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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... ---------- 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.
-----A
Wine Adventure With
Upside----- Great wines,
great times, great
adventures...all the
fun of a vintner's
lifestyle without the
work (and with the
added incentive of an
18% annual yield)...
Come
join the fun in the
Next Napa. ----------
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 not 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.
----- Borrow To
Buy In Central America
----- Georgetown Trust
lends in Panama,
Nicaragua, Costa Rica,
Belize, Honduras, and
beyond. Attractive
terms.
----------
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."
---------- Important
Notice ---------- The cost of a
Reforestation Visa,
Panama's best
residency option, is
scheduled to double
Aug. 26, 2008. If you're
thinking of settling
in the world's premier
tax haven, act now.
Details here.
----------
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