The Nomadic Lifestyle is Not for Me. Can I Still Plant Flags?

In this issue: a) planting flags without moving, b)choosing a service provider, c) what does ChatGPT have to say about it? Reading time 4 minutes.

In previous newsletters we discussed how not everyone moves to another country because they hate the US. Moreover, we discussed how not everyone who pursues flag theory does so because they want to shirk paying taxes. In fact some pay even more in their new home country. But some people simply hate moving. I knew a guy who passed up a promotion to CEO because they required that he move just one state over! Other folks aren’t opposed to moving—once. What doesn’t appeal is the lifestyle of constantly being on the move. Every 180 days I have to cross the border and spend the weekend in a neighboring country before returning and getting my passport stamped. I can imagine that getting old real quick.  

Let’s suppose you have diminishing confidence in the US dollar and you recognize the vulnerability of having all your eggs in Uncle Sam’s basket. But you are committed to staying in the US, at least for the near- to mid-term. So you want to start planting flags while working on an exit plan. Here are some flag-planting measures you can take without leaving. 

1. Open a foreign bank account. You can open a foreign bank account without leaving home. You’ll want to put a lot of thought into this, however. Not only will you have to report it to the US government, you have to determine how it helps you. Will the foreign account make it easier to accept payment from non-US clients? Will it make it easier for you to make purchases or investments in your target country? 

   1. Global Finance ranks the safest banks in the world—you have to go all the way down to #43 before you find one in the US. 

   2. The internet is full of websites that purport to help you open a foreign bank account online. It’s best to speak to someone who has actually done it and find out firsthand how the process went and if they recommend it.

2. Start a side hustle that brings in non-US income. If all your clients or customers are in the US, it’s going to be increasingly difficult, although not impossible, to leave the US. But if you have an expanding customer base that is located outside the US, then your chances of eventually decoupling from the US dollar are going to be better. What does this mean? Ecommerce? Foreign real estate? 

3. Buy a vacation rental in another country.

4. Invest in foreign real estate. 

5. Incorporate your business overseas.

6. Establish an offshore trust.

7. Obtain a foreign residency permit. 

8. Purchase a golden passport. Recently the EU wielded their influence Uncle Sam-style and bullied Caribbean nations to make their citizenship-by-investment programs more restrictive, so you’ll want to make sure your research is up-to-date, as in more recent than March of 2024.

9. Start making contacts in your top five target countries. Reach out to people who are involved in real estate, vacation rentals, resorts, travel and tourism, etc. 

10. Vacation in countries you might be interested in moving to.

11. Offshore your email, your cloud storage and your digital assets.

Now I would like to ask my subscribers if they have ever availed themselves of the following service providers in the flag-planting arena:

1. Blake Harris Law

2. Moody’s Private Client

3. Nomad Capitalist

4. JH Marlin Law

5. Dominion

6. Henley & Partners

Lastly, we ask ChatGPT: “What are 15 ways to diversify away from the US dollar?”

Here was ChatGPT’s verbatim, albeit repetitive, answer:

(Begin AI text) Diversifying away from the US dollar can be a prudent strategy for managing risk and protecting against currency fluctuations. Here are 15 ways to diversify away from the US dollar:

1. Invest in Foreign Currencies: Purchase foreign currencies like the Euro, Japanese Yen, British Pound, Swiss Franc, or Canadian Dollar.

2. Invest in Precious Metals: Gold, silver, platinum, and other precious metals historically act as a hedge against inflation and currency devaluation.

3. Foreign Stock Market Investments: Invest in stocks listed on foreign exchanges to gain exposure to different economies and currencies.

4. Foreign Bond Investments: Purchase bonds denominated in foreign currencies to diversify away from the US dollar.

5. Real Estate Investments Abroad: Invest in real estate properties located in foreign countries to gain exposure to different currencies and markets.

6. Commodity Investments: Invest in commodities such as oil, agriculture products, or metals, which are priced in various currencies.

7. Cryptocurrencies: Consider investing in cryptocurrencies like Bitcoin, Ethereum, or other altcoins as an alternative to traditional currencies.

8. Foreign Currency CDs (Certificates of Deposit): Purchase CDs denominated in foreign currencies to earn interest and hedge against US dollar depreciation.

9. Foreign Currency ETFs (Exchange-Traded Funds): Invest in ETFs that track foreign currencies to gain exposure to currency movements.

10. Foreign Currency Futures: Trade futures contracts based on foreign currencies to speculate on currency movements or hedge against currency risk.

11. Foreign Currency Options: Use currency options to hedge against currency risk or speculate on currency movements.

12. International Mutual Funds: Invest in mutual funds that focus on international markets and currencies to diversify away from the US dollar.

13. Foreign Currency Savings Accounts: Open savings accounts denominated in foreign currencies to hold assets in different currencies.

14. International Bonds: Invest in bonds issued by foreign governments or corporations to gain exposure to different currencies and interest rates.

15. Diversified Global Funds: Allocate funds to diversified global investment vehicles that invest across various asset classes, including stocks, bonds, currencies, and commodities.

Remember to consider your risk tolerance, investment objectives, and consult with a financial advisor before making any investment decisions.(End AI text) 

So, short version: foreign currencies, precious metals, cryptocurrencies, foreign real estate, foreign stocks, foreign bonds, and basically the same thing reworded in different ways. 

What’s your level of confidence in the US dollar? Are you worried that your nest-egg’s purchasing power could be at risk of taking a dive? What measures are you taking to hedge against that risk? Thanks for reading.

Gene Basler

Many Flags