Punta del este Uruguay

The picturesque, sleepy Uruguay town of Punta del Este represents a unique opportunity for savvy investors. Boasting affordable real estate, a remarkably high standard of living, and a party season each summer that transforms the town into a prime spot for South America's rich and famous, Punta del Este is primed for a real estate boom. See the following post from Daily Wealth for more on this.

I'm writing to you from a farm in South America...

There are three horses outside my bedroom window. My host, Fitzroy, lets horses roam his property. In the morning, we find them munching grass on the front lawn. And when we're having afternoon tea on the back patio, they'll come wandering slowly past...

In a moment, my wife and I will walk across the garden, past the horses, to the main house, where we'll join Fitzroy's family for breakfast. The housekeeper, Alexandra, is there. She's already set the table, pressed the oranges, and prepared a large plate of organic sausage, ham, and eggs.

After breakfast, we'll saddle the horses and Fitzroy will take us for a trot around his property...

We're in Uruguay, in a town called Punta del Este.

They call Uruguay the "Switzerland" of South America because of its powerful banking secrecy laws. It's also one of the last countries in the world where you can own property anonymously. Finally, there's no tax on foreign earnings. So Europeans and South Americans move here to avoid income taxes.

These laws attract money to Uruguay. Uruguay is the second-richest country in South America, after Chile.

For six weeks every summer, Punta del Este is the most important party town in South America. If you're a celebrity here, this is where you come for your summer vacation. If you're a wealthy aristocrat from Brazil, Argentina, or Columbia, you come here to party with the celebrities.

During this "party month," tables at nightclubs sell for $10,000 a night, rents jump 4,000%, and it takes two hours to move across town because of the traffic.

Luckily, high season doesn't start until January. For now, we're the only tourists in town...

For full-time residents, Punta del Este is a sleepy seaside town. Three-quarters of the houses and apartments are empty. Most of the restaurants are closed. And they disconnect the traffic lights. The standard of living for these folks is extraordinarily high...

Fitzroy, for example, lives in a large country house with wooden floors and big windows. He has a lake, a forest, and a horse paddock on the grounds. On the other side of the lawn, there's a cottage for the housekeepers and another cottage for guests.

He told me his country estate would sell for around $750,000 if it were on the market today. The same property in England or America would cost 10 times as much...

We went on a tour of Punta del Este's real estate market with Fitzroy. We found dozens of seaside cottages and small homes for under $200,000. They come with neat lawns, brightly painted walls, and fruit trees. Most of them even have separate quarters for housekeepers. A full-time housekeeper costs $400 a month. The country club charges $150 a month for offseason membership. And the top private school charges $200 a month per pupil.

The weather is wonderful. It never freezes. In the summer, you rarely need air conditioning. Travel connections are great, too. The international airport is two hours away and offers direct flights to the United States and Europe.

In short, Punta del Este is the perfect location for expatriates. It's cheap, easy to reach, and the quality of life is unbeatable, even in America. Best of all, there's going to be a property boom here as money flees from the bankrupt governments in America and Europe.

If you ever get the chance to visit Punta del Este, I highly recommend it. Just make sure you avoid the party season... unless you like that sort of thing.

This post has been republished from Daily Wealth, Steve Sjuggerud's contrarian investment site.

Margarita Island, Venezuela

BY Karl Ike

Do you know the average life span in the United States is 76.9 years? That’s 28,068 days and I have already lived 21,900 of them, which means that I have only 6168 days left and I really want to make the most of them. That is unless I get T-boned at an intersection going to a job that I don’t like and get to work with a bunch of people that I do not socialize with away from work, but I get to do the same thing every weekend except for two weeks a year on my paid vacation. Then I get to clean out the garage and sleep late. I really don’t think I will ever see 76.9 cause if I don’t get T-boned going to work, a cancer will probably rot a part of my body away.


One thing I do know. I can’t retire in another 5 years, as I haven’t put enough away to retire which means that I will have to work the rest of my life at Wally World asking people want “paper or plastic” That’s why I want to make the most of my 6168 days left. I know that I cannot live on Social Security in the US so a couple of years back I decided to see what the rest of the world has to offer as a way of life. I went to England, France, Germany and Amsterdam but they are right up there with the US. Costa Rica I wasn’t impressed with, Canada is way too cold and I did live in Mazatlan Mexico for a year.

Mexico is not as cheap as it used to be however liquor and cigarettes are still cheap: helps get that cancer thing going and medications are cheaper to help kill the pain.

Mexico is definitely out.The Bahamas and Virgin Islands are right up there with Hawaii and my last name isn’t Trump so affordable living isn’t there either. I was stumped?

One day checking my e-mail, an old friend, Scott Boswell sent me a note. Scott and I met while we were both living in Mazatlan but this message wasn’t from Mexico? Scott & Kasey were e-mailing me from Margarita Island Where in the world is Margarita Island? As it turns out Scott had been looking for the perfect place too.
He had checked Central America, Equador, Argentina and a friend of Scott’s recommended this Caribbean island. To make a long story short, Scott went to visit for 6 weeks, came home, sold everything and moved back. Now he’s recommending it to me. You make your own decisions. I’ve made mine.

Scott started describing this wonderful island with a temperate climate year round located outside the hurricane corridor with beautiful Caribbean beaches, great restaurants, casinos and much more. Located off the coast of Venezuela in line with Trinadad, Bonaire, Curacao and Aruba. Now Scott is from Texas and ya’ll know how a Texan can stretch a tale so you have to read between the lines? He started spinning more tales. Like when he filled the gas tank on his Toyota Land Cruiser and it cost him $2. I had to yell “Horse apples Scotty! There ain’t no such thing as gasoline at $.09 a gallon. Don’t tell me that. Your Texas president wouldn’t allow that!”

Then he tells me that a bottle of beer at a beach bar is only $.40 and he and Kasey can go out to dinner at a great Italian restaurant for $20 (with a bottle of wine). I thought Scott might have had a few too many of those forty cent beers? Then this clown tells me that you can buy a nice 3-bed/3-bath house for $40,000 or a nice high-rise condo for $25,000.


“More horse apples Scotty. Stop lying to me!”

Then he tells me that I can have a cute full time maid to clean up my mess for another $4 a day. I told this Texas windbag , I’ll be there Friday! My work buddy, Leo and I needed a vacation and I desperately wanted to prove that Scott was full of hot Texas air so we booked a flight!

OK! So hold onto you wallet! Airfare from Las Vegas is only $530 round trip to Caracas. It cost me another $56 to take a 737 hop to this pearl in the middle of the Caribbean. So, for $590, I get to take two giant steps backward into this supposid third world country. We landed on Margarita Island Venezuela on Friday. The name alone was worth the price of a ticket. Wonder if Jimmy Buffet is here? If not…….Why? This little dot on the map looked pretty good from the air and a whole bunch bigger.

The island is about 40x60 miles with hundreds of white sandy strips called beaches, turquoise water and several big green mountain with scattered villages and towns. I was expecting a dirt runway with a couple guys in camo uniforms carrying machine guns. Cool! I like thrills. Much to my dismay, it was a very nicely appointed, very clean, air-conditioned airport that made many of the US airports look bad.

Scott picked us up in his Land Cruiser. (And with no dingle balls and Oh-ugah horn. Come on Scotty. This is supposed to be third world and we’ve all seen Romancing the Stone!) Scott drove us 6 miles to a very nice hotel in Polamar, a cosmopolitan city of 200,000 with high-rise condos and hotels. I kept looking for the third world? It’s here somewhere? Our hotel Marbellamar was a very nice hotel with open-air lobby, swimming pool, restaurant and bar, parrots, concierge, travel agency and more. Well, I didn’t catch Scott on the car but I sure can get him on this hotel. This place ain’t cheap!

The front desk clerk said a room was 70,000 Bolivar’s (B’s) a night. What? My hand started shaking as I reached for some money. (I had exchanged $100 at the airport with some money-changing guy) So not being familiar with the exchange, I had to do the calculator thing. (We changed our money at the rate of 2200 Bolivar’s to the dollar) The room came to $31. Per person right? No. It was for two people. Stick around……it gets worse!

We spent 3 days at this hotel and then decided to try another so we moved to Katarama Hotel. A smaller hotel with a nicer pool, breakfast was included, pool bar and a larger room with bedroom, bathroom, kitchen, living room with American TV for 60,000 B’s ($27) a night for two with breakfast. We spent the next 7-days here. If it got any cheaper they would be paying us! We rented a car. Scott took us to El Yaque, which was far from Yuckie. A beautiful sandy beach known for wind surfing, great beach restaurants and girls using dental floss for bathing suits so we stopped for a cold one. A beer was 1000 B’s ($.40) so we had six. I was wondering if any of those girls did any house cleaning? On the way back we needed to get gas for the Avis rental car so we pulled into a gas station where they still give you full service. While a girl washed the windshield and filled the tank I went into the convenience store for a cold beer.

The convenience store is like any 7-11 or Circle K in the States and is very well stocked. The official Venezuelan currency exchange rate is 1920 Bolivar’s to the dollar. You can exchange almost anywhere for 2200 to the dollar. Scott was getting us 2500 to the dollar. So when we paid for the gas, the girl squeezed 2483 Bolivar’s of 91 octane into the tank. About $.99 for a tank of gas! The beer was $500 B’s ($.20) When was the last time you got a tank of gas and a cold beer for under $1.25?

Never! Until today. Scott had gotten me again! I was wondering if girl who pumped our gas, cleans houses? Now I understand why Venezuela has won the Miss World competition more than any other country! They have some beautiful people even if all they wear is dental floss or a gas station uniform. At night, after a wonderful Italian dinner with a bottle of wine for $16, Leo decided to go home and I decided to go to Senor Frog’s. One thing I noticed is Margarita Island is very family oriented. I have never seen so many men out entertaining their daughters! I am really too old for Senor Frogs but I failed to see any age gap.

A beer there was the most I spent anywhere and it was 2000 B’s ($.80). If you like disco’s and loud music, that’s the place. Right next door there are two wonderful outdoor restaurants as well. Very cosmopolitan/European style. By the way, nightlife really starts at midnight and goes until the wee hours of the morning. From there I went to Margaritaville and the band didn’t start until 12 pm. And no, Jimmy Buffet was not there but he would love it.

Coming from Las Vegas, Sin City, the town that never sleeps, I decided to go to the Hilton Casino. I dropped the car off with the valet and stepped inside. The casino, while smaller, was very similar to US casinos. Blackjack, Caribbean Poker, roulette, and tons of slots in a beautiful building on gorgeous grounds. Complimentary cocktails served by beautiful women who I wished cleaned houses. The fun part was playing blackjack with $10,000 bills ($4) After having my fill of cocktails and losing 100,000 Bolivar’s ($40) I decided to call it a night. We also ate lunch at some small no-name beachside restaurant by one of the marinas where Scott took us. It is the kind where you fan the flies away to eat. Guess what? No flies but we met people from around the world there. Most of them live on their boats that they sailed from London, Florida, Georgia and other islands.
What an extremely interesting group. That is why we ate there about five times. Leo had never been outside the United States and had never had fish cooked with the eyeballs, teeth and lips. He was ecstatic and lunch was $8.

Scott took us to Sambil, a local third world mall or should I say third world MEGAMALL! This place was huge and beautiful like Rodeo Drive in Beverly Hills with everything that we have in the US and far more.

Hundreds of stores, beautiful tropical restaurants with bridges over water ponds. and a food court to satisfy all your cravings for grease. McDonalds, Wendy’s, Burger King, Domino’s and Pizza Hut are here as well as world cuisine. We stuck to local flavor.

There is Venezuela’s version of Home Depot too. Actually, very modern, nicely stocked and almost everything you would need to build or re-model a house. There are other very nice modern shopping centers plus clinics and pharmacies with the same or better prices than Canada or Mexico for prescription drugs. And many you don’t even need a prescription for.
We decided to look at property that you can buy for almost nothing so Scott took us to La Asuncion which is a small clean town about 6-8 miles from Polamar. We looked at a 3-bed/3-bath house in a ¼ acre (1300 sf). One bed/bath was the maid’s quarters off the laundry room. The house had a chain link fenced yard with vines covering most of the fence and a huge playpa roofed patio that served as an outdoor entertainment area. Complete with a huge log table, hammock, TV and outdoor kitchen area.. It was great!

The house had a beam ceiling, 3/3, living room, Spanish tile floors, kitchen, AC, W/D, satellite (Direct TV) phone and needed nothing. Nice neighborhood in a quiet area. Price? $32,000 USD. In Vegas, something similar would be close to $200,000 on a smaller lot.

Leo and I looked at a brand new high-rise condo in Polamar with a two-story underground parking facility with security cameras. A gated high-security community with beautiful grounds and pools(s) weight room, sauna, party room, etc. The condo was 1300 sf with new American appliances (W/D, micro, dishwasher, refrigerator and stove) 2-bed/2-bath, central air, cable, phone and a wonderful view of the ocean and pool(s) from a monster-curved deck. Price? $85,000 USD unfurnished, $100,000 furnished.

In Vegas this condo would be $400,000 easy. Then we looked at an older two-story penthouse, 3-bed/3-bath, den, W/D, window AC, cable, phone, and security-gated grounds with pool. Price? Asking $32,000 The kitchen needed about $2000 worth of tile work done. Scotty had gotten me again! Unbelievable property for unbelievable prices.

Beautiful homes for the price of a small mobile. Maybe you don’t want to buy? You can rent a nice apartment for $100 a month. You can rent a very nice security gated apartment for $200 and for $300 you will have the penthouse.

So maybe rent for a year?

If you are 65 or over the airlines have a “senior discount” with round trip airfare from Caracas to Miami for only $125. Miami is only 3.5 hours away. And they are adding a direct flight from Margarita to Miami early 2005 which will make the time even shorter.

I am still trying to find a downside to Margarita Island. I mentally went through food, clothing, utilities, medical, rent/purchase, cars, TV, and all I could come up with was bowling? Then I remembered that I saw a beautiful bowling alley at one of the shopping centers.

Bottom line is, Scott took one look and moved completely. Leo has never been outside the United States. He took a look and has his house on the market and will be moving by June of 05 when his SS starts. Hopefully, I will be there sooner.

One thing I do know is that I can live very comfortably on SS in Venezuela. And the other thing I know is that I would rather be sitting on a beach having a cold beer or fishing, rather than asking people if they would like “paper or plastic”.

Another thing I have to point out is we were getting 2500 Bolivar’s to the dollar and the official rate is 1920 (which fluctuates) so our dollar automatically is worth more. We needed to exchange some money, we cashed in $400 and got 1,000,000 Bolivar’s.

One million of anything can, and will, go a long ways. And it did. For 50,000 B’s a day you can live comfortably and $800 a month on SS is 1,536,000 Bolivar’s at the official exchange rate. At $800 in the US, you will be pushing a shopping cart and eating cat food out of a can.

Leo and I figure that if the whole economy falls apart, which isn’t likely because Venezuela has a lot of oil, we have two choices. Move a couple islands over where tourists have been coming for decades or come back to the US and find a shopping cart on our Social Security.

And that Scott! One thing is, I will never doubt him again and another thing is that bag of hot Texas air has made a complete liar out of me cause nobody is going to believe me, without going there.

If you have any questions, you might want to e-mail Scott at discovermargaritaisland@yahoo.com as he really helped me (and you don’t have to read between the lines) or e-mail me as I am going through the moving process. I would be glad to help.

To contact Karl Click Here karl_ike@hotmail.com

VILCABAMBA ECUADOR

Living Better (and On Less) Than Ever in Ecuador

By Suzan Haskins

Dear International Living Reader,

About a year ago, I told you about a couple my husband and I met who live in the small town of Cotacachi in the Ecuador highlands. Lee and Peggy Carper, I wrote, live on a monthly budget of about $660, which includes rent, utilities, food, medications, transportation, and even food for their two dogs and a passel of strays they feed.

As you can imagine, Dan and I were impressed…even more so because we fell in love with Imbabura province, where Cotacachi is located. Majestic mountains loom in every direction…and the air is mountain-fresh and cool enough for a light jacket in the evenings. Just about two hours north of Quito (the cosmopolitan capital of Ecuador), Imbabura is home to several artisan villages, including the textile town of Otavalo, where you’ll find the largest open-air indigenous market in South America. Major shopping…in modern supermarkets, hardware and department stores…is done just a few minutes north in the large, bustling city of Ibarra.

We were so impressed, in fact, that we decided to spend our summers here and we bought a small condo on the edge of town with a picture-perfect view of Mount Imbabura.

It’s been fun outfitting our condo with handcrafted pieces made to order by local carpenters. At the local the mercado we buy fresh produce or we eat at one of the many small local restaurants that specialize in home-cooked food. We walk everywhere we go and I’m certain we are losing weight. We feel very healthy here.

There’s just one problem…

Since we have been here in Ecuador, I have been told—not once, but three times—that I got it all wrong when I wrote about Lee and Peggy Carper.

The conversation usually goes something like this…

“Hey, that couple that lives here on $660 a month…they must be living pretty extravagantly. Because we’re living on about $500 a month.”

Ok, I can understand that coming from Bob, a single guy. And even from John and Sue, who live in Vilcabamba and own their home and therefore don’t have a monthly rental expense…

But last week, we met Jack and Eileen.

They rent a three-bedroom furnished house for $150 a month. Jack walks up to a local asadero (tiny restaurant/grill) where he eats an American-style breakfast of bacon and eggs and toast. Cost: $1.25. At the mercado, they buy a big bag of veggies (already cleaned and diced) for $1, which makes a big pot of soup that lasts for several days. Sometimes they go out for dinner. (At the best restaurants in town, a steak dinner with salad and potato is no more than $5.)

A woman comes and collects their laundry, which she returns washed and neatly ironed for about $8. Big 20-ounce bottles of Pilsener beer cost about 75 cents each (less if you buy by the case.) Freshly baked softball-sized buns from local bakeries cost 12 cents each. The bus to Otavalo is 25 cents and to Ibarra it costs 40 cents.

“It’s tough to spend $500 a month here,” they say.

Properly chastised—and after living here the last two months here, I have to agree. And I fully expect that next we’ll meet someone else who is living here comfortably and happily on even less.

Editor's note: John Curran, the fellow from Vilcabamba that Suzan mentions above, will be speaking about his experiences in Ecuador (as will Dan and Suzan) at the upcoming International Living Live Overseas Conference in Las Vegas, Oct. 1 and 2. If you’re just starting to think about living or retiring overseas, this is the event for you. Learn more here.

101 Things You Should Know Before You Even Think About Living, Retiring, Or Investing Overseas

BY: Kathleen Peddicord

Shipping your belongings across international borders...moving with your children...or a pet...obtaining residency...getting a visa...opening a bank account...getting the best international phone rates...learning a new language...using VOIP...obtaining an international driver's license...working with an overseas real estate agent...shopping for international health insurance...

This is everything we wish someone had told us before we set off on our own live and invest overseas adventures. And it's available to you right now Free. Details here.

----------

The Dominican Republic is the best option for a new life in the Caribbean right now...our favorite Caribbean island haven...and a place you should know about.

That's why we dispatched Roving Editor Rebecca Tyre to this island nation last week. This was Rebecca's first visit to the DR. Her initial report?

"I'm blown away by what this place has to offer..."

Rebecca continues:

Dear Overseas Opportunity Letter Reader,

"Frankly, I wasn't expecting much from the place.

"I knew that the Dominican Republic has great beaches and that, as a result, it attracts big volumes of tourists every year. I knew many people who had traveled to Punta Cana or La Romana to spend a week at an all-inclusive resort, but I'd never met anyone who had chosen to become a DR expat.

"Based on that limited experience, I came to the misguided conclusion that the Dominican Republic is a great vacation spot...but not a place to consider for the longer term.

"I've returned today from a 10-day trip to the island, and, I have to tell you, my initial assumptions were all wrong.

"Yes, there were thousands of tourists and incredibly beautiful beaches, but the Dominican Republic has so much more to offer.

"The island is small, about twice the size of the state of New Hampshire, yet it offers an estimated 1,000 miles of pristine, white-sand beaches, most of them completely empty of people. Sure, in the resort areas, the beaches are filled with tourists, but walk just a few short miles away in either direction and you can find yourself completely alone on some of the most picturesque stretches of sand you will ever lay eyes on.

"Dominicans are extremely friendly and hospitable people. I know that sounds like a cliché, but they truly are warm and welcoming. I have been living in Panama for more than three years. I'm single. Young. I've gotten used to being whistled at and called out to by local men as they pass me on the street. I was expecting the same thing in the Dominican Republic. But I was wrong. I didn't hear one catcall.

"Dominicans realize that the island's tourism industry lives or dies on the experience of every visitor. If you have an enjoyable vacation experience, you want to come back and you tell your friends about it when you get home.

"I felt safe walking the streets of Las Terrenas, a town on the Samana Peninsula, at night, by myself. I believe it is increasingly difficult to get this feeling in many places around the globe. The Dominican Republic is still one place where you are not targeted because you are obviously a foreigner.

"I spent a lot of time driving around the country, which is one of the best ways to get to know a country. The landscape is breathtaking. From the big, tree-covered mountains in Los Haitises National Park to the green Caribbean Sea splashing on to the white sand along the miles of coastline, every turn in the road brings you an ever-more-awesome view.

"The cost of living is much less than in the United States or Europe. To rent a comfortable one-bedroom apartment within walking distance of the beach will set you back about US$400 a month. The cost of groceries is comparable to that in Panama. Expect to pay about US$2.50 for a tube of toothpaste. Gasoline is more expensive than in many countries; it's selling for the equivalent of about US$4.25 a gallon.

"Like many places around the world right now, the Dominican Republic's real estate market is down...way, way down. Construction companies are laying off workers, and real estate agencies are closing their doors.

"Which is to say, there is a serious window of opportunity on this island right now. If you are a buyer with cash, name your price. What could you buy? How about a brand-new, one-bedroom apartment about a five-minute walk from a pristine Caribbean beach for US$100,000...or even less.

"Interested in something bigger? I saw one top-of-the-line condo, about 250 square meters, sitting with the beach on its doorstep. Finished and furnished to an impressive standard. In a full-amenities development. Even the asking price is a good deal, given what you're buying...but I'd bet that, if you made a cash offer, you might buy this for 50 cents on the asking-price dollar. The seller needs cash.

"More on this later in the week.

"The Dominican Republic isn't your typical Caribbean getaway. It's more international than you might expect...certainly more cosmopolitan, in some ways, than I expected.

"Have a craving for blue cheese, authentic French baguettes, or fresh gnocchi? In the DR, you can find all of these things. French and Italians settled on the island about 30 years ago. They've since developed an extensive and diverse culinary, business, and service infrastructure...geared toward other expats.

"Getting to the Dominican Republic can be difficult. If you live in the States, most flights to the island connect via Miami.

"One travel option I recommend is to purchase an airfare-only ticket from a charter vacation company. These kinds of tickets can be more expensive than a conventional commercial ticket, but they typically allow you to fly direct from major U.S. and Canadian cities to your DR destination.

"The Dominican Republic was such an unexpected and pleasant surprise that I am already thinking about when I might be able to return for another vacation.

"And, if the opportunity were to present itself, I wouldn't think twice about living there for a while..."

Kathleen Peddicord

P.S. Rebecca has a whole lot more to share regarding her recent experiences in the Dominican Republic. I've asked her to prepare a series of reports on the current (crisis) real estate market...her favorite beach...residency, visa, banking, and tax issues... real-life stories from expats who've chosen the island for their new lives in paradise...

Plus off-the-record tips, stories, and recommendations.

"Hold nothing back," I've urged Rebecca. "We want the real deal."

Rebecca has delighted us here in the office all morning with her tales. Don't worry. I'll make sure you benefit from her adventures, too. Watch this space.

Meantime, Rebecca will be sharing her stories live and in person during our How To Retire Overseas Conference in Panama City next month. This two-day program will introduce you to the world's top 12 overseas havens right now. Yes, the DR is on that list. Rebecca will fill you in.

Full How To Retire Overseas program details here.

Reinventing Retirement

Many baby boomers plan to keep working and earning money during their retirement years, but will alternate between periods of work and leisure, according to a survey by Merrill Lynch.

Reinventing Retirement
The New Retirement Survey builds on the conventional wisdom that many baby boomers are not interested in pursuing a traditional retirement of leisure.

"Baby boomers fundamentally will reinvent retirement,” said James P. Gorman, president of the Merrill Lynch Global Private Client Group, in a news release about the survey. “With (baby) boomers living longer and remaining engaged and employed beyond age 65, many of the traditional financial assumptions regarding retirement need to be reexamined.”

Highlights of the Baby Boomer Survey
Created with guidance from gerontologist and author Ken Dychtwald, Ph.D., The New Retirement Survey offers a preview of the different lifestyles, workstyles and recreation activities that baby boomers envision for their future.

Here are highlights of the survey, from a news release by Merrill Lynch:

• The new retirement "turning point." While 76% of baby boomers intend to keep working and earning in retirement, on average they expect to "retire" from their current job/career at around age 64, and then launch into an entirely new job or career.
• Taking advantage of their "longevity bonus," baby boomers will create a whole new life stage. Since the time that Social Security established the "normal" retirement age at 65, life expectancy for a 65-year-old has increased by over seven years and continues to lengthen.

  As a result of living longer, baby boomers plan to be "younger" longer and to work longer.

  Most baby boomers who responded to the survey (65%) will stop working for pay and retire in the traditional sense at some point. However, that phase is more likely to begin in the late 60's than at age 60 or 65.

• Baby boomers reject a life of either full-time leisure or full-time work. When asked about their ideal work arrangement in retirement, the most common choices among baby boomers in the survey would be to:
  • Repeatedly "cycle" between periods of work and leisure (42%)
  • Have part-time work (16%)
  • Start their own business (13%)
  • Work full time (6%)

  Only 17% of the baby boomers in the survey reported that they hope to never work for pay again.

• It's not about the money. While 37% of the baby boomers in the survey indicate that continued earnings is a very important part of the reason they intend to keep working, 67% assert that continued mental stimulation and challenge is what will motivate them to stay in the game.
• The transformation of the "me" generation into the "we" generation.The "me" generation has grown up — now with deep concerns for the well-being of their children, their parents and their communities.

  Baby boomers are now 10 times more likely to "put others first" (43%) than "put themselves first" (4%).

• The unpredictable cost of illness and healthcare is by far baby boomers' biggest fear. They are three times more worried about a major illness (48%), their ability to pay for healthcare (53%) or winding up in a nursing home (48%), than about dying (17%).
• Baby boomer women are better educated, more independent, are simultaneously juggling more work and family responsibilities and are more financially engaged than any generation in history. According to the survey, married baby boomer women are more than six times more likely to share responsibility for savings and investments compared to their mothers' generation (33% now vs. 5% then).
• Baby boomer women are dreaming of retiring to Mars while baby boomer men hope to retire to Venus. Baby boomer men are looking forward to working less, relaxing more, and spending more time with their spouse. Baby boomer women view the dual liberations of empty nesting and retirement as providing new opportunities for career development, community involvement and continued personal growth.
• Financial preparedness is the gateway to retirement freedom and the antidote to retirement phobia. Accumulating the resources baby boomers believe they need for retirement freedom (81%), rather than age (56%) or any other variable, was cited as the most decisive factor for when they choose to retire.

  And recognizing the growing uncertainty of government entitlements like Social Security, baby boomers who have a plan and feel prepared are twice as optimistic and far less fearful compared with those who do not.

• One size does not fit all. When it comes to retirement dreams and preparedness, the survey found that there are five distinct and different baby boomer groups: Empowered Trailblazers, Wealth-Builders, Leisure Lifers, Anxious Idealists, and the Stretched and Stressed. The survey followed each group to determine how they are faring and what their plans are to meet their retirement goals.

Clock ticks louder on Medicare and Social Security

2:02 PM, May 12, 2009

The deep recession will mean a faster road to insolvency for Medicare and Social Security, the programs' trustees warn today in their annual reports on the plans.

Their findings won’t shock anyone, and we’ve all been reading the same grim headlines about Medicare and Social Security for decades, to the point of numbness. The only difference is that the day the money theoretically runs out is getting ever closer -- particularly for Medicare.

Social Security now is expected to begin paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the trust fund will be empty by 2037, four years sooner.

As for Medicare, it's already paying out more in benefits than it collects in taxes, and the trustees estimate the program will be insolvent by 2017, two years sooner than projected in last year's report.

Sslogo Read the summary of the trustees' reports here.

With the government already racking up unprecedented budget deficits to bail out the economy and the financial system, the prospect of funding shortfalls in Medicare and Social Security becomes even more daunting. Will the Chinese pay for our retirement, too?

Unless some huge portion of the 76 million aging baby boomers decide to leave the country (for, say, Canada?), the options for keeping the programs solvent aren’t going to change: raise taxes or cut benefits spending, or both.

In a statement, Treasury Secretary Timothy F. Geithner said President Obama "explicitly rejects the notion that Social Security is an untouchable politically and instead believes there is opportunity for a new consensus on Social Security reform."

As the trustees’ report notes:

Social Security could be brought into actuarial balance over the next 75 years with changes equivalent to an immediate 16% increase in the payroll tax (from a rate of 12.4% to 14.4%) or an immediate reduction in benefits of 13%, or some combination of the two.

Ensuring that the system remains solvent on a sustainable basis beyond the next 75 years would require larger changes because increasing longevity will result in people receiving benefits for ever longer periods of retirement.

-- Tom Petruno

One man's dream - His move to Ecuador

VILCABAMBA ECUADOR - GROWING ORGANIC FOOD

Mike Adams in Ecuador grows his own food and is demonstrating a unique water pump that runs on compressed air.

GEITHNER ON SOCIAL SECURITY/MEDICARE

All Baby Bommers - This is very important to read and understand. The US government's assessment of the solvency of the social security and medicare systems. We Baby Boomer's cannot afford to place our future in the hands of the government. Sec. Geithner states that medicare will be insolvent by 2017..Social security by 2037!!

We all need to find alternatives to retiring in the US. There are many great options. We continue to preview and discuss these in this blog.

This is not intended as "the sky is falling" hype. . This short video provides more useful information based on real data provided by the US Government. It affects us all and should be used to help plan and assess every Baby Boomer's future...

How one couple found golden opportunities in Ecuador that changed their lives forever Author: Suzan Haskins

If it weren’t for Gary and Merri Scott I might be in a different place. In fact, I could still be living in Omaha, Nebraska, braving the miserable winters. Still writing annual reports and ad copy and only dreaming about what might be.

For more than 40 years, Gary has been writing a newsletter about international investing. He has been a contributing editor of International Living since its founding. He and Merri don’t just talk the talk. They’ve lived in Hong Kong and London, the Dominican Republic and Ecuador. Their curiosity has taken them around the world many times over. They’ve given countless seminars, spoken at myriad conferences, and written many columns and articles (and even a few books).

When Gary first started exploring and writing about Ecuador in 1995, International Living readers were among the first in the world to discover the opportunities this little South American country offers the foreign expat.

“When we started taking groups to Ecuador for seminars on real estate, business, and investing, we figured we would help people make money while at the same time helping the country,” Gary says. “We didn’t even begin to imagine the benefits we would gain beyond this, though. Our experiences in Ecuador have changed our entire way of life.”

Gary’s writing and Merri’s enthusiasm for Ecuador have affected many lives…including my husband’s and mine. We read those early articles Gary wrote…and in late 2001 we found ourselves living in Quito, Ecuador, as part of the International Living team.

Since then, we’ve gotten to know Gary and Merri well and we now count them among our closest friends. Their passion for the things that interest them can’t be ignored. In fact, I believe that if you visit Ecuador—and especially if you are lucky enough to spend time there with the Scotts—you, too, will fall under its spell.

Gary and Merri have a unique outlook on the world. They believe in socially responsible investing. They study Ayurvedic principles of thought and medicine and believe in the healing powers of Amazon shamans and supplements derived from jungle plants. Above all, they believe in instinct and destiny, and that when you follow your passions in life everything else falls into place.

It was this self-confidence that led them to Ecuador in the first place.

As part of his interest in investing in global currencies, Gary had been watching fluctuations of the sucre, which was then Ecuador’s official currency. (In 2000, the sucre was abandoned in favor of the U.S. dollar.) He saw opportunities emerging in Ecuador because of the country’s economic struggles.

As he did more research, though, he became more enamored with Ecuador. Just a four-hour flight from the U.S., he learned that because of its location on the equator and its geologic DNA, the country is environmentally rich. The towering Andean mountain range runs spine-like from north to south, dropping sharply to the Pacific coast on the west and the Amazon basin to the east, sheltering every imaginable climate and micro-system.

“It’s the closest country to the U.S. where you can find direct sunlight 365 days a year,” Gary says. “The opportunities for tourism and agriculture are practically unlimited. When I first started writing about Ecuador, the country was in the midst of an economic crisis. Real estate prices were rock bottom.”

Gary and Merri took their first trip to Ecuador in early 1995. They liked what they saw, and soon they were leading tours there, introducing others to the opportunities they found.

“We knew that 65% of Ecuador’s population are indigenous people,” Gary says. “And after several trips there, we learned that the spiritual leaders of the indigenous people lived in the Andes. We heard so many wonderful things about these philosophers and healers that we felt compelled to take a special trip to meet them.”

On their next trip, the Scotts and some friends found their way to a small mountain village where many of the Taita Yatchak (“father of fathers” in the Quichua dialect) shamans and their apprentices live. Often third- or fourth-generation healers, they begin their studies at an early age and travel around South and Central America (and elsewhere) to train with the greatest healers in each of these places.

A few months later the Scotts found themselves on yet another journey. This one would change their lives profoundly and forever link them with Ecuador.

“We were incredibly honored to be invited to go with the Taita Yatchaks into a hidden valley in the Andes,” Merri explains. “They told us no foreigners or outsiders had ever been there before. Only later did we find out that this valley is considered a spiritual center and that during colonial times, the Spanish thought it contained the fountain of youth.”

Since learning of the Scotts’ story I’ve done some research on this valley. Called the Llanganatis Valley, many of the indigenous people refuse to call it by name, believing that doing so brings the curse of immediate death. It is also rumored that the Incas hid an incredible treasure of gold, silver, and gemstones there centuries ago.

This legend seems to be based on some truth. A Spanish historian, writing soon after the conquest, says that when Pizarro captured the Inca chief Atahualpa in 1532, the two leaders made a deal. Pizarro would release his captive for a huge ransom of gold, silver, and emeralds. The treasure began pouring in and soon filled a large stateroom in Atahualpa’s palace.

In a dastardly double cross, Pizarro killed Atahualpa. Atahualpa’s half-brother, Rumi˜aui, then had the treasure spirited away and buried in the Llanganatis Valley. Many explorers and treasure seekers over the years have attempted to find it, including one named Juan de Valverde who left behind documents that supposedly map the way to its location. In the late 1800s and into recent times, many adventurers have sought and failed to find the treasure. And many have met with an early demise, fueling the legend.

Thankfully, no misadventure came to the Scotts on their expedition into the mysterious valley. In fact, says Gary, “None of us had ever had so much fun. On the first day we were more tired than I can describe. We were bone weary from our heavy packs, every muscle aching from fighting the altitude-thinned air and the sucking mud, which regularly pulled off our boots.

“We stayed in a floorless, leaky thatch hut, sleeping on dirt, no heat except the cooking fire and no running water. To our surprise, the next day we all felt wonderful. We explored the valley, which is perpetually wrapped in mist and fog. We swam in small icy, deep blue lagoons and did ancient exercises while the Taita Yatchak talked with us about longevity and health.”

Certain now that Ecuador was the place for them, Gary and Merri bought a 962-acre plantation in a valley in Ecuador called Rosapamba. (They also own a 250-acre farm near Lansing, North Carolina, where they spend the summer months.) Only accessible by horseback or a four-wheel-drive vehicle, Rosapamba was the perfect place for them to relax, meditate, and study further with the shamans.

With friends, they also founded Land of the Sun (www.landofthesun.org), a public charitable foundation, to help reduce global poverty. Concentrating their efforts in Ecuador, the group bought Hotel El Meson de las Flores in Cotacachi, a small village high in the Andes about two hours north of Quito by car.

Hotel El Meson is a comfortable and welcoming place for travelers, and it’s becoming the expat meeting place in Cotacachi. There’s a large free-lending library, where you’ll often hear children laughing and chattering. Volunteers give free English lessons there.

The low cost of living in Ecuador

Gary Scott says in many ways Ecuador reminds him of his home state of Oregon—climate, topography, etc. Even the prices are similar—but only if you’re comparing today’s Ecuador prices to those of Oregon in the 1950s and ‘60s. Here’s what you’ll pay in Ecuador for:

Real estate: $40,000 to $100,000 can buy an extraordinary property in the mountains or at the beach.

Rent: From $150 per month.

Full meal, including beverage and dessert: $2.50

Bus ride: 25 cents

Taxi ride: $1 to $3

Doctor’s visit: $10

Manicure: $2

Haircut: $3

One-hour massage: $15

The local indigenous people who work in the hotel have received training in business development and tourism and want the experience of working in the hospitality industry.
Dressed in their colorful traditional clothes, they take much pride in their work, evident by all the special little details.

They happily keep the courtyard filled with fresh flowers, and hold back some to tuck on the pillow of your bed. They painstakingly carve tiny flowers from radishes and other vegetables to add a touch of whimsy to the generous portions of food served in the hotel restaurant.

The hotel’s Quinoa Café is one of the best restaurants in town. It serves reasonably priced, healthy meals made from local organic fruits and vegetables, fresh fish, and other products from local markets.
Every day, the restaurant prepares more than enough food…Merri has made it her goal to see that no one in town goes hungry. You’ll often see the town’s poorest people standing quietly outside with plastic containers, waiting patiently for the food that is warmly shared.

Land of the Sun has also been involved in reforestation and water projects, and supports many community efforts in Cotacachi. (If you go there looking for something to do, you won’t be disappointed.)

The library at Hotel El Meson is used for many of the courses and seminars Gary and Merri offer in Ecuador, like International Business Made EZ seminars and Lozanov-system Spanish-language learning retreats. El Meson is also the launching point for the shamanic tours, Import and Export expeditions, and real estate tours they offer.

Gary and Merri walk the walk with Ecuador real estate, too. “Real estate prices are still very low in Ecuador,” Gary says, “On our recent tours, we’ve seen new condos selling for less than $50,000 in the mountains and less than $80,000 on the beach. We’ve found 20-acres farms for $50,000 and custom-made hacienda-style homes for less than $100,000.”

In addition to Rosapamba, Gary and Merri have bought several condos and a casita in Cotacachi and are hard at work renovating a building around the corner from El Meson into a four-unit apartment building. Near the town of San Clemente on Ecuador’s Pacific Coast, they’ve just finished the construction and furnishing of an oceanfront penthouse condo.

Summers in North Carolina, winters in Ecuador…constantly incubating the next idea and working on the next project…will they ever slow down, I asked them recently?

No way, Gary says. “The mantra we have used in our business courses for over 20 years is to turn your passion into profit. And we do this. We do what we love and love whomever and whatever we write about. To us it is a privilege to be able to share what we experience. Truthfully, we feel like we’re just getting started. Each day we rise with anticipation with what we get to do. It’s better than golf or fishing to us, and we have no plans to stop. We feel the longer we do this the more experience we have and the better we get.”

Learn more about Gary Scott’s international investing ideas at: www.garyascott.com. To read more about Gary’s newsletter about multi-currency investing, see: www.internationalliving.com/multicurrency. To learn more about the Scott’s experience in Ecuador, see: www.ecuadorliving.com.

Welcome To Margarita Island!

Hi, Welcome to Margarita Island! I'm Scott,and I'd like to tell you some of the reasons I chose Margarita both for living and investing. For Example... The Cost of Living! A great lifestyle here is very inexpensive. In fact, it may be the least expensive of any place in the Caribbean and less expensive than Mexico, Costa Rica, Panama, Belize and most undeveloped central American countries. There is no sales tax because this is a duty free port. The Weather-- is fantastic. Yes, it is HOT in July, August, & September. No hurricanes and although Margarita Island is near the equator, the tradewinds provide a cooling breeze almost all year. I've noticed the high summer temperature to be cooler than Florida, Mississippi, Alabama, Georgia, Texas, Arizona, and the coastal areas of Mexico. There is a short rainy season but it is usually limited to some afternoon and night showers. Afternoon showers occur in winter months, and even small tropical storms occur only occasionally. The water surrounding the island is variously colored from blue to a deep blue-green, and for the most part clear. You can see the ocean bottom almost everywhere. One can travel from white sand beaches to a mountain cloud forest, green valleys, dense jungle mangrove estuaries or to moonscape-like desert in a day. Playa El Angel And it all can be found here on Margarita Island! Quality of Life--The infra-structure of the island functions well. There is good electricity--110 and 220, adequate water, well paved roads, telephone and cell phone service, plus high speed internet access. Cable and Directv with programs in English and even other languages depending on your subscription. There are excellent golf courses, shopping malls, supermarkets, boutiques with name brands from Europe, the U.S., Japan, Asia, and other countries. Gourmet foods from Europe and all over the world ! Transportation to and from the island is by car or bus via ferry and many airlines. From the United States you must change planes in Caracas, but there are direct flights to the island from parts of Europe and Charter flights from some areas in Canada. It’s rumored there will soon to be an inexpensive direct flight to Miami, but this is a rumor that has been popular for years with no progress to date. There are 5-Star hotels, casinos with star-quality entertainment, fine restaurants, and of course the ubiquitous Mac Donald’s, Wendy’s, Domino’s and other fast food ‘eye-sores’. There are nightclubs, discos for the younger crowd, beach bars, and hideaways. The medical services here are quite good-- excellent doctors, dentists, and many are U.S. or European trained. You can find good clinics, hospitals, pharmacies, holistic medicine and even witch doctors if you’re interested. All at a fraction of the cost in the U.S. or Europe. Medical facilities have the latest equipment and you can obtain medical insurance. Margarita Island is owned by Venezuela and is the state of Nueva Esparta. The island is more like a colony of Venezuela, much like the Virgin Islands are to the U.S. and Great Britain. Even though Venezuela has some political problems, (show me a country that doesn’t!!) The problems of Caracas don’t often carry to the island. I should interject at this point that American politics and Venezuelan politicians sometimes clash but the U.S. is Venezuela’s largest trading partner and England, Germany, Italy, France and Spain are close behind. Cultural Diversity--The island is inhabited by people from around the world. There is a large population of Italians, Germans, (some who moved here to escape the terrors of war in the 1930s and 40s). English, Dutch, Spanish, Austrian, Canadian, even Arabic people that have made Margarita their home. Consequently these immigrants mingled with the local Latin culture resulting in an attractive mix of cultures and people. It has been said that “ Venezuela exports two things, oil and beautiful women”. Venezuela has had more Miss Universe winners than any other country. Security-- the island is a safe place to live. They have regular police and the national guard. Both handle any type of problems. Being an island has the advantage that serious crimes are usually not committed because it would be difficult to escape. Prices--Would you believe gasoline is only 10 to 15 cents a gallon? A beer less than 30 cents, a bottle of rum or vodka from $3.00 Well, it's true on Margarita Island! Lots to see and do--Not only does Margarita have gorgeous scenery... it's close to Los Roques, an underwater natural park perfect for snorkeling, diving, and 'beachin'. Take a short plane ride to Angel Falls, the highest waterfall in the world,...or the exotic Amazon River and the Orinoco Delta. It's just a short flight or cruise to other exotic islands like Trinidad,Tobago, Aruba, Grenada, Curacao, and Bonaire. Seniors 65 many times can get substantial travel fare discounts. Travel agents often offer amazing deals. If your’re looking for a place to retire, open a business, invest, vacation, or just visit... Margarita Island is diverse, affordable, and FUN! If you have questions I'll be glad to try to answer them, but please be specific...It is difficult to answer a question such as "What does a house cost?" Even a question like "What does a 2 bedroom, 2 bath house cost?" It would depend on location, among other factors, and I am not a realtor! We can help you- · Rent a Car, with or without driver · Real Estate or Island Tours in English Learn the best areas to buy property · Island Boat Tours · Sportfishing for Game Fish · Start, Buy, or Invest in a Business · Import your belongings Contact Us, We'll Help! discovermargaritaisland@yahoo.com

FREEDOM

Sterling Hayden (actor and adventurer) had this to say about freedom in his novel “Voyage”. (written in 1976)
“In the worship of security we fling our lives beneath the wheels of routine...we are brainwashed by our economic system until we end up in a tomb beneath a pyramid of time payments, mortgages, preposterous gadgetry and playthings that divert our attention from the sheer idiocy of the charade. The years thunder by. The dreams of youth grow dim where they lie caked on the shelves of patience. Before we know it the tomb is sealed...When you consider the beauty there is in the world, the rapture that can be known, the honest relationships, the excitement and exaltation there is for the taking...the real things to look at and feel and read...Where, then, lies the answer? In choice.

Moving to Ecuador Helped to Preserve My Freedom

DAVID BEYER’S STORY

By Linda McFarlin

Moving to Ecuador was a natural progression for David Beyer, a 36-year-old North American raised in Florida. A veteran traveler with more than twenty countries stamped in his passport, he has lived in the Dominican Republic and Costa Rica and visited Nicaragua, Mexico, Columbia, Ecuador and Peru.

Now living in Quito, he comments on his reason for moving to Ecuador and choosing to live outside the U.S. (other than having married a lovely Ecuadorian woman): “Like a lot of expats, I just don’t feel like living in the United States anymore. I don’t like the direction the country is taking. I want to preserve my freedom and I experience more freedom when I am in other countries.”



When I asked him why he feels more at liberty in other countries, he replied, “The United States has too many laws. Here in Ecuador, you never know what will happen. Life every day is free-flowing, while in the U.S. it's all the same.”

A Lifetime in Pursuit of Twin Passions

Two of David’s passions are computers and law. It’s hard to imagine that at his current age of 36, he already has 30 years’ experience in computer programming. He began working at the wee age of 6, writing store demos for Radio Shack in Melbourne, Florida. He started selling for the store when he was ten and before long was selling more than the older salesmen.

“The store manager called me into his office and said, ‘If you’re gonna sell computers, you’ve gotta dress up. Wear a suit and tie.’ So I did. I would answer all the customer’s questions and then send them to the checkout counter. I wasn’t exactly legal, but I was cute. The store would buy me lunch when I sold something.”

David’s other love, law, led him to study law in college for two years and then applying law to his various businesses over the years. “I am very analytical and I enjoy problem-solving, “ he told me. “Law is gray, not black and white, so I can apply creativity to working things out.”

Motorcycle Accident Interrupts Travel

While spending lots of time in Central America and in Columbia, he had read good things about Ecuador and decided that moving to Ecuador was the best choice for him. During a visit to Ecuador in early 2007, David met his Ecuadorian/Columbian wife in a Quito disco. Moving to Ecuador in September ’07, he told her, “I’d be back in one month.” Instead, he was gone 4 months.

On September 18, 2007, a motorcycle accident in Florida resulted in 4 months’ recovery in the U.S. and titanium parts to repair damage to his leg and arm. Finally, he made his way back to Ecuador and his wife-to-be and they were married in April of 2008.

The newly-weds intend to build a house on their land in Mindo, where they conduct tours in one of Ecuador’s most diverse biological ecosystems.

Multiple Talents Lead to Several Ecuador Business Opportunities

Utilizing his numerous entrepreneurial talents has led to more than one Ecuador business opportunity for David. He now operates two businesses in Quito and one in the United States:


1. Mindo Express, an Ecuador business offering tours of Mindo
Same address as above
Telephone: (02) 222-5464 (Espanol)
08 294-6663 (English)

Mindo Express mainly targets backpackers, nature lovers and bird watchers. They employ a bilingual tour guide and a chauffeur. There is a two-person minimum for tours.

2. Asesoria Legal, an Ecuador business operated with Ecuadorian attorney partner Leonardo Viveros to assist newcomers with all their Ecuador visa, legal and residency issues.

His partner Leonardo helped him obtain his residency. The process worked so smoothly that David decided to partner with Leonardo to assist others.

David and Leonardo’s legal services are available by phone, internet or in-person consultation. They specialize in immigration issues and can also help with obtaining an Ecuador visa and with land and car purchases. For those moving to Ecuador, his services are indispensible.

David, while not an attorney, has studied business law for two years. He holds certification in Business Administration as well as being a business major and is pursuing a Master’s in Business Administration.

David will provide answers to immigration questions at no cost. He keeps up-to-date on legal issues in Ecuador, visa requirements and changes in the laws and can also do English translations of documents. Although not fully bilingual himself, his staff is bilingual.

The PDF file below provides David with all the information needed by his attorney to begin the residency process for you. Clients may either edit the file, fill the form out online and return, or they may print it out, fill in the blanks and bring it with them when they meet with David or his staff.

Click here for David's "Legal Services Application"

3. Softworks International, Inc., a Florida corporation which operates under the name BeyerSoft Ecuador S.A. in Ecuador. This company is a phone dating business, his primary business, which sells programs so that anyone can establish a phone dating program anywhere in the world, with voicemail, chats, etc.

David’s phone for English/Spanish:
877 653 2823 toll free from U. S. or Canada
08 294 6663 from inside Ecuador
Leonardo’s cell phone for Spanish only: 09 0630451

The address of David's office is:
Robles E7-46 y 6 de Diciembre (next to Banco Pichincha)

If moving to Ecuador is in your future, contact David for all your Ecuador visa, immigration or legal needs. Please tell David you heard about him on Pro-Ecuador.com.

Ecuador Avocado Farm for Sale - By Gary Scott

by Gary Scott

Our last real estate tour looked at a number of new properties including an Ecuador Avocado farm.

Studies of avocados suggests that people of the Valdivia, an ancient. Ecuadorian culture, probably brought avocado to Ecuador and neighboring northern Peru where they grew well.

In fact Ecuador avocados played some role in the development of California’s avocado industry from the 1920s. An interesting report from the 1920s entitled AVOCADOS OF THE CHOTA VALLEY, ECUADOR was written by WILSON POPENOE, an Agricultural Explorer for the United States Department of Agriculture.

The introduction of that report said:

Synchronously with the increased demand for hardy avocados of good commercial
quality, which has arisen in California since the cold weather of January 1922, comes the discovery of a hitherto unknown avocado region, in the remote Andes of northern Ecuador, which seems likely to supply such varieties. I refer to the Chota valley, home of an unusual series of large-fruited avocados of the Mexican race, some of which have been introduced into the United States by the Office of Foreign Seed and Plant Introduction, United States Department of Agriculture, and which will soon be sent to California and Florida for testing.

I have put a link to that report at the bottom here if you wish to read it for fun. The point though is that this is the area where avocados have been grown for at least a century… maybe much longer.

This appeared to me (but I am not a farmer) to be a really well organized 12 acre avocado farm just on the outskirts of Ibarra. The owner has returned to Loja.

The land feels isolated though it is only about 15 minutes from Ibarra.

To get to the farm you take a long winding road…

past a dairy.

The land looks rich.

Here is the entrance to the avocado farm.

the main house.

inside living room and…

kitchen.

with many cabinets.

The house is a modest two bedroom, one bathroom affair appearing in very good order

plus there is a helper’s house.

We did not go in the helper’s house as it is occupied.

There are very well kept gardens.

Here are both houses from the rear and…

the back garden.

Here, in front of the houses, is the fruit… the cash generator.

The avocados are flowering for their first crop.

Some more shots…

We are told they will offer a $50,000 a year income after two years… $25,000 potential this year. (Be sure to check this out as we are not avocado farmers so cannot discern the truth.)

Here are the early buds.

Behind the houses, I walked up the hill where they have an irrigation system collecting water for several holding ponds.

Along this system there are Naranjilla trees growing as a secondary crop.

This is the naranjilla.

Another secondary crop here is the chirimoya.

Chirimoya, is also called the cherimoya or custard apple. This is a rare exotic high priced fruit used to make sweets and desserts.

They are grown a lot in Spain but originate in subtropical zones such as Ecuador, Peru and Colombia.

Asking price with these two houses, land and crops is $260,000. I am not a farmer… do not know how to sell avocados, naranjilla or chirimoya and have written everything I know about the property here, so please if this property interests you, do your due diligence and contact the broker.. not me with your questions.

The broker on this is Paola Mena. Her telephone is 593 09804479

web site: www.bienesraicesimbabura.com

email: paolamena14@yahoo.es

I have had complaints that she does not answer her email often, so be persistent. The best bet is to get a Spanish speaking person to call her.

Since we are on the subject of avocados and naranjilla, here is a great recipe for avocado and naranjilla muffins.

The Avocado Naranjilla Muffin (substitute limes or sour orange if you cannot get naranjlla).

Cream:

* 2 sticks butter
* sweeten to taste
* 1 Cup wheat flour
* 1 Cup quinoa flour
* 4 Eggs

Blend (stiring clockwise).

* 2 avocados
* 1 tablespoon of Naranjilla juice

Stir avocado mash and the zest of the narnajilla into the creamed mixture.

Pour into a muffin tin and bake at 350 for 30 min.

Avocado Frosting

* 1 avocado
* 1 cup of powdered sugar
* 1/4 cup of butter

Mash the avocado and mix with the butter and powdered sugar.

This recipe was derived from an avocado lime cupcake recipe which you can read here

Until next message, make all your living be good in Ecuador or anywhere.

Gary

Join us in Ecuador at a 2009 course or tour.

Ecuador Coastal Real Estate Tour May 16-17. $499 Enroll here. $749 For a couple.

Imbabura-Cotacachi Real Estate Tour May 20-21. $499 Enroll here. $749 For a couple.

Ecuador Amazon Herbal Tour May 22-24. $399 Enroll here. $499 For a couple.

Panama, Ireland and Taxes

We didn't move from the U.S. to Ireland 10 years ago to save on taxes. And that's not why we're moving to Panama this summer either.

But, no question, controlling your tax liability can make a big difference in your standard of living. Reduce your tax bill from, say, 40% a year to, say, 20% a year and it's like giving yourself a raise and super-charging your investment portfolios. You're earning no more, but you've got a whole lot more disposable income.

So, again, we're not moving to Panama to reduce our tax burden, and neither should you. You can't organize your life according to tax code. But you don't want to ignore it either.

We Americans have it double tough. No matter where we go, our obligations to Uncle Sam follow. When we take up residence in a foreign jurisdiction, therefore, we've got double the tax masters. We're beholden to both the IRS and the local tax collector.

We must understand the tax requirements on both sides, and we must file annual tax returns in both jurisdictions...but that is not to say we owe double the taxes.

On the contrary. As an American abroad, you can reduce your annual tax burden, even significantly, from what you were paying when you were residing full-time within U.S. borders.

This is where things get interesting...and complicated.

Don't worry. You don't have to become an international tax guru to manage this part of your new life in paradise. After more than 20 years researching this stuff and more than 10 years paying taxes in multiple jurisdictions, I'm still no expert. But I've been fortunate enough to get to know people who are.

Which leads to my first and probably most important piece of advice on this subject: When planning to move, retire, or invest overseas, don't try to become a global tax authority. Hire one.

In fact, hire two. One in the jurisdiction where you're planning to live or invest...and another in your home country.

During one of our scouting trips to Ireland before our move 10 years ago, we met with Ernst & Young in Dublin. We didn't know what we didn't know, but we knew enough to ask for help.

At the time, Ireland taxed its residents on a remittance basis. That is, living in Ireland, you paid tax only on whatever money you earned or brought into the country. You could earn hundreds of thousands of dollars a year. But if you brought (remitted) only $50,000 per year into the Emerald Isle...the Irish tax authorities expected their cut of that $50,000 only. Maybe you owed other tax authorities in other countries other tax on other pieces of your total income...but Ireland cared only about the piece of your income that flowed into Ireland.

The Ernst & Young tax guy we met with explained this to us and then he made a critical recommendation. He told us to organize ourselves so that all assets held prior to our move to Ireland were lodged in separate accounts from any assets we might ever bring into Ireland. This way, there could be no confusion. The Irish tax collectors could never lay claim to any assets clearly separate from other assets that might ever be remitted to Ireland.

And, then, he said, as long as you're living in Ireland, make sure that money you don't intend to remit to Ireland goes into those other accounts. Make sure everything is clearly separate from the start...and keep it that way.

We followed his advice.

In addition, as Americans residing abroad, Lief and I both were able to take advantage of the earned-income tax exemption, meaning that our first $80,000 to $85,000 of income each year apiece (the amount of the exemption has increased over the past decade and stands today at $85,700) was free from U.S. tax.

Plus, Ireland and the U.S. have a double-taxation agreement, meaning we didn't owe tax in the States on any income taxed in Ireland.

Bottom line, by organizing ourselves carefully, as Irish residents, we were able to reduce our overall rate of tax to less than 20% per year.

The tax laws in the Emerald Isle have changed significantly in the past decade, and Ireland no longer taxes its residents on a remittance basis. Today, Ireland taxes residents on their worldwide income...just as the U.S. does (with some complicated exceptions).

Yikes.

As I said, we're not moving to Panama because of its tax laws...but it hasn't escaped our notice that the country's position on taxing its foreign residents is about as good as it gets.

In Panama, we'll be paying tax only on the money we earn in Panama. You gotta' love that.

Panama is not the only tax-advantaged jurisdiction worth a close look right now. Belize is another place where, as a resident, you pay tax locally only on the money you earn locally.

Furthermore, Belize is one of the easiest places in the world to become a full-time (legal) foreign resident...at least if you're older than 45. Show the Belize immigration authorities that you've got a guaranteed income of at least $2,000 per month ($24,000 per year) from outside Belize, and you'll qualify for Qualified Retired Person (QRP) status. They'll roll out the welcome mat.

And they won't even require that you're physically present in the country more than one month per year. A friend refers to it as "virtual residency." Belize is a beautiful, safe, friendly, affordable little country. In fact, it's one of my favorite places in the world and my favorite spot in the Caribbean. But if full-time Belize life doesn't appeal to you, no problem, say the Belizeans. Spend a month a year with us. In return, you can claim full-time Belize residency.

If you're an American, this offer is particularly appealing. For, if you're a full-time resident of Belize...you can't be a full-time U.S. resident. Which means you're eligible for the U.S. foreign-earned-income exclusion.

It's not quite that straightforward, and, again, you'll want an expert to help you organize yourself properly. But the idea of becoming a full-time resident of a foreign jurisdiction for tax purposes is not only possible, it's also legal and safe...and it can cut your overall annual tax burden dramatically, even in half.

It's even possible, depending on your circumstances, to become a resident of Panama, for example, or a QRP in Belize and live tax-free. It depends on how much income you earn and where it comes from. But, again, it's possible, and it's legal. You just need counsel you can trust to help you consider the options and make a plan.

Don't Google "foreign tax specialist" or "international tax advisor." You'll find lots of resources that way...but none you can trust. The Internet is awash with guys who'll set you up with offshore structures for a fee and who'll be glad to help you get one over on the IRS.

You don't want to get one over on the IRS. You just don't want to pay that U.S. government agency $1 more of your income than you absolutely have to each year.

And you don't necessarily want offshore structures either.

I have no idea what you do want...or need. And, probably, neither do you. But I can tell you this: Take the advice of some offshore expert you find with the help of Google, and your chances of ending up someplace you don't want to be (engaged in a one-on-one conversation with a representative of the IRS, for example) are probably increased.

Neither should you dash off an e-mail to your U.S. accountant or attorney asking for help managing the tax consequences of your new life or investments abroad. He won't have answers for you, and your questions will make him nervous.

My U.S. attorney a decade ago, at the time we were planning our move to Ireland, told me not to mess around with the earned-income exclusion for Americans living abroad. "It's too risky," he counseled me. "Better just to pay what you owe and not to try to get away with anything."

I understood almost nothing about any of this at the time, but I knew enough to know he didn't know enough. He's no longer my attorney.

I didn't replace him immediately or easily--though not for lack of trying. I began looking for a competent, experienced, and open-minded U.S. tax advisor as soon as I realized my attorney of many years was none of those things when it came to the issues faced by Americans living and investing abroad.

In my position as publisher of International Living over the past two-plus decades, I met lots of guys who called themselves "offshore tax experts."

Finally, less than a year ago, I found a guy who I'd call an offshore tax expert. His name is Chris Rusch.

Our situation has grown ever-more-complicated in the decade since we left the States, but Chris has organized and simplified as he has counseled us in how our Panama plans will impact our U.S. tax obligations.

Chris knows his way around the offshore world. He knows what's allowed and what's not, and he respects the rules. He also knows how to solve problems and how to get things done. Our experience with Chris over the past 10 months has been remarkably efficient, painless, and productive...wholly different from our experience with the half-dozen other offshore advisors we tried to work with prior to finding Chris.

I told you, though, that you need not one, but two global tax authorities, one to manage tax, reporting, and structure issues for you in the States...and one to manage those things in your jurisdiction of residency.

For us, the Panama side of things is managed by longtime friend and counselor Rainelda Mata-Kelly. Over the past nine years of doing business in this country, Rainelda has helped us buy and sell real estate, open bank accounts, form corporations, hire and pay employees, acquire residency (through the reforestation visa program)... I know no Panama attorney more experienced or more competent at helping foreigners live and invest safely and successfully in this jurisdiction. And I know a lot of Panama attorneys.

Kathleen Peddicord

P.S. One of the best way to become a foreign resident of Panama today is through an investment in timber...a hard-asset play that makes sense right now, residency advantages notwithstanding.

P.P.S. You can reach U.S. attorney and offshore tax specialist Chris Rusch here. And you can get in touch with Rainelda Mata-Kelly, premier Panama attorney, here.