How to Secure a Future Pension After Realizing a Lifetime of Missed Investment Opportunities and Debt?

[diro]

What would you do if you had to realize that you have wasted your life in terms of securing your future pension through investments during your working years?

I currently owe the equivalent of 500,000 euros and am unable to pay it back in any way. The majority is owed to the tax authorities, and 100,000 euros to a bank.

I have money and have settled in another country where I am out of reach of creditors, but I am afraid to invest in stocks and securities through my local bank. One fine day (with all the measures being taken in Europe), they might still be able to take my money, and if there's 250,000 euros or a bit more, they will seize it, and I will be left with nothing.

Any ideas on what to do?

I have tried to apply for debt relief, but they won't grant it to me because they think I earn too much.

 

[wellington]

What would you do if you had to realize that you have wasted your life in terms of securing your future pension through investments during your working years?

I currently owe the equivalent of 500,000 euros and am unable to pay it back in any way. The majority is owed to the tax authorities, and 100,000 euros to a bank.

I have money and have settled in another country where I am out of reach of creditors, but I am afraid to invest in stocks and securities through my local bank. One fine day (with all the measures being taken in Europe), they might still be able to take my money, and if there's 250,000 euros or a bit more, they will seize it, and I will be left with nothing.

Any ideas on what to do?

I have tried to apply for debt relief, but they won't grant it to me because they think I earn too much.

Well the bank is usually unsecured / the problem is you also owe the tax man which means potential criminal liability - otherwise if that’s paid off the bank usually can swing for it if you skip town as an unsecured debt/loan.

As for the only hope you have - that’s self custodial assets like crypto which is right on the far end of the risk curve - stick with ETH, Solana and other chains that are having high adoption and buy at the low end of the liquidity cycles and liquidate towards the apex of the liquidity cycles, you can map this roughly 22m ahead - in relative terms 500k is easily settled within a normal cycle based on modest allocations.

Then you do the last cycle before who knows what comes next which is around the 28 yr period

 

[Don]

In recent years, there has been a global fiduciary services drive toward the creation of ‘orphan’ structures, which have no shareholders or owners.
Using such a vehicle could help protect one's assets.

 

[icecold]

‘orphan’ structures,

are they legal ? can you explain how to setup the structure?

 

[Don]

are they legal ? can you explain how to setup the structure?

Foundations or non-profit associations, for instance.
Or even co-operatives, e.g., set up a co-operative whose members are non-profits or foundations.
They could then be used as holding structures to hold company shares.
You will maintain control over the structures this way.

 

[pesto]

Foundations or non-profit associations, for instance.
Or even co-operatives, e.g., set up a co-operative whose members are non-profits or foundations.
They could then be used as holding structures to hold company shares.
You will maintain control over the structures this way.

Can this be setup legally and if you had to put an estimated figure on it, how much does a setup like this would cost?

 

[Don]

Can this be setup legally and if you had to put an estimated figure on it, how much does a setup like this would cost?

Yes.
These are bespoke setups, but to give you an example of a cost-efficient one, a non-profit structure can cost from EUR 530 to 1960 to set up, depending on various factors.
Then you have maintenance costs, e.g., ~2k per year.

For many reasons, a non-profit (or a foundation) could be a valuable vehicle for any family:

• If structured appropriately, they provide asset protection. Membership is not transferable, and the membership fees may be structured as non-refundable, so creditors could not go after such vehicles;
• You could use such a vehicle as a custodian (trustee) if structured correctly, such trusts do not need to be registered or disclosed to business registers;
• Even under CRS, they can be structured so they are classified as Non-Reporting Financial Institutions, and with the upcoming CARF (crypto asset reporting) they could serve as non-reporting crypto custodians;
• tax planning opportunities;
• a way for middle class idiots to feel good about themselves without actually fixing anything;
• serve as a smoke screen for the ultra-wealthy to horde away behind and hope nobody notices

 

[JohnLocke]

• a way for middle class idiots to feel good about themselves without actually fixing anything;
• serve as a smoke screen for the ultra-wealthy to horde away behind and hope nobody notices

I like

Now I have a question, if that is possible, how can any authority accept that the entity is a non reporting financial institution? Just must admit that it would open the doors for misuse in all possible ways?

 

[Don]

I like

Now I have a question, if that is possible, how can any authority accept that the entity is a non reporting financial institution? Just must admit that it would open the doors for misuse in all possible ways?

They will have criteria to evaluate whether such institutions are genuine non-profit organisations.