The Paradigm Shift In Financial Planning The Government Wont Tell You About

The financial markets have always been somewhat of a rigged game.  Having started Canada’s largest financial website even I never have seemed to make anywhere near as much as the numerous brokers I have had over the last two decades, many of whom have long retired to their offshore mansions… giving credence to that old quip about a broker inviting one of his clients out on his yacht and the client asking, “So, where are all your client’s yachts?”

However, thanks to a perfect storm of technological innovation and, more importantly, large amounts of money printing, the late 80s through to the early 2000s were good times in general for your average investor.  Much of the money that was printed by central banks found its way into numerous asset classes including stocks and real estate.

In those days if you had a government registered “financial planner” and he had any sense at all you managed to do fairly well or even quite well.

Well, those days are gone.  Long gone.

Today, your average financial advisor could be the biggest risk to your financial future… aside from government, of course.

The Shift

In decades past a financial advisor would usually tell you to “diversify” and recommend a certain percentage in general stocks, bonds and mutual funds.

The problem is, they still do!

The fact that those asset classes – with the exception of some precious metals and agriculture related stocks – are almost certain to lose money means your average financial advisor doesn’t even see the big picture of the massive changes happening throughout the financial, political and monetary world.

Most people that I speak to still seem to think that we live in the 90s.  Those times are long gone.

Today, the biggest risks are currency, bank collapse and seizure/taxation from your own government.  Barely 1 in 100 financial advisors even thinks that is possible much less knows how to protect you from it.

In fact, if your financial advisor isn’t at least helping to internationalize your assets and shelter them properly from taxes and other depredations of the government and banks then he/she may be of no use whatsoever.  Or even worse than useless as they leave your assets inside the US, your IRA inside the US, your stocks in American stocks on a US stock exchange at a US broker, invested in US government debt (Treasury Bills) and your funds in a US bank account.  

In that case you can fully expect to lose most of your assets by the end of the decade.
How?  Let’s look at each.

Assets in the US.  By leaving your assets in the US in your own name you are opening yourself up to further taxation increases (which are baked in the cake), frivolous lawsuits which are epidemic (a lawsuit is filed every 2 seconds in the US), and to capital controls in the form of the Foreign Account Tax Compliance Act (FATCA) later this year. You will find that it will be harder and harder to remove those assets from those risks over time.

IRA Nationalization.  By leaving your IRA as a standard IRA it is a sitting duck for nationalization.  Barack Obama put out the first trial balloon, with MyRA recently, trying to lure people to voluntarily nationalize their IRAs.  But plans are in the works to completely nationalize IRAs as un-taxed retirement and pension funds are sitting ducks for a bankrupt government scavenging for funds.  

Retirement funds have already been nationalized throughout many parts of Europe and Congress has had committees looking at the viability of nationalizing IRAs and putting them into T-Bills that pay between negative 5-9% per year currently when taking monetary inflation into account.

Stocks.  As stated above, the overall stock market is mostly rigged against the small players.  But, even if you are good enough to beat the market you will find that most of your nominal gains are taken away by inflation.  And what’s left is taken away by capital gains tax on those nominal gains.  Worse, in the coming years we will see most brokerage houses go under… and what many don’t know is that nearly all shares are held in “street form” which means that they never register the shares in your name.  

So, when the brokerage goes under they take your shares down with you in bankruptcy.  You can guard against that by registering shares in your own name.

Banks.  All banks in the western world are already insolvent just by the very nature of their fractional reserve system.  They don’t have enough funds to pay out all depositor’s should they all wish to withdraw at the same time.  In fact, most are so over-leveraged that they would have collapsed in 2008 if it weren’t for the Federal Reserve bailout.  We have seen “bank bail-ins” in Cyprus and just today in the Ukraine.  Europe and Canada have already written “bank bail-ins” into legislation.

Ignore The Mainstream Media, Government And Most Financial Advisors

Your average person has no idea what is going on and what is coming.  Many people will get financially destroyed in the coming years as they are not aware of what is going on.

For the most part you have to find out these things for yourself because the media nor your government registered financial advisor either don’t know or won’t tell you.

This isn’t the end of the world… it is just the end of the world (and more specifically, the monetary system) as we currently know it.  Throughout human history there have been countless radical and dramatic shifts… and this is just one of them.  For that reason, at the Crisis Conference, we’ll be taking a lot of time just to enjoy ourselves also… There will be nightly cocktail parties and dinners, golf excursions and even a shopping excursion for the ladies… 

The ship is sinking, but if you are well-prepared, you already have your lifeboat. You can continue drinking and dancing on the doomed ship. Most others remain completely unaware of what is to come and they too are drinking and dancing. They will lose most of their assets. 

By the time they figure it out it will be mostly too late.  Always stay one step ahead of the crowd.

[custom_script adID=97]

 

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.