Johnny Carson once joked: “The difference between a divorce and a legal separation is that the legal separation gives you time to hide your money.”
Putting money out of reach — from a spouse, children, business partners, or even employees — is a rather unsettling, but very popular topic.
Putting money out of reach — from a spouse, children, business partners, or even employees — is a rather unsettling, but very popular topic.
Money is easier to disguise when it never surfaces. This may not seem like a secret, but it is. Using a bit of discretion and living beneath your means may seem counter to the “American Way” but it’s smart.
Bragging and flashing cash is a big risk these days. The less you flaunt your wealth — and your personal details — the less likely people are to reach into your pockets. Often, you are your own worst enemy.
The other mistake many people make, other than flashing the cash, is volunteering private information. Telling people about your wealth is one of the fastest ways to get on the radar.
I fly roughly 100,000 miles a year and I’m always amazed at the stories complete strangers tell me during the course of the flight. Small talk is fine … but revealing your net worth, bragging about your latest real estate development, divulging your portfolio assets, and the like makes no sense.
The other mistake many people make, other than flashing the cash, is volunteering private information. Telling people about your wealth is one of the fastest ways to get on the radar.
I fly roughly 100,000 miles a year and I’m always amazed at the stories complete strangers tell me during the course of the flight. Small talk is fine … but revealing your net worth, bragging about your latest real estate development, divulging your portfolio assets, and the like makes no sense.
Besides keeping your lips sealed, use discretion with today’s technologies. Smartphones, text messages, Facebook and computer transactions all leave a trail that can easily be picked up by a spouse. And, these trails are very hard — if not impossible — to wipe out.
We are a huge advocate of not using electronic communication for anything truly confidential. This is especially true when it comes to financial accounts, trusts, etc.
If you want to ensure real privacy over your financial information, you have to go back to basics.
Elect to have any detailed financial statements from banks or brokerage firms held for you. Then instruct the companies to forward the documents to a lawyer. Normally, asset protection or family attorneys offer this service, and this is especially true if you are a client. Opt to go to the lawyer’s office to open and review the mail, make any necessary phone calls or sign any necessary papers. Leave any documents you need to retain in the custody of the lawyer to ensure maximum privacy where it is shielded by the rules of lawyer-client privilege. Shred anything that isn’t worth saving.
Our advice is to use discretion when it comes to your wealth, and that applies to everyone … except governments and tax authorities. There you must be fully transparent and fully compliant. Tax returns are not part of public record so they can’t be accessed without a lawyer and a judge.
We are a huge advocate of not using electronic communication for anything truly confidential. This is especially true when it comes to financial accounts, trusts, etc.
If you want to ensure real privacy over your financial information, you have to go back to basics.
Elect to have any detailed financial statements from banks or brokerage firms held for you. Then instruct the companies to forward the documents to a lawyer. Normally, asset protection or family attorneys offer this service, and this is especially true if you are a client. Opt to go to the lawyer’s office to open and review the mail, make any necessary phone calls or sign any necessary papers. Leave any documents you need to retain in the custody of the lawyer to ensure maximum privacy where it is shielded by the rules of lawyer-client privilege. Shred anything that isn’t worth saving.
Our advice is to use discretion when it comes to your wealth, and that applies to everyone … except governments and tax authorities. There you must be fully transparent and fully compliant. Tax returns are not part of public record so they can’t be accessed without a lawyer and a judge.
And by all means obtain a second passport. Besides offering financial privacy, it will allow access to all sorts of financial institutions that only having a US passport will not.
Unfortunately, many people make their most private financial details “public” all by themselves. Keep your secrets to yourself. It will save you thousands.
Unfortunately, many people make their most private financial details “public” all by themselves. Keep your secrets to yourself. It will save you thousands.
