Chapter 17 -  What You Need To Know About Real Estate & Terrorism Risk

Chapter 18 -  Solutions To New Regulatory Burdens and Risks
Case Study # 10 Inadequate Due Diligence
Case Study # 11  Be Careful When Banking Offshore
Case Study # 12  The Snitch Factor

Section Five - How To Build Safe Protected Wealth

Chapter 19 - New & Enhanced Post 9/11 Wealth Planning & Protection Techniques

Chapter 20 - How To Choose an Investment Or Wealth Planning Advisor 

Chapter 21 - The Swiss Inner Circle

Chapter 22 - Other Global Consultants, Publications & Organizations 

Section Six - You’ve Protected Your Wealth Now Restore Your Liberty 
 
Chapter 23 -  Back To The Articles: Restoring the Republic With the Swiss Confederation Institute     

Chapter 24 – FreedomFest: Where Free Minds Meet  

Chapter 25- Don't Delay: Start Today To Preserve Your Wealth & Liberty  

Chapter 26 - Are You Willing To Pay the High Price For Freedom?  

Case Studies  

Resource Guide  

About the Author  

THE SWISS Preserve SOLUTION
How To Preserve What Is Yours!  Ron Holland's politically incorrect guide to defending your wealth & liberty
from internal and external threats in our new 21st Century.
 

Chapter 20 - How To Choose an Investment Or Wealth Planning Strategy & Advisor

Talking Points: What should you look for when considering an investment or asset protection strategy or in your search for an advisor or advisory group? Everything is always great going into an investment or strategy but it's the end result that counts. Find out what could go wrong and research the possible downside as no one will do this for you.  How to get started today with thoughtful, well researched action rather than putting off defending your wealth until it is too late.

A stockbroker is someone who takes all your money and invests it until it’s all gone.                                                              --Woody Allen

       We all know the internet is driving down the cost of investment advice, financial transactions and asset protection fees around the world. It is making insurance products and mutual funds with high front-end loads and full-commission stockbrokers obsolete. The same trend goes for asset protection structures and vehicles. High upfront costs and expensive structures and products are also losing out in the today's competitive world of wealth preservation and asset protection.

       I believe that knowledgeable investors will in the future either use low commission (e-trade type) brokers or fee based investment advisors. Now this doesn’t mean the internet works for all financial products and services. For example, remember the internet based e-trade accounts during the last equity bull market when  every financial news channel was filled with continuous advertisements pushing low commission e-trading accounts. What happened?  You know the rest of the story as the low commissions had an unfortunate corollary: excessive trading and increased investor losses.

       What the investment firms never told you was -  day trading didn’t even work for most investors during the bull market as a majority even then lost money. 

       According to Worth magazine: "A recent study of retail day traders by the North American Security Administrators Association found that only 11.5% of them do it profitably and want an acceptably low chance of ruin Seventy percent of day traders are so bad that they are likely not just to lose money but to lose all of their money"5 [emphasis added].

       Fee-based investment advisors avoid a conflict of interest because they don't get paid commissions for merely churning your portfolio around. They are rather paid a flat fee based on the percentage of assets under management and sometimes a bonus if the portfolio grows in value as a result of the their investment management.

       What should you look for in a fee-based asset protection or investment advisor? Here are some recommendations based on my more than 30 years of experience in the financial, retirement and investment business:

Advisor Should Have Substantial Experience & Money Under Management

       Find out in writing the amount of funds currently under management (not investments previously sold by commission) by the underlying financial organization or provider when reviewing asset protection products such annuities, life insurance or other managed offshore account structures. Make sure the bank, insurance company or investment manager has at least five years in the money management business and a minimum of US$100 million under management.

Expect to Provide Detailed Information  to the Advisor

       Advisors should also ask for detailed information about your financial situation. Be prepared to list and answer questions about existing investments, your net worth, annual income and investment needs. An advisor that doesn't request and review this data is not someone you should want to manage your portfolio or protect your assets.  

       The advisor you are considering should explore not just your current financial situation but, more importantly, your unique investment goals and risk concerns.  Here are a few questions you should expect: Are you married and is the marriage stable?  What about business relationships and partnerships, any potential problems that might arise in this area?  They should also want to discuss the nature of your business, insurance coverage and the asset protection needs others in a similar line of work might face.

       Expect questions like why you think you need asset protection and what really concerns you most? Is it the threat of terrorism against our financial markets, another market or financial crisis brought on by the usual government and financial establishment excesses or do political, government or legal risks most concern you? How can a secure wealth preservation program bring peace of mind and personal security to you as a potential client?  These are just a few of the many questions they should be asking and more important, also listening to your answers.

Weigh the Pros & Cons of Domestic Verses Offshore Advisors.

       Offshore investment advisors generally have a wider range of potential investments available. They will also provide a degree of confidentiality and privacy not available from SEC registered or U.S. based advisors. But an offshore advisor will sometimes charge higher fees and you may not receive the level of service, feedback and convenience as with a domestic advisor. Also remember that many offshore-managed investments are reportable as a foreign financial account. Some experts believe acknowledging such an account can be a "red flag" on your tax return.

       For asset protection programs and advisors, I urge those of you seriously interested in defending your wealth to really consider the offshore alternatives. I don’t believe there is any way to achieve maximum asset protection inside your own country, especially, if you live in the United States. In the U.S., attorney/client privilege is weakening, the legal system is designed to help others steal your wealth and the government is certainly part of the problem rather than the solution. 

Do Your Due Diligence

       First talk to your close friends and associates. Ask your friends in similar professional or net worth circumstances what they have done to protect and defend their wealth and see if they will tell you about good or bad experiences. If they have had good service, investment performance and especially if their structure has survived an asset attack, see who they recommend and then check them out.

       Important!  For maximum asset protection never discuss your detailed personal situation or asset protection structure with a friend or business associate. Remember a friend or business associate today could be facing you in court tomorrow. So ask questions of others if you like but be smart and don’t answer any questions yourself. 

       Check out asset protection experts and portfolio managers recommended by your favorite newsletter editors. One caveat: you need to determine if this is an objective recommendation or if they are a referral agent to a specific advisor. I recommend consulting with financial professionals that use a variety of advisors - not just one or two. You're likely to receive more objective advice.

Find An Advisor Who Shares Your Views On Investing and Wealth Planning Strategy

       Always choose an asset protection program and advisor that shares your understanding and personal philosophy about defending your wealth. If all the program does is offer protection from lawsuits and your concern is political risk, unwarranted government asset seizures, financial crisis or terrorism, then find an expert and a structure or a strategy specifically designed to protect your wealth from what you perceive as the ultimate threats. I don’t buy the concept that any asset protection program is better than none at all. Either build or utilize what is right for you or don’t waste your time, money and effort on the process.

       Find an investment advisor or consider strategies for your program with a compatible investment philosophy to your own.  Choose an advisor you feel comfortable with philosophically. For example, if you believe in Austrian Economics or "hard money" investing, consider an advisor that shares your concerns and that knows how to apply these economic principles in investing. The same principle applies if your interest lies specifically in technology stocks, global investing or if you just want a balanced income or growth portfolio.

Use Established, Trusted Jurisdictions, Providers & Avoid Sales Pressure

       If you are paying for investment or legal advice, or asset protection consulting why should you be subject to heavy duty sales pressure? The answer is, you shouldn't. If the advisor doesn't spend most of your time together asking you questions and listening to your answers, he may not be doing his job. Beware of an advisor who brags about performance and doesn't explain the investment risks. Also watch out for any back end load or penalty charges if you change advisors. Most advisors charge a percentage of assets under management with little or no termination fees. If the product or strategy seems to good to be true, then it probably is.

       Use major financial providers in quality jurisdictions. Only use financial providers such as banks, trust companies, insurance companies and investment advisors who have a proven track record and that are located in highly regulated jurisdictions. Beware the many scam artists in the offshore and onshore world of investing, insurance, law and asset protection.

For Additional Reading, Research & Essay Links Regarding This Chapter:

 

Ron Fact, Book & Video Recommendations For This Page:
When choosing onshore or offshore advisors, consultants etc. always look for advisors who share your personal world view of economics, investment markets and freedom. - Ron Holland

 

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