It Should Be Obvious By Now -- It Really Makes Sense To Have a Plan B
It Should Be Obvious By Now -- It Really Makes Sense To Have a Plan B
Notes From The Field By Simon Black June 8, 2020 Bahia Beach, Puerto Rico
There are undoubtedly countless people right now who can hardly believe what they’ve been seeing over the past few months.
Global pandemic, total economic shutdown, tens of millions of jobs lost, trillions of dollars of debt and money printing, and now, social unrest, including riots and looting, brought on by yet another harrowing murder at the hands of the police.
A poll conducted by NBC News and the Wall Street Journal last week showed 80% of respondents believe the United States is spiralling out of control.
And it all happened so quickly.
We’ve been writing for years at Sovereign Man about the need to have a Plan B, consistently pointing out that this is a completely normal, rational thing to do.
A great Plan B is like an insurance policy. You hope you’ll never need to use it, but if you ever do, you’ll be really glad that you have one.
Having a Plan B is not capitulating. It’s not running away.
It’s sensible. It ensures that, no matter what happens or doesn’t happen next, you’ll be in a position of strength, regardless of what you choose to do.
If you want to march in the streets or dedicate yourself to social change, you’ll be better off with a Plan B. If you’re concerned about the policy impacts of mob rule, you’ll be better off with a Plan B.
Frankly what we’ve seen so far is potentially just a taste of what’s coming.
Just imagine how swiftly and viciously governments could react if another major outbreak of COVID-19 takes place.
Just imagine how much rage will explode in the streets depending on who wins the Presidential election in November.
And then there are other risks-- like the looming Cold War with China, spiralling deficits, etc., and we haven’t even begun to see the effects of those yet.
One key component of a Plan B is to consider-- is there at least a possibility that you might ever need to leave?
Would greater social unrest, economic upheaval, World War III, etc. prompt you to want to get out of Dodge? If so, you’ll want to have thought about that well before you start packing your bags.
So as part of a Plan B, it makes sense to have a second citizenship, or at least a second residency.
This means you’ll always have another option to live, work, invest, retire… and potentially even pass down those rights to future generations.
A Plan B also takes your finances into consideration.
Will the trillions and trillions of dollars that the Federal Reserve is pumping out cause serious damage to the dollar? Will Cold War with China compel the world to abandon the dollar as a reserve currency?
These are certainly possibilities. And that’s why gold and other real assets are also worth considering as part of a Plan B.
Retirement planning is another factor to consider; in the Land of the Free, Social Security is already set to run out of money in 2034. And as we discussed recently, post-COVID-19 estimates may accelerate the program’s cash depletion to 2029.
Therefore a tax advantaged retirement structure (like a solo-401(k) or SEP IRA) that allows you to save a LOT more money for your retirement and invest your retirement plan’s funds in a wide variety of assets-- private equity, startups, precious metals, real estate, etc.-- could be an option to explore.
There are so many other considerations-- tax planning, estate planning, family planning, asset protection… even things like homesteading or home schooling.
No two Plan Bs are the same. But the core ethos is that a Plan B makes sense, no matter what happens (or doesn’t happen) next.
There’s no downside, for example, in good tax planning that can save you money. There’s no downside in having a second passport that can provide generational benefits to your future descendants. There’s no downside in making it more difficult for people to file frivolous lawsuits against you.
Having a Plan B is like taking care of your health… it just makes sense. There’s no downside.
And, like health, it’s never too late to start.
To your freedom & prosperity, Simon Black, Founder, SovereignMan.com