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Going offshore is still legal ... in the abstract ... more or less. The question is how does stay in compliance with all the legal requirements accompanying such a move. Helping people with that is a key element of what we at W.I.L. offer. The devil is in the details, and general thought pieces averring that “going offshore” is a great idea without warning about the legwork required do not always strike us as useful.
Having said that, this background offshore piece from author, “former judge, and retired trial litigator” David Tanzer is more than a little interesting. Many thought provoking and illuminating insights are tucked among the more typical elements.
How many times have you thought about investing or creating a new life “offshore?” What do you need to know before you move your money, or your family, or both, away from the perceived safety of mother homeland? Is it a realistic option? Is it complicated? Is it legal?
First, let us define “offshore.”
Offshore is anything that is not “onshore” within the boundaries of where you presently live. In other words, any place outside your homeland is considered “offshore.” Every country is offshore to every other place. And each jurisdiction has its own ever-changing laws and political aspirations.
With over 190 countries worldwide, and over 6 billion people globally, there is a huge world outside the boundaries of where you call home. How many of those countries, capitals, and leaders can you name or locate on a map right now? To how many have you traveled? And how many cultures do you understand?
Here are some interesting global facts that affect your assets every day.
If the world was reduced to a village of only 100 people, proportionately, the village would consist of 60 Asians, 14 Africans, 12 Europeans, 5 U.S. and Canadians, 8 Latin Americans and 1 from the South Pacific. 49 would be female and 51 would be male, with 82 non-whites and 18 whites. 89 would be heterosexual and 11 homosexual.
Amazingly, 5 of the villagers would control 32% of the entire world’s wealth, and all of them would be U.S. citizens. What is more, 80 would live in substandard housing, 24 would not have any electricity, 67 would be unable to read, 50 would be malnourished and 1 dying of starvation. 33 of our 100 inhabitants would be without access to safe water and 1 would have H.I.V. One would be near death, 2 near birth, 7 would have access to the internet, and 1 (only one) would have a college education.
If you look at our village of 100 from this point of view, the world takes on a whole new meaning.
And if you have never experienced a war, the cage of imprisonment, the agony of torture, or a famine, you are better off than 500 million persons in this world. If you can attend a church, synagogue or mosque without any fear or threats of the consequences, you are better situated than almost 3 billion people worldwide.
If there is a meal in your refrigerator, you are dressed in clothes and shoes, live with a roof over your head, you are better off than 75% of the world population. And if you have a bank account with money in your pocket you belong to 8% of the well-provided people in the world – yes, 8%. Since you can read this newsletter, you do not belong to the 2 billion people who can not read.
Asset protection and offshore living and investing should take on a whole new meaning when you look at the world as a village of 100 people and consider their make up.
It is true the world is a varied and different place, and offers much to discover and learn. Maybe this is why moving capital and people offshore is so “foreign” to so many people. It should not be, but I hear the same question repeatedly by those I consider educated and well-reasoned people:
Is it legal to go “offshore?”
The answer is “yes” it is perfectly legal for most of the western civilized world to move family and property outside of their homeland. And the reasons for going offshore are many. In most cases, even when you continue to live at home, you can legally open up an offshore bank account for increased financial privacy and enhanced asset protection.
Plus, when going offshore you have the opportunity for increased investment protection and diversification from fluctuating currencies, since you have many currency choices rather than limiting yourself to your local currency. You can freely hold U.S. dollars, or euros, Swiss francs, British Sterling, Japanese yen, or Canadian, Australian or New Zealand dollars, and most other currencies from around the world.
And owning alternative currencies or other global investments can be held right at home, or offshore. International investments make sense because they are in tune with the deepest aspects of reality. Nations and borders are “illusions” defined by contemporary local political agendas. Too frequently those agendas are the flavor of the month determined by the political party in control at the moment. Economics and human nature pass beyond these artificial barriers ... as they should. We call our global actions free trade, but they are more.
International investments, global living and multinational trade are nature’s expression of how people should be ... human beings trading with one another, not Americans, Canadians, Chinese, Australians, British and so forth using past ideals to separate themselves. If you are thinking of going offshore – your person or your property – you are not only “legally” in the right, you are a lot wiser individual if you take advantage of global opportunities. Your right to go offshore is one of the most fundamental requirements of freedom ... and you do not need a law to give you that right!
Over the long run, nations, politics and borders are illusions, and social and political change is inevitable. It is important to recognize the changes happening before us right now so we can learn to adapt to borders controls and regulatory regimes that interfere with the free movement of people and capital.
And unfortunately, the future appears even more restrictive as more draconian laws and tighter controls are constantly being implemented interfering with the basic right of free movement of persons and property. What is important is that you recognize in advance the pitfalls and traps before going “offshore” to avoid bureaucratic nightmares.
Offshore Risk Management
If you are concerned about “going offshore” for asset protection, investment diversification, full or part-time living, or for just doing business, it may be helpful to remember that risk is always relative. Jumping out of a second story window is certainly high on the risk scale, but if the building is on fire and you cannot get out any other way, the 2-story jump is a lot less risky than staying put.
In addition to U.S. dollar concerns, we are only left to speculate on the provisions of future regulations, border controls, and laws on currency controls that may be imposed. However, we can look to recent examples of what might happen to our savings if this occurs.
South Africa and Russia are the best (or worst) examples of recent currency controls restricting citizens from leaving their country with local currency. These currency controls are only as recent as the 1990s. And even today in China, its citizens and foreign investors looking to move money offshore are hindered by strict currency prohibitions. How this might change with the Yuan going global is unknown. But these governments have held a heavy hand over foreign exchange mechanisms and exchange rate controls.
Worse yet, we are familiar with the horror stories from the 1930s and 1940s as Jews fled Nazi Germany, and Eastern Europeans desperately attempted to save themselves and their money from tyrants. As a student of history, I take the issue of currency controls very seriously and as a realistic event that could occur anywhere, at any time, including in the U.S. Therefore, having at least a portion of your assets offshore is a good starting point for risk management.
In the above examples, individuals who looked to flee with their money with a pre-planned exit strategy and assets titled in an international structure – such as an international trust – did not have the same financial concerns of those who did not plan proactively. With history as our teacher, I can see no better way to protect assets than titling them in an international trust structure and hold at least some of your assets outside your home country.
If you suddenly needed to move assets across borders and were prohibited, how would you live? Those with money are always more welcome in a host country than the indigent will be. Even if you do not have a good reason to leave your homeland today, there is always peace of mind in knowing that you could, if it ever becomes necessary.
Putting all of your eggs in one basket potentially poses great risk.
Many of the major international banks and insurance companies operating offshore are far more conservative in managing their portfolios – and far less susceptible to failure – than U.S. financial institutions. Many banks located “offshore” are highly rated investment quality, some with AA and higher ratings than even the best U.S. banks could ever achieve.
It may surprise you that deposits to $1 million in AA rated banks are government backed in Australia and New Zealand; both Western cultures being at the crossroads to Asia. This is similar elsewhere, and is because many offshore banks must conduct their banking affairs with fiscal responsibility.
An important reason in the past for placing some funds outside of your home country was due to the ongoing litigation epidemic. As a former U.S. litigation attorney myself, and a former judge, I can attest to the ridiculous claims and results that too frequently arise from the U.S. judicial system.
Today, however – more than ever before – holding assets globally in a changing world order is essential. Protection from U.S. dollar currency devaluation, threats of more regulations and currency controls, government deficits, social problems, and more, can be achieved from global diversification. International planning should be an important part of your planning strategy, if it is not already. And hopefully you too will discover that offshore living and investing is not so foreign after all.
Those who mind their own business – with their nose to the grindstone – and are thrifty, too often find themselves unsuspectedly on the short end of the deal. The hard-working individuals who have accumulated some assets, or who have become financially independent, need to start with setting aside at least a small nest egg offshore, where it will be safe from the vultures in our society.
Keeping options open is smart forward thinking.
Is the U.S. dollar Becoming Irrelevant?
Numerous readers of our free newsletter service have asked for more details about the new global currency which China, Russia, Brazil, India and other countries are suggesting to replace the U.S. dollar. What China proposes is an expansion of the use of something called special drawing rights (SDRS), which was introduced by the International Monetary Fund back in 1969.
These drawing rights were issued to support the 1945 Bretton Woods fixed currency exchange rate regime which collapsed in 1971 (when President Nixon removed the U.S. dollar from the gold standard). The value of these SDRs are currently based on a basket of four currencies, the US$, Yen, Euro, and Sterling.
China has proposed expanding this basket to include the currencies of all major economies. Countries would entrust a portion of their SDR reserves to the IMF. The value of these SDRs would “float” with the broad basket of these currencies, and the SDRs would eventually replace the existing reserve currency, the U.S. dollar.
Obviously, the introduction of this new global currency would be devastating for the U.S. dollar. Countries, who are now obliged to invest a majority of their currency reserves into the US$ to settle international trade (think oil and gold, for starters), would no longer have to buy them. And the U.S. treasury market, where much of these reserves are parked, would also suffer.
Personally I do not think this poses an immediate danger to the US$, as the proposal would require significant cooperation among global trading partners and the U.S. will likely rally support to fight it. But it is something to keep a close eye on, particularly as it was met with surprising support from U.S. Treasury Secretary Timothy Geithner.
During the past decade China and Japan stockpiled huge reserves on the back of the U.S. consumers, who eagerly bought goods produced in Asia. China holds a surplus $1.9 trillion, and Japan a surplus of $1 trillion (both with a “T”), as of Q1 2009. But U.S. consumers are cutting back, and global trade has slowed dramatically as a result. Both Japan and China will therefore have smaller trade surpluses in 2009 and 2010, and therefore less money to invest back into the U.S. treasury market. Nonetheless, these surpluses are staggering compared to the growing U.S. deficits.
In the meantime, the Chinese are also planning on launching its currency, the Yuan, as an international currency next month. Its intentions are to find a substitute for the US$ for international trade settlement. Unfortunately, this fall in global reserves and the Chinese Yuan going international, coincides with a big increase in funding needs by the U.S. Treasury to pay for bailouts, stimulus packages, and ever increasing pay-as-you-go social programs.
And the beginning of the baby boomers’ retirement is not well-timed.
Avoiding lawsuits, identifying the best and worst jurisdictions for offshore trusts, international banking, wealth preservation and privacy, living offshore with tax free income, border and currency controls and trends, dual citizenship and second passports, new global tax burdens, denouncing U.S. citizenship, avoiding common asset protection problems, and much, much more, are just a few of the topics covered in our free newsletters.
10 REASONS TO RETIRE IN URUGUAY
This article provides some macro reasons why Uruguay is a suitable place to live. Most would agree that the reasons given are good ones. Of course the on-the-ground reality may not provide the experience you are looking for, which is why one should test out a candidate location by living there for a while first. Acquaintances have reported back to us, e.g., that Montevideo was very noisy, and they found themselves making the trip over to Buenos Aires in search of cultural and intellectual stimulation. Your mileage may vary.
Foreigners have traditionally come to Uruguay for vacation, to invest real estate, and to use Uruguay’s secure banking services. However, for many approaching retirement during uncertain times, Uruguay is attracting attention as a great place to retire. Here are 10 reasons why:
1. Uruguay is safe
Safety is the number one reason people from other South American countries relocate their families to Uruguay. Uruguay is known for having the lowest rate of crime in Latin America. (For safety’s sake, keep in mind that having the lowest crime rate in Latin America is a relative term. While rates of assault are low, incidents of purse snatching, camera grabbing, and robberies are not uncommon in some areas.)
2. Uruguay is stable
In 2008 Uruguay’s economy had a greater percentage increase of economic growth than any other country in Latin America. In the first quarter of 2009, Uruguay [was] the only economy in Latin America still experiencing some economic growth. A recent JP Morgan’s emerging market report states that Uruguay’s fiscal discipline and adaptability of policies is likely to minimize the negative impacts of the global economic crisis.
Uruguayan banks are trusted because they have never resorted to expropriating, freezing, or forcing a currency exchange of deposits due to tough economic times. Over 40% of all deposits into Uruguayan banks in 2008 were by foreigners. Banks and financial institutions are adding more safe deposit boxes to keep up with demand.
Uruguayan banks have three types of currency accounts to choose from: Uruguayan pesos, U.S. dollars, or euros, which allow the depositor to choose the currency which gives him or her the greatest confidence.
The IMF has determined that Uruguay’s exposure to “regional spillover risk” (meaning fallout in the event Uruguay’s neighbor and historically largest trading partner, Argentina, were to have an economic crisis) will be half of what it was during the regional financial crisis of 2002. This is because Uruguay has greatly diversified its trading partners.
3. Uruguay does not tax foreign source income
Uruguay does not tax foreign source income, meaning that your pension, social security, and all money that is generated outside of Uruguay is not taxed in Uruguay and does not need to be reported to the Uruguayan tax authorities.
4. Good medical care is available in Uruguay
Uruguay has private hospitals that provide excellent patient care at affordable rates. Some expat retirees pay out of pocket for the care they need, and others purchase health plans with a fixed monthly fee. A health plan is different than health insurance. With a health plan, the hospital you contract with provides the health care you receive.
Some plans have options and insurances that can be added to your health plan for an additional monthly fee. These include ambulance service, travel insurance, and the option to have surgery in the U.S.
(Hospitals may refuse to accept a new plan member based on age or a pre-existing condition.)
5. Uruguay has a comfortable climate
Uruguay is located in the temperate zone of the Southern Hemisphere and has four seasons. When it is winter in North America and Europe, it is summer in Uruguay. Temperatures average 70°F to 80°F (21°C to 27°C) in summer and 50°F to 60°F (10°C and 16°C) in winter. There are periods of “cold” (relative term) weather, but freezing temperatures are almost unknown.
6. Uruguay offers a variety of lifestyle settings
6.1 City Life: Montevideo is Uruguay’s capital and home to 40% of Uruguay’s population. The City is made up of many interconnected but distinct communities with tree lined streets, neighborhood shops, and outdoor cafes. Montevideo’s Centro and historic district (Ciudad Vieja) are known for period architecture and picturesque plazas. Montevideo has a wide seaside walk, great restaurants, theater, and several tango clubs.
6.2 Beach life: Uruguay has 200 miles of beautiful coastline that turns into a vacationland during the summer. The coast is dotted with resorts and communities including the continents premier beach resort, Punta del Este. Punta del Este offers a 24-hour menu of recreation, events, and entertainment. Daytime sports include surfing, tennis, and golf. Punta hosts a long list of tournaments and competitions that include a major running event, polo, seven-a-side rugby, and yacht racing. The entertainment menu includes fashion shows on the beach, concerts, casinos, and dancing until the sun comes up. In addition to being a vacation resort, Punta del Este has a growing year-round international community.
6.3 Country life: Once you leave the coast, most of Uruguay is green rolling prairies. The country has large estates (called chacras), ranches (called estancias), and several agricultural supported communities, most with a town square (plaza) where people come in the evening to socialize. The vast prairies have scattered palm trees, small green parrots, and groups of large flightless birds (similar to an ostrich) called nandu. The country still has gauchos (South American cowboys) who lead lives of rugged simplicity. The nights are quiet, and the stars can be amazing.
(Some people in Uruguay enjoy more than one lifestyle by having two or three homes in different settings.)
7. Uruguay does not have hurricanes or earthquakes
Uruguay has never had an earthquakes or a hurricane.
8. Uruguay has first world infrastructure
Uruguay has good roads, safe drinking water, good public transportation, broad cell phone coverage, and widespread availability of high-speed internet. It has several airports and ports, which are being updated and expanded to keep up with Uruguay’s economic growth.
9. The people of Uruguay are well educated and friendly
Uruguay has a social climate that many people from North America and Western Europe find favorable. Uruguay has the most highly educated population and the largest middle class in Latin America. The people of Uruguay are generally friendly and tolerant with a strongly European culture.
10. Uruguay has a reasonable residency procedure
Applying for residency in Uruguay includes a criminal background check, a health check up, and a verification of a regular source of income, such as social security or a pension. The current income requirement is just US$500 per month (considered the minimum amount a person can live on). New residents are allowed to bring in their household goods without duties or taxes.
Uruguay provides the opportunity to live a quiet life. It is a free country out of the spotlight of major world controversy.
About the Author: David Hammond is the author of Buying Real Estate in Uruguay, an ebook available to purchase and download now.
For more information about living, investing or retiring in Uruguay visit his website or contact him by email: David@ParadiseUruguay.com.
LIVING THE EXPAT EXPERIENCE (Part 2 of 2)
More tales from Belize.
Rev. Macarena Rose follows up her article last month sharing her experience of expatriating to Belize. She moved there 6 years ago after raising 8 children in Florida, and is the founder of Rainforest Realty, provider of trustworthy real estate brokerage services for Belize. She invites people with questions about moving to Belize to contact her.
Resting Easy
Belize is easy – one can rest, swim, hike, sleep, dive or go exploring ruins and caves. The natural beauty of Belize, all the scenic mountains and beaches and rainforest, are very conducive to a more restful state of mind as you walk about to take it all in. You ill not be satisfied with just sitting around. You will be just as eager as the rest of us to be outside at every chance, savoring your new surroundings.
Much is written about Americans and their problems with sleep deprivation. Belize offers a slower pace, healthy diet, lots of fresh air and exercise in the beautiful, irresistible outdoors. Need I say more?
Upholding Tradition
A story I enjoy sharing has to do with burial customs in Belize. I know this may sound morbid, but I ask your indulgence – please hang in there with me. It is a bit lengthy but I think worthwhile because this will tell you much about what I find to be so uniquely human, close, warm and fulfilling about Belize.
When I first came here, I was invited to a wake for a local doctor’s mother, held at her home. I went to the wake to show my respect and then was blown away when the good doctor took me by the hand to go to the next door neighbor’s home. There, working away in the night were about 12 men – hammering, sawing, sanding and varnishing – the casket for this beloved lady.
These were men who could easily afford to pay for this service – instead of taking the time to make the Mother’s casket with their own hands.
It turns out they were relatives and friends of the family. Then I observed about 15 women behind them – measuring, cutting and sewing lace onto a gorgeous crushed velvet material to line the casket. The doctor explained to me that in Belize, part of the way they honor their dearly departed ones is to have family members and friends work together to build the casket and adorn it with material. In this way, their own personal touch and love are placed into the casket itself.
I was astounded by these gestures and so touched at all the love and community here.
Love and Respect
Then we walked over to the Mother’s home where I met many friends and family. All were engaged in praying, cooking and telling stories. Finally, the Doctor’s Mother rested peacefully in her finished casket in the living room, where everyone could pay their respects during the wake.
Families used to mourn like this “in the good old days” in America, but I thought that was a custom long gone.
Furthermore, in honoring the passing of a member of the community in Belize, no one ever leaves the family alone. For 24 hours a day, food, drinks, prayers and companionship are there at all times for the family.
Expat Inclusion
The Doctor then asked if I “would come to the graveyard at sunrise to help them.” He said he wanted me there “to paint the tomb.” Again, I had to ask what this was all about. He explained that at sunrise on the day of the actual funeral, selected friends and family members gather at the gravesite to paint the tomb with fresh bright white paint to ready it for the departed’s final resting place.
By then, my knees were feeling weak and my heart very humbled at this most respectful wake and funeral. I replied I was profoundly touched and honored to help paint his Mother’s tomb. At the sunrise ritual of painting, I was overcome with the amount of warmth and sincere care of everyone there. All showed the highest regard for the task at hand.
Painting Preparations
We proceeded to paint the tomb. There were smiles and pride in what everyone was doing. It was as though we were preparing for a new baby to come home to its nursery. When we completed this traditional task, we all headed to the Church to ready it for the service.
Here too were so many folks placing flowers on the sides of the pews and lavishing them throughout the church. This warm day in Belize is forever embedded in my senses, from the smells of the fresh paint in the early morning to the sweet smells and visuals of the most gorgeous wild flowers adorning and perfuming the church.
Once the funeral began, the Priest said his mass. Many had come to pay their respects and to speak words of wisdom for the family. Afterward, everyone stood up as the Father walked down the aisle behind the doctor’s mother’s casket being carried out by family.
Then the whole church, pew by pew, folded out and down the church’s front steps. I followed also. I was going to head to my car to drive to the graveyard – when I realized, NO ONE ELSE was doing that. What was this all about, I wondered?
Stately Procession
I stepped aside and watched as droves of people walked down the church steps and kept on walking right behind the casket which had been placed in the back bed of a truck piled high with flowers and gifts.
I joined the crowd and walked and walked. We proceeded through the downtown of San Ignacio. As we passed by businesses, all stopped working. Employees and customers came out of the buildings and stood there as we all passed by. They did not move till everyone from the funeral party had passed by them.
Everyone Participates
The same thing happened as we passed people’s homes. Everyone stopped, took off their hats, held their hands together in prayer. Literally, everything just stopped for that moment in time as we all walked through the streets of downtown. No traffic, no business, no TV, no radios – there was respectful silence but for the sound of feet walking and the click of the truck’s tires going 2 mph.
We then arrived at the graveyard where another mass was held. Everyone was gathered about the mother’s tomb with prayers and support. Then the family lowered their mother/sister/aunt into the tomb itself, in the casket many of them had helped to make.
Heart of the Matter
Truthfully, after all of this, I felt so included and connected; it was as though I had just lain to rest my own family member! After this experience, I can tell you I have found what community, family and love is all about. In Belize, truly it is like living your life fully present and intimately with others here.
Dive Right In
Belize is famed for its fabulous recreational opportunities. With all that gorgeous H2O there is every kind of water activity you could ever want. You name it – fishing, swimming, kayaking, boating, diving, etc. – it is all there and available to you.
The sport that draws the most tourists annually takes place offshore.
If you are a diving or snorkeling enthusiast, you just went to heaven – and probably already know about the world class diving.
It is the best! The coral barrier reef of Belize is second in size only to that of Australia’s and The Great Blue Hole is a famed World Heritage Site that is geographically unique and renowned for its deep sea diving. This is as good as it gets!
You Can Cave In Here
The exciting sport of caving is well served in the endless limestone caves of Belize. Interestingly enough, the Mayans liked these caves too and used them for numerous purposes in their culture. Who knows what you may find – many artifacts have turned up there. No matter, the caving adventure is a treasure in itself!
But you will not be thinking of anything but fun if you decide to go cave tubing. You will be in an inner tube with your piggy’s dangling over – and laughing and shrieking your way through darkened caves as the current carries you along! Exciting and thrilling and you must give it a try!
The Place Is In Ruins!
And they are mighty spectacular indeed. The Mayans flourished in Belize, this is their ancestral homeland. There is a fabulous treat awaiting all you amateur anthropologists and archeologists and those who are just curious. Bring your cameras! You have read about those magnificent temples rising out of the jungle. It is true! Now come climb up one you and admire the mysteries of these amazing structures, imagine the past, and then luxuriate in the surrounding views.
By the way, professional anthropologists maintain ongoing dig sites in Belize and are constantly exploring for more ruins and clues to the Mayan way of life. Knowledge of Mayan culture is being discovered as I write.
Subtropical Ambiance
For those of you who love to paint, sculpt, compose, write or photograph ... I think the ethereal pull of the variety of environments in Belize is compelling and brings out some of our hidden depths. You are exposed to constant visual and sensory experiences that play upon your inner self and may inspire you to greater artistic expression!
Perhaps you have arranged vacations to isolated spots in past years so you can feel free to let loose and drum on the beach under a full moon ... and you chant to the heavens. Go right ahead – and don’t be surprised if you are joined by other like minded friends!
Even Confederate Expats!
I was amazed to learn about this aspect of history in Belize and feel I can say with conviction – there is something here for everyone! Even a Civil War history buff will be fascinated to learn how Indians and war veterans from Louisiana and other southern states immigrated to Belize in the 1860s to establish Confederate settlements.
Belize It
I have presented just a tiny sampling of the outdoor fun that Belize has to offer. And I am not forgetting those who want to just sit on their porch staring out! Whatever your heart’s desire, it is waiting there for you in Belize.
For those who are interested in perhaps pursuing the expat experience, Belize awaits your pleasure! Don’t be shy – you can take the first step to your adventure, and perhaps that new life, by contacting us at Rainforest Realty, Belize. We are here to inform and support you every way we can!
My New Reality in Belize
My reality became my new business – Rainforest Realty.
And in Belize, my chief vocation is now bidding you and others like you, a hearty welcome to the delightful, subtropical world of Belize. If you are contemplating becoming an expat, please remember that in Belize, you already have friends! My staff at Rainforest Realty and I will take the greatest pleasure in answering all of your questions. Email, call or visit – we want to hear from you! You are the reason we do what we do. We love potential expats!
We bring great energy and enthusiasm to our work and take care to carefully answer your queries.
You can ask us anything! We pride ourselves on striving to bring you the most honest, ethical real estate business practices in this part of the hemisphere. Rainforest Realty has been named the top real estate agency in Belize and is also noted for its outstanding expertise in relocation matters.
So if and when you consider Belize, be sure to contact us – we are waiting for you!
WHY EXPATS FAIL TO MAKE A GO OF A NEW LIFE ABROAD
“Be Prepared” – in mind and body – is the motto of the worldwide Scout Movement. The idea certainly applies to the major decision to pick up stakes and move away from the home country. Here are some situations distilled from experience that any expat on wanna-be expat should be prepared for.
Most Common Reasons Why Expats Fail to Make a Go of a New Life Abroad
Escaping from the dull drudgery of our everyday lives is a dream increasingly shared by individuals from across the world. It seems we all believe to some degree that the grass probably could be greener elsewhere! New horizons beckon and suggest adventure and excitement, and so for many people the dream of moving abroad slowly but surely becomes a reality.
The chance to change our lives is a thrilling challenge, and the act of making a go of it abroad can lead to all sorts of new opportunities; however, for some people becoming an expatriate and an international citizen is not all it is cracked up to be.
You definitely need a certain something to embrace the expatriate lifestyle in all its glory, but why do some people love living abroad whilst others return home with their tail between their legs? Is it a case of integration issues or culture shock? Is expat flu a reality rather than a myth, or are the problems that force expatriates to repatriate purely money orientated?
In this report we are going to take a look at the most common reasons why expats fail to make a go of a new life abroad – so that you can protect against the same issues and mistakes.
Money Does Make the World Go Round
With banks having collapsed and economies having shrunk, fiscal stress is affecting us all to a lesser or greater extent. As a result many people long to escape abroad and find a more affordable way of life where they can just work a little to live a lot, rather than having to live every day of their lives to work just to meet the bills. However, moving abroad is usually a relatively expensive undertaking, especially if you decide to ship elements of your old life with you!
Getting a home set up abroad, buying a car, shipping furniture and finding a good school to put your children through international education costs money. Or for those who prefer to not even pack up before they ship out, the physical relocation alone from one nation to another costs a plane flight, a train ride or a car journey. And this is just the start of money matters.
Financial failure is the number one reason why expatriates return home – fact. Those who fail to effectively plan for their relocation, who do not take into account their new cost of living in relation to their earning power abroad, or who over extend themselves with a home purchase and a fantastic lifestyle are all at risk of falling foul of this fact. Therefore, if you are moving abroad you need to be on top of your finances before you even pick the nation you are moving to. Failure to get your finances in good order could well see you struggle or fail to fulfil the expatriate dream lifestyle abroad.
Learn to Adapt, Don’t Seek to Change
Those who move abroad and expect everything to be the same as it was back home fail spectacularly – and I am sure you will agree that is no bad thing! If the world was all the same what would be the point in travel and adventure! Most of us move abroad to experience challenges and opportunities, for excitement and edification – but the reality of moving to a new culture and settling in can be quite a long way away from the dream of how easy it will be.
Even the most open-minded expatriates will be challenged sometimes when they come into contact with strange local behaviour, complex red tape or seemingly mindless bureaucracy. But the secret to success at this point is adapt yourself, your own mind and your own expectations, do not ever think you will be able to change those around you!
Another very common reason for expatriates repatriating is because they find the challenges of adapting to everyday life in their new country are just too much, too daunting and too hard. Go with an open mind, remain patient and know that no, not everything does make sense in any nation in the world, but you can change your own mind and your own tolerances only, you cannot alter the psyche of a nation.
Language Can Be a Barrier to Effective Communication
Humans tend to need social interaction to thrive, we are generally a community-orientated animal that needs contact and stimulation through conversation and communication. Expatriates who move abroad alone or perhaps as part of a couple only, can struggle if they cannot effectively communicate in the local tongue. Whilst some may meet other expats or locals who speak English, some expatriates can find the language barrier to be an incredibly isolating experience.
Not everyone finds it easy or even possible to learn a foreign language well enough to communicate effectively – this can lead to isolation and this can lead to loneliness and a deep homesickness that will drive expatriates home.
Expatriate Flu is a Reality
Expat flu is a myth to those who have yet to make the move abroad, and yet after between three months and three years all expatriates will experience it. It is a physical manifestation of the stresses, concerns, negative feelings and worries that all expatriates have at one time or another.
When you will come down with it will depend on how hard you fight your negative feelings ... but when you do come down with it you will feel ill, you will also doubt that you have made the right decision to move and live abroad and you will miss home! Most expatriates experience expat flu after about the first six months or so. The initial euphoria dies down when you realize that living abroad has much in common with living at home and you face up to a certain level of stress associated with settling in and settling down in a new environment.
When we are ill we all feel vulnerable, and for expatriates the first time they really go down with a bug, virus, cold or flu it can really test their mettle and their commitment to remain living abroad. If you can get over this inevitable period when you feel physically ill and emotionally down, you will thrive and you will survive abroad. It is all about adjusting your expectations and accepting the reality of your new life abroad. It is unlikely to be perfect, but it can be a dream come true if you accept it for what it is.
Homesick or Lovesick
Some of us live for adventure and some of us just think we do! You are probably not going to know which camp you fall into until you have given life abroad a real go. If you find that after a few months or a few years you really do miss too much about home to ignore it, there is nothing wrong with throwing in the towel and returning to where you feel happier and more comfortable.
A period of homesickness is inevitable for almost everyone, see the above point about expatriate flu, but if you are still feeling homesick when everything is actually going your way abroad, you have friends and have established a new life, there may well be nothing for it but to pack up and ship back home. And there is no shame in that at all – if more people were more honest with themselves in life they would be much happier.
The other reason that some people cannot remain living abroad is because they miss friends, family or a particular loved one too much. Again, no shame in admitting your feelings and going with your heart. If you have tried to make a go of it abroad but you just miss the company and support network offered by certain people, you will probably only be happy when you are back in their fold.
We’ve Got High Hopes
There is nothing wrong with having high hopes and expectations – as long as they are tempered by reality! Living abroad is not an easy ride at every step of the way, just as remaining back home is not perfect all the time. You may “dream” of your new life abroad, and positive visualisation is a powerful tool, but make sure you keep your feet on the ground in terms of your ultimate expectations.
When you move abroad you take yourself with you – you do not leave your personality, your worries, fears, passions and problems back home. There really is only so much you can run away from in other words, so remember that by moving abroad you may not solve your life’s issues, you may just relocate them. But if you want to move abroad for a real life opportunity, to learn, develop and experience new challenges, you should thrive. However, if you are trying to escape from your old life and your old worries and mistakes, chances are you will just replicate them when you move abroad – the only thing that will have changed will be the scenery!
Having high hopes of your new life abroad is not bad, just make sure they are realistically achievable otherwise you may suffer deep disappointment that the streets are not paved with gold, that the sun does not shine every single day, and you may return home disillusioned and depressed.
In Conclusion
Moving to live abroad, settling into a new life in a new nation, meeting new faces, making new friends and even learning another language are all positive yet realistic challenges that expatriates have to face head on. Sometimes the challenges of making a good life abroad are just too much and some people return home. As stated, there is nothing wrong with repatriating if you are ready for it and it is the best thing for you, but do not be forced into making a move back home by failing to make a new life abroad. Know what you are really letting yourself in for, love the thought of the challenges and the opportunities before you make the commitment to move overseas in the first place.
SHORT TAKES
Antigua Names New Regulator after Stanford Scandal
Antigua and Barbuda has appointed an experienced banker to head the tiny Caribbean nation’s financial regulatory body, replacing Leroy King, who faces U.S. charges of abetting accused swindler Allen Stanford.
A government statement released ... said John Benjamin, a banker with more than 40 years of experience, was named administrator and chief executive officer of Antigua and Barbuda’s Financial Services Regulatory Commission. He replaces King, who is under house arrest and awaiting U.S. extradition proceedings for his role in the alleged $7 billion fraud that U.S. prosecutors say was operated by Texas billionaire Stanford and his associates using certificates of deposit issued by Stanford International Bank in Antigua.
U.S. prosecutors say King received regular bribes from Stanford over several years to keep U.S. Securities and Exchange Commission investigators from probing the operations of the Antigua-based bank. Stanford, 59, has denied any wrongdoing and was taken to the hospital with a racing pulse last week hours before he was due to appear in a federal court in Houston for a hearing. His lawyer says he will undergo heart tests.
In a plea agreement filed in the Houston court last week, Stanford’s former top aide, James M. Davis, alleged that King performed a “blood oath” brotherhood ceremony with Stanford in 2003, in which in exchange for cash bribes he was to ensure that Antiguan regulators did not “kill the business” of the Stanford bank on the island.
Stanford, a flamboyant sports entrepreneur who backed Caribbean cricket tournaments, was granted a knighthood by Antigua and Barbuda and was once its biggest investor. Former Stanford clients from the United States, Mexico, Colombia and Peru are suing the tiny Caribbean state for up to $24 billion in damages, alleging it was a “partner in crime” with Stanford.
Antigua and Barbuda’s government denies this. It says the Stanford scandal badly hurt the economy of the small state of around 85,000 people, causing losses and layoffs and damaging the nation’s image as an offshore finance destination.
The Antiguan government statement said Benjamin, the new Financial Services Regulatory Commission chief, had previously worked with Barclays Bank Plc and the Antigua Commercial Bank and more recently had been managing director at TCI Bank Ltd of the Turks and Caicos Islands.
His appointment will run for a period of six months.
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