Asset Protection, ETFs, Stock Trading

Ultimate Wealth Protection & Automated Trading for Expats Worldwide

Ultimate Investment Set Up for Expats

In this free guide, you will learn how to set up an asset protection structure which wealthy clients pay tens of thousands of dollars to family offices and boutique wealth managers.

You will learn how to protect your wealth for your family and organise everything in a tax efficient manner, so your heirs receive more of your hard earned income

Why Protect Your Assets?

When investing in the stock market, people usually forget how that wealth can be taken away from them in future, many times through no fault of their own. It isn’t until they have built up a substantial investment portfolio later in life that they suddenly realise they need to protect it. Start the right way, by setting up your investments in the correct fashion. If you haven’t already, you can roll your cash and investments into structures such as these.

Reasons to Protect Your Wealth

  • Divorce
  • Tax – you can set up a tax efficient structure to protect your wealth
  • Litigation – top professions where litigation can ruin not only your career, but your wealth – CEOs (employee lawsuits), doctors, surgeons, nurses, accountants, financial advisers, lawyers, real estate agents, celebrities, sports professionals, chefs, public servants, oil & gas employers, construction employers.
  • Protects from creditors – protects you and your heirs from creditors
  • Avoids compulsory inheritance – choose your heirs
  • Control Distributions – choose exactly who gets your assets and when
  • Privacy – protect yourself from being a target
  • Protect from probate – if you don’t have a will, upon death, your assets will go through a lengthy court process, possibly many years before your heirs can inherit your wealth
  • Charity – set up a foundation upon death

You can read more here about common lawsuits that companies face.

How to Protect Your Assets

For globetrotting expats, this is not an easy question, as each country has its own tax rules & regulations. Also, you may need to take into consideration the tax in your country of citizenship (i.e. where you were born) as well as the tax in your country of residence (i.e. where you live now).

But, here are some structures which can help protect your assets

  • Set up a corporation – either offshore or in your country of residence, e.g. LLC in the USA. You can set up a trading company to hold your investments.
  • Set up an offshore trust – Trustees run a trust. Trusts can avoid many taxes, primarily tax on death and growth. In order to receive the tax benefits, usually, the trust has to be set up as an irrevocable trust. This means that you will not be able to pull assets back out of the trust should you need to do so in the future.
  • Set up an offshore foundation – A council runs a foundation. As a concept it is neither a company nor a trust, although it has features of both. As there are no shareholders or ‘owners’ and there is no requirement to have beneficiaries, this is becoming the ultimate holding vehicle which separates underlying assets from an individual’s personal wealth and therefore falls outside his/her estate for inheritance tax purposes. Private foundations are often used by families seeking to establish a lasting charitable legacy, allowing for family members’ gifts to be pooled and then distributed to outside organizations or used in-house at the direction of the foundation.

Legal structure

Foundation

  • A foundation is a separate legal entity (similar to a company).
  • A foundation can contract and hold assets in its own name.
  • A foundation can sue and be sued in its own name.
  • The foundation holds the legal and beneficial title to the assets.

Trust

  • A trust is not a separate legal entity.
  • The legal rights and obligations sit with the trustees rather than the trust itself and the trustee therefore contracts in his/her or its own name on behalf of the trust.
  • Legal ownership of the trust fund sits with the trustees and beneficial ownership with the beneficiaries.
  • The trustees would sue and be sued in their own name, as opposed to action being taken by or against the trust.

Tax

  • Highly dependent on your citizenship, residency and location of trust or foundation. Seek advice.

How to Grow Your Assets

Hedge funds, asset managers and life insurance companies often take high fees when setting up investment portfolios. Often, you are locked into lengthy contracts of 10 – 25 years with high surrender penalties, hidden charges and it can take time to unwind your investments.

Whilst there is still a market for these insurance type products, there are now cheaper, more efficient ways to devise your investment portfolio set up.

Use a Roboadviser

A roboadviser is the digital wealth manager for the new millenium. Just fill out a few risk questions and a roboadviser can set up a risk strategy for you. The most modern roboadvisers can also place trades automatically on your behalf.

Algorithmic Trading with The Money Pouch

The Money Pouch is a free wealth management app for the globetrotting expat and international employees.

The Money Pouch automatically buys & sells stock, bond and gold ETFs on your behalf and rebalances your holdings every month to optimise your returns whilst lowering risk. It also has the ability to just sit in cash if markets turn sour.

Their algorithmic trading team has set up over 400 successful trading systems.

Benefits of The Money pouch

  • Internationally portable – if you change jobs or countries, you can take your investment portfolio with you and continue to contribute
  • You decide when to top up – if you lose your job or between jobs for a year, you can stop payments.
  • You can cash out whenever you like – there are no entry or exit fees. No surrender fees. So, if you need cash to buy that new car or apartment or holiday, you can cash in your savings whenever you like. If you just came into an inheritance or earned a bonus, you can top up your investment portfolio whenever you like.
  • Trade on autopilot – The Money Pouch will automatically buy and sell shares on your behalf
  • Asset & tax protection – you can invest via an offshore trust, foundation or company

Watch This Short Video Explainer for The Money Pouch