Editor's Note: This story originally appeared on Live and Invest Overseas.
For close to 30 years, I’ve been warning people of the risks of hanging all your hopes on any one country … any one economy … or any one currency.
If everything you own is tied to the United States, the U.S. dollar, and the U.S. stock market and things go awry … that will likely spell disaster.
The smart move is diversification.
So, how do you get started diversifying not only your investment capital but also your lifestyle so that you’re truly in control of your future no matter what happens next?
Let’s break this down.
1. Open a foreign bank account
Opening a bank account overseas can be the quickest going-offshore box to check.
Some offshore banks and banking destinations will still open a bank account long-distance, meaning you don’t have to make a trip to meet with the bank in person.
An offshore account not only allows you to get some of your money out of your home country’s banking system, but it also can allow you to hold multiple currencies, meaning additional diversification without any additional effort.
2. Protect yourself with a backup residency
If you were to adopt just one of these strategies right now, it should be this one.
Get yourself a backup residency … and get it as soon as possible. This is important even if you intend to continue living in the U.S.
Diversification is critical not only for your investment portfolio, but also for your personal safety.
Having legal residency in another country allows you to stay there indefinitely should you decide life is too uncomfortable or unsafe where you’re currently living … whether because of a global pandemic, country-wide protests, or something even worse.
3. Consider a second citizenship
Having a second citizenship gives you options.
Having a second passport can also make travel in general easier and safer at times. Legal residency allows you to stay in a country. Citizenship does that, as well, giving you additional rights including the ability to work if you so choose.
4. Protect your assets
Moving at least some of your wealth offshore is wise, no matter where you live. Diversifying your investments across multiple currencies and economies protects your wealth long-term and reduces the overall volatility of your portfolio.
It also can help protect you from frivolous lawsuits if you structure the ownership of assets carefully.
This isn’t about hiding your income or assets from the IRS. It’s about keeping others from trying to take away what’s yours.
5. Move your business offshore
Depending on your situation, taking your existing business offshore or starting a new business in another country could provide huge legal and tax advantages.
Incorporating offshore won’t make sense for everyone, but if you’re operating your own business, for example, or working in a high-risk profession, you should consider an offshore corporation.
6. Grow your wealth away from the stock market
You know my preference. Give me real estate over stocks any and every day of the week.
Holding tangible property in other countries is what makes it possible for me to sleep at night, no matter what new or impending disasters the media is reporting.
In addition, property in a foreign jurisdiction is safe from any U.S. court, meaning safe from any potential U.S. litigant.
The best part, though, and the bottom line, is that key overseas property markets right now offer the potential for turnkey double-digit returns.
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