by Simon Black, Sovereign Man: Over the past few days, I’ve been telling you about the importance of building a personal Plan B that ensures you are in a position of strength… no matter what happens next.
The first step is building a strong defense that safeguards what you already have.
This includes risk prevention and increasing your freedom.
It ensures that everything you’ve worked for – and will achieve – over your lifetime is safe, no matter what.
Here are the four most important steps everyone should consider taking.
Step #1: Get some physical cash This is one of the most critical strategies for your Plan B– and also one of the easiest to implement.
If something happens in the banking system, and all of your money is trapped in the bank, your savings effectively become worthless.
With current interest rates nearing zero, you are not going to be worse off for having some physical cash.
To ensure you are protected, take out and store at least two months’ of expenses in physical cash as a crucial hedge against emergency situations.
There is almost no cost to doing this, and it is a complete no-brainer, given the state of most western banking systems.
Click here to read more about why you should consider getting some physical cash.
Step #2: Protect a portion of your savings in a strong, well-capitalized foreign bank. As you probably already know, most major banks in the US and across Europe are poorly capitalized. In most cases, they hold less than 3% of customer deposits in cash.
That means if just 3% — just 3%! — of customers went to the bank and withdrew their funds, these banks would have to start fire-selling assets in order to stay solvent.
It’s clear that holding 100% of your assets in such a fragile a banking system isn’t the safest strategy.
Consider moving a portion of your savings to a highly liquid, highly solvent, conservative bank in a country that is backed by a government with no debt.
You can learn more about why, how and where to open an Offshore Bank Account in our in-depth Offshore Banking article.
And to take action now, you can download our “Open an Ultra-Safe Offshore Bank Account in Hong Kong” premium intelligence report.
Step #3: Purchase precious metals and make sure you store them offshore While physical cash and an offshore bank account is a great hedge against short-term problems in the banking system, keeping precious metals is a long-term hedge against more serious, systemic challenges in the monetary system.
If governments continue printing money to the point of serious inflation (as witnessed in Venezuela, Zimbabwe and the Weimar Republic), you will own real assets that will protect your purchasing power.
I also strongly encourage you to consider storing your precious metals offshore to protect yourself from confiscation, frivolous litigation and social unrest.
Step #4: Obtain a Second Passport (potentially for free) A second passport will provide you the lifelong benefit of more options when it comes to living, working, investing, traveling, and doing business around the world.
That way, when things go south, you can go north. You can immediately, legally and effectively take yourself and your family out of harm’s way.
There are four ways to obtain a second passport: Flexibility, Money, Time or Ancestry.
Your first step should be to look into the ancestry option. If you have grandparents (or even grand-grandparents) from certain countries (such as Italy, Poland, Hungary, Greece and many more), you might be eligible for a second passport by descent.
This is by far the easiest, cheapest and quickest option for most people and should be your very first starting point.
And if you find that you are not eligible for such a passport, you should consider obtaining a legal residency in another country.
As a resident of a foreign country, you still gain a lot of the benefits of a second passport, and oftentimes can even obtain one after a few years of naturalization.