Stop me if you’ve heard this one. A close relative of mine bought a small piece of rural land that he intended as an investment. He was going to build a basic home on the property and then sell it at a small profit in order to boost his retirement nest egg. Shortly after he made his plan and bought the property, the local government decided it needed more money. So the town council created a new law. As soon as any improvement was made to a property, a new tax of $14,000 was immediately due.

My relative’s whole plan went south. Basically, his land was instantly worth $14,000 less than what he’d paid for it. The math that originally made it a decent endeavor, suddenly made it a dumb plan compared to other options. He didn’t build and now has to wait who knows how long until he can get his original investment back. Oh, and the cost to renew his driver’s license and his automobile registration just doubled. And the property tax on his principle home just went way up.

The fact is, Joe Average is the proverbial low-hanging fruit for greedy, economically clueless politicians to grab more money to keep their private party going a little longer.

I have friends who think “the government” will get suspicious of how often I move around the world and will “come after me” to get some extra money. But I don’t break any laws in any countries, including the ones where I hold citizenship. There is no reason to come looking for me. And the reality is, politicians can grab orders of magnitude more money from people who live inside the little box that was made for them:

  • People with all their income from one or two jobs inside the country
  • People with all their savings held by approved banks inside the country
  • People with all their investments held by approved brokers inside the country
  • People who own a business registered and operated inside the country
  • People with all their physical assets held inside the country

These people are fish in a barrel compared to the expats spread all over the world.

Employers, banks, brokerages and all the other players in the financial system will instantly roll over for any government agency. They will hand over your money in a millisecond when told to. No court, no judge, no due process. A piece of paper with the letterhead of virtually any government agency is enough. Click, click, your money is gone and perhaps your future income is garnished. And it will take months or years of your time and money to get it back. Maybe.

And if you have the misfortune to be subject to the US legal system, the undisputed #1 Empire of Litigation, you could suddenly and unexpectedly find yourself on the losing side of a lawsuit or just have to fork over five or six figures to make a frivolous lawsuit go away. The more people who know you have enough money to be worth grabbing, the more at risk you are.

But . . . when you own and control your own source of income, and when that source is online, you have magnificent options compared to an old-economy, traditional job located in a fixed place. Your business (or multiple segments of your business) can “live” somewhere else. Your business can bank somewhere else. In fact, it can bank in three different countries if you want. Your business can pay taxes in a jurisdiction that is stable and not prone to suddenly grabbing $14,000 for local politicians to squander.

I stress that all of the above is completely legal. In fact, it’s commonplace.

Many of us believe that there is very significant economic turmoil ahead. Insolvent banks and bankrupt governments will scramble to grab money from wherever they can in order to avoid their own collapse. Between the bail-outs, bail-ins, new tariffs, and new taxes, Joe Average and what little he has are going to be in everybody’s cross-hairs. Click, click. Gone.

My advice to every person in my personal life is to make a plan to ensure their freedom from confiscation. My advice to you is the same.

When a person’s income, savings, investments and assets are all inside the same legal jurisdiction, he or she is at maximal risk of confiscation from governments and their most favored business allies. All or most of what a person has can be taken with a few clicks of a government or bank computer. Owning and controlling your own source of income creates powerful options to diversify worldwide and reduce financial risks while still remaining well within the applicable laws.

 

Do you want to receive e-mails about how to safely leave the rat race using your own portable online income? Click here.

RPF2-300x62