May 2011 Archives

Entrust to Teach Investors About Offshore Real Estate Investing with An IRA

Paradise isn't lost, even in the wake of a devastating financial crisis that saw many Americans' retirement savings vanish. It's still possible to retire in a dream destination, and The Entrust Group will show IRA investors some of the ways to get there with "Offshore Real Estate Investing," a live webinar scheduled for June 14 at 10 a.m. PDT. Host and Entrust Principal Catherine Wynne will explore different approaches for purchasing foreign property in an IRA, and how IRA-holders can live in the property once they've retired.

"Many people may think that offshore IRA real estate investing sounds complicated. Like any other offshore investment, it takes research and due diligence," says Catherine Wynne. "With this webinar, we aim to provide investors key information to assist with informed decision making. International investment opportunities abound for those with the skill and patience to work their way through the process."

The June 14 webinar is the third in Entrust's national webinar series, which addresses a range of topics from the basics of self-directed retirement plans to the multitude of investments possible within them. Each 60-minute webinar, hosted by a knowledgeable presenter, includes an interactive question and answer session so attendees can get the most out of the curriculum. "While we offer an extensive local network of educational events, we're excited to be promoting a new series of national events online," says Hugh Bromma, Founder and CEO of The Entrust Group. Other upcoming webinar topics include Health Savings Accounts (HSAs), Education Savings Accounts (ESAs), and prohibited transactions.

About The Entrust Group
For 30 years, Entrust (theentrustgroup.com) has provided account administration services for self-directed retirement plans. Entrust assists clients in purchasing alternative investments with their retirement savings and administers investments that are typically unavailable through a brokerage firm. Entrust's goal is to educate and empower individuals to take charge of their retirement through the use of self-directed IRAs and tax-advantaged plans. The company provides administration and record keeping services so that individuals have more time and freedom to determine their financial future through a wide array of tax-deferred or tax-free options.

Crude failed to close positive but was able to post a new high. Momentum has started to shift bullish again and on a close above the 18 day MA at $101 look for more buying to appear. A bearish AGA report contributed to natural gas being down on the day but losses were pared with a close nearly 15 cents off the intra-day low. The 100 day MA supported the indices again today and as we hinted yesterday forced into the market we would rather be long than short. A close above the 50 day MA which should happen today gets bulls back in the driver's seat.

The dollar was lower for the third consecutive session and as we predicted should be making its way back near 74.00 in the June contract. Our favored play is longs in the Swissie and Pound. Inside day in live cattle...accumulate longs looking for first the gap from last week to be filled and then an eventual test of the 20 day MA. Silver closed down 1% after trading within 25 cents of the 50 day MA overnight. On a breach of that level expect a further appreciation of $2-3 ounce...we should know in the next few sessions. We advised clients with multiple positions to lighten up on longs. Traders searching for metals exposure outside of silver could lightly buy gold...today some clients bought October bull call spreads.

Cocoa was higher by 1.6% today as prices have started to move...our target is September is a minimum of 3200. October sugar is back over the 200 day MA...we suggest buying dips as our target remains 25 cents/lb. Grains closed positive today but were unable to hold onto much of their gains. Aggressive traders can gain bearish exposure and grains bulls should wait for a dip to buy new crop contracts. We expect new contract highs but not before we get a break in corn and soybeans...again my opinion. Futures traders in the debt complex should cut losses on today's new high. Option traders should wait for a set back to cut losses in 30-yr bonds and 10-yr notes.

Risk disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results.

Matthew Bradbard
MB Wealth Corp.
(954) 929-9898

matt@mbwealth.com
www.MBwealth.com

Trading in commodity futures and options involves substantial risk of loss. Past performance is not indicative of future results.

In a region that stretches from Morocco to Kuwait and covers terrain from mountains to desert, the range of economic activity in the Middle East and North Africa (MENA) is as varied as the geography. The rich diversity of economies provides numerous sectors primed for private equity (PE) investment. "In terms of sectors, each country has its own sweet spot," says Fadi Arbid, chief executive officer of Amwal AlKhaleej, a leading Middle East-focused private equity and alternative investment firm and the first to be headquartered in Saudi Arabia.

Investors are now scrutinizing each sector in the wake of the global economic downturn that swept through the region in 2009, and the Arab political unrest that erupted in 2011. Funds are focused on markets where economic growth is driven by solid fundamentals and sectors that are resistant to the fluctuations in the global economic cycle. "The sectors are defensive and less speculative," notes N. Bulent Gultekin, professor of finance at Wharton and a former central bank governor of Turkey. "There are the same shifts in the U.S. as well."

Targeted MENA sectors include health care, education and consumer-related businesses that offer growth or turnaround potential. Funds polled by Deloitte's MENA Private Equity Confidence Survey 2010 cited the following as the most likely to see deals over the next 12 months:

· pharmaceuticals, biotech and health care (17% of respondents chose this)

· power, oil and gas and mining (13%)

The choices are wide throughout the region. The United Arab Emirates (UAE) offers offshore oil and gas opportunities, for example. Qatar and Kuwait have seen PE investment in real estate. Algeria's key sectors are oil, gas and housing, while tourism-related businesses such as hotels, spas and transportation are attractive in Morocco. Lebanon and Jordan host opportunities in banking, pharmaceuticals, medical laboratories and technology-related business. Iraq has the potential for infrastructure investment.

Still Sector Agnostic

With so much to choose from, at least theoretically, many funds view themselves as "sector agnostic" and scan the investment horizon for the most promising values. "We are opportunity driven," says Amwal senior vice president Hani Halawani. "We are sensitive to value expectations, which is why we don't pursue a lot of the opportunities that we see." However, he notes, most of the opportunities that Amwal identifies come from sectors such as education and health care that the firm is actively monitoring.

"We have not seen so much of a sector focus so far," says Bassam Yammine, managing director and co-chief executive officer of Credit Suisse in the Middle East. "Most funds are opportunistic. They look at a deal to see if it makes sense and then do it." Firms tend to be more country-focused, Yammine says.

But investors throughout the region may increase their focus on individual sectors as industries consolidate, he adds. Such a sector-oriented approach could also help firms identify opportunities that lie beyond industries that are already congested with investors.

However, Amwal's executives tend to disagree with an outlook that favors specialization for PE funds today. Given the current business environment of deal scarcity and capital abundance, many of the general partners that launched specialized or sector-focused funds six years ago have reversed direction and broaden their mandate to become more opportunistic. Very few, if any, industries in the region warrant a specialized fund. "Funds have struggled to be asset-class specific -- private equity or otherwise -- let alone to be sector- or geography-dedicated," says Halawani.

Investoffshore.com has seen an increasing number of clients worried about the drastic decline in the value of the US dollars, the health of the economy, the increasing debt levels and the tangible possibility of hyper-inflation. We have an established relationship with an offshore financial firm that takes a global view on investing. They can provide many solutions to hedge these growing concerns. Here are just a few investment options they offer:

Physical Precious Metals: Gold is the traditional "Safe-Haven‟ asset. Governments & corporation are expanding their use of Gold as a reserve asset and reducing their reliance on the USD. In addition, many investors use Gold as a natural hedge against inflation or USD depreciation. Purchase precious metals, such as Gold, Silver, Platinum and Palladium, and get actual bar numbers.

Multi-Currency Cash Accounts: Clients can have cash accounts in up to 10 major currencies. Clients can also purchase foreign bonds to potentially boost returns.

Fixed-term deposits: Attractive interest rates are available for certificates of deposit in the following currencies: GBP, EUR, CAD, & USD.

Equity Inflation Fund: This fund aims to provide strong gains through investments in equities that have fixed pricing power and should benefit from rising prices. Fund denominated in several currencies. Annualized return: 47%

Emerging Currency Fund: This fund aims to provide capital appreciation though investments in bonds, currencies & their derivatives in emerging Asian, Latin American, Eastern European, Middle Eastern, and African countries. Fund is available in several currencies. Annualized return: 19.7%

Natural Resource Fund: Natural resources are a great way to gain global exposure and diversify a portfolio. With the increase in global energy demand and high margins on oil & gold, this fund is positioned for strong future growth. The fund has historically produced very robust returns through investing in pre-IPO junior resource companies. Fund is available in several currencies. Annualized return: 156%

Get all of these options in one account. For more information on these investments please contact investoffshore.com or Josh VanDyk |1-345-943-4766 | josh.vandyk@batemanfinancial.com

*All investments involve different degrees of risk. You should be aware of your risk tolerance level and financial situations at all times. Past results are not indicative of future results. Read any and all prospectuses carefully before making any investment decisions. As you know, a recommendation, which you are free to accept or reject, is not a guarantee for the successful performance of an investment and we are expressly prohibited from guaranteeing accounts against losses arising from market conditions.

The Cook Islands Are A Beautiful Place For Tax Free Investing And Offshore Banking.

Probably one of least important features required of a tax haven, is beauty. But if an investor is planning on spending any time in the region where they do their banking, the Cook Islands offer a beautiful setting for tax free investments. While that is hardly an important criteria, it is something to consider.

The Cook Islands consist of 15 islands located west of Tahiti and Samoa, and east of Tonga. The islands themselves cover an area approximately 1.3 times the size of Washington D.C. There are 2 main groups of islands, with 9 islands being in the Southern group and Northern group consisting of 6 atolls, and the main island of Rarotonga being located 3,000 km northeast of Auckland, New Zealand.

While English is the official language, the native islanders are closely related to New Zealand's Maoris both in culture and traditions and speak Maori as well. Agricultural exports of black pearls, copra and citrus fruits are the major economic base and employs nearly 1/3 of the population. Foreign aid to offset trade deficits are by money provided by the New Zealand government.

The islands have their own sovereign parliament, with undisputed political power. With the legal system is based on English common law, the parliament passes all laws implemented. The islands Democratic governing body consisting of a 25 member legislative assembly, a prime minister and the prime ministers cabinet. The capital is the town Avarua, located on the Island of Raratonga. The Queen of Zealand is still holds the position as head of state there, due too the close ties the Islands have in both location and economics.

Setting aside the tropical beauty of the Cook Islands, their business atmosphere seems to favor nonresidents who are looking for a tax free haven where they can invest their money. The Cook Islands have become synonymous with high profile offshore banking transactions and offshore incorporation. With no taxes being levied on capital gains and incomes, and the lack of an inheritance tax, these islands would seem like the perfect place for moving money offshore.

The Cook Islands have laws limiting the time actions can be taken against trust assets, and the laws of the Islands overrule the laws of other countries in matters relating to the transfer of property to a trust

These things, along a governing body favorable to outsiders who's investments can only improve the Island's economies and the English speaking banking community, makes the Cook Islands seem like an ideal place for offshore banking investments mixed with a luxurious tropical vacation.

Englishman Peter Macfarlane is an author and lecturer on offshore finance, investment, due diligence and wealth creation matters. After fifteen years advising high net worth clients on offshore asset protection structures such as companies, trusts and private interest foundations, he decided on a career change and now mentors individuals who are interested in creating, preserving and growing wealth in a secure offshore environment. Peter defines wealth in the broadest sense, believing that money is worthless if you don't have health and happiness. He is now joint editor of The Q Wealth Report, a publication dedicated to publishing freedom, wealth and privacy information for a select audience. He offers a free sample copy to readers of EzineArticles. Visit the Q Wealth Report and learn more about offshore private banking.

Source: Peter Macfarlane

As the flow of wealth from many nations of tax advantaged, "offshore," jurisdictions continues the need for and profitability of offshore banking services increases virtually day by day. The problem in this picture is that as the demand for offshore banking services has increased the ease of setting an offshore bank has become more difficult throughout most of the "offshore" world. A jurisdiction that has not suffered many of the problems that inhibit other offshore jurisdictions is New Zealand. A New Zealand Offshore Financial Company provides an excellent opportunity to provide offshore banking services and avoid a number of problems that plague other offshore banking jurisdictions.

The Problem Elsewhere

For those interested in setting up an offshore banking presence in most, but not all, jurisdictions the bad news is primarily related to the United States Patriot Act enacted after the destruction of the World Trade Center twin towers. An offshore bank is typically not allowed to do business with residents of the jurisdiction in which it is licensed but its license allows it to do business throughout the world. To do so the bank will need correspondent banks in other countries. Banks throughout the world that do business with banks in the USA typically need to satisfy certain criteria based on the Patriot Act.

Because many banks are not willing to jeopardize their current banking relationships they will often not take on correspondent accounts with new offshore banks. Sometimes there are, in fact, problems with the jurisdiction or the bank involved and sometimes the bank simply does not want to take a risk of being branded by US authorities.

Because of this situation some jurisdictions no longer offer offshore banking licenses. Some still do but the problem of getting correspondent banks remains so that it has become very difficult to actually do any banking even if an individual or corporation has obtained a license and set up an offshore banking business.

The Opportunity in New Zealand

A New Zealand Offshore Financial Company (NZOFC), also called a New Zealand Offshore Financial Institution (NZOFI) can be set up to provide a whole range of financial services without being called or being a bank. Because there are no capital requirements for setting up a NZOFC such a venture can be entered into at low cost.

Correspondent Accounts, Shell Banks, and Problems Elsewhere

A correspondent account is an account established by a domestic banking institution. It receives deposits from and makes payments on behalf of a foreign financial institution. A correspondent account allows foreign banks to conduct business and provide services to their clients without the expense of a physical presence in that country. Typically the larger bank provides deposit and lending services allowing the smaller, usually offshore, bank to experience a lower cost of operation.

Patriotic Act restrictions prohibit banks from doing business with offshore banks that have no affiliate in the USA. This fact and a number of other restrictions make setting up and running an offshore bank very difficult in this day and age.

A NZOFC, especially with a New Zealand director, will typically not have problems setting up a working relationship with a registered bank in New Zealand.

The NZOFC Alternative

Because of the difficulty in obtaining a banking license and the difficulty, if a license is obtained, of finding a correspondent bank willing to deal with the paperwork many have found a better solution, the NZOFC

A NZOFC or New Zealand Offshore Financial Corporation is not a bank. A NZOFC will not do business with residents of New Zealand which is typical of offshore companies. However, such a company can do business with persons and corporations from throughout the world.

Setting up a relationship with a New Zealand bank will allow the NZOFC to operate internationally.

A NZOFC has no capital requirements. It can take deposits, lend money, offer wire transfer services, and issue credit and debit cards. A NZOFC can provide payment processing services, manage funds, market investments, and deal in a variety of other financial instruments and guarantees.

New Zealand

New Zealand is a good and safe place to do business and to do business from. The country is developed, safe, democratic, and pro business.

New Zealand is an island nation (two islands) east of Australia in the Southern Hemisphere. New Zealand is part of the British Commonwealth. This business friendly nation has always had a democratic government. It is politically stable and functions strictly under the rule of law. This is not a place where the laws change overnight to the detriment of investors.

New Zealand law provides for banking type services to be offered by a number of business entities including finance companies, building societies, credit unions as well as capitalized and registered banks. A finance company is unique in that it is not subject to capital requirements and is not supervised by the governing authority for banks, the Reserve Bank of New Zealand. Nevertheless a finance company can offer banking services throughout the world, restricted only in that in cannot offer services to residents of New Zealand.

New Zealand has a well respected banking system with both Registered Banks and offshore institutions. New Zealand is not on anyone's blacklist for suspected money laundering, etc. Organizations such as the Organization for Economic Cooperation and Development, OECD, do not list New Zealand as a tax haven. In fact New Zealand is a member of OECD as well as the World Trade Organization.

English is the primary language of New Zealand which was a crown colony and is a member of the British Commonwealth of Nations. The majority of law pertaining to financial institutions is based upon English banking law. New Zealand is not a European Union member and not obliged to follow the EU Savings Tax Directive.

New Zealand is a modern country with first world infrastructure including roads, air transport, telephone, internet, and health services. With broad band internet New Zealand offers no internet related impediments to doing banking business by internet throughout the world. The economy is strong and stable and its professional community functions of a level of competence consistent with the best in the world. Any issues a NZOFC may come up against will be handled professionally and competently with the highest prospects of favorable resolution.

A NZOFC

Besides operating under English banking law New Zealand encourages local investment by offshore entities to provide world wide banking services from this island nation. In order to facilitate the set up of financial companies in New Zealand the country has streamlines is rules and regulations to make the application process and running the actual business "use friendly." The lack of unduly harsh and cumbersome regulations makes setting up a NZOFC efficient and lends toward profitability of an ongoing operation. New Zealand is a good place to do business.

It is possible to set up a NZOFC and offer identical services to those which a bank would offer. However, the cost of operation of a NZOFC will be substantially less than that of a regular bank in New Zealand starting with the fact that the operation will be subject to no capital requirements. A NZOFC can offer online banking services to clients all over the world. In keeping with its policy of attracting business to New Zealand's shores such a company will have low initial costs and low operating costs compared to a registered bank.

An addition capability of a NZOFC is that it can act as a hedge fund with the attendant possibility of substantial profit. It is also possible with professionally designed financial/banking software to run a NZOFC with minimal personnel thus keeping costs to a minimum too. There are very few limitations to who can operate a NZOFC. NZOFC services are essentially bank services but the company cannot call itself a bank or use the word "bank" in it name. It is possible to obtain private label debit and credit card support also.

A NZOFC will have a director and at least one shareholder. These individuals or corporations can be of any nationality.

Although the paperwork is not extensive and is in English it is best to obtain competent counsel in setting up a NZOFC. A competent advisor will form and register the NZOFC and can maintain the legal aspects of the company. In setting up such an entity it is important to understand those with the knowledge to set things up and that they understand you. In setting up a NZOFC the principals need to have a clear idea of what services they wish to offer and make sure that those services are included in the beginning an ongoing business plan. Knowing tax consequences of the business, for example, will be something that you will want to know up front.

Clear Rules and Regulations under the Rule of Law

As a former British Crown colony and member of the British Commonwealth of Nations New Zealand is a country steeped in legal tradition and law. New Zealand laws pertaining to a NZOFC are based on English banking law, are clear, and reasonably straightforward. As we have noted a NZOFC is not a bank and is not subject to supervision or regulation by the central banking authorities in New Zealand. However, various facets of what a NZOFC does are covered in a number of laws in New Zealand. What this means is that the investor who sets up a New Zealand Offshore Financial Company can be assured that there will be surprise rulings or changes in regulations.

Law pertaining to NZOFC's are spelled out in a number of statutes going back as far as 1908 with the Bills of Exchange Act, and progressing over the years with the 1952Property Law Act, the Cheques Act of 1960, the 1969 Unclaimed Money Act, the 1971 Stamp and Cheque Duties Act, the Securities Act of 1978, the Fair Trading Act of 1986, the 1989 Reserve Bank of New Zealand Act, the Proceeds of Crime Act of 1991, the Companies Act and Consumer Guarantees Act of 1993, the Financial Transactions Reporting Act and Investment Advisers (Disclosure) Act of 1996, the 1999 Personal Property Securities Act, the Electronic Transactions Act of 2002, and the 2003 Credit Contracts and Consumer Financial Act.

This is not a list that the investor needs to memorize. Certainly none of these acts was written specifically for NZOFC's. This list is simply meant to demonstrate that the NZOFC is well founded in various statues of New Zealand law. The rules and regulations NZOFC are embedded in the fabric of New Zealand law making it a safe as well as potentially lucrative offshore business setup.

Running a New Zealand Offshore Financial Company

The principal or principals setting up a NZOFC will want to have a degree of knowledge and expertise in various financial matters relating to the services the company will offer. However, the principles need not expect to be expert in every aspect of setting up such an organization from day one. That is what competent counsel and technical experts are for. With the right people an individual or corporation setting up a NZOFC can expect expert assistance with general organization of the company, setting up a bank account in New Zealand or elsewhere, setting up the ability to provide wire services, and all aspects of the application process. With competent assistance the company can efficiently obtain the appropriate documentation and licensing necessary to operate as a bank in all but name.

Much of the work done by a NZOFC will be facilitated by a relationship or relationships with registered banks in New Zealand or elsewhere. These relationships are typically in place already through the advisor and counsel who will help set up the organization. The use of at least one New Zealand resident as a company director will often ease the way in dealing efficiently and quickly with set up and management issues as relate to banking relationships.

Investors often fail to evaluate investment results in the context of the market environment. No two investment years are equal; some calendar years provide greater opportunity to make money in certain investments than others. When judging investment results, it is important to consider the performance of an investment relative to market activity.

Long-only stock investments are typically evaluated (and rightfully so) against a long-only benchmark, such as the S&P 500 Index. Multidimensional investments such as the Lexington Keystone trading program, on the other hand, have the ability to profit from both rising and falling prices. The investment strategies employed by Lexington Asset Management seek to generate returns from sustained directional price moves, either up or down, in the futures markets, forward markets, and cash markets. Therefore, when evaluating the performance of the Lexington Keystone investment program, it is relevant to quantify the magnitude of directional price moves from markets contained within the Keystone portfolio. The Strength of Trend Index was designed by Lexington for just this purpose. It effectively measures the cumulative directional price moves from each individual market across the entire Keystone portfolio during each corresponding period.

The weakness in commodities over the last month was merely the market's way of shaking weak hands out of the market. Fundamentally nothing changes, nor does the trend of spot commodity prices.

Everyone is obsessed with watching the behavior of commodity futures markets but these are so subject to speculation that all they really tell you, from a short term perspective at least, is how emotional the crowd is. They tell you little of the fundamental or primary trend of commodity markets.

Note the behavior of the CRB Spot Commodity Index (an index of spot prices for commodities). It has hardly budged over the last few weeks and it is certainly not displaying any behavior that could be regarded as being out of the ordinary.

I think the weakness we observed over the last few weeks was merely a reflection of the market attempting to shake weak hands out of the tree. Fundamentally nothing has changed. Liquidity conditions are very positive (junk grade bonds closed at a multiweek high on Friday), the Fed/US administration seems happy to let the USD slide in a controlled manner, and demand/supply conditions have not changed at all over the last month with respect to commodities.

I think commodity prices will be materially higher by year end. Buy into any weakness, says Brad McFadden of Daily Trading Report.

Overseas Pension Information for Expats

During the past decade over 5.5 million Brits have left the UK in search of a better life overseas. Many have been financially hit hard by the recent economic downturn and the weakening on the British pound.

It has had a huge impact on incomes of those who rely heavily on a British pension or other source of income to keep them afloat whilst living overseas. Despite this financial negative many Brit's are still keen to emigrate abroad.

Spain, Portugal and Cyprus are the most popular destinations for British Expats, none however are generally considered as tax havens but do offer significant tax benefits over living and receiving a pension in the UK.

In Britain by the time a pensioner reaches 75 they are forced to buy an annuity or to go into a restrictive alternative secured pension regime, this is not compulsory if you are living abroad. Financial experts are now claiming that offshore pensions will be the next big thing. The rules of these pensions do not include obligatory annuity purchasing; they are tax free lump sums and allow pensioners far more freedom to invest into residential property and to take a more flexible income. On top of this potentially they can be free of all UK taxes on death.

If you want to move your pension overseas and make the most of the tax advantages firstly you must move your funds to a qualifying recognised overseas pension plan which was first introduced two years ago. Once your money is in one of these schemes it is no longer subject to HMRC rules. The pension provider must report your dealings to HMRC until you have been a non UK resident for 5 years. One huge benefit of opting to go into one of these schemes is that you are not obligated to receive your income in sterling which is currently a major problem for some many pensioners living overseas thanks to the weak pound.

Key benefits of opting into a qualifying recognised overseas pension plan:
• Tax free roll up pension plan.
• Funds will be held outside of wealth tax and overseas succession taxes.
• No requirement to buy an insurance annuity so that the fund can pass to benefit your heirs.
• No PAYE on the pension.
• No inheritance tax on the fund upon your death. It will continue to benefit your heirs.
• This fund can provide an annuity from a segregated part or from all of the fund.
• You can receive your income in a different currency thus avoiding expensive money transfers.

Do be aware that in some countries you are liable for wealth tax. In France you are taxed on the full value of all of your worldwide possessions. Portugal and Italy do not have wealth taxes.

If you are currently living overseas and rely on an income for the UK if you choose not to opt into one of these overseas pensions plans there are other ways of making your money go further. Spend time researching different money transfer providers who can help you transfer your money overseas with little or no fees. Using a money transfer broker instead of a bank to transfer money overseas will not only save you on international payment fees but the exchange rates they offer are far more competitive than the banks.

Vicki Kin

About the Author
You are literally seconds away from discovering The 7 Minute System. You are going to be earning in 7 minutes from discovering the secret - That's Just 7 Minutes!! Everyone and anyone can do this. All you need is an internet connection and a computer - if you've got that you'll be earning real money in just 7 minutes from now 100% Guaranteed.

For those of us who have reached above a certain threshold of wealth, private banking is the best option for solidifying our future and receiving great returns on investments. After a certain point your money is being wasted just sitting in a savings account. Private banks allow you to effectively turn profit, fast, with money you already have.

So, what exactly is private banking? Private banking is a form of specialized capital management that allows the investor guidance for his or her unique circumstance.

What makes it different from the average commercial bank? Private financing allows a more personal connection with your banker than with a normal commercial bank and allows decisions to be made that are specific to your needs and desires.They manage your wealth and allow you to make specialized investments rather than just compound a minuscule amount of interest on your money. These firms provide, along with your wealth management, savings options, inheritance management, and tax planning to their clients. These services allow you to greatly benefit from your investments in more ways than just monetary gain.

These firms use in depth asset management tools that allow you to maximize your earnings safely and effectively. These banks receive a higher return than independent investing and allow the investor peace of mind when it comes to their portfolio. These financial firms have assets in many countries around the world, allowing you to spread the reach of your investment and once again further your return on those investments.

Furthermore, these banks offer specialized loan services to allow you to effectively kick start any endeavor you wish to embark on, allowing you unprecedented access to resources that can fit your budget.

These banks provide an extensive network of experienced private banking experts that deal with clients, like yourself, on a day to day basis. These mavericks in the financial world will offer you an exclusive look at investment opportunities and offer you great advice into the inner workings of the financial world. These bankers are dedicated to sustaining and ultimately increasing your wealth to ensure the prosperity of you and your family.

To start a portfolio, you generally need about two hundred and fifty thousand dollars or more to invest to make substantial earnings. The more money you have to offer the higher priority client you become. The more you have to offer to the firm, the more they have to offer to you. They are, after all, a financial company and much of their success is on the coattails of your hard work. So, why not capitalize on something you already have.

Entrepreneurs, professionals, executives, families, friends and many more are flocking to join these banks to get some of the best some of the best financial service in the world. They turn massive profits with almost no effort, securing their lives and the lives of those around them. If you wish to do the same, join a private bank now and invest in your future.

About the Author

Alfredo Piacentini the co founder of Banque SYZ &CO is a well known private funds manager. Learn more about private banking and alfredo piacentini banchiere today at our website.

Source: Article Click

New quality business is ripe for the picking in Russia as growing numbers accumulate wealth, according to Jersey Finance, the government's financial services industry promotional body.

Christine Whitfield, Head of Special Projects, Jersey Finance Limited, has returned from a major conference in Moscow in which wealth preservation outside of Russia together with succession planning were acknowledged as key considerations for Russian High Net-Worth Individuals (HNWIs) who have established successful businesses.

Whitfield said:

"Jersey is ideally placed as a leading international finance centre to provide high quality financial services. Jersey's trust law is extremely well regarded and offers asset protection for international assets together with estate planning, which Russians now seek. In this post-financial-crisis environment, it is not only about the products but also about the reputation of the jurisdiction so Jersey's high standing in respect of regulation and corporate governance is an attractive aspect to advisers and intermediaries representing Russian clients."

"We know for instance that there is increasing interest from Russian family offices in using private trust company ownership as part of a wealth management strategy and Jersey offers this."

The event, the 2nd Adam Smith International Conference 'Wealth Management and Private Banking, Russia and CIS,' was held in Moscow earlier this month. It attracted finance professionals in private banking and wealth management, family office representatives and advisers to wealthy Russian individuals. Carey Olsen, Equity Trust (Jersey) Limited, Horizon Trustees (Jersey) Limited and Investec Trust also sent delegates to the event from Jersey.

The programme of engagement with Russia continues later in the year when a further visit is planned by Jersey Finance and consideration is being given to extending the visit to include St. Petersburg.

Why Holding Gold in Your Portfolio Isn't Advisable... It's a Must
15 Fundamental Reasons to Own Gold

1. Global Currency Debasement
The U.S. dollar is fundamentally and technically very weak and should fall dramatically over the next few years. However, other countries are very reluctant to see their currencies appreciate and are resisting the fall of the U.S. dollar. Thus, we are in the early stages of a massive global currency debasement which will see tangibles, and most particularly gold, rise significantly in price.

2. Rising Investment Demand
When the crowd recognizes what is unfolding, they will seek an alternative to paper currencies and financial assets and this will create an enormous investment demand for gold. Own both the physical metal and select mining shares.

3. Alarming Financial Deterioration in the U.S.
In the space of two years, the federal government budget surplus has been transformed into a yawning deficit, which will persist as far as the eye can see. At the same time, the current account deficit has reached levels, which has portended currency collapse in virtually every other instance in history.

4. Negative Real Interest Rates in Reserve Currency (U.S. Dollar)
To combat the deteriorating financial conditions in the U.S., interest rates have been dropped to rock bottom levels, real interest rates are now negative and, according to statements from the Fed spokesmen, are expected to remain so for some time. There has been a very strong historical relationship between negative real interest rates and stronger gold prices.

5. Dramatic Increases in Money Supply in the US and Other Nations
Authorities are terrified about the prospects for deflation given the unprecedented debt burden at all levels of society in the U.S. Fed Governor Ben Bernanke is on record as saying the Fed has a printing press and will use it to combat deflation if necessary. Other nations are following in the U.S.'s footsteps and global money supply is accelerating. This is very gold friendly.

6. Existence of a Huge and Growing Gap between Mine Supply and Traditional Demand
Mined gold is roughly 2,500 tons per year and traditional demand (jewelry, industrial users, etc.) has exceeded this by a considerable margin for a number of years. Some of this gap has been filled by recycled scrap but central bank gold has been the primary source of above-ground supply.

7. Mine Supply is Anticipated to Decline in the next Three to Four Years.
Even if traditional demand continues to erode due to ongoing worldwide economic weakness, the supply/demand imbalance is expected to persist due to a decline in mine supply. Mine supply will contract in the next several years, irrespective of gold prices, due to a dearth of exploration in the post Bre-X era, a shift away from high grading which was necessary for survival in the sub-economic gold price environment of the past five years and the natural exhaustion of existing mines.

8. Large Short Positions
To fill the gap between mine supply and demand, Central Bank gold has been mobilized primarily through the leasing mechanism, which facilitated producer hedging and financial speculation. Strong evidence suggests that between 10,000 and 16,000 tons (30-50% of all Central Bank gold) is currently in the market. This is owed to the Central Banks by the bullion banks, which are the counter party in the transactions.

9. Low Interest Rates Discourage Hedging
Rates are low and falling. With low rates, there isn't sufficient contango to create higher prices in the out years. Thus there is little incentive to hedge and gold producers are not only not hedging, they are reducing their existing hedge positions, thus removing gold from the market.

10. Rising Gold Prices and Low Interest Rates Discourage Financial Speculation on the Short Side.
When gold prices were continuously falling and financial speculators could access Central Bank gold at a minimal leasing rate (0.5 - 1% per year), sell it and reinvest the proceeds in a high yielding bond or Treasury bill, the trade was viewed as a lay-up. Everyone did it and now there are numerous stale short positions. However, these trades now make no sense with a rising gold price and declining interest rates.

11. The Central Banks are Nearing an Inflection Point when they will be Reluctant to Provide more Gold to the Market.
The Central Banks have supplied too much already via the leasing mechanism. In addition, Far Eastern Central Banks who are accumulating enormous quantities of U.S. Dollars are rumored to be buyers of gold to diversify away from the U.S. Dollar.

12. Gold is Increasing in Popularity
Gold is seen in a much more positive light in countries beginning to come to the forefront on the world scene. Prominent developing countries such as China, India and Russia have been accumulating gold. In fact, China with its 1.3 billion people recently established a National Gold Exchange and relaxed control over the asset. Demand in China is expected to rise sharply and could reach 500 tons in the next few years.

13. Gold as Money is Gaining Credence
Islamic nations are investigating a currency backed by gold (the Gold Dinar), the new President of Argentina proposed, during his campaign, a gold backed peso as an antidote for the financial catastrophe which his country Islamic nations are investigating a currency backed by gold (the Gold Dinar), the new President of Argentina proposed, during his campaign, a gold backed peso as an antidote for the financial catastrophe which his country has experienced and Russia is talking about a fully convertible currency with gold backing.

14. Rising Geopolitical Tensions
The deteriorating conditions in the Middle East, the U.S. occupation of Iraq, the nuclear ambitions of North Korea and the growing conflict between the U.S. and China due to China's refusal to allow its currency to appreciate against the U.S. dollar headline the geopolitical issues, which could explode at anytime. A fearful public has a tendency to gravitate towards gold.

15. Limited Size of the Total Gold Market Provides Tremendous Leverage
All the physical gold in existence is worth somewhat more than $1 trillion U.S. Dollars while the value of all the publicly traded gold companies in the world is less than $100 billion US dollars. When the fundamentals ultimately encourage a strong flow of capital towards gold and gold equities, the trillions upon trillions worth of paper money could propel both to unfathomably high levels.

Conclusion
Gold is under-valued, under-owned and under-appreciated. It is most assuredly not well understood by most investors. At the beginning of the 1970's when gold was about to undertake its historic move from $35 to $800 per ounce in the succeeding ten years, the same observations would have been valid. The only difference this time is that the fundamentals for gold are actually better.

Unbelievable! This week has been one most volatile trading periods this long time Gold bug has ever witnessed. It was truly amazing and reminder to all traders to bank profits when the opportunity presents itself...You will never go broke taking profits....

This week we traded unbelievable ranges in Gold, Silver, as well as the Crude Oil. JUNE GOLD this week traded a High of $1577.40 and a Low of $1462.50 for a range of $114.90 and SETTLED at $1491.60

JULY SILVER traded a High $48.19 and a Low of $33.03.5 for a range of $15.15.5 - UNBELIEVABLE! and SETTLED at $35.28.7

JUNE CRUDE OIL trade a High of $114.863 per barrel and a Low of $94.63 for a range of $20.20 and SETTLED at $98.06

These precious metals have been so technically overbought and that any bit of Dollar friendly news could tank these markets as these top heavy markets increase volatility tremendously often causing an avalanche sell-off scenario, sort of a domino effect. However, since the middle of January 2010 and the Egyptian revolution the price of Crude Oil has sky rocketed and heightened the globes inflationary concerns. The speculators of the world have seen it fit to sell the Crude Oil and precious metals positions after the death of Osama Bin Laden and the strengthening of the U.S Dollar.

The Central Bank of India also may have contributed to this latest slide after they raised their Interest Rates a surprising .50 basis point. Normally when Central banks raise rates it should effect the precious metals in a negative manner however, this was not the case when the ECB and China raised rates a few weeks past.

The HIGHER margin requirements installed by the CME are also contributing to the mammoth Silver sell-off. I expect the Energy and precious metal markets to remain VERY volatile and susceptible to geo-political and economic data.

Germany's Der Spiegel Magazine reported that Greece is considering leaving the European Union, it was reported that Athens was considering a new currency. The EURO zone financial ministers have refused to comment. Let's remember that in the middle of January prior to the ouster of Hosni Mubarak from Egypt we Gold bugs were concerned whether Gold would hold the $1300.00. This was 4 months ago. These markets are going to remain very volatile. These markets are not for the faint of heart!

MY SWING NUMBERS FOR 5/9

JUNE GOLD

RESISTANCE # 2............$1514.00
RESISTANCE # 1............$1503.00
PIVOT ..........................$1487.00
SUPPORT # 1................$1475.00
SUPPORT # 2................$1460.00

JULY SILVER

RESISTANCE # 2.............$38.31
RESISTANCE # 1.............$36.79
PIVOT.............................$34.91
SUPPORT # 1.................$33.40
SUPPORT # 2.................$31.51

Mike Daly / Gold Specialist
PFG BEST

mdaly@pfgbest.com

312-563-8029
877-294-4669

There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Brazilian Personal Taxation in Brief

Under the Brazilian personal tax system, residents are taxed on their worldwide income, which includes interests and dividends from foreign sources.

An individual is considered Brazilian resident for tax purposes if he remains in the country for 183 days, consecutive or not, during the course of a calendar year. Those entering Brazil with a permanent visa are also deemed to be permanent residents for tax purposes as of the date of their arrival.

The personal income tax rate is progressive, up to a rate of 27.5% for annual income exceeding BRL 42,984 (around USD 25,500). Capital gains are subject to a flat tax rate of 15%.

Brazilian tax law applies a number of anti avoidance provisions, including transfer pricing, thin capitalisation and general anti-avoidance rules, which entails Brazilian tax authorities, under the "substance over form" test, to disregard acts performed with the purpose of dissimulating the occurrence of the taxable event of the tax.

Controlled Foreign Corporation (CFC) rules have also been introduced in Brazil under Art. 74 of the Provisional Measure 2158-35/2001, however the definition, as set forth under Law 6.4040, only applies to Corporations and not to individual investors, who may achieve tax deferrals.

In addition to the legal obligation to file annual income tax returns, Brazilian individuals must file an annual return (Declaracao Eletronica dos Capitais Brasileiros no Exterior, or CBE) with Brazil's Central Bank declaring all foreign assets held on December 31st of the preceding year. Despite this filing obligation, there is currently no wealth tax in place in Brazil and thus no tax is assessed and levied on the gross or net assets of a fiscal resident.

The point about zero sum game is that there are position holders on both sides of the trade, meaning that for every buyer (long position holder), there is an opposite seller (short position holder). A gain or profit for one participant represents a loss for the opposite participant. Forex (foreign exchange) and futures markets are examples of zero sum game markets. Stocks do not fall in this category.

Interestingly, there are some investors who avoid "zero sum game" markets (investments) because they mistakenly believe in their minds that these markets represent nothing more than a group of poker players sitting across the table from each other where, in order for someone to win, another player has to lose. They believe that smartest player will walk off with all of the chips. Nothing could be further from the truth. To begin with, not all participants in "zero sum game" markets, like futures or Forex markets, are investing to make money. Here's an explanation:

One of the primary participants in the futures markets are hedgers. Hedgers are interested in transferring their risk to other participants in the futures markets because hedgers are interested in making money in their field of expertise. Hedgers are not in the business of forecasting price trends. Hedgers are only interested in being experts in their own fields, like farming, manufacturing, or corporate finance. Futures markets are extremely valuable instruments in our economy when it comes to the function of risk transfer.

Chiquita Brands International is one of the largest players in the banana market. They sell a substantial quantity of bananas to U.S. buyers, which include grocery store chains. Their business model involves growing and wholesaling bananas to international retail chains. When Chiquita negotiates the price (in advance of the actual delivery) of a banana shipment with a U.S. client in U.S. dollars, one of the first things that Chiquita does is to transfer their currency fluctuation risk to other futures markets participants, like speculators or scalpers. Chiquita is not interested in seeing their profit margin evaporate as a result of an unforeseen currency price move. Currency speculation is not their primary business. Thankfully, the currency futures markets offer Chiquita the perfect forum to transfer this undesirable currency fluctuation risk to other futures market participants.

In another example, some airlines have used the crude oil futures markets to successfully lock in lower energy prices because they feared that rising crude oil prices would significantly impact and potentially damage their future profit margins. Fortunately, Southwest Airlines, for example, transferred their energy risk before higher energy prices became a reality. By hedging in the energy futures market, Southwest Airlines become one of the most profitable airlines in the industry when crude oil prices finally spiked.

"Zero sum game" markets, like futures markets, are effective mechanisms for countless companies to transfer their unwanted price risks. Professional money managers, like Commodity Trading Advisors, are in the business of strategically accepting transferred risk when they believe that profits can be made. Don't let the "zero sum game" misconception keep you from considering excellent investments in managed futures.

by Mark Helweg and Drew Day
Lexington Asset Management
Clifton House, 75 Fort Street
PO Box 1390, Grand Cayman
KY1-1108
Email: info@ LexingtonAM.com
Web Site: LexingtonAM.com
Phone: 239.273.0142

The fate of the Obama presidency hangs not on a birth certificate or the red ink on the federal budget but by the hose nozzle of your local gas station.

Electoral discontent is measured by the price of a gallon of gasoline. Heading past $4 toward $5, that is a lethal trajectory for President Barack Obama.

Enter the demagogues, especially the clown-in-a-business-suit, Donald Trump. Unfettered by the gravity that goes with facts, Trump says that he would fix the oil price - now around $110 a barrel - by facing down the producers, particularly the Organization of the Petroleum Exporting Countries (OPEC). He told an interviewer on television that he would call OPEC and tell them to pump more or face the consequences. The latter, he did not specify. War? Against whom?

In a compelling book by Leah McGrath Goodman, "The Asylum: The Renegades Who Highjacked the World's Oil Market," the author lays out the ugly fact that often - in fact, as often as not - the price of oil is set not in Vienna at the headquarters of OPEC, but in downtown Manhattan at the New York Mercantile Exchange (NYMEX).

Tens of thousands of future contracts are traded in nanoseconds at the NYMEX, and the price of oil is set. This price affects not only the price which will be paid when these contracts expire and delivery takes place, but also, according to Goodman, the all-important over-the-counter market, where sellers trade more directly with buyers without government oversight.

Goodman contends that there is little oversight of the NYMEX because the agency charged with the role is the weak and ineffectual Commodities Futures Trading Commission (CFTC), where many staff and commissioners are busy burnishing their resumes so they can cash in later as market executives.

People are slow to change. People tend to remain skeptical about new technology simply because they are unfamiliar with it and because it is not widely accepted by the public. Interestingly enough, the need for public acceptance is more of a driving factor in validating new technology than the actual merits of the technology itself.

Trading systems are simply sets of rules that traders use to determine their entries and exits for a position in the markets. For many years, the investment public has viewed trading systems as a mysterious technology, or "black box," that cannot be trusted with something as important as investment dollars. However, more investors are now taking note of investments that utilize trading systems as this technology has been meeting with notable success in recent years.

Lao Tzu, a 6th century BC poet, once stated that

"Those who have knowledge do not predict and those who predict do not have knowledge."

Using Boeing stock we will compare two scenarios that highlight the benefits of trading systems. In Scenario #1, a broker buys Boeing early on and recommends a buy-and-hold strategy for his investors. The broker is predicting that Boeing prices will go up over the long term, and is willing to expose the investment dollars of his clients to all price corrections and bear markets along the way. In Scenario #2, a well researched computerized trading system is used to generate buy and sell signals over the same time period. The trading system has no opinion about the direction of prices. By design, the trading system detects changes in supply and demand and generates a buy signal when demand increases by a certain amount, or generates a sell signal when supply begins to strengthen against demand. The trading system reacts to Boeing price changes, which represent the vote of all of the traders and investors in the market.

Trading System Buy and Sell Signals in Boeing Stock (1985-2009)

As we analyze the trading system applied to Boeing stock in the chart above, we can see that in general the trading system bought when up trends developed and sold, or exited the long position, when down trends developed. The trading system did not buy at the exact bottom or sell at the exact top of the price moves in Boeing, buy rather captured profits from the middle of the trends. In scenario #1, the broker would have simply bought Boeing stock and held on through all downward corrections in price and all bear market trends.

When it come to a selection of stocks for investments, in many cases the best choice for retail traders could be to trading Exchange Traded Funds (ETFs). At least it helps to avoid complex and time confusing elements of fundamental analysis.

All traders, when they first come to the market are facing a simple question what to trade and what trading vehicle to choose for investments. While there could be different ambitions and some investors are coming to the market for gambling with a purpose of becoming rich in short period of time I would like to focus on simple investors who have came to the market with confusion and would prefer some not extremely big but stable increase in investments.

Majority of people are coming to the stock market without knowing anything how the market works. All they usually know is that you may invest into stock. They start to look for good stocks and very soon they become frustrated - they start to understand that in order to select a few good stocks they are required to go through hundred of stocks, compare their performance, their reports, study fundamentals, etc.

When I ask some of my friends-traders about ETFs (Exchange Traded Funds) I hear the standard answer that they became familiar with stocks and they prefer to trade stocks. My second question usually is about how he/she does analysis to see what to trade and where to trade (long or short). Now comes interesting part. I would spread their stock analysis in several steps.

Step 1: Spend 1-2 month going through hundreds of stocks from different industries. As a rule, this stage of analysis includes going through earnings and other reports, comparing stock's performance, analyzing the market sector the stocks belongs to, etc. All this ends with selection of 2-10 stocks that a trader became familiar with and considers that they are good for investments.

Step2: Subscribe to the reports, charts, quotes that cover selected stocks and could be used for further analysis on regular basis.

Step 3: Start to trade by analyzing the selected stocks on the regular basis (doing fundamental and technical analysis). In addition a stock trader continues to analyze selected industry and the whole market - you need to know where the industry and market are going do not to lose the stocks.

Doesn't it look complicated? Especially when it comes to the fundamental analysis of all the reports... People are learning in the universities how to correctly analyze and evaluate a public company. Do you think an "average Joe" has time and is able to learn all the aspects of the fundamentals and apply it on practice? I am sorry for being sarcastic, yet, I am a little bit skeptical about retail traders (including me) and their abilities to perform liable fundamental analysis of stock. Maybe you can skip fundamentals if you are day trader and trade stocks in short-term, however if you are investing your pension for longer-term you have to do fundamentals - otherwise it is not an investment but a gambling.

So, what is the solution? For me, I trade Exchange Traded Funds. There are plenty of very active ETFs: QQQQ, SPY, DIA, XLF, IWM, etc. The biggest advantage of ETF is that I do not have to do fundamental analysis - no complicated and time consuming job - all fundamentals are done by professionals who manage indexes that are tracked by ETFs. All I do is the technical analysis of indexes I trade. Index analysis is a stock, industry and market analysis at the same time. For instance when I analyze S&P 500 index, the result of the analysis could be applied to trade SPY stock (S&P 500 index tracking stock). At the same time S&P 500 is considered as a barometer of the US stock market and S&P 500 index analysis reflects sentiment on US stock market. So, tell my why should I not to trade SPYScience Articles, QQQQ and other ETFs and why should I go into complicated stock analysis.

About the Author

Index based technical analysis (analysis of Nasdaq, S&P 500, NYSE, DJI, etc) is recommended when it comes to trading index derivatives (QQQQ, SPY, DIA, etc), trading their options (QQQQ and SPY options trading), index emini futures trading, etc.

Source: Free Articles from ArticlesFactory.com