Recently by Simon Black: In Case You're Wondering Why I Spend So Much Time Down Here…
The idea of international diversification is a simple one if you live, work, hold investments, own property, structure your business, store gold, etc. in the same country as your citizenship, then you truly have all of your eggs in one very fragile basket.
If just one little thing goes wrong, whether its a court case, divorce settlement, political instability, government agency administrative error, or some noxious bureaucrat whos out to get you, all of those aspects of your life can be put at extreme risk.
The idea of planting flags, or diversifying internationally, involves spreading these aspects of your life across multiple jurisdictions and territories overseas. Banking in one place. Setting up a brokerage in another. Investing in another. Storing gold in another. Owning property in another.
You can do this with dozens, potentially hundreds of aspects of your life and/or business using an offshore email account, obtaining medical treatment overseas, seeking personal companionship abroad, setting up an overseas credit card processor for a web business, initiating an IPO for your company on an overseas exchange, foreign health insurance, etc.
Taking these kinds of steps can make your life much, much easier. Suddenly all of those aspects of your life no longer fall under the jurisdiction of your home government; legions of blood-sucking bureaucrats no longer have access to confiscate your assets and frustrate your life with a few mouse clicks.
Potentially the most important and most powerful aspect of your life to diversify, however, is citizenship. I view this as the ultimate insurance policy something that you hope youll never have to use, but youll really be glad you have it in case you do.
Having a second citizenship is like having a get out of jail free card. It creates options. No matter what happens in the world, youll always have a place to go. Youll always have a ticket out. And as Im fond of saying, nobody ever hijacks an airplane and threatens to kill all the Lithuanians. Second citizenship does bring a greater sense of security.
Obtaining citizenship, however, is elusive for many people. Some people are lucky enough to come from a line of Irish, Polish, or Italian ancestors. For most, though, it takes a combination of three things:
If youre willing to simply pay for it, there are certain countries like St. Kitts and Dominica which offer citizenship to people who are simply willing to pay. Most folks unfortunately cant afford the $250,000+ price tag thats required, so that leaves the other two.