Your Asset Category and Offshore Retirement Options


Your Asset Category and Offshore Retirement Options

At the most simplistic level, there are three categories of people based primarily on assets. The focus is on baby boomers living in developed countries such as North America, Europe etc.

The division line between each category is not scientific or that precise but most people can quickly identify their category. Each category has its own unique issues/problems for retirement and living in general. The question this posting considers is “how, and to what extent is it possible to change your current asset category?”

Category “A”

Category “A” couples/people are considered to be in the top 5 percentile based on total assets and net worth. Such couples have an absolute minimum of $1,000,000 in highly “liquid assets” plus considerable additional equity and assets in their personal residence(s), businesses and other investments.

Such people, clearly, have few if any difficulties enjoying their desired lifestyle virtually anywhere in the world. What has been somewhat surprising to me is the very large number of such people who have chosen Panama at the end of their careers.

Wealthy people move offshore for a wide variety of reasons. They are always looking for “best value for dollar” wherever it might exist including asset protection. Major corporations have been doing the same thing for generations to enhance profits and pay lower taxes. It would appear that Panama offers many of these advantages for such people.

Category “B” People

Category “B” people are probably in the 60th to 94th percentile of net worth/assets. They are typically well educated and have generally spent their careers working in the public sector with a generous pension plan or for a large corporation with a “defined” pension plan. Such pension plans will provide them with a substantial extra income on retirement and are additional to the normal government social security and/or old age plans available to citizens of most developed countries.

Including home equity, the average Category “B” couple as of 2013 might have accumulated liquid assets, beyond home equity, in the $100,000 to $400,000 range. Since 2007, home equity for the average American and European has typically declined significantly and remains about 20-25% less as of today. Canadians were a bit more lucky in terms of housing values.

Such couples can expect to retire in reasonable comfort with relatively few long-term lifestyle concerns primarily because of their enhanced pension plans. However, for most, there will always remain a certain caution in terms of cash flow and a reluctance to splurge.

Of the approximate 100 million baby boomers and “post boomers” just in North America, probably 35% are Category “B” types. They tend to be well-traveled and well-informed. These individuals are prime candidates for the “offshore solution” because it potentially offers them an instant doubling or even trebling of their quality of lifestyle while stretching their relatively limited savings following the “Great Recession”.

Category “C” People

The Category “C” couple/person has the least interesting retirement options once the last paycheck is cashed which for the USA is about age 59. Category “C” people occupy the bottom 60th percentile based on net worth and liquid assets. With only a modest Social Security check on retirement and other minimal income supplements they understand that they could be looking at a steady decline in lifestyle and possibly even a “relapse” unless, of course, they keep on working which is what many have decided to do.

This category of person/couple typically pays higher than average medical costs because of long term minimal health maintenance, particularly in the USA where so many have been under-insured for so long. This person is probably aware that her retirement years may be subject to financial and health care risks beyond her control.

Most books on financial and retirement planning never even mention this category because Financial Planners cannot afford to spend time with anyone having liquid assets of less than say $250,000. Often $1,000,000 of liquid assets is the minimal trigger point for receiving serious consultation services from these professionals.

It seems like a bad dream, but there are always options ….

Why not just Change Your Category?

A well-planned move offshore for many people has the potential to instantly and permanently change their “category” …. for all intents and purposes. “C” category people can easily become “B” types. “B” types can easily convert to an “A” category. Even “A” types can double or triple their quality of life and still put money in the bank.  What a concept!

Your “category” was never set in concrete except if you decide it is so. A dramatic category “makeover” can be accomplished in as little as three months although one year or more is the typical planning/doing time .

I have personally witnessed many such changes for a number of North American couples since writing my eBook entitled “Panama Your Best Value for Offshore Living” Ebook1018 (click for a free copy).  This caterpillar to butterfly makeover was NEVER accomplished using tedious frugality or brilliant investment strategy … at least not of the normal sort.

14 thoughts on “Your Asset Category and Offshore Retirement Options

  1. minecraft

    I do believe all the concepts you have introduced for
    your post. They’re very convincing and will certainly work.
    Still, the posts are very quick for newbies.
    May just you please lengthen them a little
    from subsequent time? Thank you for the post.

  2. minecraft

    I’m amazed, I have to admit. Rarely do I come across a blog that’s both educative and amusing, and let me tell you, you’ve hit the nail on the head.

    The problem is something which too few folks are speaking intelligently about.

    Now i’m very happy I stumbled across this in my hunt for something relating to this.

  3. minecraft

    Awesome blog! Do you have any recommendations for aspiring writers?
    I’m hoping to start my own site soon but I’m a little lost on everything.
    Would you suggest starting with a free platform
    like WordPress or go for a paid option? There are so many choices
    out there that I’m totally overwhelmed .. Any ideas? Many thanks!

  4. minecraft

    Wonderful blog! I found it while searching on Yahoo News.
    Do you have any suggestions on how to get listed in Yahoo
    News? I’ve been trying for a while but I never seem to get there!

    Cheers

  5. minecraft

    This is very attention-grabbing, You’re a very professional
    blogger. I’ve joined your feed and stay up for searching for
    extra of your magnificent post. Additionally, I’ve shared your site in my social networks

  6. descargar facebook

    I know this if off topic but I’m looking into starting my own weblog and was curious
    what all is required to get set up? I’m assuming having a blog
    like yours would cost a pretty penny? I’m not very
    internet savvy so I’m not 100% positive. Any recommendations or advice would be greatly appreciated.

    Kudos

  7. Sling TV

    You made some decent points there. I looked on the net to
    learn more about the issue and found most people will go along with
    your views on this website.

  8. Sling TV

    Hello there! This post couldn’t be written much
    better! Looking at this post reminds me of my previous roommate!
    He constantly kept preaching about this. I’ll send this information to him.
    Pretty sure he’s going to have a great read. Thanks for sharing!

  9. Sling TV

    Every weekend i used to go to see this web site, because i wish for enjoyment, for the reason that this this
    web site conations actually pleasant funny material too.

  10. Sling TV

    After I initially left a comment I seem to have clicked the -Notify me
    when new comments are added- checkbox and from now on every time a comment is
    added I recieve four emails with the exact same comment. Is there a way
    you can remove me from that service? Cheers!

  11. Sling TV

    For most recent information you have to go to see
    world-wide-web and on the web I found this website as a best web
    page for most up-to-date updates.

  12. Sling TV

    Valuable info. Lucky me I found your site accidentally, and I am
    surprised why this accident didn’t took place in advance!
    I bookmarked it.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>