common occurrence. Now imagine having property overseas.

I’m sure you get the idea. Putting your assets, your business, your citizenship, your residency, your family’s livelihood under one flag, one government, is putting all of your eggs in one very frail, weak basket.

Technology makes it incredibly easy to diversify, and I see more and more people waking up to that reality each day. It takes only moments to set up an offshore email account, a few minutes to lease a private vault, and just a couple of hours to set up a company in Singapore.

The possibilities are truly endless, you just need to find the right tools and the right flags that work for you. Yes, even if you are a US citizen who is taxed on worldwide income, there are still several options available to live a multiple flags lifestyle.

I will be discussing the options in future letters, as well as individual case studies.

By Simon Black



For more information, search for "Five Flags" on google or wikipedia, you will find tons of resources. I am working on getting my EU citizenship.

Post: #2

I like the idea, but the doomsaying about evil governments is bullshit. The world has never been safer, more interconnected, more prosperous, or full of more opportunity. It's one thing to minimize taxes- that's a good thing. It's another to purposefully dodge taxes in your home country by moving all assets overseas to tax havens, and then continue to enjoy the fruits of first world citizenship.

I look at the tax rates for America, and I see a good deal. That doesn't mean I won't deduct everything I can, and that doesn't mean I won't consult with accountants to make sure I get a fair shake. However, it does mean that I will pay my taxes in good faith as long as I continue to hold and utilize my citizenship.

Post: #3

Capital flight is a bedfellow of tax evasion, and both of which will push the process of economic collapse, which your author claims is one of the culprits that will eventually reach into his greedy deep pockets.

1) Imagine getting sued, losing the case, and having your financial assets commandeered by the court. Now imagine if your assets were safely offshore in another country.
- Here you have civil court. Of all your scenarios this one is the most likely to happen to the cut and run businessman, landed wealth, or low level high risk investor. In this case though, you wronged someone, a company, and a court has proved this.

2) Imagine being investigated by the government and having your email archives turned over to the authorities. Now imagine if your email server were in another country.
- Again, you did something wrong here. The little mining operation that you were the majority holder in leaked tailings into some village, or the telemarketing op you started up in Argentina actually was paying to import hookers from eastern europe. Therefore, you were investigated by the government and are held accountable for your, and by extension, the actions of your money and businesses.

Imagine being robbed (taxed) by the government because your business is structured within its jurisdiction. Now imagine if your business were registered in another country.
- Tax evasion is a major crime. You will be taxed in another country, or should be, unless you can afford the overheads in some Liechtenstein / Swiss / Carib account.

Imagine having everything in your home country taken from theft, coercion, and litigation. Now imagine having cash and gold locked away in a secure, private vault overseas.
- Peace of mind for the bourgeoisie...

Imagine the social decay in your city getting so bad that riots and violent crime are a common occurrence. Now imagine having property overseas.
- Every rich white mans fantasy, just as the gates are broken down to the manor on the hill, his money is whisked away. Scrooge can swim in his piles of money, your fat wife cackles from the back room...

http://cdn.holytaco.com/www/sites/defaul...5B1%5D.jpg

Post: #4

I am about 2 thirds of the way through getting my 2nd passport

Post: #5

Sweet, European?

Post: #6

(01-05-2010 12:25 PM)youngmobileglobal Wrote:  Sweet, European?

I am european so it would be totally pointless to get a 2nd european passport

Post: #7

All this guy is doing is using fear to sell his services. When you look at the rest of his site, he's some sort of gold dealer/trader. Of course he wants people to think our money is becoming more and more worthless, and that going into Gold will be the answer. To tell you the truth, that's bullshit. Right now is probably the worst time to buy gold (today's future pricing is about $1120/oz).

While I agree it's wise to have money spread around the world, in multiple currencies, if you have enough $ to make it worth it... for most of you who make under $100k/yr, it will probably cost you more $ and hassle to sort this scheme out. The payout is an added insurance, but if you're worried about your wife taking all your money then don't get a wife, and if you're worried American Banks will go under, start looking at how the world financial system is pouring so much money into our banks to keep them afloat.

Post: #8

I probably should have specified something before I started this thread and debate. I'm less interested in the tax evasion and big brother threat than the travel, lifestyle, and business opportunities that would become available if/when I get a second passport.

Sovereignman might not have been the best post/site to have used.

Anyway, you guys get it. My goal in starting this thread was to see if any guys on this forum had dual citizenships and how that had been working out for them - not to start a debate about tax evasion and security.

My bad.

Post: #9

You're basically a follower of the Tim Ferris lifestyle. It's funny that this sort of thing is now attached to him. People have been doing this for ages, but just like with "The Game" being attributed to Neil Strauss and Mystery even though it existed long before they wrote their books and made that TV show, this sort of lifestyle is now attached to the guy who made it popular.

In the long run though, this stuff becoming popular is not good for anyone but the recipients of this new found fame. Tim Ferris has made a great deal of money off his book, and Mystery & Style as well. The losers of all of this are, as always, the ones who kept this new found information to themselves, or spread the info to close friends or people who were seeking the information. When everyone else does it, the charm is lost.

Anyway, enough of my wining.

Here's something you'll probably like:
http://www.fourhourworkweek.com/blog/200...g-borders/

Post: #10

Read the blog. Well-written but obviously a form of subtle marketing to sell his consulting services.

I especially didn't like the constant references to the fancy, high-end wheeling and dealing and financial wizardly he's supposedly doing all over the world. Guys who do it don't boast about it.

Post: #11

"You're basically a follower of the Tim Ferris lifestyle."

Actually I'd say this is more a follower of the Neil Strauss lifestyle (ironically) from his most recent book "Emergency."

"Read the blog. Well-written but obviously a form of subtle marketing to sell his consulting services.

I especially didn't like the constant references to the fancy, high-end wheeling and dealing and financial wizardly he's supposedly doing all over the world."

I read his blog and didnt know he does consulting. Also, where are the constant references to his wheeling and dealing all over the world? He mentions his angel investing in Silicon Valley, is that what you're referring to?

Post: #12

When it comes down to it you can either get played by the system or you can play the system.

Your choice.

Post: #13

(01-05-2010 09:10 AM)Jaif Wrote:  I like the idea, but the doomsaying about evil governments is bullshit. The world has never been safer, more interconnected, more prosperous, or full of more opportunity.

The situation in the year 1914 was very similar. The world was very interconnected, full of opportunity, and globalizing quickly. Then with a single bullet an Austrian Duke was assassinated, and WW1 began. 16 million were killed, 20 million wounded, cities were destroyed, sons were drafted into war, economies torn apart. Europe was turned upside down. And WW1 led to WW2 and the Holocaust. WW2 led to Communism, which is why the standard of living in Russia, Eastern Europe, and China is at least 50 years behind the US.

The world much more fragile than you think.

Post: #14

(01-05-2010 01:35 PM)kerouac Wrote:  While I agree it's wise to have money spread around the world, in multiple currencies, if you have enough $ to make it worth it... for most of you who make under $100k/yr, it will probably cost you more $ and hassle to sort this scheme out.

Exactly. The multiple flags philosophy is a really great idea. But the average joe is priced out.

Post: #15

(01-05-2010 07:14 PM)Lumiere Wrote:  When it comes down to it you can either get played by the system or you can play the system.

Your choice.

Very well said. I have friend who's very wealthy. He spends over $100K a year on his accountants and lawyers to do his offshore tax haven shit. And he says all of the wealthy people he knows (and he knows a lot of them) do the same. The rich pay very little tax in relation to what they make.

And by the way, hes not doing anything illegal. Hes exploiting loopholes, but they are all legal loopholes.

Post: #16

(01-07-2010 12:09 AM)PartyTime Wrote:  Exactly. The multiple flags philosophy is a really great idea. But the average joe is priced out.

Nope. As I have mentioned before on this site, part of my job is lifestyle design consultant.

The most important flag, and the first one to get, is 2nd passport.

I can get tell you how to get a 2nd passport for less than $5,000. Government issued 100% legit.

Post: #17

Europeans don't want Turks in the EU. Fear of the brown invasion. With Eastern European countries as part of the EU, they'll definitely resist it to the greatest extent possible.

Post: #18

(01-08-2010 06:55 AM)kindredspirit Wrote:  Europeans don't want Turks in the EU. Fear of the brown invasion. With Eastern European countries as part of the EU, they'll definitely resist it to the greatest extent possible.

Nonsense.

It has more to do with the political bullshit between Turkey, Greece and Cyprus. They have been fighting since that Turk bastard stole Helen from the Spartans.

Turkeys economy would be a boost to the EU and its growing. The problem is that Greece has a veto on their entry. It has nothing to do with race.

Post: #19

(01-07-2010 09:38 AM)Lumiere Wrote:  I can get tell you how to get a 2nd passport for less than $5,000. Government issued 100% legit.

I'm all ears!

Also, pardon my ignorance, but why is a second passport important?

Post: #20

(01-09-2010 05:11 PM)Whoremonger Wrote:  

(01-08-2010 06:55 AM)kindredspirit Wrote:  Europeans don't want Turks in the EU. Fear of the brown invasion. With Eastern European countries as part of the EU, they'll definitely resist it to the greatest extent possible.

Nonsense.

It has more to do with the political bullshit between Turkey, Greece and Cyprus. They have been fighting since that Turk bastard stole Helen from the Spartans.

Turkeys economy would be a boost to the EU and its growing. The problem is that Greece has a veto on their entry. It has nothing to do with race.

Yes it does have to do with them don't wanting Turkey in the EU.

And Turkish isn't a race.

(sorry for bumping an old thread btw)

Post: #21

(01-05-2010 01:35 PM)kerouac Wrote:  While I agree it's wise to have money spread around the world, in multiple currencies, if you have enough $ to make it worth it... for most of you who make under $100k/yr, it will probably cost you more $ and hassle to sort this scheme out.

My accountant says that unless you make over $500K gross it doesn't make any sense to utilize most of legal tax evasion strategies as the payoff will be very limited (like you go through a lot of hassle and potential risk to save $2,000 a year - not worth it).

Post: #22

Well something as simple as creating a foreign entity say a Trust for example in a "Tax haven" could be useful to an entrepreneur with an online website. More than likely the Entrepreneur will not make 200K or more from his business but having the website owned by the trust which is located in the foreign country can save him taxes on any money made through the website (granted the money is made outside of that country). Most countries dont tax their residents or foreign owned businesses on income made outside of the country. The U.S. can tax the shit out of you no matter where in the world you work, but not a foreign entity.

Post: #23

(01-07-2010 12:15 AM)PartyTime Wrote:  

(01-05-2010 07:14 PM)Lumiere Wrote:  When it comes down to it you can either get played by the system or you can play the system.

Your choice.

Very well said. I have friend who's very wealthy. He spends over $100K a year on his accountants and lawyers to do his offshore tax haven shit. And he says all of the wealthy people he knows (and he knows a lot of them) do the same. The rich pay very little tax in relation to what they make.

And by the way, hes not doing anything illegal. Hes exploiting loopholes, but they are all legal loopholes.

Hmm.. What kinda of industry/ business is he into?

(01-07-2010 09:38 AM)Lumiere Wrote:  

(01-07-2010 12:09 AM)PartyTime Wrote:  Exactly. The multiple flags philosophy is a really great idea. But the average joe is priced out.

Nope. As I have mentioned before on this site, part of my job is lifestyle design consultant.

The most important flag, and the first one to get, is 2nd passport.

I can get tell you how to get a 2nd passport for less than $5,000. Government issued 100% legit.

Do share your knowledge oh wise one What country/ location is this passport of? And what perks would it give.. allow easier access to other nations?

(07-01-2010 05:13 PM)oldnemesis Wrote:  

(01-05-2010 01:35 PM)kerouac Wrote:  While I agree it's wise to have money spread around the world, in multiple currencies, if you have enough $ to make it worth it... for most of you who make under $100k/yr, it will probably cost you more $ and hassle to sort this scheme out.

My accountant says that unless you make over $500K gross it doesn't make any sense to utilize most of legal tax evasion strategies as the payoff will be very limited (like you go through a lot of hassle and potential risk to save $2,000 a year - not worth it).

Sure. That makes sense. So you're saying pre-Tax 500k Gross REVENUE right? or 500k Profits?

I know that a lot of BIG Corporates like Apple / Microsoft have stuff based outside the US.
I have 3 friends whose company Gross Revenues are 500k + ... definitely in 1-2 million space.

But, I am wondering if it can be done or makes sense for an entity thats 500k/1 million but not from US, but India.

(07-14-2011 04:19 PM)defguy Wrote:  Well something as simple as creating a foreign entity say a Trust for example in a "Tax haven" could be useful to an entrepreneur with an online website. More than likely the Entrepreneur will not make 200K or more from his business but having the website owned by the trust which is located in the foreign country can save him taxes on any money made through the website (granted the money is made outside of that country). Most countries dont tax their residents or foreign owned businesses on income made outside of the country. The U.S. can tax the shit out of you no matter where in the world you work, but not a foreign entity.

Hmm.. new lower limits.. 200k. Any thoughts, ideas?

Post: #24

Tell us more

Post: #25

(01-16-2012 08:23 PM)mofo Wrote:  

(01-07-2010 09:38 AM)Lumiere Wrote:  

(01-07-2010 12:09 AM)PartyTime Wrote:  Exactly. The multiple flags philosophy is a really great idea. But the average joe is priced out.

Nope. As I have mentioned before on this site, part of my job is lifestyle design consultant.

The most important flag, and the first one to get, is 2nd passport.

I can get tell you how to get a 2nd passport for less than $5,000. Government issued 100% legit.

Care to elaborate?

Oh, do tell mofo - which country is it? We're all friends here.