Passport portfolios: Why many rich Americans are considering life abroad
Passport portfolios: Why many rich Americans are considering life abroad
NEW DELHI: In an increasingly volatile and uncertain world, wealthy Americans are taking significant steps to safeguard their future financial stability by seeking second citizenships. A global law firm specializing in investment migration and citizenship consulting, Henley & Partners, has observed a notable trend among high-net-worth individuals aiming to develop “passport portfolios.” This strategy allows them to hedge against potential upheavals by having the option to relocate should the need arise.
Dominic Volek, executive and group head of private clients at Henley, emphasized the importance of having a backup plan, stating, “The U.S. is still a great country, it’s still an amazing passport, but if I’m wealthy, I would like to hedge against levels of volatility and uncertainty.” This sentiment reflects a broader understanding among the affluent that diversification should extend beyond investments to include citizenship and residency, ensuring they are not tied down to a single country’s fortunes, a CNBC report said.
The US passport, which currently ranks sixth on the Henley & Partners’ passport index, allows Americans visa-free access to 189 countries. However, holders of the world’s top-ranked passports—such as those from France, Germany, Italy, Japan, Singapore, and Spain—enjoy even greater freedom, with visa-free access to 194 countries. This discrepancy highlights the tangible benefits that a second citizenship can provide in terms of global mobility.
The trend is not limited to the wealthy; more Americans across various socioeconomic backgrounds are exploring options for living abroad. Jennifer Stevens, executive editor at International Living, noted an increase in interest among Americans concerned about the future in the U.S., investigating alternatives for a more affordable and relaxed lifestyle overseas, the CNBC report added.
Recent surveys underscore the growing desire among Americans to relocate; a Monmouth University Polling Institute survey revealed that over a third of Americans would like to live in another country, a significant increase from previous years. Patrick Murray, the director of Monmouth’s polling institute, suggested that the partisan political discord in recent years might be contributing to this heightened desire to emigrate.
As wealthy Americans and others look abroad for security and quality of life, the concept of citizenship diversification emerges as a critical component of their contingency planning, reflecting broader concerns about political, economic, and social stability in the United States.
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