In this age of increasing federal overreach, one can feel the hand of the government perhaps more than any other time in our albeit short history as a nation. Thanks to criminal actions from bureaucrats, constitutional violations such as the Patriot Act have become the new law, eroding our liberties on this soil with each passing day, much like a sand dune standing against a series of crashing waves.
So here we are. What do we do now? Some are taking action against the system. Some want to peacefully non-comply just enough to not be thrown into a cage. It is in times like these when creativity saves lives and fortunes. We must look to existing logistical solutions already in place.
Ironically, the very justice system that allows atrocities can be used to protect us. The legal system in this country is fragmented such that a decentralized power structure shows its value. Starting with state statute going all the way into local county and sheriff jurisprudence, there are numerous layers to the law in this land.
States’ rights and their protection have a rich history in this country. This has been debated with great fervor since the creation of the constitution. Today, we see nullification alive and well, as states enact laws to protect civil liberties, limit federal interference, or simply increase revenue. From legal tender laws to gun laws, to refugee acceptance, to NSA spying, some states have been leading the charge in flexing their muscles of independence.
We’ve had states, like Utah and Texas, literally introduce competing currency systems to the U.S. dollar. Utah, Maine, and even California have shutoff resources like water to NSA facilities. Texas is suing the federal government over forced refugee acceptance. South Carolina is attempting to nullify SCOTUS ruling on gay marriage. On a localized level, we recently had a county sheriff in Idaho stop the VA from confiscating the guns of a veteran citizen of his county.
These are just a few examples. Everywhere we turn today, we see states pulling away. The level of disdain on the individual level is near an all time high as well. A recent poll revealed that only 1 in 5 Americans trust the government. Do you see a trend developing here? Let this be a source of hope, if you’re concerned about worst-case scenarios.
You can use what’s called an LLC IRA, a type of self-directed IRA whereby the IRA account purchases a limited liability company (LLC). This LLC acts as an investment holding company that you manage but is owned by your IRA. This allows you to take the assets from your retirement account and place them into an entity created, bound, and protected by state statute. Many use this structure to invest in gold and silver bullion coins that can legally be stored at home. You can issue loans from the LLC, invest in private companies, manage investment real estate, hold cash, and do almost anything.
In the worst-case scenario of government confiscation of IRAs, this structure could provide an escape hatch to the individual. If the assets are not held within the system they cannot be frozen with a click, and they cannot even be located in many cases. This shelter allows the assets to be completely removed from the system without taxes or IRA penalties associated with withdrawing. The IRA assets are only taxed later in retirement, when you distribute or withdraw them from the IRA for personal use.
The confiscation risk to IRAs is real. In the face of the next financial collapse, the $15 trillion IRA and 401k industry will be targeted as the source of the next bailout. It will surely be dressed up as a “Save America Bond” or something similar so that it will be gulped down hook, line, and sinker by the masses. Basel international banking laws have been changed, moving cash deposits to the red side of the balance sheet; they are now liabilities. The legal framework is in place to allow an all out overhaul of the IRA/401k industry. Protect yourself while you still can.
Sincerely, Will Lehr Managing Partner & Co Founder Perpetual Assets