Chapter 3. AN AGE-OLD SOLUTION TO INSURE YOUR PORTFOLIO: Meeting All the Requirements of the Real World

Diversifying into foreign currencies, accessing the world's fastest-moving markets, tax minimization, easy estate planning—as you've read in the pages before this, these are the kinds of things that are necessary for today's investor to stay ahead of the financial curve in the coming century.

Going abroad is the key, but this is not always so simple. Most international banks will no longer accept American clients, and if they do, most of the investments may be restricted; as an American, you cannot invest in most foreign mutual funds and hedge funds, or even worse—if you are not careful about the tax compliance issues, you can suffer horrible tax penalties up to 48 percent or more in some situations.

Trying to find the ideal solution to all of the current risks and the potential future problems, plus seeking the best-fitting vehicle to satisfy your personal needs in an increasingly uncertain and ever-changing investment landscape, can prove a bit challenging. However, we think we've discovered one: a foreign private placement policy.

At first glance it might seem to a little "out of the way," but often the most profitable and substantial solutions are found only by taking a contrarian view toward the options at hand. And many of us wouldn't want it any other way. The more "out of the way" a solution may be, the more it is not a prime target for eager regulators or aggressive lawyers. ...

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