Asset protection is like an asset insurance scheme that is meant to keep your assets and investments from being included in legal settlements. This is so as to ensure that no one sues for all your hard-earned assets, and they can be off the record by not being linked directly to you. One of the best strategies for asset protection is the development of a 6-flag strategy which includes the principles of geo-arbitrage. These usually include a second passport, business in a jurisdiction that charges little or no tax, banking in a jurisdiction that offers you privacy, investing in a centre that favours money management, residing in a jurisdiction that is tax friendly and generally playing the field in countries where you like staying.
All these seem like a lot to take in for the novice, but with time, you will realize that the steps are really simple and straightforward. There are several reasons why individuals should have a second passport, especially if they are US citizens.