The idea of international diversification is a simple one – if you live, work, hold investments, own property, structure your business, store gold, etc. in the same country as your citizenship, then you truly have all of your eggs in one very fragile basket.

If just one little thing goes wrong, whether it's a court case, divorce settlement, political instability, government agency "administrative error," or some noxious bureaucrat who's out to get you, all of those aspects of your life can be put at extreme risk.

The idea of "planting flags" or diversifying internationally, involves spreading these aspects of your life across multiple jurisdictions and territories overseas. Banking in one place. Setting up a brokerage in another. Investing in another. Storing gold in another. Owning property in another.

You can do this with dozens, potentially hundreds of aspects of your life and/or business – using an offshore e-mail account, obtaining medical treatment overseas, seeking personal companionship abroad, setting up an overseas credit card processor for a web business, initiating an IPO for your company on an overseas exchange, foreign health insurance, etc.

Taking these kinds of steps can make your life much, much easier. Suddenly, all of those aspects of your life no longer fall under the jurisdiction of your home government; legions of blood-sucking bureaucrats no longer have access to confiscate your assets and frustrate your life with a few mouse clicks.

Potentially the most important and most powerful aspect of your life to diversify, however, is citizenship...

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