Carlos is developing an area of his family's mountain farm into a small gated development, a sustainable mountainside community. Specifically, Carlos and his family have worked with local real estate professionals and engineers to identify 14 lots. The idea isn't density. These lots are all 1 1/4 to 1 1/2 acres, allowing each owner lots of elbow room and lots of green all around.

Medellin has great weather. The weather out here at Monticello is even better, thanks to the slightly higher elevation. But the real attraction here is the views. This is dramatically beautiful countryside. The lots have been surveyed up the side of the hill, meaning that everyone will always have his view. All lots have long mountain and valley views back toward the city of Medellin. Some also have river and waterfall views.

This is the best of Mother Nature but not remote. Again, you're less than an hour from central Medellin, and you're only 20 minutes from the nearest town, which has big grocery stores, restaurants, gas stations, Home Depot-like shopping, a mall, movie theaters, a metro station (so you could use the metro to get back and forth to central Medellin), even home food delivery options.

The nearest hospital is less than 30 minutes away. Rio Negro International Airport is a US$35, hour-and-10-minute ride away. The community will have 24hour security.

The real appeal is the peaceful natural setting...the lushly covered mountains, rolling valleys, rivers, creeks, wildflowers, wildlife, and clean fresh air.

Carlos and the development team he's put together will be using a variety of green design strategies to reduce the impact of the infrastructure and the construction on the land while still providing full international-standard amenities and services. They can help you to build a house on your lot if you'd like. But you don't have to build. You can simply hold on to your lot with the intention to resell later. The community being developed should have appeal to both Colombian and foreign buyers.

In addition, should you build a house on your lot, it'd have rental potential. As I've explained, residents of Medellin like to escape to the mountains as often as possible. What's being developed at Monticello will qualify as a high-end and appealing option for them.

The 14 lots currently available are priced from US$125,000 to US$150,000. You can purchase with a fully refundable 10% reservation deposit.

For more information, you can get in touch with Carlos here.

Lief Simon

P.S. Carlos' presentation at this week's Live and Invest in Colombia Conference did a much better job than I do here now showing off his family's charming finca, as well as this beautiful mountainous region of Colombia just outside central Medellin. Carlos shared many photos of the area, plus drawings and further details of the community he and his family are creating.

Carlo's Monticello presentation, like every presentation at this week's event, was recorded and the recording, along with Carlo's PowerPoint presentation, will be included as part of our new Live and Invest in Colombia Home Conference Kit, which will be available roughly two weeks following the close of the live event this afternoon. Meantime, you can purchase your copy of this one-of-a-kind bundle of resources at a specially discounted pre-release rate here now.Continue Reading:

• Travel Safety In Medellin, Colombia

I was last in Medellin a month ago, when crews were hard at work erecting the riverside displays. Now I see the fruits of their labor and understand why people come from around the region and, indeed, around the world for this city's annual Christmas Festival of Lights. It's something to see.

I'm in the city for just a few days this week to check in on the progress of our apartment renovation. There are further delays and more unexpected costs. In other words, everything is on track as anticipated.

The bad news is that it doesn't seem the place will be ready in time for our Live & Invest in Colombia Conference taking place here in pretty Medellin in January. If it is, though, we plan to invite VIP attendees over for a drink.

[I'm reminded to remind you that the Early Bird Discount for January's event expires tomorrow, Thursday, Dec. 15. More information on the program and the costs are here.]

The good news on the ground this week is that the work done to date in our apartment is what we were hoping for, and Carlos, our contractor, seems to have things under control. The place is a beehive of activity, with crews working in every room and on each terrace.

While they lay parquet inside and clay tiles outside, Carlos has been driving my assistant Marion (here with me as official translator) and me around in search of the remaining materials and fixtures required to finish the job. We spent most of yesterday in El Retiro with our cabinet-maker Gustavo. After two hours of reviewing drawings and redesigning window shutters, Gustavo pulled out a bottle of Medellin rum. The next two hours of further discussions were somehow less stressful.

On the way back to Medellin from Gustavo's workshop, we stopped at a stand along the side of the road displaying Christmas crafts and bought two handmade wooden reindeer. We'll put these at the front door of our office when we're back in Panama City this Friday for our Christmas Open House. That's how you'll know where to find us if you're in town and able to stop by for a glass of rum punch or eggnog. Look for the two green-scarfed reindeer out front.

Hope to see you there.

Kathleen Peddicord

P.S. Panama, too, was dressed for the season when Marion and I left town Monday morning. Sunday was the big Christmas parade through the center of the city, and Monday morning, as we drove out of town to the airport, crews were cleaning up from the previous evening's event. I was impressed by how organized this affair seemed to have been. Streets closed Sunday afternoon had detours clearly posted (a first). Coca Cola stands were placed along the parade route, as were portable potties. And, by the time we passed through at 9 a.m. Monday, nearly all the trash and debris had already been cleared away.

Sunday, too, was the day Daniel Noriega came home. Leaving the city Monday morning, I wondered what he must think of his home town, 22 years later? Panama City today, with its high-rise towers, including the tallest in Latin America right now, its Cinta Costera stretch of parkland along the Bay of Panama, and its well-managed parade routes, looks nothing like the Panama City of more than two decades ago that Noriega left.

Some are worried that Noriega, back in his homeland, might try to stir things up. The images I saw of him arriving home Sunday showed a frail old man. Alongside these, the local media showed photos from 25 years ago of a much more bellicose, machete-waving, fists-in-the-air kind of guy.

Noriega won't be in prison in Panama. Panamanian law says he's too old for that. He'll be under house arrest for the duration of his sentence--in other words, likely for the rest of his life. This bothers some Panamanians, too. They think he should be in jail with other criminals.

Noriega's old white house is two blocks from our office in Panama City. We pass it almost every day. It's been vacant since Noriega was removed, and, today, it's a ruin. The state confiscated the place years ago and has tried since to sell it. No buyers to be found, probably because no one wants to risk entanglement with Noriega and his heirs over rightful ownership. Meantime, current President Martinelli says he intends to tear the place down to build a park...Continue Reading:

• Like Kind Exchange Rules

July 8, 2011:

"Kathleen, thank you for your regular updates. In Australia we are faced with some of the same losses of personal freedoms and taxation issues that face people in the United States right now. I totally agree with you. When faced with such issues it is incumbent upon us to seek a better place for our future. Calling it cowardice, as a few readers have done, is at best naive. Australia, like the United States, was founded by independent-minded people wanting to get away from a rigid bureaucracy, so what is wrong with us wanting to do a similar thing now that circumstances have become unfavorable?

"Just an observation about the Schwab bank you have recommended. I applied to them a few weeks ago to open a U.S. account from overseas. It required me to fill out a form. They asked what U.S. state I was from, couldn't understand my phone number because it isn't in the format of a U.S. phone number, and did not like my post code, as it has a different number of digits from a U.S. post code. This seems a remarkably inward-looking view on the world.

"Now, a few weeks have gone by, and I have not had the courtesy of a response to my inquiries about opening an account with them.

"Is there any advice on how people overseas can open a U.S. bank account without having to fly across the world in person? The U.S. banking regulations are becoming a nightmare for people wanting to invest in the United States, not just U.S. citizens."

--Chris K., Australia

Your best shot with Schwab would probably be to speak with one of their account reps on the phone. In our years of experience with this group, they are great on the phone. Note that you will need a U.S. Social Security number to open an account like this and that withholding is applied to capital gains, interest, and dividend income earned by non-U.S. persons.

All that said, my first reaction to your situation is to wonder why you're trying to open an account in the States right now at all. Certainly, you could have some personal agenda that makes this make sense.

However, if your agenda is to access U.S. stocks, you can do that other ways...for example, through an account with a group like Jyske Bank. Continue Reading:

• Buying Discounted Real Estate Overseas

From 2000 to 2006, everyone seemed to believe that property prices could only go up and that there was an endless supply of ready global buyers. By the end of that run, it was amateur hour.

I was in Montenegro looking at the property market in that country in 2005. One real estate agent who toured me around told a story of a buyer she had worked with the previous week.

The client was a young Irish girl. She was a hair-dresser from Dublin who had decided she should get in on the worldwide real estate boom. She couldn't afford anything back home, as Ireland was already well overpriced (especially for a young girl earning a hair-dresser's salary). So she'd targeted Montenegro, a recognized up-and-coming market at the time.

The real estate agent showed the girl several properties. When she walked through the door of one apartment, the Irish girl exclaimed, "It's perfect. I'll take it. How much is it?"...

That's how nutty the global property scene was back then. Everyone was afraid of missing out. The thinking was, buy now...understand what you're doing later...a crazy strategy that naive investors (like our young Irish lass) didn't find crazy because it never occurred to them that real estate prices could do anything but continue up.

Or that they'd ever have trouble finding another buyer when the time came to sell.

It's a very different world today...and I see a similar reverse risk emerging.

In the current climate of bargains and distress sales, you need to avoid thinking, "With prices this low, how can I go wrong?"

While that may be true in some markets right now, I wonder today about super-cheap houses in Detroit, Phoenix, Florida, the Costa del Sol, Bulgaria, Ecuador...

If you're looking for a place to live, that's one thing. But if you're buying for investment, cheap doesn't necessarily mean a good buy and it certainly doesn't automatically translate to a profitable investment. Especially if the market is driven more by foreign than local buyers.

This is not to say you can't make money buying cheap in the markets I mentioned above and others that are currently seriously under-valued. To do so, though, you must understand the forces at work. Why are prices so deflated? Is there some reason to believe they will appreciate in some identifiable period? Who is buying? Who might be buying in the future?

The most appealing property investments right now are those that are undervalued on a global scale (that is, that are cheap relative to comparable real estate other places) but that reside in markets with strong underlying fundamentals and positive economic upsides.

Medellin, Colombia, is one such market right now. You can buy here today for less than US$1,000 a meter. To put that in perspective, that's what it cost to buy into Buenos Aires following the 2001 economic crisis in Argentina.

There's been no economic crisis in Medellin. In fact, prices in this city have increased steadily over the last year or so, and I believe they will continue up for some extended time to come. I don't see a spike in this city's future...but a steady up-tick over time.

The point is that the current prices are a very good deal on a global scale.

Further, you can earn a decent net rental yield (depending on the property, I'd say 5% to 12%). This market isn't driven by foreign buyers, but they are arriving on the scene...a new force that is going to help fuel further appreciation in values.

Tourism is expanding, along with the demand for both short- and long-term rentals. The city itself is prosperous and growing...on the right track.

In a market like Medellin, where prices are absolutely low and the underlying fundamentals are positive, here, yes, maybe you could make money on almost anything you'd buy.

That's why I've bought...and am shopping for more.

Lief Simon Continue Reading:

• How To Open A U.S. Bank Account As A Non-resident

I moved to Barcelona in April 2011 and had no problem opening an account at one of the largest banks in Spain for a small amount of money, nothing near the US$100,000 you reference in your article. I'm not sure what problems opening a bank account in a foreign country you're reporting.

I did get a lot of bad advice from Fidelity regarding wiring money and from my bank in the United States, too. Dealing with people who claim they know what is going on but don't have a clue is frustrating. There is one thing that you should understand before wiring money: Your money in the United States is federally insured. As soon as your money leaves the U.S. bank, there are no guarantees that you will ever see your money again. Your powers are limited.

Second, Fidelity or any other investment company cannot by law wire your money to an offshore bank. Some people at Fidelity will tell you that they can.

Will your Offshore conference in Panama have more teeth than your recent article?

My Reply:

I'm glad you had no problem opening your bank account in Spain. However, you're speaking, I'd bet, of a local personal checking account, not a private or an investment bank account, which is what I was talking about in my recent report.

Opening even a personal checking account in most countries isn't simple for an American these days...or, in many cases, for any non-resident. Especially in Latin America. However, opening a private banking account (this would be something similar to your investment account at Fidelity) is much more complicated. Many banks simply don't want U.S. clients anymore.

As for Fidelity (or any brokerage company) not being allowed by law to wire money from your account to an offshore bank, that is simply incorrect.

What Fidelity won't let you do is to wire funds overseas using fax instructions (I used to have an account with them). You have to go into a Fidelity office (or send the written instructions to them in the mail).

Schwab, on the other hand, does allow you to use fax instructions for an international wire, which is one reason we recommend them over other options.

Finally, yes, the three-day Offshore Summit we're holding in Panama City in September will have more "teeth" than the single free e-mail dispatch you're referencing.

Reader Comment:

Hello, I just wanted to let whomever reads this know that I consider anyone who moves out of their home country just because things get bad a terrible coward! Instead of running away to hide, stay and become the change you want to see!

My Reply:

The United States was founded and continues to be populated by people leaving their home countries in search of someplace better, people who found their former geographic situations intolerable for some reason.

The reality today is that many U.S. retirees, for example, are finding they can't afford to retire in the place where they've been living. Entrepreneurs are identifying more business-friendly locations. And Americans who value their privacy are actively in search of places where it will be respected.

I wouldn't say that taking control of your life and your financial future is cowardice. It strikes me more as common sense.

Reader Comment:

Kathleen, I just joined your newsletter and am very interested in information about retiring to Bogota,Colombia. I retired from the U.S. Army on a medical, and I am getting Social Security disability. The two total US$2,300 a month. I know that other countries are cheaper than Colombia, but the young lady who I will be making this move with is Colombian, and she wants to live in Bogota.

I have some questions, though. Can I live there without being married?

Can I rent a decent house, maybe three bedrooms, two bathrooms, and survive with my income?

I will be going to visit in August and staying for three weeks. What should I do in advance of that trip to prepare?

My Reply:

First, yes, you could live comfortably in Bogota on the budget you reference. However, before you commit to that city, try to convince your young lady friend to take a look at Medellin. I'd say it's a much preferable destination. It's also a more affordable place to live.

Getting residency could be complicated if you're not planning to marry your lady friend. (I'm not making any suggestion...only an observation.) I'd recommend that you discuss your options with an attorney in the country. We recommend the firm Gutiérrez Márquez Asesores S.A. in Medellin. You can contact them as follows: Calle 7 Sur No. 42-70, Office #1601, Medellin; tel. (57)4444-5044; website: www.gutierrezmarquez.com.

In advance of your scouting visit, you might speak with an attorney from the firm I've referenced regarding your residency options and contact a local fiduciary agency regarding opening an account. For this, I recommend Alianza Valores. When you get in touch and explain your personal circumstances, they'll tell you what documents you'll need to produce for the account.

Reader Comment:

Kathleen, I believe you may have missed the point of one of the recent reader messages you published. Social Securityhas a claw-back provision of benefits that are taken before the "Full Retirement Age" (between 65 and 67, depending on your year of birth).

While I respect your concern for risk associated with the Social Security system, I personally believe you do your readers a disservice in steering them to draw early benefits. First, for better or for worse, the U.S. political system is driven by powerful lobbies. Few are more powerful than the AARP. This was vividly demonstrated a couple of weeks ago when AARP declared their willingness to consider some modifications to the program in order to shore up the long-term viability.

Republicans and Democrats welcomed this change of position as a sign that progress could be made to correct the actuarial shortfall. Even if nothing is done, the "disaster" scenario leaves Social Security paying 75% of benefits in the 2030s. There are so many ways to fix this shortfall that barely move the needle. Sure, there's a risk something radical will happen to Social Security. I just believe it is a relatively small risk compared to investment risks, exchange rate risks, etc.

Second, Social Security is or will be the single biggest source of income for most Boomers (I do work and research in this area), for better or for worse. For most of these folks, the decision of when to start drawing benefits will be the biggest financial decision of the rest of their lives. The factors that should go into this decision are many and complex. However, for Boomers born between 1943 and 1954, for example, the benefit increase between retiring at 62 and at 70 is 76% (in constant dollars), adjusted thereafter for inflation. (Varies slightly for those born before and after, though not much.)

That's a big raise for someone for whom this is their primary income. For a healthy Boomer with a family history of longevity, I would recommend finding a way (like living in a lower-cost country!) to get by without tapping those benefits until age 70. I would rather have that struggle than the struggle of being 85, healthy as a horse, and constantly worried because my income is so insufficient that I live on the edge. That seems to me like a tough way to end one's years. Of course, if you reach age 62 and absolutely need the income, the question answers itself...

I point this out because I believe you exercise considerable influence over your readership, me being a case in point.

I have followed you and Lief since I saw an ad for your previous business on the home page of The New York Times website (more than 10 years ago).

Over the years you (and Lief) have been exceedingly open about sharing information about your investments in real estate as well as your expenses. Based on this information, it would not appear that Social Security benefits will be a major source of your retirement income. Indeed, for those for whom that is the case, an early withdrawal strategy may be optimal, since it essentially is banked for investments that will likely be part of the legacy.

While this profile may be more characteristic of your readers, it is unfortunately not characteristic of most of those moving into retirement. Yet these folks of more modest financial assets are, in my view, outstanding candidates to benefit from living overseas if they can muster the required sense of adventure.

I do not believe you want these folks coming up to you in 10 or 15 years saying, "Kathleen, love your work, hang on every word. The only thing I would change is that I wish I had put off drawing Social Security; I could sure use the security of that increased check now..."

Thanks for all your terrific letters and articles over the years. I have probably read every one! And bought and read your book. You keep my dream alive vicariously until we can wind up various family obligations in the United States. Until then...

Kathleen Peddicord

P.S. One big benefit of joining us for the Retire Overseas Conference taking place in Orlando in October will be the opportunity to have all your own live and retire overseas questions answered in full and in person. For this, our biggest event of the year, we've invited all our top correspondents and contacts from around the world...more than three-dozen speakers in total.

Key presenters for this event will be on the phone for ourSneak Preview Retire Overseas Teleconference. This will be your glimpse behind the curtain as we plan this important event.

Our Retire Overseas Sneak Preview Teleconference is free. However, you do need to register to participate.

You can do that here now.

Once you've registered, we'll be in touch with all the details.