Is your IRA Trump Proof?

As the forces unite against President Trump, expect the US economy to and stock market to nosedive. All of these negative political winds mean tough times are ahead for your investments. There’s nothing the markets hate more than uncertainty and instability.

No matter your political point of view, you must see risk in the battle ahead. Maybe Trump will prevail and drain the swamp. Maybe the media will have its way and evict Trump from the White House, presumably to install Hillary as Emperor.

We don’t know what’s going to happen… but we do know that things are going to get rough. Expect the US dollar to trend down and possibly crash. And the US stock market to nosedive.

The stock market has already priced in Trump’s tax plan and reduced regulation. When it appears these won’t happen, the market will react and reprice.

This swamp is deep my friends. Trump is under attack from all sides and he seems to be weakening.

Personal Note: This article is not meant to be political or anti Trump (or pro Trump for that matter). My task here is to identify risk and help Americans protect their savings by moving it out of harm’s way. I always try to keep politics out of it by focusing on how to make and keep more of the money we earn.

I’m not suggesting you sell everything and hide in some banana republic until the war is over. I’m simply saying that you should move some of your assets out of the war zone. Leave what you want to gamble within the US and move the rest offshore.

For many of us, our most valuable asset is our retirement account. And this account is certainly the most portable and protectable asset we have.

Your home and US real estate will always be subject to the whims of US judges and creditors. Unless you’re going to move out of the US, it’s difficult to protect your home. Sure, you can put it in a family trust, title it in the name of your spouse, etc. At the end of the day, real estate can’t be moved out of the reach of US courts.

So, let’s talk about how to Trump Proof your IRA.

Maximum protection for your IRA, and other portable assets for that matter, is found offshore. You need to move your accounts out of the United States, out of the reach of the government, and out of the reach of future creditors.

In order to Trump proof your IRA, I suggest the following two steps of diversification after moving abroad:

  • Invest in non correlated assets (assets that don’t move with the S&P like gold, emerging market bonds, foreign real estate, etc.) and
  • Diversify out of the dollar by holding IRA cash in an FX account or in foreign bank in Euros, Swiss Franc, British Pounds, etc.

Both of these forms of diversification can be achieved by forming an offshore IRA LLC and moving your account(s) out of the US.

If your IRA has vested, you can move it offshore. In most cases, an IRA vests whenever you change jobs. An IRA from a previous employer is under your control and you can move it wherever you like… subject to the standard IRA rules, of course.

For those of you who’ve been at the same job for a number of years, a portion of your IRA may have vested. This will depend on your IRA agreement and you’ll need to speak with HR to find out.

It’s also possible to move some defined benefit plans offshore. If you can convert your defined benefit plan into an IRA, you can then invest it into an offshore IRA LLC and get that cash out of the United States.

All defined benefit plans are different. You’ll need to review your plan documents and speak with your plan administrator to find out if you can convert the DB into an IRA.

Once you’ve determined which IRA accounts have vested, and which you want to take out of the United States, you’re ready to set up offshore. In order to get your IRA account(s) offshore, we can assist you to do the following:

  1. Move the accounts to a US custodian that allows for offshore investments.
  2. Form an offshore IRA LLC and draft the necessary agreements.
  3. Open an offshore bank account.
  4. Transfer your IRA cash into that offshore bank account and into your control.

From here, you’ll have total control of the IRA assets and investments. You’ll write the checks, collect the rents and dividends, and generally manage the LLC for the benefit of your retirement account, just as a professional investment advisor would do.

For a more detailed description of how to move your IRA offshore, see: Here’s how to take your IRA offshore in 6 steps

I hope this article on how to Trump Proof your IRA has been helpful. For more information, please contact us at info@premieroffshore.com or call us at (619) 550-2743. All consultations are free and confidential.