In today’s world, it can be a good idea to have a backup plan…
A game plan for where to go and for how you’re going to enjoy life once you get there should life become less than enjoyable in the place where you’ve been living up to that point.
Economies, currencies, markets, politics, politicians… they can work in your favor… or against it.
However, the reasons to think through a Plan B can also be more personal.
“Kathleen, I’m here hoping you and your team can help me create a plan for going offshore,” began one attendee early the first morning of this week’s Offshore Wealth Summit in Panama City, Panama.
“My husband of many years recently left me,” the lady continued.
“It was a dramatic, contentious, horrible experience. I spent US$100,000 on legal fees, trying to preserve what was rightfully mine, before realizing I’d be better off just walking away.
“So, finally, that’s what I did. I told my husband to divide everything as he would and that I was done fighting with him.
“I received US$500,000. No house, no investments or other assets… simply US$500,000.
“Now I’m trying to figure out how to start over with no income and far less of a nest egg than I expected to have at this point in my life.
“I’m in my early 60s and healthy. I hope I have many years ahead of me. How am I going to make my US$500,000 last? That’s the question I have come here to answer.”
“With your permission,” I responded, “I’d like to share your story and put your question to our panel this morning. I think they could have good ideas for you.”
With the attendee’s OK, that’s what I did.
This week’s conference in Panama City was built around a series of panel discussions intended to introduce everyone in the room to the biggest and best options and opportunities right now for diversifying offshore.
Our first panel discussion was titled “Creating Your Freedom Plan.”
Ideal chance to help the now single lady looking for a plan for the next stage of her life.
My panelists didn’t disappoint.
“Being Latin,” Colombian attorney Juan Darío Gutiérrez spoke up, “I appreciate the drama of this question… and I’d like to respond.
“First,” Juan Darío continued, “I’m very sorry to hear about what you’ve gone through. Divorce is difficult under the best circumstances, but it sounds like your experience has been especially challenging.
“Now, though, you have the chance to do exactly what you seem to be looking to do—reinvent your life entirely.
“I’d say start by traveling around… take off… explore… see new places… take time for yourself…
“You’re here in Panama for this conference, and that’s a great start.
“What you’ll find, I think,” Juan Darío continued, “is that the trying experience you’ve just suffered through will become less prominent in your thoughts in direct proportion to the number of days of discovery you enjoy.
“What you’ll also find,” Juan Darío carried on, “is that, many places around the world, your half-million-dollar nest egg is a lot of money.”
“Exactly,” Portugal attorney João Figueira chimed in. “A half-million dollars is more than many people in many countries earn in their lifetimes.
“In Portugal, for example, “João continued, “you could live very well for many years on that nest egg.
“Become a resident of Portugal,” João added, “and health care is free… and health care can be one of the greatest expenses for a retiree.”
“You could, for example,” Lief interjected, “buy a house with an extra bedroom in Portugal. That would take your housing expense off the table… and you could rent out the extra room through Airbnb if you ever decided you wanted or needed to generate some income.
“In a place like Portugal, even a small side income from an Airbnb rental could be enough to keep you comfortable.
“You could even,” Lief continued, “in some places in Portugal, buy two small apartments with your budget. Live in one and rent out the other full-time.”
“I’d say begin,” Chief Investment Strategist for Lahardan Financial Leon Wilfan suggested, “by dividing the capital into two parts—what you want to invest for income versus what you want to keep for living expenses.”
“There are many great options in the room with us,” Lief interjected, “for investing for cash flow.”
“By joining us at this event this week,” I added, “you’ve turned your situation on its head.”
Maybe US$500,000 isn’t enough to live well in retirement in the place where you’ve been living in the United States.
But, as my panelists are suggesting, many other places in the world it’s a very comfortable nest egg… enough to fund a life of adventure for decades to come.
Discussions continue, as I write, as our experts and panelists help us consider dozens of tempting current opportunities for diversifying both your life and your portfolio overseas.
Your best options right now for easy backup residency… for opening an offshore bank account… for forming an offshore corporation (as well as when an offshore corporation is a good idea and when it’s a waste of money)…
For mitigating your tax bill (even, under certain circumstances, living tax-free)…
For starting a business… investing for yield and for appreciation…
In short, dozens of your best options for having fun and making money all across this interesting world of ours.