We sort of feel that this is old news since we here at Four Flags Journal have received so many announcements in our email we assume many of you have as well. But we still think it worth mentioning.We have reported that the numbers of people giving up U.S. citizenship are rising. At one time no one would give up anything so precious as a U.S. citizenship. So this is a change of venue.

In May 2015, Bloomberg reported that a record was set in the first quarter when 1,335 Americans showed up at an embassy somewhere to renounce their citizenship, thus  increasing the number of expatriations by 18 percent from the previous year. Now they have reported that the number in this last quarter alone has risen to 1426. And that in spite of the fact the fee charged by the U. S. government for giving up citizenship was raised from $450 to $2,350. Some believe that enough Americans are leaving the ship to warrant steps to stem the tide. How much higher might the cost to exit go? We don’t wager a guess.

The U.S. is also charging an exit tax for people who have saved substantial wealth, even though all normal tax obligations have been paid, they must now pay a thirty-percent exit tax on their assets before they can give up their citizenship.

Remember the principle that we learn from Gerald Celente. Anyone can predict the trend by looking at current events. To that we add the foundational  principle of investing–a trend in motion will stay in motion until something happens to change it.

We see a trend in motion and we don’t see much on the horizon to change it–at least not any time soon. So, as usual, we look at history to see if we can tell what countries in similar situations have done in the past. Of course what we find in history is currency controls.

We are seeing this as one level of currency control which is, in our opinion, a warning of things that may be in the future. Not only for those with wealth–though certainly for them–but even for those of us who are not wealthy. If this trend continues and we decide later that it’s time to exit, we might find it difficult to do without money. Do we think that will happen? We don’t know. But we do know that while we did not plan to die early when our children were still dependent, we carried life insurance.

Hence our reasons for planting financial flags instead of keeping everything in a single country. We like the idea of having Plan B and we try to give you information to help you implement your own Plan B if you so choose. It may not be the same as ours. It should be one to suit you!

For those who plan to move not only assets–but themselves–abroad, we posted last week some real estate web sites for you to have fun with while you plan–and perhaps while you pack. One of our Paraguay subscribers so thoughtfully sent in a real estate web site for you in Paraguay. That couple has been through the process of relocating from London, and they are pleased with their decision. Just for balance we will tell you that another couple visited Paraguay recently and they were not favorably impressed. When it comes to countries, there is no one-size-fits-all. That’s why it’s important to visit first if you can. The second couple has settled in Chile.

Real Estate for Sale in Paraguay