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2/14/2012 3:46 PM ET

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By Brett Arends, SmartMoney

Mitt Romney has been criticized for parking some of his fortune in Caymans Islands accounts, but he and other wealthy people aren’t really trying to duck taxes there.

One thing's for sure. Mitt Romney didn't send his money down to the Cayman Islands to work on its tan.

The former Massachusetts governor has been criticized by some for factor of five in the last 10 having some of his vast fortune in the Caribbean offshore banking center. Yes, it was politically clumsy. But it was not uncommon, and -- assuming he has filed all the right disclosures -- it was perfectly legal.

But if you're not running for president, and don't have to worry about public relations, what are the legitimate reasons for moving money offshore?

I spoke to Jim Duggan, a partner at Chicago law firm Duggan Bertsch, to get the skinny. He's a tax and estate planning attorney who specializes in wealth management issues for the very rich, and he's been practicing in this area for nearly 20 years.

He says a growing number of wealthy people are looking into moving some of their money offshore. "The interest in offshore planning has increased basically by a factor of five in the last ten years," he says. Clients want to talk to him about it all the time.

Why?

Contrary to popular opinion, it's not really to save on taxes.

That's because American taxpayers are taxed on their worldwide income -- so if you're making $10,000 (or $10 million) in interest on a bank account in, say, the Caymans or Switzerland, you're getting taxed by Uncle Sam as if you're making it in a bank account here.

It's easy to scoff and assume the rich are hiding their money and cheating. Doubtless some are. But enforcement is tight, and the penalties aren't so much draconian as medieval. They are far more severe than for tax evasion onshore.

And there are plenty of tax shelters available here in the U.S. anyway -- such as trusts in low-tax states, life insurance and variable annuities.

So what are the real reasons the rich are casing the Caymans with their cash?

There are two, says Duggan: Litigation risk and political risk.

Yes: Political risk. Or, as he puts in a nice legal euphemism, "jurisdictional diversification."

Litigation risk is the old reason. You could get hit by a crazy lawsuit here in the U.S. The wealthy are an easy mark, and anything onshore is vulnerable. But the U.S. courts don't have jurisdiction overseas and if you plan things right you have at least some chance of protecting money held offshore, Duggan says. "It keeps you away from our court system and the caprices of our courts," he says.

The new reason, though, is political risk: "Diversification from our government, policies and banking systems," says Duggan. The last few years have shaken faith in our system. Duggan says growing numbers of his clients are worried about the financial system, confiscation -- the whole shebang. "They're concerned about our government and where our society is headed. There's a lot of socialistic tendencies, capital controls, the redistribution of wealth."

Once again it's easy to scoff. Financially, the very wealthy have probably never had it so good in this country. Corporate profits and financial assets are booming. Tax rates on dividends and long-term capital gains are very, very low. But Duggan says the wealthy feel under attack, and government rhetoric is making them nervous.

But there's a problem here. Imagine a future government did decide to confiscate assets. They'd go after the money you held in Switzerland just as much as the money you held in New York, and the penalties for tax evasion would be as medieval as they are now.

The only way to save your money would presumably be to renounce your citizenship and move into exile. Even then the IRS might come after you. Do you want to spend the rest of your life living next to Roman Polanski in France?

Once again, all this makes you see the appeal of holding some gold within a portfolio.

Personally, I don't see any reason to think this administration is going to go after the so-called 1%. Too many policymakers are members of that elite group already -- or they have high hopes of joining after they retire.

More from SmartMoney.com:

Original post:
Why rich stash cash offshore

In a Wall Street universe populated by marquee name stocks, the lesser known entities are the stars of the rally so far this year.

The Russell 2000 index, which tracks stocks with a small market capitalization, is nearing its record high with a rise of about 11 percent in the year to date. That outstrips the Russell 1000 index that measures Wall Street’s large capitalization stocks and the Standard & Poor’s 500-stock index that measures the broader market.

The surge in the so-called small-cap stocks — companies whose total share value is $3 billion or less — indicates that investors’ appetite for risk is growing as signs of recovery persist in the United States and euro zone leaders make progress in containing the debt crisis, market participants say.

After investors drained more than $15 billion out of small-cap stocks last year, the largest amount since 2007, they have sunk about $2.4 billion back into those equities so far this year, according to data provided by Lipper, a Thomson Reuters company.

“It is a decent confidence barometer,” said Scott Wren, a senior equity strategist for Wells Fargo Advisors. “Investors are confident enough to buy some of these small companies, betting that the U.S. economy is going to continue to grow.”

Most of that money poured into the small-cap stocks in the seven days that ended Feb. 8, the last tally by Lipper. During that time, the Labor Department reported a gain of 243,000 jobs in January and the lowest unemployment rate since early 2009, while another report, from the Institute for Supply Management, showed that economic activity in the nonmanufacturing sector grew in January for the 25th consecutive month.

Tom Roseen, a senior analyst at Lipper, said there was a similar inflow into small caps in the beginning of 2011, but this year’s inflows were notable because they were a turnaround from a full year in which investors focused on dividend-paying and large-capitalization stocks.

But analysts were also cautious in ascribing too much staying power in the risk trade. Volatility could return to equities because of the entrenched euro zone debt problems, the potential for a recession in Europe and concerns about economic growth in the United States.

Steven G. DeSanctis, a small-cap strategist with Bank of America Merrill Lynch, noted that a lot of the inflows so far this year were by exchange-traded funds, which are highly liquid, and thus could just as easily flow out.

Pharmaceuticals, materials and technology companies are showing particularly robust returns among small caps so far this year. Inhibitex, FriendFinder Networks and Georgia Gulf are among the best small-cap performers in terms of returns, according to data tracked by the Russell index.

The stock price of Inhibitex, a biopharmaceutical company, is up more than 130 percent, mostly because it was acquired. Georgia Gulf, which makes chemical and plastic products, is up 74 percent, and FriendFinder, an Internet networking company, is up more than 200 percent.

The rebound in small-cap stocks is a sign for some analysts of a broader recovery in the financial markets. In the second half of last year, the markets were buffeted by a period of volatility from the European crisis and the credit rating downgrade of long-term United States debt, contributing to a fall in the Russell 2000 for the year of about 4 percent.

But so far this year, the broader market as measured by the Standard & Poor’s 500 has had its best start since 1987. As of Monday it was up 7.5 percent for the year to date. Small-cap companies are not traded as frequently, and therefore their stock prices can be choppy. And there are fewer analysts researching these companies for investors, unlike with big names like Apple. They also are more likely to be the object of takeovers, like Inhibitex, which Bristol-Myers Squibb said in January it would acquire for $2.5 billion.

Mergers and acquisitions, which are expected to push ahead as companies come off a period of hoarding cash, usually involve small-cap companies.

“This year we are expecting an acceleration of M.& A. activity,” said Christopher J. Colarik, small-cap portfolio manager for Glenmede Investment Management. “Larger companies look for growth, and there are a lot of clean balance sheets.”

This was especially true in the pharmaceutical field, said Jon Eggins, portfolio manager at Russell Investments.

Since 2008, drug companies have been cautious about large investments in new research, but they are also faced with the expirations of profitable drug patents and looking for ways to bridge the potential shortfall in earnings, he said in an e-mail reply to questions.

And their revenue is mostly generated inside the United States, which means they are less influenced by turmoil in Europe.

“They are more of a niche market, and they may have a lot of room to expand geographically and internationally,” Mr. Wren said. “Their earnings growth rates are far in excess of what a large company might be.”

In the last 10 years, the Russell 2000 index has returned 5.6 percent, compared with 3.3 percent for the Russell 1000. “That added return premium hasn’t been for free, though, as there has been higher risk associated with this return,” Mr. Eggins said.

Mr. DeSanctis, the strategist with Bank of America Merrill Lynch, said his firm’s forecasts included an 11 percent return for small-cap stocks in 2012, in line with the historical annualized average.

“We have already achieved that in the first six weeks of the year,” he said.

More From NY Times

Original post:
Small-Cap Stocks Surge Ahead of the Big Names

Redfin integrates IDology’s solutions

Atlanta and Seattle (PRWEB) February 14, 2012

Redfin, the real estate industry’s first online brokerage, and IDology, a leading identity verification provider, today announced a partnership to improve the process of buying and selling a home for Redfin clients and agents. IDology’s identity proofing solutions are now integrated with Redfin’s home-buying process to offer faster and easier service for their customers while protecting the safety of its real estate agents from individuals impersonating other people.

Redfin is the only major search site to feature listings direct from broker databases as well as for-sale-by-owner and foreclosure properties from across the Internet. Before using IDology, Redfin’s process of verifying the identity of potential customers was cumbersome both for clients and agents. Because Redfin agents handle every facet of a transaction, including tours, pricing analyses, negotiations, inspections and closings, the company wanted to find an easy way for customers to validate who they said they were that would help streamline the process for their agents while also eliminating fraud.

“Our previous identity verification method required customers to upload, email or fax their driver’s license, passport, or military ID. This caused many people to bail out and not go through the next step of meeting with an agent. We were looking for a more efficient and less time-consuming way for our customers to verify their identity,” said Bryan Selner, Vice President of Products at Redfin.

Now, instead of submitting proof of identity via email or fax when scheduling a home tour, clients are presented with a brief multiple-choice quiz that is dynamically generated in real-time by IDology’s ExpectID IQ product. IDology’s ExpectID IQ solution delivers out-of-wallet questions based on a person’s history which are designed so that only the actual person of the claimed identity will know the answer. This new process protects Redfin agents and ensures home tours are being scheduled with real, legitimate people.

“An important aspect of our business is when our agents meet with clients in-person and onsite to tour a home. It was really important for us to find an authentication solution like IDology’s. To help keep our agents safe, we need to know that they are meeting with people who are who they say they are. Automating this process needed to happen in a way that wasn’t difficult for our clients, or off-putting.”

Automating the identity verification process has also streamlined the transition from someone being an online prospect to becoming an in-person client. Selner describes an important feature benefit he likes most about IDology:

“Through IDology’s IDCenter, it is easy to change rules and settings whenever we want. This allows us to customize questions that are being presented to our customers, like how many questions and answers to present and what topics to cover. We knew IDology was our best choice because they have high rates of finding people and were able to generate questions for more people, putting their solution above the rest.”

Using IDology’s on-demand change management tool, Redfin is able to customize and change several system features without involving its internal IT teams or contacting IDology. This helps improve the customer experience while achieving the goal of ensuring its agents’ safety.

“We are very happy with IDology. Integrating their system was very easy and their team is always available when needed, which is rare for us because their solution is simple to navigate and control,” said Selner.

“Redfin’s use of our identity verification solutions before scheduling an offline appointment is a great example of how identity is important to many different industries for different reasons,” said John Dancu, CEO of IDology. “Any business that wants assurance that they are dealing with real, legitimate people can benefit from automating their identity verification process.”

About Redfin

Redfin (http://www.redfin.com) is the real estate industry's first online brokerage, combining a customer-focused team of real estate agents with online tools for making the process of buying or selling a home easy. Redfin's agents handle every facet of a transaction, including tours, pricing analyses, negotiations, inspections and closings. Redfin is the only major search site to feature listings direct from broker databases as well as for-sale-by-owner and foreclosure properties from across the Internet. The company pays its agents customer-satisfaction bonuses, not commissions, and surveys every client, publishing each survey alongside the agent's complete deal history. Redfin's service is available in the metropolitan areas of Atlanta, Austin, Baltimore, Boston, Chicago, Dallas, Denver, Las Vegas, Phoenix, Portland, OR, Seattle, Washington DC, New York's Long Islandand Westchester County as well as most of California, including the San Francisco Bay Area, Sacramento, Los Angeles, Orange County, and San Diego. To keep track of our daring exploits, subscribe to blog.redfin.com or our Twitter feed @redfin.

About IDology, Inc.

IDology, Inc. provides real-time technology solutions that verify an individual's identity and age for anyone conducting business in consumer-not-present environments to help drive revenue, decrease costs, prevent fraud. Founded in 2003, IDology is the only provider to offer an on-demand change management tool that allows client business-unit managers to control the entire proofing process, including within an integrated solution, without having to rely on internal IT resources or contact IDology's customer service. For more information, visit http://www.idology.com or call 866-520-1234.

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Lindsey Legacki
IDology
(678) 324-3794
Email Information

Read the original post:
IDology Improves Online Home-Buying Process for Real Estate Industry

Cheri Tindall, one of the leading lights of the Islamorada real estate market, recently launched a new website showcasing Islamorada real estate for sale as well as properties in other areas in the Florida Keys.

Islamorada, Florida (PRWEB) February 14, 2012

Aiming to provide homebuyers and sellers with easy access to the real estate market in the Florida Keys, leading Islamorada real estate broker Cheri Tindall has just launched a new website, http://www.floridakeysbestbuys.com. The site also serves to enhance Tindall’s already extensive array of real estate services.

“The internet has made it much easier for homebuyers to access listings of Florida Keys vacation homes and to get more information about particular areas,” says Tindall, “but you’d be hard-pressed to find what you need all under one roof, so to speak. With this website, my goal is to make it easier for anyone interested in real estate in our area to not only find listings, but also to find out what the best deals are and to learn more about the different communities in the Florida Keys.”

Floridakeysbestbuys.com features varied listings of some of the area’s finest properties, from Islamorada real estate for sale to homes in Key Largo and the Lower Keys. It also has a custom MLS search tool that allows the user to search for properties within user-defined parameters such as price, property type, location, and more. There are also comprehensive community profiles that serve as a useful introduction to those who are new to the area.

Tindall’s new site reflects her own expertise in real estate in the area. “These islands are small and I have sold these homes not only once, but sometimes twice and even thrice,” she says. “I am very familiar with the local planning, building and zoning laws and I use what I know to help my clients make the best possible decisions.”

Tindall has specialized in real estate in the Florida Keys since 1983 and is known for her in-depth market and area knowledge and consistently high level of customer service. To learn more about her services and the real estate market in Islamorada and the Florida Keys, visit http://www.floridakeysbestbuys.com or get in touch with her directly.

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Cheri Tindall

305.664.7661
Email Information

See the rest here:
Leading Islamorada Real Estate Broker Launches New Website

.PRO continues to soar with premium auction results

VANCOUVER, British Columbia--(BUSINESS WIRE)--RegistryPro’s recent premium auction of one-, two-, and three-character domain names is the most successful .PRO auction to date.

“The success of the auction was not a surprise. There is real value in the extension and we still have a lot of great .PRO domains. The results of this auction are just the beginning of what .PRO is poised to do in the coming year”

Held in conjunction with GoDaddy.com, the auction began on January 10, 2012, and concluded on January 17. The seven-day event had opening bids ranging from $50-$5,000 in U.S. dollars with bidding activity reaching a frenzy in the final hours of the auction. The stand out sale was Go.pro, which sold for $40,000.

Karim Jiwani, president of RegistryPro, said, “We are ecstatic about the sale of Go.pro and can’t wait to see what the buyer does with the domain. Registrants of .PRO domains tend to be innovative in their use of the TLD, and we have high hopes for the development of all the domains that were sold in the auction.”

Go.pro is the highest sale of a .PRO domain to date and was won by a private buyer. The Go.pro sale, with 64 bids, represents the second-highest reported non-.com domain sale of the year, based on sales reported to DNjournal.com.

“The success of the auction was not a surprise. There is real value in the extension and we still have a lot of great .PRO domains. The results of this auction are just the beginning of what .PRO is poised to do in the coming year,” added Jiwani.

Other notable .PRO sales from this auction include XXX.pro, which sold for $18,903 (with 125 bids), and Job.pro, which sold for $5,456 (with 91 bids). RegistryPro is planning another auction to be held in the second quarter of 2012.

"The .PRO auction was very successful," said Paul Nicks, Go Daddy's Director of Product Development for the Aftermarket. "Go Daddy's auction platform was a great fit for RegistryPro's event. There has been some fascinating buzz around the .PRO top-level domain, and .PRO gives our customers another option to build their business online."

RegistryPro launched the .PRO domain in 2004. Since then, .PRO has become an important tool for businesses, organizations and individuals in building trusted relationships throughout the world and is reserved exclusively for use by the professional community.

Registrations for .PRO domains are restricted to registrants with proof of professional identity. Tens of thousands of professionals worldwide choose .PRO to enhance their online identity.

About RegistryPro and the .PRO Domain

A subsidiary of Afilias Ltd. and headquartered in Vancouver (Canada), RegistryPro is the ICANN-designated operator of the .PRO top-level domain.

Since launching in 2004, .PRO has become an important tool for businesses, organizations and individuals in building trusted relationships throughout the world. In many languages, “pro” is synonymous with dedication, skill, and vision -- the .PRO domain allows people to capture that distinctive character. Whether developing a brand, refining an identity or promoting a specialty, .PRO offers every business and professional the opportunity to enhance their image by adding a powerful, easy-to-identify name to their online presence and Web-based products.

About Go Daddy

Go Daddy is the world's largest domain name provider, Web hosting provider and new SSL provider, focused on helping small businesses grow larger. Go Daddy provides dozens of cloud-based services and is the largest worldwide mass-market hosting provider by annual revenue according to Tier1 Research (Mass-Market Hosting Report, Winter 2011) and is the #1 provider of net-new SSL certificates for 2011, according to the Netcraft Secure Server Survey. To learn more about the company, visit http://www.GoDaddy.com/PR.

Link:
.PRO Auction Nets Big Sales with Go.pro