Please see the following interview with Peter Macfarlane of the Q-Wealth Report: an information and advisory specialist in wealth creation, asset protection and offshore banking. We would also recommend subscribing to the Q-Wealth report free online course and newsletter (details towards the bottom of the interview).
1) Can you give us some background history to yourself and your organisation? After growing up in England and studying in London, I spent over a decade globetrotting and successfully advising high net worth individuals on offshore finance, asset protection and tax mitigation. During this time, I was a regular contributor to ‘the Q’: a private wealth and finance newsletter. In 2006 I was invited to give presentations at some investor seminars in Panama and based on those, I saw how much potential there really is to generate real wealth offshore, rather than just protect assets. Soon after, I took over as director and joint editor of the Q Wealth Report.
2) To most investors, it would be fair to say that the notion of ’offshore banking’ conjures images that they are breaking the law (often unjustifably) - what is your response to this? Unfortunately that is the general impression conjured by the mainstream media, which is generally in favour of big, expensive governments. But smart investors don’t fall for this. There is nothing illegal about going offshore. Almost every big company or rich individual already uses offshore investment and banking structures. Indeed, far more dirty money gets laundered in London or Miami than in any offshore banking centre. In fact, ‘offshore’ really just means anywhere outside your own country. Tax is really not a major motivation for most people going offshore today. Offshore investing is no longer about hiding money. People who persist in trying to hold money in secret bank accounts will likely get caught. There is so much more to offshore banking and investing than that. International diversification can enhance security, increase returns exponentially, and best of all, open up new and exciting opportunities. Many of my clients who are choosing to go offshore today are much more concerned about the wider picture – for example will the Euro, Pound or the Dollar devalue? In my view, it’s likely that all three currencies will take a big hit soon. The offshore strategies we teach people about can protect against the effects of these devaluations. Indeed, they can help people make fantastic profits in turbulent times by playing their cards right!
Finally, my advice is always that people should follow their money – as more and more people are doing. I mean, they should physically move offshore themselves – for a better, freer, lower cost lifestyle. Provided they are not US citizens, the moment they move offshore they are no longer subject to tax in their country of origin. A Brit who moves to a tax-free haven like Andorra can legally eliminate taxes at a stroke.
It is the small guy who bears the greatest tax burden. That’s why governments and big corporations want to stop people going offshore, using negative publicity. We are all about empowering the average person, in a non-conflictive way, to simply opt out of paying taxes legally. Of course, governments and big corporations don’t like this. But illegal? Most certainly not.
3) Are you not concerned with with the issue publically announcing the work you do potentially bringing your strategies to the attention of government and global tax authorities (who want to ultimately maximise their tax revenues)? Not really – I am not teaching people about loopholes that can be closed. I am giving people the nuts and bolts they need for a new way of doing business and running their lives. Do you remember how government employees used to be called ‘civil servants’? The point is, you should be the boss. Governments should be our service providers, not the bullies they have come to be. We should be able to pick and choose those service providers in a free market. Doing business internationally or over the internet allows us to do that. Ultimately, governments all know that certain incentives, to attract foreign investment for example, benefit everybody. They are not going to withdraw them. After all, politicians certainly don’t want to give up their tax benefits and offshore bank accounts! So I may be a little high profile, but the techniques I teach clients about are distinctly low profile with no risk of running afoul of governments.
4) What do you see as the major benefits? Simply, ultimate freedom. We show readers how to break free both personally and financially, to create and grow wealth beyond their wildest dreams. For me the biggest thing is when you reach the stage where you are not legally required to file a tax return anywhere. That in itself is a feeling of pure freedom, that goes way beyond money! Remember, to achieve it is easier than you might think.
5) How simple is it to decipher offshore tax strategies? I always advise people to keep it simple. Above all, as the client, you have to understand what you are doing. Breaking this rule can be dangerous to your wealth and freedom. That is why we publish Q Wealth: to empower people with know-how… strategies they can understand. I know there are companies out there who try to make the offshore world look very complicated. They usually have a vested interest in selling complex and expensive legal structures that 99% of people don’t need.
6) Would offshore tax strategies vary according to a person’s resident country? Absolutely, there is no ‘one size fits all’ strategy. Country of residence and citizenship are major factors. So is the country where you earn your money, if that’s a third country.
7) Where, in your view, are the best countries for offshore tax investment? The point about going offshore, for me, is freedom. Freedom to invest where you want. Business should be the primary concern, then it’s the job of me and my team to advise you on making your investments in the most efficient and private manner possible. It has to start with the business case. A lot of offshore planning boils down to moving investments around the world on paper. Even the banks we work with can move your account from country to country at a moment’s notice if you want. The beauty of today’s globalised economy and offshore planning is that you can invest in a business; jurisdiction is no longer important.
8)Are offshore tax rules and regulations subject to regular change? Yes, unfortunately rules change all the time. That’s just the nature of the beast and that’s why it’s so important to keep up to date. You can do this by reading The Q Wealth Report, our free weekly Q Bytes e-mail newsletter, or by attending our twice-yearly Q Wealth Events.
9) As many of our readers are UK property investors do you have any specific offshore tax advice? The only serious way to benefit from offshore planning on UK property investments is for UK non-residents. We have plenty of experience of that too. I’ve seen more than a few people leave the UK ‘temporarily’ for tax purposes, but once they discover how much better they can do operating from offshore, they would never consider going back!
10) If someone is at the start of their investment career, would you recommend developing an offshore tax strategy – or would it be better to wait until assets have been accumulated? In general it is always better to structure things right from the very start: the savings and asset protection can be greater this way. If it’s done a particular way from day one, nobody can later claim that the arrangement is a sham. That has to be balanced against the cost, of course. Setting up offshore does take money and some people don’t have the spare capital at the beginning. But we do have solutions for all levels. The best thing is to come along to one of our events, where we frequently cover this topic. For example at our next event, scheduled in Ireland in September 2010, we will be dedicating the first two days to ‘Offshore Wealth Creation’ – this is particularly aimed at people who are just starting out and want to know how to make money offshore. And we’ve deliberately kept the cost of the event lower, to accommodate these investors. Our view is that if we can help people from the beginning and they can see our strategies working for them, we gain a loyal client for life. And long term relationships are the only way for us to succeed long term!
11) What are the first major steps one should take? First you need to know what business you want to run. My job is not to give you business ideas or opportunities. My job is to show you how to implement them internationally (although we do frequently find a lot of deal flow gets going at our events, as creative minds get talking to each other). So brainstorm and then figure out where you are starting from: how much capital you have, what you can afford to save, what you need to live on and so on. Be honest with yourself. Then, invest in yourself: never do anything you don’t understand, however attractive it may seem: that is a surefire way to lose money in the long term. So read all you can, on the net, books, courses etc, and get hands on experience first.
When it comes to offshore banking and investing , visit your banker. Get to know them. Typically offshore banks are very service oriented – no anonymous call centres. You will always deal with the same person. Make friends with your banker. Buy them lunch. Business is all about relationships. Of course there’s a lot more you should do after that. But what you know and who you know will get you further than anything else in life… and once you have this it’s yours to keep, no matter what happens!
12) Please can you let readers know about how they can get in touch with you and find our further information. Yes, simply visit http://www.QWealthReport.com. There’s plenty of information there about what we do, and our upcoming events. Be sure to sign up for our weekly Q Bytes newsletter, which as I said is completely free and without any obligation. We also offer a free five-part course called ‘Secrets of the Super Rich’. Essentially, if you like what I said here and would like to know more, it’s all explained in much more detail in this free five part course: you can sign up for it instantly directly from our home page.
