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Max Gerstein on Option Decay and the Risk Markets Never Show You

  Most financial risk discussions focus on what moves. Prices fluctuate. Markets rise and fall. Returns are tracked, compared, and optimised. That type of risk is visible. It appears in charts, dashboards, and performance reports. It feels familiar because it can be monitored constantly. But not all risk behaves this way. Some risks do not move at all until they activate. They sit quietly inside ownership structures, legal frameworks, and jurisdictional design. They don’t affect performance. They don’t show up in volatility. They create no warning signs. They exist even when everything appears to be working. This is not market risk. It is structural risk. Option Decay is the hidden erosion of financial freedom caused by ownership structures that fail under jurisdictional pressure. It does not reduce returns. It reduces control, flexibility, and authority — often without the owner realising it. Structural risk does not change what an asset is worth. It changes which leg...
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Max Gerstein on Why Organisation Isn’t Protection

  Most people feel financially safe because everything looks organised. Dashboards, apps, platforms, portals, consolidated accounts, one login, one overview. It feels structured. It feels controlled. It feels secure. But feeling organised isn’t the same as being protected. Visibility isn’t protection. Access isn’t control. Convenience isn’t structure. Modern financial systems are designed to feel safe. The interfaces are clean, the platforms look professional, and everything feels seamless. When your finances look tidy and easy to manage, it creates a sense of security. But how something looks is not the same as how it works when pressure enters the system. People often assume that having their money with reputable institutions, on regulated platforms, and inside well-known financial systems automatically means they’re protected. In reality, those systems manage access and movement. They don’t define ownership, jurisdiction, or legal control. Here’s the part most people don’t ...
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Max Gerstein: US-Situs Risk Is Not About Tax — It’s About Legal Ownership Structure

 Most people think US-situs risk is a niche tax rule that only matters on death. It isn’t. US-situs risk is not a tax issue. It is a legal ownership issue . Tax is the outcome. Jurisdiction is the trigger. That distinction matters more than any product, platform, or portfolio decision most investors will ever make. Globally mobile investors tend to think like consumers, not owners. They say things like: “I don’t live in the US.” “I’m not American.” “My broker is international.” “It’s just an ETF.” “It’s diversified.” “It’s passive investing.” None of those statements protect you. Because US-situs exposure has nothing to do with where you live, your passport, or your intentions. It has everything to do with where ownership legally exists . Situs does not mean geography. It does not mean residence. It does not mean nationality. It does not mean tax residency. It does not mean platform branding. It does not mean currency. Situs means where an asset is legally a...
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Max Gerstein on US Situs Risk and the Loss of Financial Control

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  US Situs Risk Isn’t a Tax Problem. It’s a Control Problem Understanding the real risk behind US assets for non‑US individuals For clarity: US situs risk refers to the legal and jurisdictional exposure that arises when a non‑US person owns US‑based assets such as US stocks, ETFs, funds, brokerage accounts, or property. For international families and expats, this risk is rarely just about tax. It is about what happens to control, access, timing, and liquidity when those assets pass through legal and administrative systems after death. Most people hear “US situs” and think estate tax. That’s understandable, because tax is the visible part of the conversation. But it isn’t the real risk. Tax is simply the invoice at the end of a process. The real risk happens earlier, inside the structure. It shows up in who controls access, who controls timing, and who controls decisions when an estate event occurs. This is what Option Decay looks like in real financial life. Not the slow erosion o...
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Max Gerstein on the Risk Most Globally Mobile Investors Never See Coming

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 Many internationally diversified investors hold U.S. stocks or ETFs by default. U.S. markets dominate global indices. Liquidity is deep. Costs are low. Long-term performance has been strong. For investors building wealth across borders, U.S. exposure often feels less like a decision and more like alignment with how markets work. That assumption is where the exposure begins. For non-U.S. individuals, U.S. estate tax applies on very different terms. The exemption is low. The potential tax on death is high. None of this is determined by where you live, where your broker is based, or how conservative the portfolio appears. It is determined by the domicile of the underlying asset. The danger is not the tax rate itself. It is the absence of any signal while the exposure builds. There is no annual reminder. No impact on performance. No moment when the portfolio feels riskier. A modest allocation grows quietly. A single ETF becomes a core holding. The structure remains unexamined bec...
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U.S. Estate Tax for Expats: The Hidden Risk in Holding U.S. Investments

 Many internationally based professionals invest in U.S. stocks and ETFs as part of a sensible, long-term strategy. The U.S. markets offer depth, liquidity, and global exposure, so it’s not surprising these assets show up in portfolios worldwide. From a performance perspective, these portfolios often look well constructed. From an estate planning perspective, many are not. If you are not a U.S. citizen or green card holder, U.S. estate tax rules apply very differently to you. For non-U.S. citizens and non-residents, the U.S. estate tax exemption is just $60,000. Any U.S.-situs assets held above this threshold at death can be taxed at rates of up to 40%. U.S.-situs assets can include U.S.-listed shares and U.S.-domiciled ETFs. The critical point is this: the determining factor is not where you live and not where your broker is based. It’s the domicile of the underlying asset. This risk often goes unnoticed because it rarely appears in normal investment conversations. Many investor...
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Max Gerstein on Why Doing Nothing Quietly Shrinks Your Financial Options

  Why Doing Nothing Quietly Shrinks Your Financial Options Most people think financial risk means losing money. It shows up as familiar fears: “What can I lose?” “I don’t want it to go to zero.” “At least my money is safe in the bank.” After years of working with people who earn well and live comfortably, I’ve found this definition misses the real risk entirely. The bigger risk isn’t loss. It’s loss of flexibility. Doing nothing reduces your options. Not dramatically. Quietly. And often without any immediate consequence. Because nothing breaks right away, it feels safe. That’s how people drift into worse outcomes while believing they’re being cautious. What “optionality” actually means (in plain English) Optionality isn’t a technical financial concept. It’s a practical one. It’s your ability to choose: when you stop working where you live how much risk you need to take later to maintain your lifestyle how mistakes are absorbed without becoming existential...
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