BY CONNOR STEENS
A well established financial plan could be your saviour leading into 2021; reflecting on the year that was, 2020 gave us a pandemic and a controversial US election amongst a myriad of tragedies and unrest. What we do know for certain is that 2021 will be a difficult year to predict, ensuring your assets are in order will take an abundance of stress away from the unpredictability of the new year.
2021 began with further disruption in the form of January’s Capitol Riots, protesting the implementation of the 2020 election result. Any form of governmental uncertainty prompts an evaluation of what you are doing to protect your assets. Financial diversification is a strategy that ensures all your eggs are not held in the same basket and by establishing an offshore structure you can be certain that your assets are protected against domestic concerns such as political uncertainty, currency instability and economic downturn. Bringing your assets offshore allows for peace of mind, knowing your earnings and possessions are safe in renowned global institutions.
Coronavirus and Investing
A number of countries around the world are either experiencing or have experienced their second or even third Covid lockdowns as society adapts to the new norm, investors look to innovative technologies and opportunistic stocks that could thrive during these times of inactivity. Investing can be seen as a long term approach to asset protection and growth, further diversifying your assets and putting your earnings to work. Despite all the anxiety that the stock market can sometimes provide it is almost always certain that it will bounce back, and those in the know reap the rewards. Southpac offers self-directed or managed investment accounts with global partners and institutions. Establishing an investment account plugs your finances into the global markets allowing you to preserve and cultivate your wealth while other aspects of civilization seem idle.
A Change in Presidency
A notable aspect of Joe Biden’s administration strategy is the significant increase in federal spending to aid in coronavirus relief, environmentalism and reviving the economy, with the majority of this additional funding coming from an escalation in individual and corporate tax rates, repealing the tax cuts that were introduced during Trump’s administration. It should be noted that it may still be possible to take advantage of these tax cuts, especially the advantageous gifting exemptions of the 2017 Tax Cuts and Jobs Act. While the current lifetime exemptions stand at $11.58m per individual, under Joe Biden this is expected to be cut to $3.5m. Read more about the TCJA here. If you are considering establishing an offshore structure it is crucial that you act immediately to take advantage of the generous exemptions while they are still available.
2020 demonstrated that a proactive asset protection strategy can weather the harshest storms. Don’t let your wealth go to waste and act now. Secure your financial future with a Southpac administered offshore structure today, gain access to global investments and international institutions and make your 2021 a year of growth and security.