Exclusive: Your Eight-Point Wealth Protection To-Do List
If you’re sick of me going on about the government’s plans to take your retirement savings you’ve got two choices:
- Get used to it, or
- Unsubscribe (you can find the link at the bottom of this email)
The fact is the battle to protect your savings from the government’s grubby money-grabbing hands has only just begun…and it will be a tough battle.
Unfortunately, although I’ve written about the government’s plans for more than four years, the mainstream press has barely touched the issue…until now.
The reason is that when I first wrote about it, people thought I was a kook and a fringe-dwelling lunatic. That’s the last image a mainstream newspaper editor wants to give when they’re trying to sell advertising space.
To show you an example of the scorn, here a comment posted by Ken on the Daily Reckoning website in 2009:
‘Passing legislation in Australia takes at the minimum a month or two, from the initial bill to formal implementation, and if the government even mentioned proposals to confiscate individual super assets the result would be obvious. Every SMSF would sell its assets immediately, the ASX would crash immediately, and thirdly all money from the sales would leave Australia asap. And all this would happen while the legislation was still being discussed. Sayce’s article is paranoid nonsense.’
Got that? ‘Paranoid nonsense.’ I wonder if Ken still feels the same way today.
Trouble is, so far the result hasn’t been obvious. Few people seem to care.
To be honest, I really wish it was paranoid nonsense, but I’m afraid to say that it’s far from nonsense…it’s reality. And dare I say it’s just the beginning of worse things to come…
I’ll be honest; I’m upset at the response we’ve gotten to the Hands Off My Super petition. Seeing as this affects every Aussie it’s a shame that we’ve only attracted 3,119 signatures.
Perhaps most people want more government interference. I can’t blame them, seeing as the government spends hundreds of billions of dollars each year in welfare and subsidies to buy votes.
It’s no wonder the government won’t back off.
So if you’ve got any interest in keeping the government away from your and your children’s retirement savings, it’s up to you to send the petition to everyone you know.
Now, I get it, maybe they won’t believe you. If you think that’s possible then send them this link as well. If they won’t believe me, and they won’t believe you, just maybe they’ll believe News Limited.
Because it’s not just retirement savings, it’s normal savings accounts too.
Here’s how the article opens:
‘Households face losing up to $109 million from their family savings as the Federal government moves to seize cash from inactive bank accounts.
‘After legislation was rushed through parliament, the government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues.’
It means the government will snaffle kids’ accounts that received a lump sum payment from a parent or grandparent and are just sitting there earning interest.
It means a ‘rainy day’ bank account that you’ve set aside just in case you need to use it will be taken by the government.
And all for committing the ‘crime’ of not depositing or withdrawing cash from the account. In other words, it’s another vicious attack by the government on savers.
Help Yourself Before You Help Other
Or take this quote from an article in the Australian Financial Review (another late-to-the-party newspaper reporting on this cash-grab):
‘Accountant Bryan Lukav oversaw an account for a client that contained the bond for a commercial property. He was advised to withdraw or deposit at least $1. If he didn’t, he was told the government could seize the account.’
Can you see how crazy this is? Thanks to the government’s greed for private wealth, ordinary folks have to waste time switching $1 from account to account…just to stop the government taking their money.
It’s a crime and the mainstream has done nothing about it.
But that’s fine. You should never rely on the mainstream, and most importantly, you should never rely on others to help you when you can help yourself.
The Hands Off My Super petition is just part of it. But it’s important to know that a petition may not stop the government.
You’ve got to take control of your own finances and future. Come on, you know that, I explain that to you nearly every week.
Now, perhaps you’re thinking that’s all well and good, but where do you start? That’s why in today’s Pursuit of Happiness I’ll lay out a simple eight-point action plan to help you take more control of your life.
But as with all the advice I give you, I can’t control what you do with it. Getting and reading this email and then doing nothing else won’t help you. You need to act on the advice I give you and then come up with your own ideas.
And then, if you’re happy to share those ideas you should send them to firstname.lastname@example.org so we can both help others with their plans.
That’s the thing. This is voluntary. No one is forcing you to help others. You’re doing so on your own free will. And no one is forcing others to accept your help.
That’s how a free society should work, not where the government forcibly takes 30, 40 or 50% of your wages…and then forces other people to take welfare cheques because the government has restricted their ability to fend for themselves.
But as good as it is to help others, you can’t spend all your time doing it. As I’ll explain later, you’ve really got to focus on putting this plan into effect for yourself.
So, let me now take you through your Eight-Point Wealth Protection To-Do List…
Here’s Your Eight-Point Wealth Protection Plan
1. Take control of all your investments
Make sure you find and know about every single bank or savings account in your name.
The government won’t be selective when it comes to claiming ‘lost’ or inactive accounts.
It doesn’t matter if it’s a kid’s account, a senior citizen’s account or an average Aussie worker’s account, the government will instruct the Australian Taxation Office to seize all funds that fall into the ‘lost’ or inactive category.
And don’t be fooled into thinking the government will keep the money safe for you. The seized cash will go straight to the government’s Consolidated Revenue…which it will then spend.
So make sure you get control over every single penny. Heck, even if you’ve got 20 cents in a ‘lost’ bank account, call the bank to get the money back. Even if it costs you money to recover the funds, do it. I’d rather the phone company gets the money than the government.
2. Make sure you own tangible investments
Tangible investments mean anything that’s physical. It means something you can hold or stand on. I’m talking about assets such as gold and silver, or even land.
These are assets that the government can’t easily delete or take. That’s simply because if something is tangible you’re less likely to forget about it.
3. Make sure you own portable investments
Just because an asset is tangible, doesn’t mean it’s portable. Land isn’t portable. And if the government puts a lien over your land you can’t sell it.
That’s why precious metals are such a popular investment and insurance policy against tyranny. You can easily transport it and if necessary you can melt it down into smaller or larger units.
4. Buy and own assets outside of the financial system
These days when you buy gold or silver from a bullion dealer they’ll want to know your name, address and goodness knows what else.
But you don’t have to go through the same rigmarole when you buy jewellery. Yes, I know, you pay a premium when you buy gold and diamond jewellery. But it’s still a portable and valuable asset.
And think about it, gold is gold. If the gold price goes up, the value of the gold ring should go up too. Although if there is a complete financial collapse, gold jewellery would likely lose its premium and only trade based on the gold content rather than based on the style and design.
If you choose to invest in jewellery you’ll need to figure out the weight of the gold and the karat weight — i.e. whether it’s 24kt or less.
To get an idea of the gold content you need to know the karat weight:
24kt = 100% gold
22kt = 91.6% gold
18kt = 75% gold
I probably wouldn’t go below 18kt. And if it’s a diamond ring then you need to consider the diamond’s clarity, cut, colour and weight. The diamonds in your price range can be worth anything from a couple of hundred dollars to tens of thousands of dollars for a 3 carat good quality specimen.
So it’s not cheap. But it is an investment; it’s portable; and best of all you aren’t forced to report the purchase to the government.
5. Own shares held in an offshore trading account
Today it’s easier than ever to set up international trading accounts. You can do that from right here in Australia.
However, it’s important to remember that although it’s legal to hold assets offshore, you still need to declare any income or capital gains from these assets to the tax man. Don’t go breaking the law by thinking you can hide electronic assets from the tax man…their computers are pretty smart.
The benefit of holding offshore assets is that if the government does attempt to seize your assets having an offshore account would give you a head start. But, it’s still electronic and bureaucrats could seize it at the click of a mouse.
6. Open an offshore bank account
This is the same as above. Some UK-based banks allow ex-pats to open bank accounts. Again, while this is legal you still need to declare any earned interest to the Aussie tax man.
7. Obtain a second passport
According to the 2011 Census:
‘In 2011, the Census revealed that over a quarter (26%) of Australia’s population was born overseas and a further one fifth (20%) had at least one overseas-born parent.’
Different nations have different rules when it comes to citizenship, residency and issuing passports. If you were born overseas or you have a parent or grandparent who was born overseas, you should check out the rules for citizenship, residency and for gaining a passport.
There are other options to ‘buy’ residency. My mate Nick Hubble wrote about one such place in a recent issue of his Money for Life Letter. He says it’s a place where even the average Aussie can live like a King.
8. Have an exit plan and be prepared to use it earlier rather than later
Finally, you need to think what you’ll do when the government becomes tyrannical. But you shouldn’t think that will only happen when the PM creates a private police force…and when government drones hover over your backyard or follow you down the street.
The government already takes more than half your income through taxes, tariffs and forced purchases (e.g. vehicle registration and health insurance).
The descent into fully-blown tyranny is likely to continue in degrees rather than with a ‘big bang’ event. That’s good news and bad news.
The good news is that you should still have just enough freedom to allow you to make your escape. The bad news is that it’s creeping up on you so slowly you’ll hardly notice the changes.
But whatever happens, it’s always best to act too early rather than too late.
An Oxygen Mask Against Tyranny
So, there you have it. There’s your Eight-Point Wealth Protection To-Do List.
Do with it as you see fit. As I said earlier, I can only do so much for you, and you can only do so much for others.
Think of it this way, when you take a flight, the safety instructions always tell you to fit your oxygen mask first before you help others.
Think of this Eight-Point Wealth Protection To-Do List as your oxygen mask against tyranny. In order for it to be successful you’ve got to make sure you’re ‘wearing’ yours first before you stop to help others.
I hope this helps you.
From the Port Phillip Publishing Library
Special Report: The Gold Mirror of Kaieteur Falls
Money Morning: Where to Find Value in this Rising Stock Market
Pursuit of Happiness: ‘Let Them Eat Horse’