If you ask most Americans what a good rate of return (usually interest) on an investment would be, most would say 6-8% per year. If you received 10% or more, that would be excellent. If someone comes along and says that you could receive those types of return per month instead of per year, most would think they are insane or that it would be illegal.
However, let's go back to yesterday's post about the international company not paying income tax because it is outside of the jurisdiction where the company is set up (company is in United Kingdom and you are doing business in China). By the company not paying income tax on that profit could save the company anywhere from 15%-50% depending on the country. This is huge! Let's say someone you know invests in this company. Because the company is not burdened by additional taxes, do you think that they would have more profit, and therefore would have higher dividends or stock prices, etc. and pay a higher rate of return? Of course they would. If they didn't share their success with their investors, they might run out of future capital needed to operate the business.
So now the prospect of making 6-8% per month may not sound so far fetched after all. Now, if you use the Rule of 72 (see Monday, November 19, 2007 post), on $1000 for 12 years at 6% per year vs. 6% per month (72% per year), the difference is the 6% per year amount would grow to $2000 vs. the 6% per month is $2,048,000. Who would rather have $2000 vs. $2+ million?
However, if you ask any financial advisor, CPA, tax attorney, accountant, or other professional money manager if this is possible, they would not be able to tell you about such things. Why? Because they are prohibited from any disclosure of this information by the Securities and Exchange Commission (SEC) unless you are an accredited investor. An accredited investor has at least $1 million available for investing and income at least $200,000 per year for 2 consective years or $300,000 per year if married and filing jointly. In other words, this information is not available to the public unless you are wealthy.
Why is it that only the wealthy are offered the best opportunities? The SEC will say it is for protection of the investor. The investor may not have the knowledge and experience to properly analyze the risk for more complicated investments. This is true. However, the same mutual funds that are available in everyone's 401K and IRA also have international counterparts that will pay significantly higher returns than the domestic funds. Why? No taxes! Where is the knowledge, sophistication, and experience needed to make that decision?
So basically, the reason that these are too complicated is faulty. They simply do not want the average person to make more money and therefore have more choices in life. They want people that are easy to control, mainly they want people poor and uneducated because they are easier to control than those who have knowledge and choices.
However, international opportunities are not restricted to the same mutual funds. They include precious metals, pre-IPO companies (the opportunity to purchase stock in a private company at a reduced price prior to going public), annuities, real estate, forex companies (foreign currency exchange), options on stocks and bonds, and practically any other investment vehicle. They will usually outperform any domestic counterpart simply because of the taxes that they don't have to pay. As long as the company is legitimate and successfully run, international companies will almost always outperform a similar domestic company.
So again, the choice is yours. Do you want to remain confined in your investment choices available to only those in the country you live in? Which would you rather have - $2000 or $2+ million? Do you homework. Find out about international opportunities. Find a knowledgeable, trustworthy person that can help you set up a legal structure to take advantage of global opportunities rather than the narrow confines defined by the SEC. Not only your future may depend on it, but those of your heirs as well.
What type of legacy do you want to leave to future generations?
The tongue of the righteous is choice silver,
but the heart of the wicked is of little value.
The lips of the righteous nourish many,
but fools die for lack of judgment.
The blessing of the LORD brings wealth,
and he adds no trouble to it. Proverbs 10:20-22 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
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