In your new life overseas, you could support yourself by going to work for someone else… but who wants a J-O-B?
Better to make your own money and control your own schedule.
At last week’s Make Money Overseas Event we explored dozens of options for generating self-directed income as an expat or retiree abroad…
You could be a consultant, coaching, mentoring, or tutoring others interested in acquiring skills you hold thanks to years or decades of professional experience in the developed world…
You could be a freelance travel writer… a copywriter… a blogger… or a vlogger…
You could import or export… market or sell online… manage rental properties… or start a food-processing business (we met one expat-entrepreneur last week who is making a business of habanero onion sauce in Cayo, Belize, using his own recipe and ingredients he grows on his farm)…
You could teach English, either online or in person… lead tours… or open a dance studio…
Or you could choose not to work at all, not for someone else and not for yourself either.
If you have a little available capital, you could invest to create a passive income stream from turnkey real estate opportunities in top markets.
The new life overseas you’re dreaming of… no work required?
Yes, it’s possible.
At last week’s event, multimillionaire global property investor Lief Simon walked us through it.
“When making a passive-income plan for supporting yourself overseas, consider three factors,” Lief advised the group.
“First, how much income do you need to live the life you want to live in the place where you want to be?
“Second, in what currency(ies) will you have expenses?
“Third, how much risk can you live with?
“Comfortable with your response to those questions,” Lief continued, “next, look at your options for generating passive income. They boil down to two:
- Rental Property
- Turnkey Agriculture
“After decades of experience with these strategies,” Lief said, “I favor agriculture. It’s the one way I’ve found to generate good or excellent income over an extended period of time (up to 30 years or longer) with zero effort. Once you’ve made the initial investment, you can sit back and wait for your dividend payments.
“Right now,” Lief continued, “I like four turnkey agriculture options in particular:
- Fruit trees (Right now I’m keenest on mangos…)
- Aquaponics
- Truffles (I think of truffles as agricultural gold…)
- Timber
Each option has its pluses and its minuses, which Lief laid out for the group, as follows:
Fruit Tree Plantations
Pros:
- You own the land
- Can provide cash flow for at least 40 years
- No foreign taxes
- Returns of up to 18% per year
- Dollar-based, meaning no currency exchange risk
Cons:
- You have to wait up to four years before receiving your first payout
- Payouts are annual
- Dollar-based, meaning no potential currency upside
Aquaponics
Pros:
- You own the equipment
- You can receive your initial cash returns in as little as 18 months
- Biannual revenue payouts
- Flexible production options to maximize revenue
- Returns of up to 14.5% per year
- Thai baht-based revenue, meaning you could enjoy additional upside if the currency moves in your favor
Cons:
- Thai baht-based revenue, meaning the currency could go against you
Truffles
Pros:
- Two to three years before first harvest and payout
- Luxury product with expanding demand well beyond global production levels
- No foreign taxes for 15 years
- Returns of up to 19% or more per year
- Euro-based revenue, meaning you could enjoy additional upside if the currency moves in your favor
Cons:
- Payouts are annual
- Difficult to predict future prices
- Euro-based revenue, meaning the currency could go against you
Timber
Pros:
- You own the land
- Great choice for long-term legacy planning
- Returns of up to 16% per year
Cons:
- Growth cycle is years, and the payout isn’t until trees are harvested
- Difficult to predict future prices
Kathleen Peddicord
