(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
Here's a checklist for you newbies Posted by C.S.C on March 14, 2014 at 9:09pm
First up, some slightly condensed, hardcore information from OSUCowboy (thank you for the great insights):
Preparing for the Exchange Meeting.
As to economic events in your life, how you handle the meeting on the exchange may be the most consequential you will ever face. Most who go into meeting will be like a hungry wolf and a sheep. You will not be the wolf. In fact, in another bank room will be the vultures waiting to eat what is left after the wolf devours you. So let’s see if we can even the odds.
First, why does someone go into the business of operating a bank? They don't produce anything at all. The reason simply is that they know how to make more from YOUR money than you do. Why?
Well, economy of scale is one big part, but also government officials that the banks contributed to give them many special ways of increasing the yield on YOUR money that they don't give to you. So how do we even the odds for you?
When you think about it, if you exchange at a higher rate, the bank will make more from YOUR money than they would at a lower rate. So why should the BANK’S contract include terms that are more against you? They want to control YOUR money and by extension, control YOU.
Most businesses will give you a better deal when you give them more of your money, not less. That isn't how bankers think. So, here is how you approach this meat grinder they are putting you into.
1. First, be mentally prepared to take the market rate and walk out if you don’t like the deal they offer.
2. Do NOT let them hurry you. Be calm and ignore their attempt to make you feel like you are intruding on them.
3. READ ALL CONTRACTS, NDA, AND FORMS FROM THE BACK FIRST, GOING TO THE FRONT ONE PAGE AT A TIME. The snakes are always hidden in the back After you have read innocuous terms in the front and are feeling comfortable that they are really good guys; then you get drowsy forgetful and bored; and the references in the front to items in the back are forgotten, or are overlooked when you finally get to the snakes hidden at the end.
4. Take a pad of paper with you and calculator. The end result of this is mathematical. Do actual calculations as they affect YOU on all the various scenarios. List can be made before hand on hypothetical rates.
5. Do not assume the best conditions in your life; take into consideration awful conditions and unplanned events where you want your money WITHOUT taking a loss.
6. Initial every page and get a copy of the ACTUAL document that has your signature. Do not accept a copy of what they say is the same as what you read and signed. Always get a copy of everything you sign.
7. In most ethical business dealings a contract is a subject of negotiation and you can make changes in the document to make it more equitable to your interest, NOT just the other party. You should tell them where you want to make changes and make them. If they tell you that it isn't allowed, you know you are at the mercy of someone who wrote the document in their favor, and don't care about you at all.
8. If you want to negotiate the contract/documents or terms of your new relationship and the person you are with says he is not authorized to make changes or agree to terms, then you are meeting with the wrong person. NEVER negotiate with someone who is not the decision maker. It is a ruse to make sure you get the bad end of the deal.
9. Be polite and VERY serious. The person you are with is out to get the best of you, but that is his job. Just be firm, treat him like you would want to be treated and you will probably do better than if you go in with an attitude. Remember the person you are with is a SALESMAN, just like in a car dealership. KEEP THAT ALWAYS IN MIND.
10. You represent a huge increase in the POWER (I didn't say money) for that bank and his goal is to keep you from recognizing that. After all, the more they make off YOUR money, the more control they have over Senators, Representatives and the President.
11. Do not agree to the bank having such control over YOUR money that you have trouble paying ALL your taxes, and paying them ON TIME.
12. Require there to be NO bank spread or bank fees. Treasury spread is not negotiable, you pay it.
13. Be careful of the everyday bank forms. One of the big five banks have these EXACT words: YOU GRANT THE BANK A LIEN ON AND SECURITY INTEREST IN YOUR ACCOUNT AT THE BANK. Can you imagine that, you deposit YOUR money in the bank and they place a lien on YOUR funds?
14. Do all you can to make the deal work for both of you (remember he should be taking care of his company) and if after a sincere approach to this that does not yield a deal acceptable to you, get up and leave. You can always go to another bank and maybe get a better deal, or at least the market rate. DO NOT let the rate dropping in the market make you frightened so that you let them get control of ANY of your money. Getting a lower rate could be better than them controlling you.
Now take a deep breath and be the person in charge that is worthy of this great gift that God has given you.
Disclaimer: I'm NOT a professional. I've created this information from hundreds of hours, many months of research and listening to calls and freely offer I it to you. Use your own discretion and common sense! See my other article on Security.
REMEMBER…EVERYTHING IS SUBJECT TO CHANGE!!!
Try calling around to see what rates the banks are offering. You might be able to just walk in to exchange or you may have to make an appointment thru the 800#.
Wait for the 800# and call for an appointment. Say you want to do a “Currency Exchange” Do Not give them your current email address……create a new one to use and give them your burner phone’s number. Make appt. ASAP, then log on to this or any other site to get specific post-reval information.
Start being super savvy about ID theft, etc. Get a secure email address (hushmail.com is one), shred all your mail and papers with sensitive info, get a PO box for EVERYTHING, remove your personal info from anything online. You want to minimize yourself as a target. Keep a low profile.
Think up a cover story. You might want to say you won the lottery/inherited/etc. to explain your new wealth, since the NDA won't let you say anything. The most you might be able to say is “I had an investment that paid off”
It’s being suggested that you will be given 3 rate options..do the math on which is best for you:
If you take the highest rate, you will sign an NDA, pay 100% capital gains tax and may have access limitations, etc. on your deposited accounts thru the bank contract you sign.
The midrate: you will sign an NDA and a contract, pay 50% capital gains tax
The lowest rate: no NDA, no capital gains tax
Capital Gains Tax: 39.6%: then add state tax %, if any
Put up to 50% into Tax Escrow Account, 25% in an account to make life easier, 25% to invest (real estate, gold?).
Make a list of the names of people you want to give money to, take it to your appt. for cashier's checks. You can gift $14,000 per person without creating tax obligations for them. You must create a notarized “gifting” letter to go with the money for the tax waiver.
I live where there is no De Larue machine (checks for counterfeit). I understand that they might take my currency and send it to a bigger bank to verify. If this is the case, I plan to have them make copies of the currency, sign them, have them make a written statement of what they are doing, stating the currency will be returned to me on demand if I don’t agree to the terms of the exchange and leave with a future appointment for when it is verified.
Get a tax professional and a Fee Only wealth adviser. I don’t advise using the bank's wealth team. They are working for themselves, not you.
Consider creating a Trust with a Trust Attorney or an LLC and put EVERYTHING in it.
If you have a credit card(s) with RFID (has a little chip that transmits and will have a WiFi type symbol) get a protective sleeve for it so no one can scan it while it’s in your pocket/purse. Watch this short video. http://youtube.googleapis.com/v/lLAFhTjsQHw%26sns=em
Learn how to create super secure passwords..and do it!
If you are new to the bank, take photo ID, passport/birth certificate, utility or other bill with current address to open an account.
CHECKLIST TO TAKE WITH YOU TO THE BANK APPOINTMENT:
FIND OUT RATES OFFERED BEFORE YOU SIGN ANYTHING OR SURRENDER YOUR CURRENCY
Get Real time CURRENCY VERIFICATION: Signed and dated copies of the currency and receipts placed on file after verification.
Have Instant deposit credit with immediate access to funds.
NO bank or spread fees (except UST fee)
NDA: Read back to front, sign each page, get actual copy, get a blank copy. Observe the counter-party signature. Some suggest putting “All Rights Reserved” over every one of your signatures.
Bank Contract: read back to front
Sign ONLY FinCEN 104 part II, line 33 Currency Exchange—not an Investment
Get CASHIER’S CHECKS for your pre-made gifting list Get CCC (Clean and Clear Certificates) if needed
Pay off all loans, mortgages, bills
Get CREDIT CARD (not a black card..you become a target for theft)
Obtain copies of all jointly signed paperwork
Obtain printout of all account transactions documenting deposits and withdrawals
Business cards from everyone involved
Make sure your addresses are the PO box!
Keep different currencies in separate accounts (tax reasons).
Are there strings, limitations, and fees attached to any accounts?
Put 50 to 55% in a tax escrow account, 25% in an account for investment, the rest in an account to play with.
TWO ACCOUNTS THEORY: Deposit money into your first account #1……Then open another “New” account (#2). Then transfer ALL OF the MONEY from account #1 into account #2. The reason you are doing this is twofold. The bank is required to report the opening of Account #1 to the federal government and that information can find its way into the public domain; however, the bank is NOT required to report intra-bank transfers between accounts. What this does is effectively eliminate your digital trail so that no one outside of the bank knows how much money you have on deposit.
Request CDARS coverage if available. Certificate of Deposit Account Registry Service, operated by the Promontory Inter-financial Network, FDIC insured up to 50 million dollars. Paid for by the bank, so they won't tell you about it.
Tag as Access Restricted & Non-test/Non-Training Accounts and keep them offline. Allow no touching, trading, etc, until further notice. Flag all accounts as ACCESS RESTRICTED to NON ESSENTIAL BANK PERSONNEL
Keep all accounts with significant amounts off line with no debit card
Add TOD (Transferable on Death) Name to All Accounts