If you re like most Americans, then you ve probably never heard of. Currencies to Secure Your Retirement

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1 A Publication of World Currency Watch Currencies to Secure Your Retirement Simple, Safe and FDIC Insured Deposits You Can Add to Your IRA By The World Currency Watch Research Team If you re like most Americans, then you ve probably never heard of a Foreign Currency CD. But this radical investment vehicle is one of the best ways to shield your retirement plan, beat inflation and profit as the dollar falls, all at the same time. So without further delay, welcome to the world of Foreign Currency CDs (Certificates of Deposit), arguably one of the lowest risk-for-return investments in our turbulent economy. In the next 15 minutes, you ll find out exactly how these longterm investments work, learn all the advantages of diversifying your retirement plan with foreign currencies, and most importantly you ll learn how you can get started investing in these CDs today. But first, let s explore some of the more traditional alternatives you can choose for your retirement portfolio and look at how they re currently faring in the marketplace. No Shelter for Your So-Called Safe Investments Let s face facts. It s not exactly a popular time to plan your Inside this Report: The Hidden Tax of Inflation Plunders Your Savings The Easiest Way to Profit in the Next Decade of Inflation The Real Nearly Doubled in four Short Years World Currency Watch 98 S.E. 6th Avenue, Suite 2 Delray Beach, FL USA USA Toll Free Tel: (888) Contact: Website:

2 retirement. We re all a little too distracted by the short-term misery we re seeing in the markets. The Dow dropped over 6,000 points (40%) between October 2007 and March It s still clawing its way back. Inflation is expected to soar faster than it has in the last 17 years. And our government s bad habit of printing new dollars and slashing interest rates is having a serious impact on your long-term savings. In the words of Bankrate s Greg McBride, Savings are taking it on the chin. The Fed s rate cuts geared to aid ailing homeowners with adjustable-rate mortgages have come at the expense of savers and retirees dependent on fixed income. And this isn t just a short-term problem. John K. Castle, a columnist for BusinessWeek cites several other indicators including the rapidly rising price of commodities and manufacturing as reasons to believe that we ll likely be facing annual inflation in the 5%-6% range for the next few years. Assuming your CDs, bonds and money-market accounts pay the standard 1% to 2%, this means you ll actually be losing money over the next ten to 15 years maybe even longer. Let me explain The Hidden Tax of Inflation Plunders Your Savings And of course, as inflation rises, it also robs your dollar of its purchasing power. This means that in the long-term, even if you find an investment that beats inflation, you re still ultimately saving less if you factor in currency depreciation. And don t even think about the possibility of deflation. The Federal Reserve has shown it s quite willing to throw in everything even the kitchen sink to prevent that from happening. This all begs the question: If CDs and bonds those time-honored, FDIC-insured safe investments can t save your retirement plan, then what can? And more importantly, how do you cope with the falling dollar, when all your retirement assets are based in dollars? Some would say the best way to offset losses during the dollar s hasty retreat is to start trading in the forex markets. But you can t directly invest your retirement plan in any forex trading account, like you can invest directly in a bond or CD. So this strategy is not necessarily suitable for the long-term. Plus, even if you re not saving for the long-haul, the forex market holds other challenges. If you re not used to the currency markets, it can be difficult to know what to buy. Moreover, 2

3 Forex portfolios like almost every other type of investment lack the security of FDIC insurance. We ve found a unique alternative that brings you the best of two worlds: the Foreign Currency CD. It combines the insured security of the traditional dollar-based CD with the radical new profitability of the foreign exchange: Your Introduction to the Foreign Currency CD Just a few short years ago, if you wanted to invest in foreign currencies without any leverage you had to open up a foreign bank account. It was a good option if you wanted investment diversification. But unfortunately, your money was half a world away. But now you can buy and hold foreign currencies right here in the good old U.S. of A. without leverage. EverBank, a U.S. based award-winning institution, is taking that development one step further. For over 20 years, it has specialized in CDs denominated in many foreign currencies. In a moment, we ll reveal four of our favorite EverBank currency CDs (and why they are set to profit handsomely as the dollar continues it precipitous slide.) Aside from the fact that they invest in stronger foreign currencies, these CDs are very similar to your dollar-based CDs. You can invest in anything from the Australian dollar to the Brazilian real. In fact, you will find that EverBank offers over 20 currencies to choose from. Foreign Currency CDs are among the easiest and most basic ways to invest in currencies. Plus, you have the potential to make a serious profit. It s as easy as holding U.S. dollars in your bank account, except instead of those rapidly weakening bills, you ll have the profit potential of currencies from around the world. Most Foreign Currency CDs last for three months, so it is important to remember that you will not be able to remove your assets until that time period has ended. Do not invest more then you can afford to put aside for that period of time. Best of all, you can hold them right in your IRA. The Easiest Way to Profit in the Next Decade of Inflation Foreign Currency CDs are one of the most popular options for the beginner currency investor. They offer slow and steady gains, so they are perfect for buy and hold investors. They also allow you the time to learn about the markets while still being involved. Or if you d rather, just sit back and wait, carrying on with your busy life. Once you are comfortable holding one CD and you will be after a very short period of time the best way to maximize your profit when investing in Foreign Currency CDs is through a CD portfolio. A CD portfolio is a package of multiple, related CDs that the bank holds in a portfolio for you. With a carefully structured CD portfolio, you ll be safe from the long-term risks of holding any one currency. 13

4 Yet again, the U.S. is behind the trend in foreign currency investing. While these trades have been going on for decades in other countries, very few banks in the U.S. currently offer Foreign Currency CDs. But once you find the right bank, you ll also find that investing in and managing these CDs couldn t be easier. All you need to do is: Call the bank Tell them which currencies you want to put in your CD and the respective amounts Apply and fund your CD And forget about them until the CD comes to term Collect your income You can park your cash on deposit and denominate it in the currency of your choice. Or, you can park your cash in a basket of currencies. All you need is a bank account that offers multiple-currency deposits. And you can rest easy at night, knowing that your investment is FDIC-insured, so each CD in your portfolio is protected up to $250,000 in the highly unlikely event of a bank failure. Twice the Opportunity of a Traditional CD As you ve seen, these CDs are almost identical to traditional dollar-based CDs, except for the fact that they re denominated in a different currency. That simple difference opens up a world of profit for this low-risk investment. It allows you to profit from currency appreciation, while still being guaranteed a baseline return. Few other investments can claim the same kind of profit potential with such minimal risk. The Real Nearly Doubled in four Short Years As an example, take a look at the graph above. It shows the exchange rate of the Brazilian real to the dollar between 2004 and As you can clearly see, there was an enormous potential for profit throughout most of that period. In fact, if you invested in the real in January of 07 and cashed in January of 08, you would ve cleared a tidy 21% profit. Not bad when you consider that a Foreign Currency CD would ve also produced a return on interest (and been insured by the FDIC the entire time you held it). What s more, the nature of exchange rate fluctuations is very compatible with this long-term strategy. Here s how: 24

5 If you look back to the graph of the Brazilian real vs. the dollar, you ll notice that it demonstrates one of the key characteristics of exchange rates: They have a tendency to trend in the long-term. From 2004 through 2008, the trend was positive. In late 2008, a flight to the dollar took the real down considerably, The dollar has already begun to decline again in 2009, 2010 and into So a currency like the real should resume its upward trend That trending makes them a great fit for your long-term investments and makes it possible for you to hold them for three to 12 month period. If you sense a long-term change in the trend, you ll generally have more than enough time to sell your CD before the markets make any dramatic moves. But What about the Unexpected? While these investments are very low-risk, they re not quite risk-free. What if the exchange rate falters while you re still holding the CD? Well, you could end up taking a loss of principle on your deposit. The Euro Rose 50% Against the Dollar This chart shows the exchange rate of the euro to the dollar between 2004 and As you can see, the drop in value since late 2008 represents a considerable amount of the gains that the euro has made over the dollar in the last three years but the dollar s strength can t keep other currencies down forever. For a long-term CD holder, short-term fluctuations may, in most cases, be absorbed by your longterm gains from appreciation. The interest rate on the CD could also serve to offset these losses so that you can still profit. But even when the dollar s value is going down the drain, there is always a slight risk that your target currency could depreciate in value and you could lose some portion of your principle. Since we ve already talked about the potential downside, we want to tell you about our favorite part of the Foreign Currency CD: the interest rates. 5

6 The Icing on the Cake Best of all, several of these CDs earn up to eight times more than the interest of a typical U.S. dollarbased CD. You can even choose to receive interest every three months in dollars, from these foreign currency CDs. And that s just income. These foreign currency CDs also offer the opportunity to earn capital gains, should the underlying currency in your CDs rise in value vs. the U.S. dollar. Regardless of exchange rates you could actually stand to double your profits on interest alone. In fact, one of these CDs in the Currency Capitalist portfolio returned over 27% since How many investments can boast that for the past year? Not many, that s for sure. EverBank s CDs also do not have minimums as low as currency ETFs (of which minimums can start around $32). To open an EverBank foreign CD you ll need $10,000. But what makes these currency investments so attractive is that not only you get to directly own these currencies, but you also have some protection. Due to legislation that was passed just recently, these unique CDs are now FDIC insured up to $250,000 dollars until the end of 2013! (FDIC insurance was supposed to drop back down to the $150,000 limit at the end of 2009 but the deadline was extended.) You will NOT get this type of protection from any currency ETF. These are just a few of the reasons why these CDs offer one of the safest and easiest ways to profit during the dollar s last days So if you want to profit by getting away from the falling dollar OR you have a long-term view on a foreign currency but don t want to trade or leverage, then Foreign Currency CDs could be your best investment option. To find out more about these ultra-safe CDs you can call our Currency Capitalist support team at or them at info@currencycapitalist.com. Likewise, you can call EverBank on Though we would recommend EverBank s products anyway, we want you to know that The Sovereign Society does benefit when you open up an account with EverBank. 6 But Why Stop There? If you re already diversifying your holdings away from the dollar to protect yourself from the risk of rising inflation, why stop at just one new currency? Forex traders often use multiple currencies to hedge the risk of loss, and you can too. In fact, EverBank has put together a few products specifically for this kind of investment strategy. The EverBank Asian Currency Portfolio and All-Weather Portfolio are both well-suited to replace your flailing dollar-based CDs with returns on interest and potential currency appreciation. They allow you to begin diversifying your holdings, along with a few other added benefits. If you purchased all these currencies separately at EverBank, building your own Asian Currency Portfolio would cost you $45,000. However, EverBank is offering this portfolio as a single product, so you ll be able to get started for as little as $10,000. You can find EverBank s Asian Currency Portfolio online at:

7 Everbank s All-Weather Portfolio contains some of the most stable currencies from around the world, including the Canadian dollar, the Norwegian kroner, the Swiss franc, and the Chinese renminbi. If you re interested in currency investments but afraid of the depreciation scenario mentioned above, the All-Weather Portfolio is probably your best bet. You can find EverBank s All-Weather Portfolio online at: To get in touch with EverBank s World Markets Desk and find out what kind of Foreign Currency CD best fits your needs, you can call them at or send an over to worldmarkets@everbank.com. Be a Wise Retirement Investor Make no mistake. These rough times are probably here to stay. Benn Steil of the Wall Street Journal even goes so far to say that the Fed s actions have probably killed the last great hope for a sound, durable global fiat money system inflation targeting. While that statement might be a bit of an exaggeration, one thing is for certain: The dollar s days as the world s monolithic reserve currency are coming to a close. In the near future, investment strategies like Foreign Currency diversification will become a necessity for any investor looking for long-term stable growth. But few comparable strategies exist today. And you would be hard-pressed to find one as compatible with your current situation as the Foreign Currency CD. By combining the benefits and security of the traditional CD with the profit potential of today s foreign exchange, the Foreign Currency CD shields you from the risks of inflation and bank failure while maintaining a serious upside. Combine all of these benefits with the ability to hold these CDs in your IRA like a traditional CD and you ve found the kind of strategy that makes the difference between a retirement investor and a wise retirement investor. 7

8 World Currency Watch 98 S.E. 6th Avenue, Suite 2 Delray Beach, FL USA USA Toll Free Tel: (888) Website: Legal Notice: This work is based on what we ve learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It s your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don t trade in these markets with money you can t afford to lose. Sovereign Offshore Services LLC expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, Sovereign Offshore Services LLC, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail. Also, please note that due to our commercial relationship with EverBank, we may receive compensation if you choose to invest in any of their offerings. (c) 2011 Sovereign Offshore Services LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Report may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Sovereign Offshore Services, LLC. 98 South 6th Ave, Suite 2, Delray Beach FL