Friday, August 14, 2009

Taipan Daily Special Report: How to Buy Insurance Against the Crashing Dollar

Taipan Daily - a Service of Taipan Publishing Group

Friday, August 14, 2009

How to Buy “Money Insurance” to Protect Yourself Against a
Crashing U.S. Dollar

by Joey McLiney, Contributing Editor, Taipan Publishing Group

In this article I’m going to show you how to protect your wealth against the decline of the U.S. dollar by buying “money insurance.” Yes, that’s right – money insurance. This little-known, little-used technique allows you to protect yourself against a crashing U.S. dollar.

Why worry about a crashing U.S. dollar? It’s simple. As Obama and his team crank up the printing press to launch their $787 billion stimulus plan to save the U.S. economy, that means more dollars in circulation. As more money is printed, the value of each dollar declines.

That’s why it is important you take steps NOW to preserve your wealth. You see, the truth is few people are remotely prepared for the collapse of the dollar. Before you dismiss this as impossible, think back 18 months.

Would you have thought Chrysler would be bankrupt, General Motors near death, and Merrill Lynch gone and the banking industry controlled by the federal government? I believe we have witnessed a silent, bloodless coup.

In no way do I place all blame on the current administration for the attack on free enterprise, our liberty and our livelihood. In fact, the chain of events leading up to where we are now was set in motion decades ago.

My single purpose is to provide you with one small financial lifeline that could make all the difference in the world if the unthinkable occurs. It is by far the easiest, most inexpensive way to protect your wealth as the U.S. dollar plunges to values most think would be impossible.

Like me, you’re probably far better prepared for an accident or death, than the death of a nation. But the question still remains, how do you prepare for something that could destroy your wealth?

A Type of Dollar Insurance

As in almost all cases, the free market provides a solution for these eventualities with insurance products. Common sense drives the masses into the other categories of life, health, home, auto, etc. These common and affordable tools help us all cope with life’s uncertainties. Without exception, people buy insurance hoping they’ll never have to use it.

However, there is one bit of insurance your agent won’t offer or has probably never heard of himself. This type of insurance has saved quite literally hundreds of thousands during war, economic turmoil and political upheaval.

Like all insurance, you hope to never have to use it. However, this type of insurance is quite inexpensive to maintain, allows for a great amount of flexibility, and can even increase in value. It’s NOT an annuity and you’ll not need an agent to buy this. In fact, it’s shockingly simple to obtain.

It’s something I like to call “Money Insurance.” As with the other insurance products, “Money Insurance” adds a little peace to your financial well-being.

This strategy is so simple that you’ll be surprised you haven’t heard about it before. As I mentioned, it’s one of the most inexpensive ways you can protect your wealth. You see, “Money Insurance” is nothing more than an ordinary savings account. What makes this different is your money is in a country whose currency is stronger than the U.S. dollar.

The U.S. Treasury’s printing presses are running 24/7. The stimulus has moved from “Bs” to “Ts,” as in trillions. The fall of the dollar will not be immediate, and I actually believe we’ll see a rally over the next several months, but unless the federal government changes its course, the question won’t be “if,” but “when.”

Now, I do have to point out, the moment you set this up, you’ll discover that your “Money Insurance” savings account, with only a few hundred dollars in it, carries the exotic label of an “offshore account.” You see, our government considers any account not in the U.S. “offshore” and it hopes you never have one. There is nothing illegal about it. However, the government loses a great deal of control over you and your life, once your funds move out of its direct view.

As Uncle Sam tries to lift the economy from recession to recovery, the economic stimulus plan is putting pressure on the dollar. Left unchecked, the value of your financial assets will plunder. That's why these wealth protection and moneymaking strategies are critically important.

Learn about them in Taipan’s Global Opportunities Summit. The conference was recorded LIVE and is available in two formats: CD or MP3… or you can order both. These live audio recordings contain vital financial information. Supplies are limited... don't wait too long to order your set.

If you decide to follow my advice and set up an offshore account, there are simple reporting requirements you must file with your income taxes. I STRONGLY RECOMMEND that you do so. It is required. It shouldn’t matter either. We are NOT setting this up to hide anything, or do anything illegal. We are establishing this account as insurance against the unthinkable.

Money Insurance in Germany

Having multiple accounts in Europe used to be very commonplace. If you were British and did a great deal of business in Italy or had a vacation home in France, you may have had an account in that location. In years past, when the nations of Europe fought more frequently, having a second or third location where you could move your family made good practical sense. History tells us that those who took this simple precaution; they took extended holidays away from the fighting and discovered that their accounts secured their family’s futures in their adopted countries.

Unfortunately, since the creation of the European Union and the advent of EU-wide banks, this prudent practice is diminishing. However, even today, plenty of South American countries use the United States as one of their “offshore” banking locations.

The steps to opening an offshore account are not at all difficult and the most challenging part is deciding where. My advice is to choose a spot where you like to visit. Remember, you are NOT going for bank secrecy, and Switzerland, Austria and Lichtenstein need not be the country of choice. Almost any country will do.

I prefer a country with a stable currency and government. I don’t want to wire my money to a location and then have the government devalue the currency during my flight. Market fluctuations are fine, but government manipulation is deadly.

One of the countries I recommend is Germany. My own account is in a very small town in there. I first set it up because my wife’s family lives in Germany. For me, it was the convenience of having a local cash card (no fees), local credit card, and access to more ATMs.

An unexpected perk I discovered the first time I gave out my “local” credit/debit card to shops in Germany was the level of service and friendliness noticeably improved. When my account runs low of funds, a phone call home has money wired to the account in short order. It really is that simple.

I also save hundreds on credit card transaction fees and currency exchange fees. But here’s the most important part: The money in my account actually grows in value, as the dollar depreciates. (Of course the reverse can happen, and your currency can devalue against the dollar.)

How to Buy Money Insurance

The following steps are universal. Once you’ve determined your location, you’ll have to find a bank. If you have a friend at your location, you can have them make a recommendation, otherwise you’ll have to use the Internet. I’ve found Google Maps to be a great tool. Put in your preferred city and country and the word “banks” into Google Maps and hit the search key. Hundreds of bank locations will be displayed.

Use e-mail or phone and contact the bank manager. Let them know you’ll want to set up a savings account, you’ll need cash cards and credit cards, and how much you’ll initially be depositing. They’ll tell you the documents needed. Typically, it will be a copy of your passport, driver’s license, and sometimes a notarized letter from your current banker, verifying your identity.

The most difficult part is making initial contact. Once you’ve found your banker, the rest is simple. This is my preferred method, but there’s a second method that is less difficult and time intensive.

The second option accomplishes virtually the same thing and can be done entirely online or over the phone. In fact I’ve opened (and closed) accounts by phone, fax, e-mail and mail and not had to ever be present at the bank.

Several banks offer this type of service, but for ease of use, HSBC Bank may be one of the best.

HSBC was founded in Hong Kong and is now headquartered in London. It has locations across the world. The simplest method is its Premier Account, which does require an average account balance of US$100,000. However, with this type of account, you receive Premier services in every country you may decide to visit. As a Premier account holder, you may establish, with a few mouse clicks, accounts in countries outside your home country. With 10 days’ notice of your arrival, your new foreign account can have a checkbook, credit card and cash card waiting for your arrival. You’ll even have a Premier client manager (your personal offshore banker) waiting for you, who can help you with any of your financing needs, including investments or mortgages.

If you are seeking sheer convenience, this is the way to go. The single drawback is that since HSBC has a substantial presence in the United States, there is a clear connection from your U.S. account to your offshore account. Again, we are not going for secrecy, just shelter from the storm, so this may not matter.

One important point is that the minimum balance of $100K is not necessary for all offshore accounts. You can set up a new account in another country, with or without a connected U.S. account, that will provide most of the services listed above, for modest fees. Wire transfers will run around $25-$30, currency exchanges may also have a fee involved. You just won’t receive the same level of service.

I prefer the local small, solid bank where they know my name, my family… and the relationship is as important as my balance. However, without a good grasp of the German language, online banking can be a pain. For ease of use and speed, an HSBC account is probably the best choice for most, Premier account or not. If you are worried about U.S. ties, once a foreign account is established, you can more easily open another account in a competing bank.

Once these simple steps are completed, your insurance is in place. Make certain you know how to wire funds in and out of your account. A test run of a couple of thousand dollars from your local bank to your new account is always prudent. This will establish the steps and, more importantly, how long it takes.

I’ve never found a bank that couldn’t wire funds within a half day, but some will require a fax, with your signature, to send your money back home. In some instances, after your money has been vacationing in foreign lands, you’ll be delighted to find that it’s gained value once repatriated.

That’s it. Your money now is not only insured by the federal government (via the FDIC), it’s also now insured FROM the federal government as it cranks up the printing press. I expect you will never have to use this account for anything more than convenience. However, in the very remote chance it becomes necessary, you’ve established an offshore lifeline for you, your family, and your money.

For me, it’s the best insurance I’ve never owned.

Publisher’s Note: If you’re looking for another way – well, actually nine ways – to protect yourself against the dollar, we have just the ticket for you. These are specific, ready-to-execute recommendations that could help you make some handsome returns during these rough economic times. And if history holds true, this could land you 69 times your money.

Learn all about these moneymaking strategies with your own set of live audio recordings from Taipan’s 2009 Global Opportunities Summit. This media package is available in two formats: CD and MP3… or you can order both. But supplies are limited. So please order your set today.

* The existence of a foreign bank account is required to be disclosed on Form 1040 Schedule B Part III, and a Form TD F 90-22.1 must be filed by June 30th of each year to disclose the location and other information about any foreign "financial accounts" with an aggregate value of more than $10,000 at any time during the prior calendar year.

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