The desire to do as you please has become an ever increasing trend in the Information Age. "Your best ROI is not a return on your investment but a return on your information", as you navigate through life as a human being. Many of you, like myself, desire to see all the astounding beauty the world has to offer. Although, many of us hardly have a clue in knowing where to start or even if it is worth the limited amount of time that we have. In an article I wrote three weeks ago, I talked about how problem-solving is an essential skill in being able to evict yourself from "traps" that can restrict you and your happiness. We will dive further into this idea, one that I discovered roughly a year ago, known as the life of the Perpetual Traveler (or PT for short).
What is PT?
PT is most commonly known as the life of the Perpetual Traveler or Prior Taxpayer. In a nutshell, it is the idea that an individual would organize their paperwork in such a way to be recognized by governments as a tourist just "Passing Through." A PT is not obligated to income and asset taxation, military draft, or lawsuits. The Three Flag Theory was coined by Harry D. Shultz, a highly paid financial consultant, in the 1960s. Picked up by the publishing company, Scope International Limited, it got popular in the '80s and '90s by a character named W.G. Hill, who helped expand on the theory. The PT theory has increased personal freedom, mobility, and privacy which has caused many people to pack up and say "See You Later.”
Below are summarized excerpts of a more recent PT book entitled Bye Bye Big Brother.
Flag One: Citizenship
“In addition to the passport of your native country, you should hold one or more passports from a small, neutral, and respectable nations. They do not try to tax their citizens living outside of their territory, nor to draft them into military service. These passports should ideally allow visa-free travel access to as many nations as possible.”
Flag Two: Residence Havens (Domiciles)
“This is your official residence. A country which regards you as a bona-fide resident, although you might not actually spend too much (or any) time there. It should be of a country which does not tax income earned abroad, the effect being that you don't have to file any personal tax returns anywhere.”
Flag Three: Playgrounds
“These are places where you physically choose to spend most of your time. They depend on your personal taste. Quality of life is top priority. Because of legal restrictions on how long one may stay without being considered resident for tax purposes, it may be necessary to have from two to four playgrounds tourists. [Hopefully something that has minimal consumption tax and great weather.]”
Flag Four: Business Bases
“These are places where you actually earn your money. If you own an existing business that can't be moved, you may not have much choice in the matter: you may have to bite the bullet and pay some taxes. Almost all businesses can be gradually shifted abroad by outsourcing and exporting more. If you earn money with your skills, you can probably re-domicile and operate on the Internet. Or, choose an offshore tax haven as your physical business base. Then you are tax free. Either way, your business will probably be incorporated, to insulate against personal liability. Ideally, you will set up the paperwork properly and you will never have to file personal tax returns, nor need any permits, licenses, or special dispensations.”
Flag Five: Asset Havens
“These countries are where you store your savings and investments, safely salted away from where your money is actually earned or spent. They should score highly on respect for privacy, communications, professionalism and stability. Naturally, you don't live, play or do much business in the place where your assets are discreetly planted. It is important to make sure that your citizenship does not insist your banking haven to give them a full dossier on your activities.”
Flag Six: Electronic Havens in Cyberspace
“This is your Internet Business, Communications, and Cash Transmittal System. It's so cheap to rent server space that it doesn't matter much where your servers and websites are located. You can be physically anywhere, but invisible to all.” [Note: Due to the Snowden Revelations it would be best to get servers located outside of The Fourteen Eyes. More info on digital privacy can be found here].
The ever expanding government that encapsulates most of our daily lives are not going to stop anytime soon. This framework is one of many ways people can enjoy a life of doing what they love, while protecting their ass and assets. If you have a trade that is portable, you're one step closer to having the ability to work anywhere you please. What I have gathered is that, as a PT you are simply being "Prepared Thoroughly" which at this time seems like the "Perfect Thing" to do before a possible crisis.
For more info: I would suggest doing research on the topics mentioned above: second citizenship, asset protection, offshore banking, etc. Many of the books on PT are outdated and require due diligence and multiple opinions from people you trust.
Images from:
https://en.wikipedia.org/wiki/Flag_of_Earth
http://ironmikemag.com/the-last-man-on-the-moon-gene-cernan/
http://powerupapparel.com/tv-shirts/reading-rainbow-shirts/dont-take-my-word-for-it/