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How to Build an Exceptional Offense

5-7-2017 < SGT Report 57 836 words
 

by Simon Black, Sovereign Man:


Today I’m going to show you how to build a strong offense.


Once you have a strong defense that protects everything you have, a good offense positions you for gain.


It helps you move the ball down the field, grow your wealth and achieve exceptional investment returns… all while taking minimal risk.


Step #1: Invest outside of the mainstream


When I say outside the mainstream, I don’t mean weird or highly risky. I mean beyond conventional wisdom… in other words, beyond stocks and bonds.




In fact, I always look for smart investments that have high risk-adjusted returns.


In other words, I would prefer an investment with a 9% return and little risk of losing my capital over a super risky investment that could return 25%.


And the best way to ensure that is to buy:


(1) High-quality assets


(2) Managed by competent people of integrity


(3) At prices that are at/below intrinsic value


There are plenty of high-quality assets out there today. But finding anything at a decent price is next to impossible.


The stock market is at an all-time high. Companies are selling for huge multiples of their earnings – like Amazon, which trades at a price-to-earnings ratio of 180.


But if you look outside conventional investments, you discover a whole, new world of opportunities.


Things like… deeply undervalued international stocks, secured peer-to-peer lending, private businesses, agricultural real estate and even royalties of songs.


For example, our colleagues at Silver Bullion, the most advanced bullion depository in Singapore, have created a peer-to-peer lending platform where investors can loan funds against gold and silver, typically backed at a 2:1 margin, at deposit rates up to 6%.


In other words, you can lend $50,000, and earn a strong, 6% return while your money is backed by $100,000 worth of gold and silver.


If something goes wrong and the borrower doesn’t pay, the lender has substantial collateral to ensure his investment is made whole.


Again, 6% might not sound like a lot when you have stocks like Tesla returning around 80% this year along. But eventually Tesla’s valuation will come back down to earth.


And on a risk-adjusted basis, these types of investments are very strong performers and make sense for anyone to consider.


These are the types of safe, unconventional investments we look for at Sovereign Man. And we’ve found a handful of excellent opportunities for anyone looking to park some cash in a safe place and earn solid yields.


For example, our Sovereign Man: Confidential Members have access to a similar peer-to-peer opportunity that is paying 12% interest per year.


Step #2: Legally reduce your taxes


Remember this point…


Taking legal steps to reduce your taxes is the highest return on investment you’ll ever make.


Think about it– cutting your tax burden can “boost” your investment return by 10%, 20%, or more, without taking on any risk.


I know this is a bold proclamation, and maybe you think lowering your tax burden is immoral and unpatriotic.


If that’s the case, I’d encourage you to stay open-minded about this topic. I wont’ get into the details here, but I actually believe I have a moral obligation to reduce my taxes by as much as possible.


The truth is, governments all around the world have demonstrated over and over again that they are terrible custodians of money. They’re unable to manage it effectively and are squandering most of it.


You are much more capable at deciding how your money should be used – and where it will do the most good for yourself and the world.


It’s not immoral or unpatriotic. It is sensible and smart.


And I’m not talking about anything illegal here. Committing tax evasion or fraud is one of the worst decisions you could ever make, considering the harsh penalties and the abundance of legal, no-brainer strategies to reduce your taxes


There are simple steps available to everyone, such as restructuring your retirement accounts (more on that below), but also more advanced strategies if you have your own business or are willing to move abroad (even if just temporarily).


Step #3: Liberate your retirement savings


Most retirement plans are confined to your backyard. If you have a US retirement plan, you’re allowed to invest in government bonds and the US stock market.


But what if US stocks are overvalued? What if you don’t want to loan money to the government?


With a more robust structure like a self-directed IRA or solo 401(k), you’ll be able to open up an entire universe of new investment opportunities…


Private investments. Cashflowing royalties. Cryptocurrencies. High-interest foreign bank accounts. Safe, secured lending opportunities.


All of these options are available with a more robust retirement plan, allowing you the chance to generate higher returns without the cost of paying some Wall Street firm to manage your account.


And at the same time you can significantly reduce your tax obligation– beating two birds with one stone.


Read More @ SovereignMan.com

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