New Frontiers And The American Way
July 8, 2008
Baltimore, Maryland
PLUS:
n Whatever You Do...Don't Come To Thailand To Open A Bar...
n Why The Thais Keep Devaluing Their Baht...And How You're The Big Winner...
n Super Thinking Spanish In Cotacachi...
n Three Ways To Earn A Living Anywhere In The World...
n "Dear Live And Invest Overseas, I Beg To Differ... For Me, The Best Beach In The World Is..."
n What's Wrong With The Weather In Panama?
AND:
n Time To Diversify Into The U.S. Dollar...
----------- Filling Fast! ----------
"Super Thinking" Immersion Spanish In The Land Of Eternal Spring...
Plus Travel Photgraphy With A Pro
Travel with a successful photographer to explore the color-rich markets and artisan towns of welcoming Ecuador, where Spring reigns eternal...
Learn how to take magazine-quality photos as you wander the patchwork of villages sprinkled among Ecuador's green hills. Find out the little-known techniques photographers use to take photos that sell while you travel.
Plus learn and absorb an extraordinary language-learning technique that will allow you to master Spanish in one week.
Discover Ecuador in a way you never would as a typical tourist. Full details here on this unique, once-in-a-lifetime adventure.
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Dear Overseas Opportunity Letter Reader,
Why do we do this?
Why do we drag ourselves, our children, their toys, our books, their pets, our furniture...from country to country, all around the world?
Over the past few final weeks in Paris, we were asked this question dozens of times, by friends, colleagues, the parents of other children at Jack's school...
Last Thursday, we packed a half-dozen suitcases and a half-dozen carry-ons, then, Friday, Lief, Jack, and I (well, Lief) hefted them into taxis, up to airline check-in counters, onto the luggage rack of a rented SUV, then into the dining room of my mother's house in Baltimore. We're halfway to Panama.
Over the past weekend here in my home town, again, from family and old friends, those pesky questions:
"Panama?"
"Why Panama? Why now?"
"Why not stay in Paris?"
"Why not move back to the States?"
Bodies aching from the trans-Atlantic workout, minds fuzzy from the jet-lag, sometimes we've struggled for reasonable responses.
Last Thursday night, our final evening in Paris, I went to dinner with a bunch of local women friends. Around the table in that restaurant in Odeon sat an Italian, a Spaniard, an Aussie, a Brit, a Croat, four Parisians, and me, the American. They chatted in a crazy mix of French, Spanish, Italian, and English, and I did my best to keep up.
What did they talk about A desire for change. This eclectic mix of 40-somethings shared a common yearning for something new at this stage of their lives. Again and again, they brought the conversation around to their longing for more, for new, for different...for adventure.
The Croatian woman and her husband are considering moving to Australia to start a business. The Spaniard and her husband are looking ahead to when their children are in university and they can spend part of each year in Paris...and part of each year elsewhere in Europe. The Brit is thinking about Asia. The Parisian women and their significant others have no idea where they'd like to go or what they'd like to do, but they've got the itch.
They all recognize that it's a big, interesting world. And they'd like to see a little more of it.
This was our first Fourth of July holiday in the States in 10 years. We took advantage of the timing to take the kids to Mt. Vernon Sunday afternoon to see the home of the Father of Liberty, as the Frenchman LaFayette called George Washington.
"Did you study the American Revolution in school "I asked our 19-year-old now attending college at St. Johns in Annapolis. She has a great foundation in European and World history, but I fear her Irish and French education may have left a gap when it comes to the story of these United States of America.
"No, we never studied about the colonists, and I'm confused," she admitted. "Why did all those people come to this country in the first place? I mean...what were they doing here?"
"Well, some came because they had no choice," I explained. "People from debtors' prisons, for example, were shipped over here from England to help to populate the place.
"Others came because they weren't able to live the way they wanted to live in England. They came in search of religious freedom.
"Others came to seek their fortunes. This New World was rich and fertile, a vast land of great opportunity.
"And others came in search of adventure. Who knew what might await one in this wild frontier? Some men couldn't resist the urge to come to find out."
So they packed up themselves, their kids, their belongings...and they made the long and difficult ocean passage to arrive in a land where they knew no one and had no idea what to expect.
The world is a different place today. Lief and I are moaning about our trans-Atlantic passage last week, but, in fact, we realize we're getting off easy. We're moving our little family from one continent to another. If the worst of the associated struggle is a couple of pairs of sore arms from lifting our baggage in and out of taxis and planes along the way...well, really, how can we complain?
The world has changed in the past 350 years. It's more convenient, more comfortable, easier to move around in...
But people...we're the same. We're the same as those who voyaged from England three-plus centuries ago to populate those first 13 colonies...we're the same as those who, some years later, sought to take their leave from King George, asking the British crown for the freedom of self-determination...we're the same as the modern-day French and Spanish, Italian and British, Australian and Croatian would-be adventurers who sat around that table in Paris with me last Thursday evening day-dreaming about what life might be like...somewhere else...
After a few more days in Baltimore, we'll be making the second half of our journey to Panama...to find out what life is like there.
And that's perhaps the best answer I can give to everyone who's been asking these past several weeks, "Why Panama? Why now?"
We could cite business, financial, and tax reasons for why Panama and why Panama now. But we could conjure similar rationalizations for a half-dozen other countries as well if we put our minds to it.
The truth is, the opportunity has presented itself. We're fortunate to be in a position right now to act on it. We'll savor the adventure, and we'll look forward to finding out where it leads us next.
Kathleen Peddicord
P.S. George Washington's home, on the banks of the Potomac, with a wide, breezy porch affording long views both up- and down-river, has been recently and carefully refurbished. In a glass case on the wall of the foyer is a big old iron key, the key to the Bastille, a gift from General LaFayette. "To the Father of Liberty, a symbol of Liberty," wrote the Frenchman.
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FROM THE MAILBAG:
"I am 45 years old and looking to move out of the U.S. The trouble is that I would have to earn a living overseas. Do you have any advice?"
-- Chris Fagin, United States
The truth is, it's not easy to find a job in another country, unless you're sponsored by a local company. Short of that, it's typically neigh-on-impossible, as a non-national, to organize a work permit.
Your best bet is probably to find a way to earn a living independently. Here are three good options:
In addition, if you have expertise or experience with global applications, you could make a good living and have a good time as an international consultant. I knew a woman years ago who'd made her career in the pool-building business in Florida. She moved to Roatan, Honduras, where local developers were keen to pay her for her input and recommendations.
"Kathleen, your move to Panama, I think, is a step backward. You should have stayed in Ireland. It's too hot in Panama. But, if you don't mind the heat, go for it..."
-- Jim MacFarlane, Quito, Ecuador
In fact, given the choice, I'll take Panama's weather over Ireland's any day. You can go weeks without seeing a single ray of sunshine in the Emerald Isle. It's the rain, not the sun, that keeps those fields so green all year 'round...
In response to our report last week on the reasons nto to invest in the Thai property market, Lorusso Vincenzo writes from Italy:
"We moved to central Italy from the UK nine years ago. The trouble is, we still have winters, so now we winter in Phuket (no sweaters).
"We have bought three properties in Phuket, and all have increased in value. There are some seriously big players in the Phuket market now. I think the upper end of the market is doing as well as anywhere. However, yes, I agree that they need to get their ownership laws sorted.
"Asia as a whole is booming. We need to open our eyes from Europe and the United States."
Reader Scott Taylor writes:
"Dear Live and Invest Overseas, I beg to differ with your 'Best Beachfront Buys' articles from April 29 and May 6. While I don't think any of your top six shouldn't be included, I would like to add another from Brazil.
"My girlfriend and I spent the month of June checking out Fortaleza and the surrounding areas. Coming from Southern California, living in Panama, and visiting over the years beach hot-spots from Koh Samui, Thailand, to Boracay, the Philippines, and Punta del Este, Uruguay, I thought I'd seen it all.
"But Fortaleza is special. It's like combining Panama City's night life, Punta del Este's beautiful beaches, Puerto Vallarta's boardwalk, and San Diego's weather. It's simply marvelous.
"We also checked out Cumbuco and Taiba to the north and Canoa Quebrada, Praia das Fontes, Fortim, and Morro Branco to the south. One of your readers wrote to say that Natal should be on the list and is his favorite beach outside Fortaleza. I know others who say Cumbuco is the best. And, yes, it's great. It reminds me of San Felipe in Mexico years ago.
"But, for me, the best beach town outside the city of Fortaleza is Canoa Quebrada. Cumbuco is a 30-minute bus ride from the city of Fortaleza...and Canoa Quebrada is a three-hour bus ride...but it's worth it..."
We've asked Scott to tell us (and you) more about his favorite beach spots in Brazil (including where to stay, how to invest, what to buy, and how much to spend). Look for his follow-up next week. Meantime, he sends some photos:
ALSO RIGHT NOW:
Maybe it's time for you to diversify...into the dollar...
If your income, earnings, or assets are U.S. dollar-based...then you'd prefer to be living in a place where you can spend U.S. dollars...right?
In other words, right, right now you want to diversify your investments out of the U.S. dollar...but you may want to diversify your living into it.
That doesn't mean, though, that your dreams of a new life or a retirement overseas should be put on hold. No, no, dear reader, for the US of A is not the only place in the world where Greenbacks are accepted as currency.
A buck is a buck, as well, in Panama...and in Ecuador, both countries that use the U.S. dollar as their currency...meaning your exchange risk is zero.
Belize doesn't use the U.S. dollar as its currency, but its Belize dollar is pegged to the U.S. dollar at a fixed rate of exchange (BZ$2 equals US$1).
Furthermore, not only does Ecuador use the U.S. dollar as its currency...but it's also one of the most affordable overseas havens in the world.
Panama is one of the world's boomingest markets right now. And Belize? Belize offers one of the most user-friendly foreign residency programs anywhere.
Thai politics make for sensational international news...but ignore them. Thai economics, on the other hand, are working in your favor...
Friend and perpetual adventurer Paul Terhorst, who, with his wife Vicki, has been spending time in Thailand for more than 20 years, writes this week from that country:
"The Thai King, head of state and revered by his people, has been in power nearly 60 years and seems to be going strong. He manages a balancing act between the needs of his beloved people and the wants of those in power. Under the King, governments come and go, and, these days, the comings and goings make for negative international news.
"Unlike in Western democracies, Thais rarely look to government for solutions. Taxes stay low, especially for the poor, and the government tries to stay out of private lives. The country made news thanks to the coup a couple of years ago, which took out the popular, populist, elected Prime Minister Thaksin. He was replaced by an army junta that struggled.
"The army finally called elections but banned Thaksin and his party from participating. The winner, now in power, gets along well with Thaksin and has allowed him back into the country. Now the winner tries to balance the needs of the army, Thaksin, and those who want another election. Impossible. So the government drifts.
"What does all this mean for you, a visitor or would-be resident or retiree in this beautiful country?
"The truth is, not much. The current political scene has little impact on you.
"What will impact you are the Central Bank's moves to weaken the Thai currency, the baht. During the meltdown in 1998, the baht crashed, moving from 25 to 50 to the dollar. With the return of stability, in spite of local inflation, the baht gradually came back. While still very cheap by international standards, Thailand grew more and more expensive. Last March the baht hit a high of 30 to the dollar and, apparently--even with the weaker dollar worldwide--that was too much. Thailand began devaluing to remain competitive. As of this writing, the baht stands at 34 to the U.S. dollar.
"Note that the Central Bank, rather than the market, tends to set the value of the baht. Virtually all Third World countries work this way--that is, they control their currencies.It's just not possible for Laos, say, or Turkey or Argentina to let market forces rule. Free markets in these places are too thin, investors too spooked, and resulting fluctuations too great. In the case of Thailand, the devaluation has been slow and orderly, and I expect that to continue. You and I will be the beneficiaries.
"Bottom line: Ignore the bad news about Thai government instability. Take my word for it. Now is a good time to come to Thailand. You'll enjoy great value and help to prop up the local economy."
P.S. (from Vicki Terhorst): Thailand is one of the few places where you can still enjoy certain aspects of first-class living at economy-class prices. A friend visited recently from Bangkok. The three of us had lunch at the new 5-star Shangri-la Hotel. The place oozes elegance. The weekday businessman's special lunch buffet is pasta, pizza, and dessert with espresso coffee, all for about $5. When it's just Paul and me, we eat where Thais eat. A plate of fried noodles--Pad Thai, a spicy curry with rice, or a stir-fry veggie dish-for about $1.
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Whatever you do, don't come to Thailand to open a bar...
What about business opportunities in Thailand? Paul continues:
"Over the years, I've watched hundreds of Westerners start businesses in this country. These businesses fall into two categories: 1.) bars and restaurants and 2.) those businesses that have a chance of success.
"This year, three Westerners opened bars/food stalls down our lane in Chiang Mai, all within 50 meters of our guest house. I predict that, like those of their predecessors, these three businesses will fail.
"This has little to do with Thailand. If you had three new restaurants open near where you live, no matter where, you'd bet they'd fail, too. Food and beverage businesses almost always fail. Every supplier, every employee, and every customer has a chance to ruin your day...and your prospects for success.
"But because the bar/food business has few barriers to entry, offers psychic rewards, and gives owners a chance to meet people, enthusiasts keep trying. Forget it, I say, leave the hard work, long hours, and slim chances to others. Even if you do make it, you'll find the profits less than you'd hoped for. No one--well, hardly anyone--makes money in the restaurant business, especially in Thailand.
"So what businesses might make sense for the would be entrepreneur in Thailand? I've had direct, personal contact with six successful Western businesses here. Nearly all are related to design--that is, the creative process. Some export, some cater to rich people in Bangkok. Some work out of their homes, others have factories, sometimes even large factories. But in every case, excellence in design--color, texture, quality, beauty, pattern, hue--makes the business go.
"Twenty years ago Thailand could compete on cheap labor. In those days, Vietnam, Cambodia, and China suffered under closed, communist dictators.
"Today, those three countries, and others, have roared into the 21st century and are challenging Malaysia, Thailand, Singapore, and Indonesia at the low end. Malaysia and Singapore have successfully moved up to high tech. Thailand has tried high tech, but with less success.
"My advice: In Thailand, stick with design, the creative process.
"Whatever you do, don't come here to open a bar."
Learn Spanish and travel photography at the same time...all while exploring beautiful Cotacachi, Ecuador.
Ready, finally, to learn Spanish? Come to Cotacachi, Ecuador, later this summer, and, I promise, you'll learn Spanish.
You'll also learn a highly portable skill that could translate into an income to pay for your new life overseas.
This is no ordinary Spanish-immersion program. This is "Super Thinking." It's a proven Bulgarian learning technique that uses Baroque music to get your brain cells working, to help you learn faster and retain more.
Yes, I know. This sounds a little New Agey. Maybe it is. But it works. And it's a lot of fun.
I've struggled for the past four years to learn French. Now, after reaching a minimum conversation level in that language...and working to manage a not-completely-humiliating French accent...I'm on my way to a Spanish-speaking country. Yikes.
Friends who know about these things assure me that a Super Thinking immersion program is what I need to make the transition.
And perhaps the best part is that these same friends are offering a Super Thinking immersion program Aug. 31-Sept. 6 in Cotacachi, Ecuador, known for its leather crafts and one of the most beautiful and interesting spots in this very beautiful and interesting country.
Don't worry. You won't be in classrooms all day long. You'll have lots of opportunity to explore the town and the surrounding area...and to practice your Spanish day-by-day.
What's more, the Spanish-immersion study is but one aspect of this program. In addition, you'll be learning to take travel photos. And not just any travel photos...but travel photos you can sell.
This is a real "traveler's" expedition. Read full details here.
Or contact Terry Frank by phone toll-free (866)415-1425 or locally (202)370-6459 or by email: terry@thephotographerslife.com.
---------- Important Notice ----------
The cost of a Reforestation Visa, Panama's best residency option, is scheduled to double Aug. 26.
If you're thinking of settling in the world's premier tax haven, act now. Details here.
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