|
|
| Home | About | Why Choose Us? | Client Case Studies | Articles and Opinions | Questions and Answers | Email Us |
|
Our Wealth Structuring Process |
|
|
In our opinion, the primary goal of wealth structuring should be to reduce the risk (probability) of loss of one's wealth due to factors such as divorce, financial institution failure, hyperinflation, lawsuits, and political institution failure.
We use the following process for wealth structuring: 1) Partioning the wealth into pieces so that each piece can be moved to a separate location but not so many pieces that management of all the pieces is too costly. 2) Placing the pieces into strong and safe financial institutions in different countries with stable political institutions and favorable privacy laws with access to stable currencies if necessary. 3) Structuring ownership of the individual pieces by creating ownership structures in different countries with stable governments and favorable privacy laws. If a lump sum of wealth is structured using the above steps, the probability of catastrophic loss on the total amount of wealth due to divorce, financial institution failure, hyperinflation, lawsuits, or political institution failure is greatly reduced. And the probability of complete loss of one's wealth due to one catastophic event is near zero. As an analogy, imagine that you were a bird and had a nest filled with eggs. If any one of a number of predators found the nest, all the eggs might be eaten. An intelligent bird would divide the eggs into manageable groups (Partioning), place the groups in different and safer locations (Institution Selection), and then, camouflage the groups of eggs each in a different camouflage style (Ownership Structuring). The chances that a financial predator would find and eat all your eggs would be greatly reduced, though it would take work (cost) to structure your nest this way. We feel that this approach is effective and flexible. In fact, it is not even necessary to follow the steps in order. |
|
| Funds of Funds | Funds of Hedge Funds | Hedge Funds | Mean Variance Optimization | Offshore Banking | Passive Investing |
| Private Equity Funds | Private Equity Funds of Funds | Venture Capital Funds | Venture Capital Funds of Funds | Wealth Preservation |
| Copyright © 2010 AegeanWealth.com. All Rights Reserved. |