Ever heard of "Floating island" strategy?

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serbeer
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Ever heard of "Floating island" strategy?

Post by serbeer »

While reading financial advisor magazine the other day glanced over an article talking about financial advisors earning the trust of billioner investors. One particular term picked my interest:

"Communicating your proficiency at asset protection planning only the super-rich can use, such as the “floating island” strategy, is important for it lets you stand out from the array of very, very smart professionals seeking to do business with billionaires. It is not only about being able to deliver esoteric strategies when they are appropriate, but communicating that you are quite skillful at using these strategies."
https://www.fa-mag.com/news/sourcing-bi ... html?print

Anyone knows what “floating island” strategy is all about?

Don't expect it to be useful unless I win the lottery, but just curious since I never heard about it before and brief google search did not come up with anything...Thanks!
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ResearchMed
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Re: Ever heard of "Floating island" strategy?

Post by ResearchMed »

serbeer wrote: Fri Jan 18, 2019 2:11 pm While reading financial advisor magazine the other day glanced over an article talking about financial advisors earning the trust of billioner investors. One particular term picked my interest:

"Communicating your proficiency at asset protection planning only the super-rich can use, such as the “floating island” strategy, is important for it lets you stand out from the array of very, very smart professionals seeking to do business with billionaires. It is not only about being able to deliver esoteric strategies when they are appropriate, but communicating that you are quite skillful at using these strategies."
https://www.fa-mag.com/news/sourcing-bi ... html?print

Anyone knows what “floating island” strategy is all about?

Don't expect it to be useful unless I win the lottery, but just curious since I never heard about it before and brief google search did not come up with anything...Thanks!
I think that wouldn't happen until the dessert course, when one serves Îles flottantes, possibly with a few cherries as garnish?

But one should also select the earlier courses very carefully, for such a discriminating client.

RM
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Re: Ever heard of "Floating island" strategy?

Post by Jack FFR1846 »

It seems that the writers are gamers as floating islands appear to be used in online games and exist above the land in the sky. Sounds like the "Daze and Confuse" tactic that most financial planners use to confound their clients, so they can retain them since this stuff is far too difficult for mortals to understand.
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22twain
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Re: Ever heard of "Floating island" strategy?

Post by 22twain »

serbeer wrote: Fri Jan 18, 2019 2:11 pmAnyone knows what “floating island” strategy is all about?
Maybe this? A floating Pacific island is in the works with its own government, cryptocurrency and 300 houses (CNBC)
As well as offering a home for the displaced, the self-contained islands are designed to function as business centers that are beyond the influence of government regulation.
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mptness
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Re: Ever heard of "Floating island" strategy?

Post by mptness »

I've got a sinking feeling about this floating island strategy...
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serbeer
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Re: Ever heard of "Floating island" strategy?

Post by serbeer »

I found another mentioning of it on the web, together with another term I do not know:

"But before you begin dreaming of floating islands and equity stripping — two highly complex asset protection techniques typically reserved for the ultra-wealthy — start building your plan with a simple list of the threats, experts advise."
http://www.physicianspractice.com/finan ... ection-101

Now, of course, I also want to know what "equity stripping" is, so... any strippers on this board? Speak up ;)
bhsince87
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Re: Ever heard of "Floating island" strategy?

Post by bhsince87 »

I think they are referring to literal floating islands:

https://www.investopedia.com/news/pacif ... overnment/
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Re: Ever heard of "Floating island" strategy?

Post by pdavi21 »

It's about being by yourself (island) while also having a smug sense of superiority (floating).

It's why billionaires are always offering their opinions to other people, but refuse share their mansions.
Last edited by pdavi21 on Fri Jan 18, 2019 4:28 pm, edited 1 time in total.
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Re: Ever heard of "Floating island" strategy?

Post by MarkRoulo »

serbeer wrote: Fri Jan 18, 2019 2:11 pm While reading financial advisor magazine the other day glanced over an article talking about financial advisors earning the trust of billioner investors. One particular term picked my interest:

"Communicating your proficiency at asset protection planning only the super-rich can use, such as the “floating island” strategy, is important for it lets you stand out from the array of very, very smart professionals seeking to do business with billionaires. It is not only about being able to deliver esoteric strategies when they are appropriate, but communicating that you are quite skillful at using these strategies."
https://www.fa-mag.com/news/sourcing-bi ... html?print

Anyone knows what “floating island” strategy is all about?

Don't expect it to be useful unless I win the lottery, but just curious since I never heard about it before and brief google search did not come up with anything...Thanks!


From https://www.fa-mag.com/news/article-1512.html
"Floating Islands"
The objective of the "floating islands" strategy is to continually move assets from one jurisdiction to another while gaining incremental tax-adjusted returns by capitalizing on the different and changing interest rates, tax treaties and exchange rates. The movement is automatic but not regular, and is generally driven by a set of computerized algorithms making it difficult for creditors to track with accuracy.

"Floating Islands" Example
In her early forties, Beatrice assumed a controlling stake in her family's drilling equipment businesses. After her second divorce, she worked with a team of experts including her counsel, a private banker, a tax specialist and a quantitative professional to develop a program to automate the movement of approximately US$160 million from one offshore jurisdiction to another. This strategy is not about avoiding taxes; Beatrice has homes in three countries and paid taxes in all of them in each of the past five years. The approach has, however, helped her elude the divorce attorneys and forensic accountants hired by her third and fourth husbands.

For years, high-net-worth individuals have been targets of speculation from those infatuated with the wealth and status of upper crust society. And while most speculation is not harmful, some is, and can breed closer interest and scrutiny than is comfortable. As a result, more and more wealthy individuals are turning to professional advisors for assistance with asset protection planning. An advisor that can deliver fresh thinking, top-notch experts and proven strategies to ultrawealthy individuals will cement their role as a trusted counselor and open the door to bigger opportunities and partnerships down the line.
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Re: Ever heard of "Floating island" strategy?

Post by asset_chaos »

serbeer wrote: Fri Jan 18, 2019 2:11 pm Anyone knows what “floating island” strategy is all about?
The advisor puts all your money into a Lake Titicaca time share https://www.youtube.com/watch?v=5r9D16YY-TM
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serbeer
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Re: Ever heard of "Floating island" strategy?

Post by serbeer »

Thank you MarkRoulo, the link answered both of my questions.
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midareff
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Re: Ever heard of "Floating island" strategy?

Post by midareff »

LOL, they take an island, pile your wealth on it and float it to their island.
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Davinci
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Re: Ever heard of "Floating island" strategy?

Post by Davinci »

Ever heard of "Floating island" strategy?
Never heard of it, sounds like a shady strategy that a Bernie Maddof would do, no thanks!

I'll stick to what I know and understand and keep it simple (KISS).

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Re: Ever heard of "Floating island" strategy?

Post by Dale_G »

Think I'll wait until I have 3 or 4 divorces - might be a long time - married to the same wife for 56 years.
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Re: Ever heard of "Floating island" strategy?

Post by White Coat Investor »

serbeer wrote: Fri Jan 18, 2019 3:50 pm I found another mentioning of it on the web, together with another term I do not know:

"But before you begin dreaming of floating islands and equity stripping — two highly complex asset protection techniques typically reserved for the ultra-wealthy — start building your plan with a simple list of the threats, experts advise."
http://www.physicianspractice.com/finan ... ection-101

Now, of course, I also want to know what "equity stripping" is, so... any strippers on this board? Speak up ;)
Equity stripping is borrowing against an unprotected asset and putting the money in a protected asset. A classic example is taking out a HELOC and buying whole life insurance. Obviously what is borrowed against and where the money is put is state dependent.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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Re: Ever heard of "Floating island" strategy?

Post by White Coat Investor »

MarkRoulo wrote: Fri Jan 18, 2019 4:25 pm
serbeer wrote: Fri Jan 18, 2019 2:11 pm While reading financial advisor magazine the other day glanced over an article talking about financial advisors earning the trust of billioner investors. One particular term picked my interest:

"Communicating your proficiency at asset protection planning only the super-rich can use, such as the “floating island” strategy, is important for it lets you stand out from the array of very, very smart professionals seeking to do business with billionaires. It is not only about being able to deliver esoteric strategies when they are appropriate, but communicating that you are quite skillful at using these strategies."
https://www.fa-mag.com/news/sourcing-bi ... html?print

Anyone knows what “floating island” strategy is all about?

Don't expect it to be useful unless I win the lottery, but just curious since I never heard about it before and brief google search did not come up with anything...Thanks!


From https://www.fa-mag.com/news/article-1512.html
"Floating Islands"
The objective of the "floating islands" strategy is to continually move assets from one jurisdiction to another while gaining incremental tax-adjusted returns by capitalizing on the different and changing interest rates, tax treaties and exchange rates. The movement is automatic but not regular, and is generally driven by a set of computerized algorithms making it difficult for creditors to track with accuracy.

"Floating Islands" Example
In her early forties, Beatrice assumed a controlling stake in her family's drilling equipment businesses. After her second divorce, she worked with a team of experts including her counsel, a private banker, a tax specialist and a quantitative professional to develop a program to automate the movement of approximately US$160 million from one offshore jurisdiction to another. This strategy is not about avoiding taxes; Beatrice has homes in three countries and paid taxes in all of them in each of the past five years. The approach has, however, helped her elude the divorce attorneys and forensic accountants hired by her third and fourth husbands.

For years, high-net-worth individuals have been targets of speculation from those infatuated with the wealth and status of upper crust society. And while most speculation is not harmful, some is, and can breed closer interest and scrutiny than is comfortable. As a result, more and more wealthy individuals are turning to professional advisors for assistance with asset protection planning. An advisor that can deliver fresh thinking, top-notch experts and proven strategies to ultrawealthy individuals will cement their role as a trusted counselor and open the door to bigger opportunities and partnerships down the line.
I had wondered if a floating island was the same as a portable offshore asset protection trust. I had a guest poster write a post about that strategy on my blog years ago.
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Re: Ever heard of "Floating island" strategy?

Post by 3feetpete »

Beware anyone that talks or writes in buzzwords.
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Re: Ever heard of "Floating island" strategy?

Post by abuss368 »

serbeer wrote: Fri Jan 18, 2019 2:11 pm While reading financial advisor magazine the other day glanced over an article talking about financial advisors earning the trust of billioner investors. One particular term picked my interest:

"Communicating your proficiency at asset protection planning only the super-rich can use, such as the “floating island” strategy, is important for it lets you stand out from the array of very, very smart professionals seeking to do business with billionaires. It is not only about being able to deliver esoteric strategies when they are appropriate, but communicating that you are quite skillful at using these strategies."
https://www.fa-mag.com/news/sourcing-bi ... html?print

Anyone knows what “floating island” strategy is all about?

Don't expect it to be useful unless I win the lottery, but just curious since I never heard about it before and brief google search did not come up with anything...Thanks!
The financial community marketing machine must constantly find new "strategies" and "buzz" words to market and ultimately sell at a profit. I would recommend blocking the various financial porn.

Specifically I have never heard of a floating island.
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Re: Ever heard of "Floating island" strategy?

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fortyofforty
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Re: Ever heard of "Floating island" strategy?

Post by fortyofforty »

Seems like another way wealthy people try to avoid paying their "fair share", whether to the state or to ex-spouses. No thanks.
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