🏁 Flag Theory, Dirty Word?

Yes. This is the CityChad, your financial guru, unlocking the secrets to a wallet that never runs out of surprises. Let's unravel the magic!

In this week’s edition:

• Markets: Green is the color

• Chad of the Week: Justin Welsh

• Article: Flag Theory, Dirty Word?

• News: France In Trouble

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MARKET REVIEW

What’s up Chads and Chadettes? Hope you’re enjoying these market updates! We had another week of gainz, with stocks up almost 2% and almost all other asset classes also in the green.

Why is this? Nothing new, my friends. Like we discussed last week, the world’s largest economy, the US, seems to be on a merry path to avoid a significant recession. China is still weighing on the markets though, so keep an eye out for that one.

In the crypto market we saw some notable gains too. Compound Labs filed with the SEC to issue government bonds on the Ethereum blockchain, which could potentially open up a whole new world of investing opportunities.

The token more than doubled since the announcement, but has recently pulled back. Is it all hype? It’s crypto, make DYOR and make your own conclusions.

And the news that nobody wanted to hear, but was hardly surprising, was that the SEC said that the recent Bitcoin spot ETF applications by BlackRock and Fidelity were inadequate. This of course drove BTC down.

However, the fight is just starting as BlackRock has submitted a new application. Thanks Gary, the “hero” we don’t need but maybe deserve.

CHAD OF THE WEEK: JUSTIN WELSH

Talking about solopreneurs, Justin Welsh is a name that carries some weight on the interwebs. He’s a chill guy, but don’t let that fool you. He’s an absolute beast in the world of copywriting and online marketing. Read on to find out why he’s awesome and how you can copy his strategies to grow your own business.

Everyone has an origin story. What’s his? After working for years in the startup world and helping to build companies that exceeded a 1B dollar valuation (impressive), he burnt out.

So he did what any self-respecting Chad would do: he took action, yes. Maybe he was reading City Chad before it existed, who knows.

Now, Justin uses his wealth of knowledge and expertise to help others identify, develop, and monetize their skills on the internet. Like a lot of us out there want to do, but few succeed so spectacularly.

He’s made himself a name by mastering the art of passive income with his popular courses and digital products around creating great content.

What makes him a Chad is the fact that he has a wealth of knowledge and insider tips that he’s eager to share with others. He’s a giver not a taker. It’s the platonic ideal of a win-win scenario. He makes loads of money, and we get a formula that works.

How do we know it works? Look at his numbers, if getting about 360k followers on LinkedIn and Twitter in just 16 months is not an achievement I don’t know what it is.

If you’re looking to monetize your skills on the internet and build a life that works for you, take a look at his work justinwelsh.me. He’s not even paying us to say this!

FLAG THEORY, DIRTY WORD?

TLDR: Flag Theory is the philosophy based on the idea of “going where you are treated best”. By carefully optimizing where you spend your time and put your money, you can live like the rich without being one. The five areas to optimize are: Citizenship, Tax Residency, Income Diversification, Keeping Money Safe, Finding the Best Playground.

• What’s Flag Theory

• The Five Principles of Flag Theory

• Myths About Flag Theory

WHAT’S FLAG THEORY?

I've been intrigued by Flag Theory since I became a digital nomad several years ago. It's fascinating to think about how our modern world and technology have made it possible for people to create truly global lifestyles so why not take advantage of it?

Find out here what it is and how it can help you #liveyourbestlife.

Flag Theory is not the Frankenstein child of Six Flags and Orange Theory. Although that may be cool to see one day. It’s the philosophy based on the idea of “going where you are treated best”.

What I love about it is that it really breaks down life into some of the key variables that can make or break your experience on this planet. It is a way to maximize freedom by leveraging the best each country has to offer.

Tax laws, citizenship, money making potential, and fun. It’s all there.

But how do we get to do this? How exactly does Flag Theory work? Well, there are a few principles essential to Flag Theory, and I’ll give you a quick summary so you can get a grasp on what it is and how it may improve your life.

THE FIVE PRINCIPLES OF FLAG THEORY:

The world changes quickly and so do theories. The number of principles may vary depending on who you ask, the following are what I consider the most universal and relevant.

1. Get a second citizenship or residency: Why? Apart from potentially being a country where you like to live in more, there are some perks to it that are not so obvious at first glance. That second citizenship should be that of a country that takes it easy on foreign income and doesn’t mess much with your personal freedoms. It’s also a good plan B if, for any reason, you need to leave your current home. This is why many people opt to move to roaring places like Dubai. Zero income tax, safe and great business opportunities.

2. Establish Tax Residency: Remember that part about foreign income? Well, this is quite self-explanatory. Some countries are just OK about not giving a crap for foreign income, it’s just their way to say “Hey, your money is safe here, so you can hang out and spend it here on the things you like.” If you are giving away half your earnings to the government in a Western country and not getting the service you think you are paying for, maybe it’s time to make the move and establish tax residency where it makes sense.

3. Diversify your Income Sources: This is a must. Putting all your eggs in one basket can look beneficial in some cases but is never safe. Having investments in different currencies, in different countries, in different markets will cushion the failure of one of them if it fails. No matter what you are investing in, the failure percentage is never zero.

4. Keep your money safe: Who trusts banks? They are a necessary evil so be sure to choose the least evil. Swiss banks have a reputation and still are the default, however there are other places of interest, like the ascendant Singapore.

5. Choose a playground: The only bad money there is, is money not spent. It’s about having a place to play and have fun in general, find a good country that you like, maybe not for living, but for spending time, making friends, going out and so on. This is more of a lifestyle choice rather than a business one.

3 MYTHS OF FLAG THEORY

As a skeptical person by nature, I also wondered if flag theory was just a pipe dream or a loophole-seeking tactic. So, I dug into the research and talked to experts in the field to find out the truth. Then I found out that there are solid principles and strategies behind this philosophy that can work to your benefit. In fact, I've come to believe that flag theory is a smart and even necessary approach for those seeking greater freedom and flexibility in their lives. However, there are some myths about Flag Theory that need to be dispelled.

It’s Only for the Rich. That may have been the case a few years ago where your earning potential tied you to your location. But now things have changed. Remote work is practically the norm in many industries, so take advantage of it.

It’s for the Dodgy. When people hear “tax optimization”, suddenly alarms bells ring. Why, though? As US Judge Learned Hand famously said: “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.” The message is simple: follow the law and pay the taxes you owe, but not more. Doing so does not make you “dodgy”.

It’s for Travelers: Many people think this is just for digital nomads. But even if you are not interested in globetrotting you can certainly use Flag Theory to optimism your life. Diversifying your income sources, keeping your money safe, and enjoying a truly global lifestyle is not restricted only to forever travelers. It’s in fact what Chad’s are all about.

That’s a wrap. If you like this, let me know and we can expand on each principle in future CityChad editions. Oh, and don’t forget, get professional help before you engage in tax planning. Chad does not provide tax advise.

FRANCE IN TROUBLE

What's happening in France? Well, what’s not happening? There is always something happening there, and of course, riots. Here's the rundown of the most recent riots.

As usual, there have been some serious protests going on in France, this time they have to do with the shooting of a 17-year-old boy named Nahel. This event seems to be the straw that broke the camel’s back regarding complaints people had against the French police. Many groups have accused the police of using excessive force in their duties. The Chamber of Europe has even been involved, condemning the "exorbitant utilization of power by state specialists." All these complaints have come to a head, sparking a wave of protests that have been steadily getting more violent.

Now the protestors are the ones who are using excessive force, in this kind of a dialectic game the tables turn frequently. Now things are really heating up around France. There's been a lot of violence and destruction in the suburbs, and it's starting to reach the city center.

Viewing this pandemonium, the Prime Minister of Poland released a video comparing the current state of France with that of Poland. As we mentioned in our first edition, Warsaw is sort of a hidden jewel of a city. Poland in general offers cheaper prices (unlike France) and low crime rate (also unlike France).

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Disclaimer

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