“Going Offshore Was the WORST IDEA EVER"

going offshore could be the worst idea ever says one commenter who actually brings up some of the major fears and major concerns that I hear from folks from time to time about being a nomad capitalist about how to reduce your taxes about how to live overseas and how to take advantage of new opportunities well today we're gonna go through a word by word one comment that touches on a lot of the hot-button issues people have touches a lot of the fears a lot of the concerns we're going to start right now [Music] hey guys I'm Andrew Henderson and I'm bringing out the laptop for this one because I want to go through word by word and cover all of what is in this comment that basically says why going offshore could be the worst idea ever this comment is from a gentleman named Leon and I'm gonna go through and read the comment very quickly and then go through each of the arguments in the comment so Leon says of course going offshore will reduce your taxes he put offshore in quotes for some reason but people should be aware of major downsides which Andrew doesn't mention here you should ask yourself lots of questions such as can I continue to live in my home country the answer's no can I spend any significant time in the other western country such as UK US Australia New Zealand if the answer's no are you prepared to deal with the hassle of foreign banks and the constant business and personal administration which is forever changing do you want to spend months or even years telling of new structures that will make your life more inflexible than they were before you started do you want to live in countries with extremely different culture such as Malaysia Montenegro or Georgia all of which are far less developed than what you're used to going offshore is a big deal I know many people who have regretted spending the time and money simply to save on taxes if you want to move abroad for many years then going offshore can certainly be a good idea but do not do it to simply save money you'll regret it I'm speaking from experience now what I've said from the beginning and I've said especially in recent years is this is not for everyone you know what I've said is go where you're treated best is a variation of vote with your feet and what I've said is a guy who comes from the United States California state with the most punitive tax enforcement agency on earth some of the highest taxes on earth the highest regulations most difficult places for business seemingly has attracted some 40 million people who decided that that was the best place to be now I spent time in California doing business and I heard a lot people whining but how they wanted to get out just had a friend who thirteen years after he told me I wanted to leave finally left went to another state listen if you live in a place you are voting with your feet and so you know for most people Nomad capitalist is not for them the same thing with entrepreneurship which I've been doing since I was selling stuff door-to-door at eight years old that's not for most people you know I I don't imagine that this is something that is for everyone I think that what we talked about is if you are a successful entrepreneur if you're a successful investor the rules in the world are changing things in the West things in the high-tax countries are getting worse taxes are going to go up debt levels are going up freedoms are going down and it's nice to at least have options one thing I've been saying throughout this current situation that's going on right now is you may not want to move but you want to have an option you want to have a second passport that you can do without having to change your lifestyle drastically you know you might want to have some money in another country to protect yourself because the bottom line of what we talk about here is having all your eggs in one basket it's a bad idea and having all your your eggs in one country's basket is a bad idea now let's go through this word by word leon says of course going offshore reduce your taxes but people should be aware at the major downsides which of course andrew doesn't mention here while andrew has 900 videos just a quick aside andrew has 900 videos we can't make every video 7 hours long and cover all the caveats I'm gonna watch any of the videos and we cover most of the stuff in here now you should ask yourself lots of questions I happen to agree I think talking to your spouse your girlfriend your boyfriend your kids whoever's involved in your plan if you're not single is important I think planning is important I think the problem with a lot of people and I saw someone talking about this recently was or is that a lot of people especially kind of the digital nomads set they just leave their country and figure hey what are they gonna do to me you should ask yourself a lot of questions you should be prepared you should be dialed in you should make sure number ones it could fit for you and you should ask questions of what do I need to do because this stuff needs to work holistically simply leaving your country and hoping the rest of it will work out is not really the solution so you need to ask lots of questions now those questions here are can I continue to live in my home country the answer's no somewhat true depends on your country there are different types of countries we've talked about here before some countries don't have tax some countries have a lump sum tax now if that's your country you're probably are going to be ineligible for that but there are certainly some people's countries are tax friendly if your countries of Western country then yes you're gonna be spending less time in your home country how much less depends on the country if the goal is spending ten months a year in your country that's gonna be a tough putt for most people all right sometimes people will come to me and say hey Andrew you know what I'm willing to take a few vacations every year yeah so are we alright that's not gonna work okay you do need to spend time out of your country can you never go back to your country can you spend zero days a year in your country no that simply Falls you can probably in many cases spend a number of months in your country but is your lifestyle gonna change if you want this this if you're running as the average small business and you want to take advantage of offshore stuff yes the answer is going to be yes but it's not as draconian you're not bowing to never return you're not giving up your citizenship you don't have to and so that's that can I spend any significant time in other Western countries such as the US UK Australia and New Zealand the answer is no again largely true the Devils in the details and so we have had folks where through a lot of painstaking work on tax fronts in numerous different countries you know people can largely live in the Western world they're travelling between different homes that they own we had one gentleman who was going between a couple of European countries the US and I figured the other one now but his entire life was Western countries can you spend all of your time in one of these countries well what what we're not considering here is and the growing number of Western countries have non Dom tax programs lump sum tax programs where you pay one low fixed price tax exclusions where a certain part of your income or in some cases all of your income is excluded from tax there are some Western countries that have been lowering their taxes you know you can run a corporation in that country maybe the tax rate is you know twelve or fifteen percent there are countries like Andorra there is Hong Kong there's Singapore there are you know countries in the EU that are making it a bit more favorable so if you're paying fifty percent somewhere and you can go and pay even twenty five percent somewhere else you may not be zero but there are options and so I do think you can spend in Western countries the other thing that I would suggest however is what is this obsession with Western countries okay for me the beauty of this is number one knowing it's not permanent if you want to do this for a year three years five years ten years you can do that when I started this journey I said I'm gonna spend a year fully outside of the US and I did that because I knew I wanted to do it permanently but I wanted to give myself in my ego at the time the ability to just you know to say okay I did my year back I come if I decided for whatever reason to cancel nothing you're not making decisions in the most most cases for the rest of your life okay but what I would say having that in mind is you know I'm from Western country why do we need to focus only on Western countries why are so many people so concerned about this and I'll tell you you know what I've said is every country's a brand name and so if you are living in the United States if you're living in Canada or Australia you've probably been told this is as good as it gets and there's nothing better and if you go to the end of those other countries you're gonna be miserable I can tell you personally I like the increased levels of freedom I like the lower cost of living I like the nicer people when I was a single I liked the the you know the better social opportunities I liked all those things outside of name-brand countries and so this idea that you know not being able to go to New Zealand I mean if you're from New Zealand I understand for everyone else I don't I think you can live with that New Zealand now are you prepared to deal with the hassle of foreign banks quite frankly I think a lot of the foreign banks there are plenty of foreign banks that are a hassle by the way and I've just started to you know get rid of them we keep a spreadsheet of over a thousand banks that we deal with and we call more than that every year and try and build relationships I can tell you I get a lot less hassle from my banks in emerging countries or in like Asian wealth havens than I do in the US I've told the story numerous times when I sold my house in the United States and the escrow agent called and said where should we wire you the proceeds I said can you send it to Singapore and she said what's that that's not a hassle right someone doesn't know like a country where that's located now what I think people should be aware of is you know when you're transitioning from one country's banking system to another or when you're introducing a new banking system obviously some things are gonna be different so for example you know he mentions Georgia we've talked a little bit Georgia Armenia countries in that region what's different there is if you want a debit card for example in the US you've just got a checking account and then you get a debit card attached to that in Georgia for example it's here's your card account in other European countries to here's your card account and here's your current account and here's a savings account and you can like move money back and forth but you might not keep a lot of money on the card right and so you might have to move money over to the card account so that's a little different but quite frankly I think that the online banking in a lot of foreign countries is better so I'm not really sure what the hassles are there certainly are some banks that are that are a hassle but not a lot are you also prepared to deal with the constant business and personal administration which is ever forever changing I'm not exactly sure what that means is Business Administration changing wall you know again where I come from the United States a couple years ago they passed the tax cuts and Jobs Act was the biggest and really only I guess tax total tax reform in 31 years at the time and what happened things changed forms changed new procedures came about and you know for a while not everyone knew what to do right because it was a new procedure happens all the time in different countries you can have it on shore it can have an offshore now again there's an importance to have a network of people overseas because you know I despite being out of the United States for many years now still know a lot of the basics you know Social Security and how does this work how does that work you may not know that stuff for a while you know with your new UAE company or your new Hong Kong company or whatever but you need people there who can help you make sense that make sure you're in compliance and if you have the right people this is what I spend my time doing is going through people testing people figuring out who's good getting rid of the rest you know I think you can build a network of good people who can help you the same way if you move to the United States the way people like Li and say us whatever wants to do if you move to the United States and you didn't know what to do there you'd have to hire someone to help you and so you can do that obviously if you can't go to a country where you know there's not so many people there then that may not be the best country but there are you know in a numeral number of options you know business and personal administration I think things are changing everywhere I'm not entirely sure what more to to say about that you want to spend months or even years setting up new structures that will make your life more inflexible than you were before you started again if you're determined to make it inflexible you can make anything inflexible you can make your life as difficult as possible now are you prepared to spend months or years what I've talked about is I wish there was a no man capitalist when I was becoming the nomad calculus before I even said hey I want to be the nomad capitalist I was researching and studying and dipping my toe into this stuff what it's taken me all these years to do you could come to me we generally help people when we're executing plans we'll generally spend a year that's the that's what we provide and we will execute a lot of the services in a matter of months and some of them in a matter of weeks and then there'll be extra time left over to wait for approvals or provide support and so there's a big difference there between me you know spending over a dozen years now studying this stuff in someone else being able to do most of what I've accomplished in those years in a matter of months in many cases because we know what to do we move quickly we move efficiently and so doesn't have to take months months or years now you know if you want to go and get all your advice from a forum somewhere where they they whine that people like me charge money and they just want to you know the worst thing that could ever happen to these people is ever paying someone a dollar yeah you may and you may realize that you know you know fart sniffer 747 is not the offshore expert that he pretends to be in a keyboard it may take you month months or years right but if it's being done properly with properly vetted people it should not take you years to set up a structure what I have seen as an issue is people set up a company I had a guy a couple years ago in Hong Kong couldn't figure out how to plug in a merchant account to a Hong Kong company so it's sat for 10 months while he ran around kind of you know going from from person to person to person trying to figure out how to make this whole thing work instead if you figure out what to do beforehand if you build the instruction manual beforehand you know you you make your own kind of like IKEA how to put the table together a guide before you do anything then you can just go ahead and build the table very quickly and it won't take months or years so the months or years is not really how it's gonna work now is your life nobility flex it less flexible I don't know I quite frankly don't see the difference between running a corporation in one place and a corporation in another place again it takes some time to adjust to and it's part of the reason why people ask me you know Andrew why don't you talk to people who are making $50,000 a year well because if you're making $50,000 a year and your tax goes for grant it may not be worth the hassle for four grand but if you're making $50,000 a week I think you can figure out a different internet banking login you know when it comes to you know saving a million bucks a year now do you want to live in countries with extremely different cultures such as Malaysia Montenegro or Georgia all of which are far less developed than when you're used to yes actually I personally do now do you one thing that's been interesting is I've gone all around the world is I've noticed we are different different countries do have different cultures I tend to find that outside of the Western countries that this gentleman holds in high esteem you have a lot more freedom they leave you alone I like that and again I think people are nicer in some of these places not all of them but some of them Malaysia is an example is the culture extremely different in some ways no in some ways for all human beings there's a lot of similarities now there are certainly countries where it is extremely different I was in Vanuatu a couple years ago I would not live in Vanuatu some people like it they like you know it's on the edge of the world and its beaches and it's kind of rugged it's not from me I can overlook the fact that on the other hand Malaysia certainly is an example there is some different culture the one thing that's I've had the hardest time adapting to is that outside of the Western world people are a bit more laid-back they may not be as timely you know if you go to Columbia for example right I mean everyone's two hours late you know there are countries that just not a hurry and so I'm a pretty type-a guy and that's been frustrating at times so there's certainly our differences in culture what I can tell you is I grew up in the United States and I never felt like I belonged in that culture do you know what I didn't like about that I didn't like grown women coming up to me and making fun of me for wearing a scarf so you know what on that point having a different culture was actually a good thing for me where it's like you wear a scarf that's go nice scarf right so I think for some people you know you'll see benefits you'll see some drawbacks for me the answer is yes I do want to live in these countries now are they far less developed than what you're used to quite frankly and I was interesting I had a friend of mine who went back to visit where he's from in the American Midwest he lives in Eastern Europe went back he was driving in the Midwest he said the roads are better in Eastern Europe the world is changing and I've said this many times you know Malaysia 25 years ago you wouldn't live there now you can and so it you know if you're just looking at the perspective of you know people who don't travel I'm not saying this gentleman doesn't but I'm saying just the greater population is not traveling they're not out there you know they don't know what's going on in Malaysia or Georgia and so oh it's just less developed these countries are really picking up some of them you go and drive anywhere in the Middle East I mean you're gonna see the most pristine roads you've ever seen Georgia they did a great job you know mikhail saakashvili you know speaking at nomad capitalists live president of georgia reform the place a lot of great roads now if you're driving in some village maybe but this idea that development in the United States I can tell you right down the street from my house in Kuala Lumpur is probably the world's number one mall you've never seen more places to eat or shop or spend money or buy the most expensive stuff you've seen you want to buy a $40,000 our kitchen table there you go so you know you may not have Amazon you have an inferior version of Amazon but in terms of development the things that you're looking for some of the best hospitals in the world some of the best malls in the world in Asia you know all over the world I think you're seeing a lot more development than you used to and I think if some people don't want that much maybe they don't want as much developer I mean they want their freedom maybe they want that but I think there's something for everyone where you can deal with the culture you can deal the development gonna be a lot easier than you think in most cases if you're willing to dip your toe in and have an open mind now going offshore is a big deal I happen to agree with that I know many people have regretted spent the time and money simply to save on taxes and so you know whether you'll regret it listen it's it's unfortunate that Leon regretted it and perhaps you know Leon thinks that you know by by telling you how he regrets it that you're gonna say well that's right just forget the whole thing and listen if seeing a comment in YouTube says forget the whole thing then you know what you should you know for some people I'll be honest there are some people who are in this audience and people who are watching this video right now this is a fantasy this is a way to sit and escape the world it's a way to say imagine I had passports and you picture yourself on like a cigarette boat going down you know the the bosphorous with your you know supermodel girlfriend and having your three passports and you know telling people about your monaco bank account right you know there are some people who that that's what this is and you know it seems nice but the minute it comes to doing something they're not going to and so you know what I've learned is everyone can have a different experience what I've also learned is if you do this it doesn't have to be forever but I think that if you have the mindset that this can be just as good of a way to live you can save a lot of money which can go to build your net worth create wealth you can do so in a more diversified way taking advantage of opportunities that are all around the world versus just investing where you're from we're probably the yields aren't as good and returns on as good the government is more apt to come and just take your investment because that has happened in the US and other countries and this is the opportunity you have just to go out and to do that if that is an appeal to you that's fine and we can still be friends and I'm happy to entertain you with these videos I wanted to share this with you because I think it's worth seeing one alternative view what I've also said is for me it's not just about tax in fact I want it what I've said before is my initial desire to do this had nothing to do with tax it had to do with cost of living better social opportunities just feeling like I it in and also once I once I've started visiting you know three or four countries I said myself I want to see where the opportunities are in the world I remember going to China and Hong Kong and saying like wow this is the future Asia is the future and I wanted to be part of that you may not want to be a part of it but the bottom line is you can pick and choose what you want that's why I go where you're treated best is is so relevant you can just make those investments you can stay living where you live now if you want to do The Full Monty you can go overseas dramatically reduce your taxes save a bunch of money invest that grow wealth quite frankly from my perspective I don't think you're gonna like your life any less I think you'll find that you like may be different the outcome may be different but you're actually can end up pretty happy if you go into it with an open mind so those are my thoughts I'd like to hear your thoughts leave a comment below what do you think what good points do you think that I made what good points do you think Liam made what are your concerns what are you scared of I want to know maybe this is just something that's entertaining for you and if you want to comment on that then I'd be happy to hear about that too I want to hear what you think about this how can no mad capitalist help you four ways number one subscribe to our Channel and click the notification bell to make sure you get our new video every day number two get a copy of nomadic capitalist the book you'll learn a lot of my personal experiences over a dozen years of studying this stuff as well as exactly some of the strategies that you can use to build your nomadic capitalist plan number three if you're not sure where to start but you want to come and learn from my team and I you want to come and mingle with like-minded people learn more about our live conference no mad capitalist live it's coming up soon and number four if you want some help right now because you've got a burning issue you need something solved you want to lower your taxes get a second passport or build the Nomad capitalist lifestyle of your dreams go to Nomad capitalist calm and click on become a client

Channel: Nomad Capitalist

Views: 25,456

Rating: 4.9205561 out of 5

Keywords: nomad capitalist, go where you're treated best, offshore banking, offshore banking business, tax reduction strategies, reduce taxes, avoid taxes legally, pay less taxes legally, zero tax countries, low tax countries, renounce us citizenship, moving overseas, banking offshore, georgia bank account, online banking, go overseas, how to go overseas, how to pay less taxes, save taxes, live in malaysia, going offshore, save money on taxes, entrepreneur advice, wealth creator

Id: QtiOCtRl5fg

Length: 22min 47sec (1367 seconds)

Published: Wed Jul 22 2020