FEBRUARY 13, 2012, 9:58 A.M. ET
The Real Reasons the Rich Are Moving Cash to the Caymans
Arends: Mitt Romney has been criticized for having some of his fortune in offshore accounts, but it's not really to save on taxes.
By BRETT ARENDS
SmartMoney.com
One thing's for sure. Mitt Romney didn't send his money down to the Cayman Islands to work on its tan.
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The new reason, though, is political risk: "Diversification from our government, policies, and banking systems," says Duggan. The last few years have shaken faith in our system. Duggan says growing numbers of his clients are worried about the financial system, confiscation -- the whole shebang. "They're concerned about our government, and where our society is headed. There's a lot of socialistic tendencies, capital controls, the redistribution of wealth."
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But there's a logical problem here. Imagine a future government did decide to confiscate assets. They'd go after the money you held in Switzerland just as much as the money you held in New York, and the penalties for tax evasion would be as medieval as they are now.
The only way to save your money would presumably be to renounce your citizenship and move into exile. Even then the IRS might come after you. Do you want to spend the rest of your life living next to Roman Polanski in France?
Once again, all this makes you see the appeal of holding some gold within a portfolio.
Full story: http://www.smartmoney.com/invest/strategies/the-real-reasons-the-rich-are-moving-cash-to-the-caymans-1329103082393/
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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