Protect Your Wealth (because it’s not really yours if it’s in a bank)

Did you know that since 2009, the UK banks have had the provision in legislation (via the Banking Act 2009) to apply ‘bail-ins' to keep banks solvent in times of financial distress?

On the 22nd July 2021, the Bank of England published a document titled: “Executing bail-in: an operational guide from the Bank of England.“

And in the foreword, it states: “A key innovation during [the last] decade has been to develop the concept of ‘bailing-in’ shareholders and other investors in the failed bank, in contrast to publicly funded bail-outs.”

And, “For bank resolution to be credible, and for the Bank to meet its commitment to Parliament that major UK banks should be resolvable by 2022, bail-in has to be more than a concept; it has to be a practical tool which the Bank is able to deploy if necessary.”

For the purposes of a bail-in, depositors – that's you – are classed as an unsecured creditor which puts you in the 2nd tier hierarchy of a bank's creditors (after the secured creditors – the IMF, World Bank, BIS etc.).

In the event of a bail-in, where a bank is in such financial distress that it can't continue, any funds you hold in the bank over the FSCS secured amount of £85,000 are at risk.

In fact, all of your funds are at risk because the practical implications of executing a bail-in may result in short-term loss of access to your cash.

What can you do NOW to protect your wealth for the years ahead?

Get your money out of the bank!

Only keep in the bank what you intend to use to pay your monthly outgoings. If you don't do this, your funds are at risk.

Reinvest your excess capital in:

• Real assets such as land, tools and machinery.
• Precious metals.
• Cryptocurrency.

Get into a monthly habit of spending what you can afford or any excess on precious metals or cryptocurrency.

• If you're thinking about land investments
  Please drop me an email at seb@bournebright.com because I am currently involved with a couple of land-based freedom projects in the North East that present fantastic wealth protection opportunities.
  
• Where to buy precious metals (if you want a free silver coin)
  If you're going to start buying precious metals like silver or gold coins, I'd recommend using Bullion By Post (which is who I use) and, if you visit their website from this link and then spend over £250.00, you'll get a free 1oz silver coin too.
  
• Where to buy cryptocurrency
  If you're new to cryptocurrency and don't know where to start, I created a cryptocurrency guide to help you. It has a little video attached for extra information and context.

As scary as it seems, to withdraw fully from their system and take ownership over your own life, we have to create anew.

Parallel systems that operate and function outside of theirs.

It is possible. It is happening. It is inevitable.

Stay strong of mind and heart and you will find your way.