Attention, global nomads and aspiring entrepreneurs! Prepare to embark on a thrilling expedition into the world of ultimate freedom and financial empowerment. Today Igor is joined by Caleb Jones to explore the mind-blowing Five Flags concept—a game-changing strategy that will revolutionize your approach to taxes, residencies, and personal security. Get ready to discover the secrets of internationalization and unlock a life of limitless possibilities. Don’t hesitate, click now to join Igor on this captivating journey and redefine your path to success!
Guest: Caleb Jones is a renowned business consultant, entrepreneur, and bestselling author. He quickly rose to success, reaching the top 5% of his industry within three years. With over 26 years of experience, he has worked with over 300 companies worldwide, including Fortune 500 firms. Caleb has founded seven profitable companies and authored multiple New York Times bestsellers. His expertise spans multiple ventures, including the influential Alpha Male 2.0 brand and empowering individuals to create location-independent incomes through Sovereign CEO.
[00:00] In this episode, Igor is joined by Caleb Jones to discuss the concept of the Five Flags, a strategy for internationalizing your lifestyle and minimizing taxes. Additionally, they dive into the importance of having a backup plan and adapting to unforeseen circumstances, as demonstrated during the COVID-19 pandemic.
[02:35] The Five Flags Concept:
- Five Flags is a concept where you internationalize your lifestyle, and you design a lifestyle where you pay the legal minimum of taxes.
- If there are any problems with your country or any country, you can just move to another country anytime you want. You have residency in multiple countries, and you’re okay.
- It’s a way of both increasing your freedom and your stability at the same time.
- Your first flag is the country where you live, or at least spend most of the time in a given year, so at least, six months a year there. And that is a country where you are not a citizen.
- The reason for that is you have more regulations and rules and taxes if you’re a citizen of where you live than if you’re a visitor or resident or guest of where you live.
- The second flag is the opposite. That is where you have citizenship and a passport but you don’t live there. Because if you don’t live there, you don’t pay taxes there with rare exceptions.
- The third flag is where your business is based. Ideally, your business is based somewhere where you don’t live in a place that is a legal tax haven that has zero or low corporate tax.
- The fourth one is where you have your assets.
- The fifth is kind of optional, and I don’t really do much of it. It’s where you vacation, where you buy your stuff.
- So instead of vacationing in Hawaii, where it’s beautiful but extremely expensive, and they rip you off, you can vacation somewhere like the Philippines, which has better beaches in Hawaii, but it’s 1/10 the cost.
[09:50] Happiness Minimum And Logistical Minimum:
- There is a happiness minimum and there’s a logistical minimum. Those are two different things.
- There is a lot of scientific empirical data that shows that if you make less than $85,000 a year in US dollars, it is about 7000 a month in USD.
- We know empirically that the vast majority of people are making under that amount, you’ll be happier if you made at least that amount.
[13:12] The Best Places To Live Around The World:
- The name of the game in Southeast Asia or South America or Southeast Asia, South America, parts of Southeast Asia are very cheap. You don’t need a lot of money to do this.
- In terms of setting up residencies and things like that. You can set up a residency in places like Paraguay, UAE, and Mexico for about 2000 bucks or less.
- Stream the full episode to dive deeper into the discussion.
[17:18] Why Did Igor Leave Israel?
- I moved out to Canada because it was safer.
- Israel is always at war. That’s the reality of life in Israel, ask anyone they just accepted that this is the reality and just live their life normally. But I didn’t like the idea. So we moved out to Canada.
[20:32] Advice For Moving To A New Country:
- You have to bring your kids and just see if you like the vibe because you’ll know in a week if you would live there or not.
- Dubai is expensive. You have to keep up the higher echelons like I said if you have kids, it raises the bar in terms of complexity a little bit.
- If you want to stay in America for the rest of your life, you just have to do what you have to just get accustomed to increasing violence and increasing civil unrest in the cities. If you want to move out in rural areas in the middle of nowhere that might work provided other factors.
- Stream the episode to dive deeper into the discussion.
[27:54] How Did Covid Affect The Five Flags Concept?
- During the pandemic, I had guys who were stuck in Italy, and it was horrible.
- It doesn’t make sense to not at least have a backup plan.
[38:50] Connect With Caleb Jones:
- Learn more at www.calebjones.com.
- Listen to the Sovereign CEO podcast.
- Listen to the Alpha Male 2.0. podcast.