If you have been following the latest information coming out of Facebook, then you know there are quite a few things going on within the company. The latest initial public offering (IPO) went quite well, but then plummeted.
However, one of the founders did something that created a shadow over the event.
Each of the four founders were instantly billionaires when the IPO hit.
Mark Zuckerberg is the first of these founders, He is also the main founder and current CEO of the Facebook Corporation. He is now just 28 years old and is worth over $19 billion since the IPO took place in May of 2012.
Eduardo Saverin is the second of these four founders. Although he may not be as well known, his worth is now at an estimated $3 billion since the IPO took place.
If you had not heard about him just yet, then you are about to understand the shadow that overpowered the IPO event. Last September, before the IPO took place, Eduardo Saverin renounced his citizenship to the United States.
In April of 2012, the IRS announced Eduardo’s decision and the public immediately made their displeasure known. Message boards and blogs all over the place were flooded with the public’s messages about his choices being traitorous and how his actions were unpatriotic.
You may be one of the citizens who is angry at him as well…
No one can blame you for viewing his choices that way. He makes billions of dollars thanks to the American way of life, then renounces his citizenship and takes his money with him, right? To many, his actions seem as though he is choosing to be greedy or selfish. Almost to the extreme of being Un-American. Many people believe that he is leaving to avoid paying taxes to the IRS for his new found wealth.
Perhaps hearing his story will shed some light on why he made the choices he did to where you can almost place yourself in his shoes. Maybe when you hear why he made the choices he did, you’ll see why he tried to give his family a better opportunity than they were facing with the upcoming financial crisis the United States is facing.
(If you join The Elevation Group today, you can learn all 19 strategies that are designed to help protect you from a financial crisis no matter where you are.)
The first step Eduardo took was to take a flight to try and protect his family’s life. Going back two generations will help you learn where the basis of Eduardo’s decision came from.
Eduardo’s grandfather, Eugenio Saverin, was an early entrepreneur that was dedicated to hard work, but he was a Jewish man who lived in Germany during the 1940’s.
Eugenio decided that instead of facing concentration camps, he was going to move his family away from where Hitler could hurt them and he moved his family to São Paulo, Brazil.
All Eugênio brought with him was his entrepreneurial spirit. Thankfully for him and his family, that was all he needed to find success.
By the early 1950’s, he founded a new brand of kid’s clothing called “Tip Top”, which has since become the most popular brand of clothing for children in the entire country of Brazil.
The second step that Eduardo took was to take a flight to protect the wealth his family had been earning since 1952. Eugênio had a son a few years later, named Roberto, who grew up fitting right into the family business.
Roberto took the brand of “Tip Top” and transformed it into a successful franchise of retail stores across the country of Brazil thanks to the entrepreneurial influence of his father.
He was also good with financial investments and grew his family’s fortune by investing in real estate and natural resources across the country of Brazil.
In 1993, Roberto made the choice to pack up his wife and son, Eduardo, and move on from Brazil.
Roberto made this choice because of the issues that were beginning to surface within the financial sector of the country’s government. The President at the time, Fernando Collor, began by freezing all savings accounts, and Roberto began to realize that this meant more controls were going to be following the initial freezes.
Roberto decided it was better for his family to begin a new somewhere else, than to see people who had not worked hard for the family’s money to be handed it simply because they were the ones in power. He took his family to the United States and he and his wife started their new life in Miami, Florida.
Eduardo Saverin was only 11 when this all happened, but he remembers the lessons his father taught him then. After a few years in Miami, Roberto, his wife and Eduardo went through the process to become legal United States citizens.
Eduardo maintained a dual citizenship between the United States and his native, Brazil, until 2011, when he renounced his citizenship.
On a side note, some people have speculated that Eduardo’s family came to the United States because of the fact that Eduardo’s name was on a list of potential targets for a kidnapping because of how wealthy the entire Saverin family was.
The book “Billionaires by Chance” presented this speculation as fact, and everyone took the story immediately to heart.
While the story gave the family a solid reason to head to the United States, we decided to look into these claims to see if there was any truth behind the story. We discovered a recent interview from June of 2012 with the Brazilian news magazine, Veja, that was all in Portuguese.
During this interview, Eduardo tells about how the names of both his father and his grandfather were found on a potential kidnapping list, not his own, but this information was only found out after the family had been in the United States for a few years.
Hopefully this helps you understand the real story.
The next thing to understand is how America helped to make Eduardo rich.
Eduardo grew up through his teens living in Miami, Florida. He was an incredible student and a chess prodigy, to where he was even in an international magazine for his amazing efforts by the age of 13. He was featured in a story inside International Chess Magazine after he beat a grandmaster of chess at this tender age.
In 2003, Eduardo enrolled at Harvard University to study economics, and that is where he met Zuckerberg. After some discussion, Eduardo became the first investor in the new idea of Facebook.
After that, the rest becomes history. Facebook took the world by storm and became the most popular website on the planet. Eduardo could do little more than just watch his net worth jump into the multi-billions of dollars while Facebook rose to its current level of fame.
Eduardo is now considered to be one of the 100 wealthiest people on the planet.
Now it is easy to see why people are beginning to get angry, because it seems plain to most people that Eduardo is simply looking for a way to avoid paying the taxes on his new found fortune.
This is not the case, however.
Eduardo moved to Singapore in 2009, and he loves it there. His plan is to make this into his new long-term home.
The third step that Eduardo took was to protect the Legacy of his family.
Due to Eduardo’s care for his family and their legacy, many experts think that Eduardo’s actions have little or nothing to do with avoiding taxes, at least not at this point in his life.
When a person chooses to renounce his or her citizenship, they are forced to pay a fee by the United States government of 15%, which is called an exit tax. This proves that he is not getting away without paying anything, but instead, he is having to pay quite a large chunk of his fortune right back to the country he is renouncing.
Eduardo will end up paying hundreds of millions of dollars in exit taxes to the United States’ government even if he chooses never to cash in the stock he owns in Facebook.
Eduardo describes the situation like this, as translated from a Portuguese interview:
“The decision [to denounce his U.S. citizenship] was strictly based on my interest in living and working in Singapore. I am obligated and I will pay hundreds of millions of dollars in taxes to the American government. I already paid and I will keep paying whatever taxes I owe based on my time as a U.S. Citizen.”
If Eduardo Saverin pays his exit tax now, he will end up paying more than if he had kept his citizenship in the United States.
The way that the United States law works is people do not have to pay taxes on their capital gains until they cash them out, which allows many wealthy people to simply live off borrowed money, living tax-free until their family has to cash out their gains when they pass away.
Once these wealthy people pass away, the estate can be hit with a 35% inheritance tax, which is supposed to make up the difference.
Most tax experts are estimating that Eduardo Saverin plans to pay his exit tax now, rather than have to give away more than one-third of his fortune upon his death. That leaves his family with less at that point.
By all appearances, Eduardo is going off of what his family has done in generations passed to put himself in the best possible situation he can find to carry on the legacy started by his grandfather.
No one can tell for sure, but according to Eduardo’s own statement in the Veja interview, Eduardo is known to have said: “I was born in Brazil, I was an American citizen for about 10 years. Now I live in Singapore. I’ve always thought of myself as a global citizen.”
No matter whether you like him or not, everyone agrees that his family history says a lot.
Eduardo Saverin is a mobile, sovereign, global citizen who is on a mission to care for himself, his fortune and his family’s legacy all at the same time, while carrying on the traditions he was raised to know and understand.
Now, to help you understand how this can relate to you.
Protecting your wealth is your right, and it can be done without renouncing your citizenship to the United States. Plus it does not require you to have billions in investments either. Most people can easily diversify their own assets overseas to help protect their family.
This story has nothing to do with evading taxes.
The Elevation Group offers its members four main reasons for investing overseas:
- Asset protection
- Tax efficiency
All of the details are readily available on The Elevation Group’s membership website. They make sure to show several different ways to protect assets overseas, even if you only own a few thousand dollars in assets.
People can easily start with just a small amount of money to see how their assets would do overseas without as much concern.
If you are looking to protect more, The Evolution Group’s Rolodex includes Rob W. He is a lawyer that particularizes in protecting wealth that is diversified and invested internationally.
He will help you develop a plan tailored to your specific needs and desires.
He can help you set up foreign account and tax entities that can help you increase your bottom line if you know how to structure it right. However, if you structure it wrong, it can end up costing you a fortune.
It does not matter if you have already been building up your fortune or if you just started investing, this strategy is one you are not going to want to miss.
Join us at The Elevation Group today and gain prompt access to this, plus the other 19 black-box strategies of those with the largest bits of diversified wealth.
Click on the video below to learn more about The Elevation Group.