Tax Havens to Tax Planning & Asset Protection

Posted on November 1, 2011 by michele

With so many countries signing agreements (or updated treaties) with the United States in regards to the Exchange of Information in regards to Taxes, Tax Havens have really gone by the wayside. These agreements, tax information exchange agreements (TIEAs as they are called), allows for the United States to request information in regards to a specific individual from specific authorities in regards to federal taxes. One such agreement has recently been signed by Panama and an updated treaty with Switzerland, which are two places where many people felt they could safely put their money. Where they trying to avoid taxes or protect their assets with these accounts is the big question? Although I am sure there where probably both reasons, for a lot of people asset protection is certainly an important and viable reason in our litigious society and can still be obtained.

Important things to remember about the TIEA:
1. The only people for the US that can request this information are government agencies, political subdivisions and local authorities.
2. They must relate it to a Tax matter
3. They must have tried to get the information on their own.
4. They must be as specific as possible, including the name and dates the information is needed for.
5. Why they believe the information that is being requested is in the county or jurisdiction they say it is in.
6. Where they believe the information is.
7. Etc. – (For a complete copy of the TIEA with Panama please contact us.)

For most people, as it has always been, good tax planning is a critical element in your day-to-day planning or your retirement strategies. The good news is that there is no double taxation in our represented retirement countries so if you pay taxes in those countries you will not have to pay the same taxes in the US. There are also so many tax right-offs and tax strategies that by doing careful tax planning between countries, you can find yourself in a healthy situation. Healthy to us means being able to keep the money you have worked so hard for, while at the same time wisely supporting the countries you have come to love and the benefits they have given you. Let’s face it, there are so many rules and regulations, having good tax advisers are essential and as the saying goes, “nothing is for certain but death and taxes.” We have just elected to not be driven to our deaths early by seeking help of experts and having a solid tax strategy!

For more information on how our relocation program assists you with experts in Tax Planning and Asset Protection contact us.

Posted in Best places for a second home, Buy Abroad, Live Abroad, Relocation Program, Retire to Panama | Leave a comment

The Many Ways of Financial Diversification

Posted on October 26, 2011 by admin

My husband and I were just talking about all the forms of financial diversification and how easy it is to be confused and overwhelmed by all the strategies and options.  Though it may be a lot to absorb, diversification is critical in economic times like these.  As you know, there is so much uncertainty that hedging your bets can be the difference between a life of security and success or financial devastation.  The important thing is that you come up with a diversification strategy and implement it. We are not financial advisers and do not give financial advice, so this blog is not about that, but hopefully it will give you some clarification on diversification itself.   There are many ways to diversify and there are really two major Forms of diversification.  The two major Forms are the Vehicles Used to Diversify and the Types of Investments to Diversify in to.  Let ‘s briefly look at these two Forms:

(These are Examples Only and not and exhaustive list)

Vehicles Used to Diversify:

(I would define these “Vehicles” as the things you directly fund)

  • Cash
  • 401K
  • IRAs
  • Life Insurance Policies
  • Social Security (although mandatory, it is still something you are putting money into….and hopefully you will be able to use it.)
  • SEPs
  • Etc.

Types of Investments to Diversify In:

(I would define these as “Investments” which the “Vehicles” fund)

  • Real Estate
  • Stocks
  • Bonds
  • Precious Metals
  • Businesses
  • Loans
  • Oil and Gas
  • Etc.

Then, to make things more complicated within the category, and we will use our favorite real estate as an example, you can (and should) diversify even further.

Real Estate

  • Domestic or Internationally
  • Tax Liens
  • Mortgages
  • Etc.

The point of all this is that even though there is a lot ways to diversify, there are some fundamental things that are very important in our current economy to consider.

  1. Are all your eggs in one basket?  (For example stocks or real estate)
  2. Are you diversifying between vehicles that are taxable and non-taxable?
  3. What investments are you diversifying into to protect against inflation?
  4. Are any of your 401Ks or IRAs, etc., in accounts that will allow you to invest in different types of Investments?   These are usually called self-directed.
  5. Do you have a life insurance program that not only protects your family but will allow you to invest the money into different types investments?
  6. Do you have an entity strategy?
  7. Are your types of investments triggering any special taxes?  (such as UBIT for example)
  8. Do you have a good strategy for not only investing domestically but internationally to protect yourself?  Not all countries are going through economic woes.  Look at Panama for example!  The economy there is booming!

Finally, if you need help there are many good companies out there that can help you understand the vehicles and how to structure things correctly, and many good financial advisers that can help you as well.  Get help if you need it.  Mistakes can be costly, but doing Nothing Can Be Even More Costly!  We work with experts ourselves that help us with all this.  For example, we have a great tax adviser in the US and in the countries we work with.  Both of them, by country, help us to do our strategic tax planning and not only have saved us money but have made sure we are doing things right in both countries.  There are so many rules and regulations, in the US particular, that you don’t want to do this on your own.  Again, work with people that are the experts in their fields, but check references!

Posted in Best places for a second home, Buy Abroad, Places to Retire, Retirement Specialists | Leave a comment

Places to Retire with Howler Monkeys

Posted on October 12, 2011 by admin

One of my most favorite things about where we live in Colorado is the incredible sounds of the Elk bugling in the early mornings and at dusk. The unusual sound is somehow so prehistorically basic, but so awe inspiring musical at the same time.  I never thought that one day I would be able to enjoy that raw sound one day and the next be enchanted by the echoing sounds of the howler monkeys the next.  Both these incredible animals have to be listed somewhere as making the coolest sounds.  Part of my excitement every time we go to Costa Rica or Panama is getting to hear the wave of the howler monkeys.

Our Experience with howler monkeys in Costa Rica and Panama was absolutely incredible!  Our first stop on our most recent trip was in Costa Rica where we stayed at Osa Mountain Resort.  As a result of it being in the Mountains, we like to leave the windows open to enjoy the freshness of the air and the sounds of the jungle while we sleep.  As the sun starts peaking up in the early morning ……….about 5:30  (and trust me I am not a morning person……..), the sounds of the echoing waves from the howler monkeys greeting the day began.  If you haven’t heard them before you will be surprised by such an odd sound they make. If you visit http://www.youtube.com/watch?v=REPoVfN-Ij4sites there is a National Geographic video on YouTube that give you the opportunity to hear them.

As their name suggests, vocal communication forms an important part of their social behavior. Specifically, the name comes from their distinctive loud barking whoop they make, which can be heard over considerable distances. They have an enlarged hyoid bone which helps them make their loud sound.

From Costa Rica, we went to Panama and again in the small town of Boquette we are able to hike into the jungle and listen to the excitement of the howler monkeys.  The closer we got to them, the more distinct the individual voices became and they actually sounded more like monkeys.  If you’re not use to them, the sound can be a little intimidating!

If you love monkeys and other animals, and are looking for places to retire or the best place for a second home, these countries may be a great bet with all their other benefits!

Posted in Best places for a second home, Moving to Costa Rica, Places to Retire, Retire to Panama, Retirement Countries | Leave a comment