Category: Expanded Worldwide Planning (EWP)

Privacy

Privacy Today – by Michael Malloy CLU TEP RFC

Posted on by

HOW?

A Private Placement Life Insurance (PPLI) asset structure could have easily prevented life changing invasions of privacy

(Watch videos at the end)

Introduction

Privacy has become a hot topic in recent years, with numerous controversies surrounding the collection and use of personal data by tech companies and governments. As technology continues to advance, it is important for individuals to understand their rights to privacy and the steps they can take to protect it. This article will summarize key points from a blog post on the topic of privacy and outline the most important takeaways.

The Importance of Privacy

The blog post begins by emphasizing the importance of privacy in today’s world. With the widespread use of technology, personal information is being collected and shared at an unprecedented rate, and it is essential for individuals to understand the implications of this. Privacy allows individuals to control who has access to their personal information, what that information is used for, and how it is shared. This control is essential for ensuring that personal data is not misused or abused.

Key Privacy Concerns

The blog post goes on to discuss some of the key privacy concerns that individuals should be aware of. These include:

  • Data collection: Tech companies and other organizations collect vast amounts of data on individuals, often without their knowledge or consent. This data can include everything from online searches and location data to purchasing history and social media activity.
  • Data sharing: Once personal data has been collected, it can be shared with other organizations, either for commercial purposes or for government surveillance. This can result in sensitive personal information being disclosed without the individual’s knowledge or consent.
  • Data breaches: Data breaches are a major concern in today’s world, as they can result in sensitive personal information being leaked to unauthorized individuals. This can include everything from financial information and Social Security numbers to personal health records and emails.
  • Government surveillance: Governments around the world are increasing their use of technology to monitor citizens, and this can have serious implications for privacy. For example, many governments collect data on internet activity and use this information for surveillance purposes.

Protecting Privacy

The blog post concludes by offering practical tips for protecting privacy in the digital age. These include:

  • Being aware of privacy policies: When using technology, it is important to be aware of the privacy policies of the companies and organizations involved. This includes understanding what personal data is being collected and how it is being used.
  • Using encryption: Encryption is a powerful tool for protecting personal data, as it ensures that information is only accessible to those with the necessary key. This can be especially important when using public Wi-Fi networks, as these are often unsecured and vulnerable to eavesdropping.
  • Being careful with personal information: Individuals should be careful about the personal information they share online, as this information can be used for malicious purposes. This includes being mindful of the information shared on social media, as well as avoiding responding to phishing scams or giving out personal information in response to unsolicited emails.

Conclusion

In conclusion, privacy is a crucial issue in today’s world, and it is essential for individuals to understand the threats to their personal information and the steps they can take to protect it. By being aware of the key privacy concerns and taking practical steps to protect their data, individuals can ensure that their personal information remains safe and secure. The blog post provides a wealth of information on the topic of privacy and is an excellent resource for anyone looking to learn more about this important issue.

Watch one of our most descriptive EWP Stories about #Privacy to understand more

 

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

~ Your best source for PPLI and EWP

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

The 6 Principles Video Suite

The Six Principles Video Suite – The 6 principles of the United Nations Global Compact

Posted on by

The 6 principles of the United Nations Global Compact

The Six Principles Video Suite

At EWP Financial we use our own unique brand of asset structuring that incorporates the six principles of Expanded Worldwide Planning (EWP). Wikipedia features the six principles of EWP in its article on International Tax Planning. There is also a section on Expanded Worldwide Planning in Wikipedia’s article on Private Placement Life Insurance.

The six principles are privacy, asset protection, tax shield, succession planning, compliance simplifier, and trust substitute. Each of these six principles provide essential benefits to wealthy families throughout the world. The relevance of each of these principles varies according to where in the world the family holds their assets and does business, so it is essential to work with someone that has a global worldwide grasp of this complex situation, as we do at EPW Financial.

We have created six videos, each less than one minute in length, to provide you with the essential elements of these six principles. The six principles form the building blocks of our unique asset structures. A wide variety of asset classes can be maximized for tax efficiency, asset protection, and privacy by employing these six principles.

You can view these six short videos by going to our YouTube channel, EWP Financial, and clicking on Videos, then The Six Principles Video Suite.

This week we continue our series on the United Nations Global Compact with a short video on the importance of Purpose for an EWP asset structure.

 

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

~ Your best source for PPLI and EWP

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

Did you know this about PPLI and EWP - 5

Did You Know This About #PPLI & #EWP? – Episode – 5 – EWP: The Deep Internal Design

Posted on by

Did you know this about Private Placement Life Insurance
&
Expanded Worldwide Planning?

EWP: The Deep Internal Design

PPLI Is a Cornerstone of Stability

In this Episode we explain the elements that comprise a successful EWP Asset Structure. We also reveal why an EWP Asset Structure always outperforms a taxable investment. Our conservative and straightforward approach to asset structuring gives you the maximum amount of tax efficiency, asset protection, and privacy. This is why an EWP Asset Structure has the reputation as the best asset structure available today for wealthy families worldwide.

Key to an EWP Asset Structure is how the investments are handled. To give you excellent insights into this key topic, we bring you an article by Bradley Barros from The Street: C Suite Advisors. Mr. Barros describes PPLI as “the ultimate ownership structure for high-networth families and individuals.” Here is how Mr. Barrors outlines the investment components of EWP Asset Structures:

  • An Insurance Dedicated Fund (“IDF”) holds the majority of the policy investment assets. The IDF is a preferred vehicle to hold assets within a policy structure. Separately Managed Accounts (“SMA”), properly administered, are permissible.
  • The creation of the IDF and the manager you choose is client need driven.
  • Based upon performance and consultation with the insurance carrier.
  • Flexibility is built into the policy and the investment strategy, allowing changes when desired.
  • The IDF or SMA are designed to achieve a diversified portfolio.
  • The portfolio will become more diversified over time as earned dividends are reinvested without deductions for taxes.
  • In addition, the manager can sell appreciated assets without capital gains exposure. This would be done confidentially due to the policy asset protection.
  • The policy structure is designed to both protect assets and maintain anonymity.

Investing Through a Customized Private Placement Policy

  • PPLI policies, and the contract structure and terms, are customized to suit the client, their needs, and their situation.
  • These policies can hold traditional bankable assets, as well as a variety of business interests in nearly any type of industry, commercial and residential investment real estate, intellectual property rights, music catalogs, artwork, oil and gas holdings, and other holdings as part of the Cash Value.
  • The policy Cash Value can be structured to grow tax advantaged, accessed tax-free through withdrawals and policy loans that do not need to be repaid during life, and tax-free death benefits
  • Policy holders may suggest their own trusted investment advisors to oversee and manage the policy cash value holdings, subject to communication with the PPLI insurance carrier, and investments may be held in custody at the selected investment manager’s firm.
  • There is complete transparency of costs on a pre-arranged term sheet. There are generally no commissions, only fully disclosed management fees charged by the PPLI Insurer.
  • The policies can be owned by trusts and other structures that are regulated by state law and provide valuable privacy and protection to policy owners and beneficiaries.
  • The policy Death Benefit may be acquired at a much-lower net cost, versus mass-marketed and retail insurance policies.
  • Policies may distribute life insurance proceeds “in-kind”. In-kind assets can include the actual stock or ownership interests in private equity and real estate”.

We invite you to join our long list of satisfied clients by contacting us on our worldwide toll-free number, 877 811 5846. We welcome your comments and questions.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

~ Your best source for PPLI and EWP

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fundamentals of PPLI and EWP - Episode 3

Did You Know This About PPLI & EWP? – Episode 3 – EWP’s Foundation Is The Six Principles

Posted on by

Fundamentals of Private Placement Life Insurance
&
Expanded Worldwide Planning

 

Did You Know This About PPLI & EWP?

EWP’s Foundation Is The Six Principles

Video 3

It makes sense to partner with a concept that is recognized as a cornerstone of financial stability—the six principles of Expanded Worldwide Planning, or EWP for short. The six principles are recognized as such by Wikipedia in its article on International Tax Planning. You too can employ these principles to grow and strengthen your own financial assets. How can you accomplish this? By using an asset structure that has at its very roots the six principles of EWP.

Here is the text from Wikipedia’s article on International Tax Planning which features the Six Principles of EWP

International Tax Planning

International tax planning, also known as international tax structures or expanded worldwide planning (EWP), is an element of international taxation created to implement directives from several tax authorities following the 2008 worldwide recession.

History

In 2010, the United States introduced the Foreign Account Tax Compliance Act (FATCA). Later the Organization for Economic Co-operation and Development (OECD) expanded these directives and proposed a new international system for the automatic exchange of information – known as the Common Reporting Standard (CRS). The organization also attempted to limit companies’ ability to shift profits to low-tax locations, a practice known as base erosion and profit shifting (BEPS). The goal of this worldwide exchange of tax information being tax transparency, it requires the exchange of a significant volume of information. As a result, there are concerns about privacy and data breach in interested industries. EWP has been an important element on the agenda of the OECD following the succession of leaked revelations about various jurisdictions, including the Luxembourg Leaks, Panama papers and Paradise papers. In December 2017, European Union finance ministers blacklisted 17 countries for refusing to cooperate in its investigation on tax havens

Principles

EWP allows a tax paying entity to simplify its existing structures and minimize reporting obligations under the Foreign Account Tax Compliance Act (FATCA) and CRS. At the heart of EWP is a properly constructed Private placement life insurance (PPLI) policy that allows taxpayers to use the regulatory framework of life insurance to structure assets along the client’s planning needs. These international assets can also comply with tax authorities worldwide. EWP also brings asset protection and privacy benefits that are set forward in the six principles of EWP below. The other elements in the EWP structure may include the client’s citizenship, country of origin, actual residence, insurance regulations of all concerned jurisdictions, tax report requirements, and client’s objectives.

Planning with trust and foundations frequently offer only limited tax planning opportunities whereas EWP provides a tax shield. Adding a PPLI policy held by the correct entity in the proper jurisdiction creates a notable planning opportunity.

Features

Privacy

EWP gives privacy and compliance with tax laws. It also enhances protection from data breach and strengthens family security. EWP allows for a tax compliant system that still respects basic rights of privacy. EWP addresses the concerns of law firms and international planners about some aspects of CRS related to their clients’ privacy. EWP assists with the privacy and welfare of families by protecting their financial records and keeping them in compliance with tax regulations.

Asset protection

EWP protects assets with segregated account legislation by using the benefits of life insurance. This structure uses asset protection laws in the jurisdictions of residence to shield these assets from creditors. A trust with its own asset protection provisions can still receive additional protection with the policy.

Succession planning

EWP includes transfers of assets without forced heirship rules directly to beneficiaries using a controlled and orderly plan. This element of EWP provides a wealth holder a method to enact an estate plan according to his/her wishes without complying with forced heirship rules in the home country. This plan must be coordinated with all the aspects of a properly structured PPLI policy together with other elements of a wealth owner’s financial and legal planning.

Tax shield

EWP adds tax deferral, income, estate tax benefits and dynasty tax planning opportunities. Assets held in a life insurance contract are considered tax-deferred in most jurisdictions throughout the world. Likewise, PPLI policies that are properly constructed shield the assets from all taxes. In most cases, upon the death of the insured, benefits are paid as a tax free death benefit.

Compliance simplifier

EWP adds ease of reporting to tax authorities and administration of assets, commercial substance to structures. In addition, the insurance company is considered the beneficial owner of the assets. This approach greatly simplifies reporting obligations to tax authorities because assets in the policy are held in segregated accounts and can be spread over multiple jurisdictions worldwide.

Trust substitute

EWP creates a viable structure under specific insurance regulations for civil law jurisdictions. It also creates a new role for commercial trust companies. In most civil law jurisdictions, trusts are poorly acknowledged and trust law is not well developed. As a result, companies with foreign trusts in these civil law jurisdictions face obstacles.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

~ Your best source for PPLI and EWP

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Metaverse PPLI and EWP - 3

The Metaverse – PPLI and EWP – Episode 3

Posted on by

Transform Your Assets Inside an EWP Metaverse

PPLI Is Your Partner in Creating Financial Strength and Stability

It makes sense to partner with a concept that is recognized as a cornerstone of financial stability—the six principles of Expanded Worldwide Planning, or EWP for short. The six principles are recognized as such by Wikipedia in its article on International Tax Planning. You too can employ these principles to grow and strengthen your own financial assets. How can you accomplish this? By using an asset structure that has at its very roots the six principles of EWP.

The metaverse is a concept that has been thrust into our lives. Is it something new and or just a fad that will die out in a few years? At EWP Financial we are creating our own metaverse that has at its foundation the rock-solid Six Principles of EWP. In this video, through compelling images and concise dialogue, we explain how these Six Principles can create for you a financial future that beneficially transforms your own assets for tax efficiency, privacy, and asset protection.

We continue to bring you relevant articles on the Metaverse. This week we bring you articles from the worlds of sports and gaming; two areas that have been exploring new ways to use the metaverse. These two articles are courtesy of Cointelegraph.

Berlin-based football app enters the metaverse following $300M fundraiser

By Arnold Kirimi

The financing round was led by Liberty City Ventures, with participation from blockchain platforms and venture capital firms, including Animoca Brands and Dapper Labs.

OneFootball, a German football media application, has raised $300 million in a Series D round to grow the company’s presence on Web3 and develop new features on its platform.

According to a Thursday announcement, OneFootball and nonfungible token (NFT)-centric Animoca Brands created a joint venture called OneFootball Labs. The new platform will “enable clubs, leagues, federations and players to provide digital assets and fan-centric experiences based on blockchain technology.” Furthermore, fans will be able to obtain and store virtual collectibles using their email address and credit card.

The financing round was led by Liberty City Ventures, with participation from blockchain platforms and venture capital firms, including Animoca Brands, Dapper Labs, DAH Beteiligungs GmbH, Quiet Capital, RIT Capital Partners, Senator Investment Group, and Alsara Investment Group.

Animoca Brands will provide its expertise and network in blockchain, NFTs, gaming and the metaverse to help OneFootball develop new products and services that will increase digital fandom while generating new income streams for the football industry. In a statement, Lucas von Cranach, founder and CEO of OneFootball, said:

“We believe the future of football away from the stands and off the pitch will be decentralized and built on Web3, giving back the ownership of data and digital assets to the fans.”

Murtaza Akbar, the managing partner at Liberty City Ventures, highlighted OneFootball’s 100 million monthly active users as an opportunity to take advantage of blockchain technology for a massive community of football fans.

Earlier this year, Cointelegraph noted that increasing interactivity and ownership of virtual items are some of the metaverse’s most outstanding features. “OneFootball might be jumping on both opportunities to provide more fans greater access to the “beautiful game.”

Manchester City, the English Premier League champions, announced their entrance into the Metaverse by signing a three-year agreement with Sony to provide virtual reality to professionals for image analysis and skeletal-tracking technology from Hawk-Eye. Neighbours Manchester United have also entered the Web3 ecosystem after a partnership with Tezos, announced on Feb. 10.

The first metaverse designed for non-crypto gamers releases theatrical trailer ahead of launch

By Sarah Jansen

The metaverse is evolving rapidly, increasing the barriers to entry for those without previous crypto knowledge.

The appeal of blockchain-based gaming is clear: participate in activities you might have already been doing and make some money at the same time in a realm constructed by tokenized and tradable items. While attractive in theory, the reality is that these models cater to those with a familiarity with nonfungible tokens (NFTs) and surrounding technologies. Consider that most of these games present a steep learning curve with some knowledge, costs and other setup required before a player can participate in the ecosystem.

Emerging as a low barrier to entry, Bezoge, the first crypto game for non-crypto people, presents Legends of Bezogia with its unique in-game tokenomics and currency. The play-to-earn (P2E) MMORPG game lets players pillage enemy SHIBs and DOGEs to rid the world of fear, uncertainty and doubt (FUD). Following the P2E model, players are invited to select a Bezogi and start their journey into earning blocks and rewards, whilst Bezogi NFT owners can rent or summon additional Bezogi if they already own two.

Where this game differentiates itself from other releases is its design as a mainstream offering that can be played by anyone. To enable this functionality, the game features a fully decentralized NFT rental platform where players can rent NFTs to use in gameplay without collateral or gas fees. Therefore, non-crypto gamers can now participate in Legends of Bezogia as they would in any other free-to-play game, eliminating previously mentioned high barriers to entry.

Bringing this project to life is a team of more than 30 in-house staff who share that the objective of this release is to become “the first crypto game for non-crypto people.”

In alignment with this mission, the team has released a Theatrical Trailer introducing the breeds found in Legends of Bezogia as an introduction to their Alpha signup.

Bigger and better play to earn

Bezogi exists as an NFT, in-game character on the Polygon Blockchain (MATIC) that will also be interoperable across multiple chains in the future. These characters are of one definitive colorway, a trait that is more than just aesthetic and instead holds significant meaning in the Legends of Bezogia due to differing bloodlines. On the surface, these creatures are cute; however, upon taking a deeper dive, every bloodline demonstrates a role as a fearsome warrior.

To illustrate the distinction between each, players are invited into the red corner with a breed of warriors known as the Red Zerkzogi. These warriors are covered in blood yet remain well-groomed and obedient. This group often has an arsenal of impressive weapons at their call, making them known killers. The red warriors are joined by the Yellow Speedzogi, recognized as being the fastest life-form in Bezogia, obsessed with gathering blocks and scavenging loot.

Continuing the introductions, players will meet the Blue Shieldzogi, a protector of Bezogia, the White Holyzogi, a keeper of the sacred Recovery Seed and the Green Freezogi, a frozen Bezogi that enjoys the thrill of a kill but is hooked on noxious gases. The final three spots are made up of the Orange Fudzogi, a group of meddling tricksters, a Black Darkzogi that burns blocks to summon new Bezogi, and the Golden Mintzogi, who run the lands of Bezogia and now command great respect and power.

With each Bezogi exhibiting a different set of skills, players are encouraged to carefully consider the space where each operates in the greater ecosystem. After deciding, interested parties can find Bezogi and Petzogi for purchase on the OpenSea platform.

30,000 holders and growing

The team shares that their efforts in P2E gameplay have resulted in 30,000 meme coin holders, alongside a Metaweek Gold, RBK Promotions Boxing Gala and the Dubai Soccer Award Gold Sponsorships. Furthermore, Bezoge has also begun pursuing influencer partnerships with those who have millions of followers. This effort will be followed by a series of guild partnerships that are still in progress.

With several other developments underway, the team continues to hold weekly AMA updates, providing additional detail about the latest developments. The intent is to attract gamers from all walks of life to a constantly changing digital construct the world recognizes as the metaverse.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

In our next video, we will reveal the financial tool that makes an EWP asset structure possible. Thank you for watching and hope you will join us for episode four in our Metaverse Series.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EwP and PPLI Fundamentals

Did You Know This About PPLI & EWP? – Episode 1 – The Frozen Cash Value Policy Design

Posted on by

New Video Series by Michael Malloy CLU TEP RFC

Did You Know This About Private Placement Life Insurance and Expanded Worldwide Planning?

The Frozen Cash Value Policy Design

Fundamentals of PPLI and EWP

Welcome. Being a winner is like standing tall on top of a mountain, like the woman here. We invite you to be a winner in our new series entitled: Did you know this about PPLI and EWP? What do you have to do? You win by submitting the best answer to this question:

For U.S. taxpayers, what section of the tax code pertains to the frozen cash value policy design, and how does the language of this code section sanction this design?

What will you win? Alas, not a villa on Italy’s Amalfi coast, but you will receive a PPLI/EWP Token which can be redeemed for one of our unique NFT images.

Please submit your answers to info@ewp-financial.com. Best of luck on answering our questions. Thank you for listening.

—————————————————————————————————-

Since we don’t wish to speak about our contest topic until you have had a chance to submit answers, this week we will cover some basic Q&A about PPLI. We look forward to receiving your answers after learning about the contest from our very short video explanation. Good luck to all!

What is Private Placement Life Insurance?

Private Placement Life Insurance (PPLI) is a variable universal life insurance policy designed for high net worth investors. Foreign insurance companies offer the most robust options for sophisticated asset structuring, and are able to incorporate almost any asset in their policy designs.

Why are investors interested in PPLI?

Generally, the core motivation for acquiring a PPLI policy is to establish a tax-free investment environment, at the lowest possible cost, in which an investor may designate a money manager(s) to manage the assets placed into the insurance policy.

What are the income tax advantages of life insurance?

The income tax benefits of life insurance include: (1) tax-free earnings (dividends, interest, and capital gain) on policy assets; (2) the ability to withdraw and to borrow assets from the policy cash value free of income tax (with proper structuring); and (3) the receipt of policy proceeds by the policy beneficiaries at the death of the insured on an income tax-free basis.

What are the main differences between PPLI and retail life insurance?

The policy owner has broader flexibility with regard to the policy’s underlying investments, with proper structuring almost any asset classes can be included in the policy design. However, the policy owner cannot exercise direct control over the investment of the policy assets.

Policy purchasers must meet “qualified purchaser” and accredited investor” guidelines under SEC rules.

Fees are minimal compared to retail insurance products. In most cases there are low front-end loads on premium payments, and the annual charges against policy cash values are a small fraction of the annual tax cost associated with similar investments in a taxable environment.

What are the fees typically associated with PPLI?

There are three primary insurance-related fees associated with PPLI policies: the premium load, the “mortality and expense” charge, and the cost of insurance charge. The premium load will vary, but should typically be 1% or less of premium, and the combination of the mortality and expense charge and cost of insurance charge should average, over the life of the contract, less than 1% per year. Asset management fees will depend on the asset manager(s) selected to manage the insurance portfolio.

What will the policy beneficiaries receive when the insured dies?

The income tax-free death benefit consists of the cash value of the policy (the premiums paid, plus growth, less account charges) plus the “risk” or pure insurance element. The insurance element generally will be minimized to the extent possible in the design process, and its amount will be determined with reference to U.S. tax rules. Insurance risk coverage in the offshore market is provided by the same reinsurance companies that reinsure the domestic life insurance market.

Where is the investment account of the policy and is it safe?

The separate account(s) of the policy will be custodied in accordance with the asset manager’s normal custodial arrangement. The separate account of the policy is protected by law in the state or foreign jurisdiction where the insurance carrier is located from the creditors of the insurance carrier. The policy is also protected against claims of the policy owner’s creditors with proper structuring.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metaverse - 2

The Metaverse – PPLI and EWP – Episode 2

Posted on by

EWP with PPLI: Delivering the Ultimate Wealth Planning Strategy Available Today

An EWP Asset Structure Is a True Transformative Metaverse

In Episode One in our Metaverse Series we contrasted the popular vision of the metaverse as an alternate computer-generated world with our own version of the metaverse–an EWP Asset Structure that transforms your assets into a reality where they are maximized for tax efficiency, privacy and asset protection. We compared this to the metamorphosis of a caterpillar into a butterfly.

Here we are witnessing one of nature’s most amazing events (video of a caterpillar changing into a butterfly). This transformation is what occurs when we place your assets inside a Private Placement Life Insurance policy. After this transformation your assets will embody the Six Principles of EWP that Wikipedia features in its article on International Tax Planning. Like the butterfly your assets will now be freed from their former constraint, and can now fly with enhanced privacy, asset protection, and tax efficiency. We achieve our remarkable results through our knowledge of asset structuring, as expressed in our team of Regional Representatives.

We now invite you to continue our Journey Together, and see first-hand why an EWP Asset Structure is the most comprehensive, safe, and straightforward asset structure available today.

We continue to bring you examples of how the metaverse is being used today. This week our example is from the world of luxury-goods companies courtesy of the Wall Street Journal. Here are my key excerpts from an article by Trefor Moss.

A $300,000 Dolce & Gabbana Tiara You

Can Only Wear in the Metaverse

Dolce & Gabbana, Gucci, Burberry and other

Luxury-goods companies see promise in digital markets

Where—just as in real life—rarity and exclusivity can

Translate into high prices.

LONDON—Digital sharks wearing Burberry. A virtual Gucci purse that cost more than its real-life equivalent. A one-of-a-kind electronic Dolce & Gabbana tiara that fetched over $300,000 at auction.

The world’s biggest luxury brands have been dipping their toes into the world of digital fashion, and the early evidence suggests there are eager buyers willing to pay premium prices for virtual products.

Upstarts are diving in, too. In February, Cult & Rain, a New York-based sneaker maker, sold 1,179 pairs of real shoes, each paired with a digital version in the form of a NFT, or nonfungible token, and priced at 0.5 ethereum, equivalent to about $1,635.

The combination was a bet on two groups of consumers: sneaker enthusiasts and NFT speculators, according to George Yang, the company’s founder. He wasn’t sure either would show up to buy.

“This was completely untested,” said Mr. Yang, who was hoping for 800 sales to break even. “We didn’t know if we would sell even one of these things,” he said.

The digital luxury market is in its very early days, analysts say. But if companies figure out how to engage a new generation of consumers, annual digital sales could eventually come to as much as 50 billion euros, equivalent to about $55.2 billion, by 2030, according to Morgan Stanley. That would represent a 10th of all projected luxury revenues for the industry by then.

“You’ve got millions of the next generation of luxury consumers spending several hours a day on gaming platforms, so we think there is an opportunity,” said Anita Balchandani, a U.K. partner at McKinsey & Co.’s luxury group.

Cult & Rain’s Proof of Concept

Cult & Rain’s Mr. Yang—a former design director for Paris-based fashion house Cerruti and an avid sneaker collector—had originally planned to develop a conventional luxury sneaker brand. After discovering that some of the sneakers in his personal $150,000 collection were fakes, he set out to make sneakers that contained a microchip guaranteeing authenticity.

As the metaverse emerged, that idea acquired a virtual dimension, he said, since NFT shoes created on the blockchain are inherently unique and traceable.

Last year, Mr. Yang designed the brand’s first sneaker range and hired artists to create one-off stylistic variations to make them unique and collectible. He set up a factory in Milan to make the sneakers. He also began building an online Cult & Rain community, now several thousand strong, on group chatting platform Discord, where NFT buyers congregate to discuss the merits of different projects.

But as he prepared for February’s launch, Mr. Yang said he had no idea whether buyers would come chiefly for the sneakers, or the NFTs—or not come at all.

“This was always going to be proof of concept,” Mr. Yang said.

The sale earned Mr. Yang’s company 859.5 ethereum, the equivalent of roughly $2.7 million, he said.

For serial NFT investor Felix Nordén, an applied scientist at Twitch Interactive Inc., a video-streaming service owned by Amazon.com Inc., Cult & Rain’s actual sneakers were an afterthought: He bought chiefly as a digital investment. The real shoes might make a nice gift for a friend, Sweden-based Mr. Nordén said.

Cult & Rain is planning another launch this month.
In addition to the cash raised in its initial sale, the company, as is typical, receives a 5% royalty whenever one of its NFTs is traded on a public platform such as OpenSea, which is currently the main site for buying and selling NFTs. Most importantly, the launch has demonstrated to luxury companies that it’s feasible “to bridge a real-world luxury item into the NFT space,” Mr. Yang said.

In our next video, Episode Three, you will find out the secret to why an EWP Asset Structure is so successful at delivering the ultimate wealth planning strategy available today.

Please watch our FIRST NFT COLLECTION

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

The Metaverse - PPLI and EWP- Video 1

The Metaverse – PPLI and EWP – Episode 1

Posted on by

The Expanded Worldwide Planning Video Series

Our Journey Together: An Exceptional World of Asset Structuring – Episode One

Beyond Facebook and Apple’s Metaverse with PPLI and EWP

Welcome. The metaverse envisioned by companies like Facebook and Apple entails an augmented, virtual reality where users are not just scrolling, posting, and commenting, but interacting in a fully-realized computer-generated world. This type of metaverse is being defined today, but the final outcome is something nobody knows.

The transformative metaverse that an EWP Asset Structure creates for your assets is analogous to one of nature’s most miraculous events: the transformation of a caterpillar into a butterfly. Once your assets are placed into a properly designed EWP Asset Structure, they are shielded from taxation, while simultaneously achieving maximum privacy and asset protection. A stunning financial transformation indeed!

The caterpillar world that your assets previously occupied has been freed into the new reality of the butterfly. Your assets remain the same. What these same assets can achieve for you has been fundamentally altered.

This type of financial metaverse has been in existence in various forms since the 1980s. You don’t have to wait for it to define itself. An EWP Asset Structure creates a new reality for your assets by using a simple and straightforward financial tool–life insurance, in the form of Private Placement Life Insurance, or PPLI for short.

This series of videos introduces you to the Metaverse of EWP Asset Structures and how you can use them to achieve maximum tax efficiency, privacy and asset protection.

As the Forbes article below states, some are calling 2022 the year of the metaverse. With this in mind, we bring you an example of how high-end real estate is working with the metaverse.

ONE Sotheby’s Is Selling The First Real-World Home Through The Metaverse Using NFT Technology

Emma Reynolds,Senior Contributor

I cover home design and luxury real estate.

Some might argue that 2022 is the year of the metaverse, and specifically, metaverse real estate.

Together, ONE Sotheby’s International Realty and Voxel Architects, along with general contractor and NFT collector Gabe Sierra, are introducing the first ever ‘MetaReal’ mansion that includes a real-world home and a virtual counterpart in the metaverse. The virtual home will live within The Sandbox metaverse, a community-driven platform where creators can monetize voxel assets on the blockchain.

The buyer of the NFT asset will also acquire ownership rights of the physical home, set to be completed in Miami in Q4 of 2022. This is the first time something like this has been done.

The home in Miami will be built on a one-acre lot in one of the city’s most prestigious neighborhoods. It will span 11,000 square feet and include seven bedrooms and nine bathrooms. The virtual property will exactly mirror this, and Voxel Architects is helping to create it. The ‘MetaReal’ Mansion will be auctioned off in 2022 at a yet-to-be disclosed reserve price. The exclusive sales agent for the property is Michael Martinez of ONE Sotheby’s, who plans to execute the transaction on the Ethereum blockchain.

“The metaverse counterpart of the home will serve as an extension of the real-world home, allowing the buyer to host in-home meetings, events and parties with guests from around the world,” Meta Residence founder Gabe Sierra tells Forbes. “By mimicking the real-world environment of the buyer, we are creating an experience that blends the lines between metaverse and reality. Imagine fighting off a dragon, traversing over a mountain range, and finally arriving at your metaverse property, where you are greeted by your friends who are visiting to check out your new Bored Ape NFT. After interacting in your virtual living room, you exit the metaverse, and you are now sitting inside that same real-world house. That is the experience we are creating.”

NFTs as they pertain to real estate are relatively new, and for those who have a hard time making sense of the concept, you’re not alone. In short, the metaverse is a virtual world and there are more than one. Facebook, for example, hopes to be the largest. The tech company changed its name to Meta earlier this year.

Please watch our FIRST NFT COLLECTION

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

Crypto PPLI and EWP-Episode 4

CRYPTO – PPLI and EWP – Episode 4 – The EWP Stories Video Series

Posted on by

Cryptocurrency, Private Placement Life Insurance and Expanded Worldwide Planning

The Expanded Worldwide Planning Stories Video Series

Episode 4

Introduction

Welcome. Many investors in the crypto space have lost faith in some of our long-established institutions. These investors are looking for relevance in newer and more decentralized modes like the blockchain concept. At EWP Financial we embrace the six principles of Expanded Worldwide Planning, or EWP for short. These six principles are introduced in the opening paragraph of Wikipedia’s article on International Tax Planning.

This video will explain the six principles of EWP and how they help to safeguard your crypto assets and maximize them for tax efficiency, asset protection and privacy. A properly designed EWP Asset Structure can give you what no other asset structure can offer. These six principles are the key to the relevance you are searching for in your quest for financial security.

We include excerpts from an excellent article from Cointelegraph by Robert W. Wood that discusses some of the tax aspects of cryptocurrency.

——————————————————————————————————————————-

The major tax myths about cryptocurrency debunked

By Robert W. Wood
More crypto tax enforcement is coming, and many taxpayers are complying going forward, and amending prior returns if they have something to clean up.

Crypto and taxes may not be a match made in heaven, but taxes seem inevitable, and the United States Internal Revenue Service (IRS) has made it clear it is going after people who don’t report. With IRS summonses to Coinbase, Kraken, Circle and Poloniex, plus other enforcement efforts, the IRS is on the hunt. The IRS sent 10,000 letters in different versions asking for compliance, but all were nudges to encourage taxpayers to be compliant.

The IRS hunt for crypto has often been compared to the IRS hunt for foreign accounts more than a decade ago. Unfortunately, it is not clear if there will ever be a crypto amnesty program emulating the offshore voluntary disclosure programs the IRS formulated for offshore accounts.

Related: More IRS crypto reporting, more danger

The IRS made its first big announcement about crypto in Notice 2014-21, classifying it as property. That has big tax consequences, accentuated by wild price swings. Selling crypto can trigger gain or loss and be taxable. But even buying something with crypto can trigger taxes. Paying employees or contractors does too. Even paying taxes in crypto can trigger more taxes.

We are already seeing crypto audits by the IRS, and by some states (notably California’s Franchise Tax Board), and more are sure to follow. At least now, there are tracking and tax return preparation alternatives that can make the process easier than it was in the early days. Everyone is trying to minimize taxable crypto gains and to defer taxes where legally possible.

Still, it is easy to get confused about the tax treatment and take tax positions that may be hard to defend if you are caught. With that in mind, here are some things I’ve heard, that I’ll call crypto tax myths.
Myth 1
You can’t owe any tax on cryptocurrency transactions unless you receive an IRS Form 1099. If you did not receive a Form 1099, you can check the box on your tax return that says that you did not have any transactions with cryptocurrency.

Actually: Tax may still be owed, even if the payor or broker does not file a Form 1099. A Form 1099 does not create tax where no tax was previously due, and plenty of taxable income is not reported on Forms 1099. A Form 1099 might be wrong in which case, explain it on your tax return. But if you are audited and your best defense is that you chose not to report your transactions because you did not receive a Form 1099, that is weak.

Myth 2
If you hold your crypto through a private wallet instead of an exchange, you don’t need to report the crypto on your tax returns.

Actually: Private wallet or exchange, the tax rules are the same. The impulse to hide ownership by moving wealth to anonymous holding structures is not new. When Swiss banks began disclosing their U.S. accountholders to the IRS and U.S. Department of Justice, many U.S. taxpayers tried just about everything, but nearly everyone paid in the end, usually with big penalties. The cryptocurrency question on the IRS Form 1040 is not limited to cryptocurrency held through exchanges. If you say “no,” even though you hold crypto through a private wallet, you are potentially making false statements on a tax return signed under penalties of perjury. You might be betting that you will never get caught, but thousands of U.S. taxpayers who have Swiss bank accounts who can attest how poorly that bet can played out.

Myth 3
If you hold your crypto through a trust, LLC or other entity, then you do not owe tax on the crypto transactions and do not have to report. Besides (the myth continues), income generated through LLCs is tax-free.

Actually: Owning crypto through an entity may keep the income off your tax return. But unless the entity qualifies (and is registered) as a tax-exempt entity, the entity itself will likely have tax reporting obligations and may owe taxes. For tax purposes, LLCs are taxed as corporations or partnerships, depending on their facts and tax elections. Single-member LLCs are disregarded, so the LLC income ends up on the sole owner’s return. If your entity is a foreign entity, there are complex U.S. tax rules that can make you directly liable for certain income produced within the foreign entity.

Myth 4
If I structure the sale of my crypto as a loan (or some other non-sale transaction), I don’t have to report the proceeds.

Actually: Consider if you are loaning or selling the crypto. The IRS and courts have robust doctrines to disregard sham transactions. Are you getting the same crypto back that you are loaning? Are you charging interest on the loan, and paying tax on the interest as you receive it? Some loans may not hold water. And if you sell crypto and receive a promissory note, that may complicate your taxes further with installment sale calculations.

Myth 5
A crypto exchange is a type of trust since you can’t unilaterally change the policies of the exchange. So you do not own the crypto in your account for tax purposes and do not have to report transactions through an exchange.

Actually: The IRS has not said any of this. IRS guidance suggests that the IRS views taxpayers as owning the cryptocurrency held through their exchange accounts. It seems highly unlikely that the IRS would view crypto held through an exchange account as owned by the exchange itself (as trustee), rather than owned by the account holder. Taxpayers often own their assets through accounts held by institutions, such as bank accounts, investment accounts, 401(k)s, IRAs, etc.

In most cases, the tax law treats taxpayers as owning the money and assets held through these accounts. Some special accounts like 401(k)s and IRAs have special tax rules. And having an account treated as a trust is not necessarily a good tax result. Beneficiaries of trusts, and particularly foreign trusts, have onerous reporting obligations. Thus, before you consider crypto exchanges as trusts, be careful what you wish for. Calling something a trust does not mean income generated within the trust is exempt from income tax.

Myth 6
Congress’s amendment to Section 1031 of the tax code that limits like-kind exchanges to real property doesn’t make crypto-to-crypto exchanges taxable.

Actually: Section 1001 of the tax code provides that a taxable gain results from the “sale or other disposition of property.” The sale of any type of property for cash or other property can create a taxable gain. The IRS says crypto is property, so trading crypto for other crypto is a sale of crypto for the value of the new crypto.

Before the Section 1031 amendment took effect in 2018, a crypto-for-crypto swap might have been ok as a like-kind exchange under Section 1031. But the IRS is pushing back on this position in tax audits and has issued guidance that denies tax-free treatment for certain cryptocurrency swaps. That is not precedential and does not cover the waterfront, but it tells you what the IRS is thinking. In any case, now that Section 1031 has limited like-kind exchange treatment to real property, crypto-to-crypto swaps are taxable unless they qualify for another exception.

Takeaways
Every taxpayer is entitled to plan their affairs and transactions to try to minimize taxes. But they should be wary of quick fixes and theories that sound too good to be true. The IRS appears to believe that many crypto taxpayers are not complying with the tax law, and being careful in the future and doing some clean-up for the past is worth considering. Be careful out there.

This article is for general information purposes and is not intended to be and should not be taken as legal advice.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Robert W. Wood is a tax lawyer representing clients worldwide from the office of Wood LLP in San Francisco, where he is a managing partner. He is the author of numerous tax books and frequently writes about taxes for Forbes, Tax Notes and other publications.

—————————————————————————————————-

Conclusion

EWP Asset Structures are tailored-made for holding crypto and NFT assets. At EWP Financial we welcome you to enter our world of satisfied clients, and find out what our simple and straightforward asset structure can do for you.

Take a look to our first NFT COLLECTION.

If you found this video useful, please give us a Like, and click on the subscribe button below. We look forward to having you as a client. Thank you for watching.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure. Contact Us.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

Tax Shield Episode 4

Tax Shield 4 – Episode 4 – Part 3 – The EWP Stories Video Series

Posted on by

Tax Shield Video 4 – The Expanded Worldwide Planning Video Series

 International Tax Planning

Introduction

Welcome. As advisors, we concentrate on the ‘shield’ aspect of the term Tax Shield. A Tax Shield is a main principle of Expanded Worldwide Planning, or EWP for short. We will now speak about the ‘tax’ aspect of our subject. What is the history of this thing we wish to shield? Here is a very brief history of taxation, mostly in the U.S. context.

We begin in the ancient world. There is recorded a system of taxation in Egypt around 3000 BC. Oddly enough, the United States was tax-free for much of its early history. This changed at the time of the Civil War, when large debts were incurred to fund the war against the South. In 1913, the 16th Amendment to the Constitution was introduced to pave the way to an income tax.

World War I led to three Revenue Acts that raised tax rates and lowered the exemption levels. The number of people paying taxes in the U.S. increased to 5%.

By 1940, the need for the U.S. to prepare for war and support its allies led to more aggressive taxation. People with incomes of $500 faced a 23% tax and the rates climbed up to 94%. The average annual income at this time was $1,000. By 1945 43 million Americans paid taxes and the yearly receipts were in excess of $45 billion. Today annual tax revenue in the U.S. is approximately $3.7 trillion dollars

In this video we find George Allbirght debating with himself on whether he should proceed with the conservation easement offered by the company, Conservation for Nature. A telephone call from his old college acquaintance Jay Edwards forces a definite decision from George.

—————————————————————————————————-

George had spent the last evening researching conservation easements, and concluded that they were a good thing. He had also reviewed his tax situation, and realized that the tax deductions that they offered would reduce his tax bill significantly. Perhaps he should work with Conservation for Nature? He had plenty of land, and they had the years of experience. A good combination, he thought.

Later in the morning, Jack telephoned. He spent nearly an hour telling George that the promoters at Conservation for Nature were crooks, and that George should definitely stay clear of them.

Now George was perplexed. He trusted Jack; they had been good friends ever since their time in Detroit. Jack was giving him very concrete reasons why he should not do business with this company. He decided to reevaluate.

A few minutes after his call with Jack, his cell phone buzzed noisily. He jumped up suddenly. He had survived serving in Afghanistan, that is where he learned to fly a helicopter, but loud, sudden noises were still a problem for him.

“Hello, George?”

“Yes?” George said in a wary tone.

“I am calling you back from Conservation for Nature. I heard in the office that you were interested….”

The voice was no longer polished and sophisticated. The caller was drunk, and George knew who it was. An old college friend of his, they used to go out drinking together. Jay could barely articulate his words.

He knew Jay well. Jay still owed him money. Jay was the kind of guy who would sleep with his best friend’s wife.

Jay was desperately trying to launch into his well rehearsed sales pitch about the company he was doing appraisals—Conservation for Nature, but was hardly intelligible. That was enough for George.

“Good bye, Jay. Don’t ever call me again.”

—————————————————————————————————-

Conclusion

In our next video, George is again aboard his state-of-the-art helicopter cruising over his 5,000 acre property. George was safe in the knowledge that he must find a simple and straightforward solution to his tax problem.

If you found this video useful, please give us a Like, and click on the subscribe button below. We look forward to connecting with you in part five of our Tax Shield story. Thank you for watching.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP