Panama Papers and The Laundromat: It's not only Billionaires who need Asset Protection

With the recent launch of the Netflix film, “The Laundromat,” audiences are given a preview of the world of offshore banking, and the current financial market. Though lacking in certain details, “The Laundromat” does showcase some of the seedier sides of global wealth and asset management quite accurately. Through carefully managed trusts, transactions and shell companies, Billionaires have managed to make and retain their billions for decades.

Trailer for the Netflix film “The Laundromat”

However, the rest of us often suffer from a complete lack of any kind of “asset management.” Most of the middle class may wonder if we have any actual “assets” at all, and may not consider it worthwhile to even consider managing what “little” we have, professionally, or efficiently. Wealth management firms and Corporate Attorneys may also be the least bit interested in helping the more run of the mill clients, while they leave it to the banks to milk them more effectively. It may be alarming to some to learn that the banks are very often playing a version of “organized” roulette with their consumer deposits, sometimes making millions, billions or even trillions in return, while depositing only a fraction of the earnings into the original depositors account. This is why you may occasionally see a minor “interest” payment into your account. That ten dollar “profit” or “interest” entry is almost like a self-conciliatory gesture of “goodwill” from the guilty conscious of greedy bankers, who are well aware that they have gotten rich off your money.

So what does Asset Management for the Rest of us Look Like?

There are a number of situations where everyday individuals need to make careful strategic decisions on how to manage what they have earned, or inherited, in an intelligent manner, so as to protect and maximize their earnings. These decisions often require legal knowledge and analysis, which is not readily available to the general public. The reality of this situation is that many people are then left with sub standard solutions, at the mercy of the banks, or powerful institutions, which can cause them far more harm than good in the long run.

For example, many individuals rely on student loans or other sources of funding to gain an education. These loans carry excessive rates of interest (rest of the world), “profit”, or “finance” charges (in the GCC region). Without being able to understand the terms and conditions associated with these loans, many individuals get stuck in a web of debt, which can last a lifetime. Very often, what appear to be the best “financial packages” offered by such loans, carry the heaviest and most destructive conditions. The same scenarios also recur in situations where individuals seek out loans for property purchases, car purchases, or business. Without the correct legal and strategic knowledge, these kind of decisions can prove disastrous.

If someone is buying a property, or looking to invest their savings, they will also need to carefully structure and manage the investment. A property transfer agreement will need to be registered correctly, with adequate due diligence, to make sure that it is a valid transfer. If the proper research is not conducted, you may end up purchasing the property from someone who doesn’t have the right to sell it, and then having your ownership blocked or revoked…after you’ve paid! For investments, agreements need to be scanned to make sure they don’t give your advisor the right to charge hidden fees, penalties and other charges. In addition, they shouldn’t leave an advisor or bank off the hook for losing all of your money (with or) without explanation! We once had an inquiry from an individual who had invested 10,000 Euro in Cryptocurrency. The “alleged” value of his chosen currency was reduced to nothing overnight due to “currency fluctuation,” and he was stuck with just a receipt and an empty “dashboard” on a website…at the expense of his hard earned money.

In today’s world, the sad reality is that it is very often the banks and our “trusted” institutions who are scamming us the most. Most simple agreements from your bank will contain the most oppressive terms, which will need thorough vetting. That doesn’t mean we should give up hope, as with knowledge comes power. Individuals should take their asset management more seriously, even if it is the management of their own personal time and labor (which can be considered important assets for the purposes of this article). This involves becoming informed of your rights, the terms of your contractual agreements, and the laws which effect your decisions. Seeking professional help can also be most useful, when you find a trustworthy and honest consultant.

If you need any help with your asset management, whether you’re rich or poor, reach out to us today @ +97338247303 or info@borderlesscounsel.com. Our first discussion is always free.