Expat Adventure – Fall 2024
I trust you enjoyed a nice summer with some adventure and new experiences. For Audrey and I, life on the St Lawrence Seaway has been all we expected and more. The condo community has been welcoming and we are blessed with great neighbors. The environment is peaceful with wonderful scenery and activities. We did lots of walking and I got a fair bit of mountain biking on nearby trails as well. Some occasional Kayaking and a lot of stand-up paddleboarding along the river and across to the Canadian side…getting close, but not too close:) Neighbors invited us on boat excursions and we also spent time in nearby quaint towns now and then. In that regard, Clayton NY is a delight.
We visited Ottawa a half dozen times or so being careful not to exceed 30 days overall. We have been advised by immigration lawyers to stay under 30 days for the first few years until new residency is accepted by CRA. We are now departing in early October from Ogdensburg via Washington to Panama City. This works out better for a few reasons; one it costs less (50%less – no surprise). Two, it saves us a couple of days in Canada at Ottawa and Toronto airports, and three, we can leave four days earlier overall which saves on USA day counts. This is because we are limited to 120 days per year in the USA to avoid being a “tax resident” and we want to attend Miami and Fort Lauderdale at the end of October for 4-5 days for the International Boat Show and a few other activities. Now that Ogdensburg, only 20 minutes away, has expanded its airport and contracted larger jets, there is no need to fly out of Ottawa/Toronto. The cost of flying in America is stunningly low. $288 USD business class from Ogdensburg to Washington DC versus $950 CAD Ottawa- Toronto non business class. This is for the two of us and currency aside, the savings and choice is clear. The Copa Airline flight is a little less and features a Boeing Dreamliner business class cabin versus the Airbus A321 version that flies out of Toronto. Another bonus. As Panamanian residents we receive a 25% discount on Copa flights and other airlines including KLM/Air France flights from Panama City to anywhere in the world.
Next year we will schedule our trips to Ottawa less frequently but for longer stays, say five to seven at a time. This avoids the problem of being counted in both countries on a two-day trip. Live and learn. So far, so good though with all in order. Our phones track each day/part day in every country so it’s easy to stay on top of all this. We flew from Watertown NY via Miami to Merida Mexico in August to renew our residency there for three years – next time it’s permanent. Boy, the Yucatan peninsula is hot in August and spent a week sightseeing and following up on some other business we have in nearby Progresso. More on that in a future newsletter. Progresso is a nice ocean town about 40 minutes north of Merida. Did you know this part of Mexico is apparently ground zero for the asteroid that allegedly wiped-out dinosaurs? There is a nice museum there that features the history of this event and dinosaurs in particular. Much less populated and commercial than Cancun or Playa Del Carmen a few hours away, Progresso has developed into a nice town with a wide promenade by the waterfront lined with restaurants, cafes, and shops. Also, a new higher speed train (Tren Maya) now connects the Yucatan Peninsula cities on 1554 kms of new track.
With fall approaching in NY, it’s time to head back to Panama City (Casco Viejo). For those with any interest, our principal residence is in a building called Santa Familia and we are fortunate to be oceanfront in a wing that has no units to either side and private elevator access. During our seven-month stay, we will visit many more sites in Panama this winter. Both the Pearl Islands on our side and the San Blas Islands on the Caribbean side. We will most likely charter a catamaran for this trip as the San Blas islands are controlled by the indigenous Guna and there are few accommodations available and what there is quite rustic. We will visit friends in Boquete (interior highlands) where it is a cooler climate and do a fair bit more exploring. We will likely also head next door to Cartegena Columbia as well. I was there in 1989 with a friend and recall it as a very nice city – I believe the only other city on this side of the world to have a walled inner city. The other is old Quebec City.
Costa Rica is to the west of us, so that is close as well. I have a reason to visit the Tamarindo/Flamingo beach areas and will update you on our travels to these destinations after we visit them.
That is the beauty of Panama. Varied climates of choice, wonderful activities, sights inland or on both coasts, and friendly people. Add in a lower cost of living, and no tax on interest, dividends, or capital gains. No tax on agriculture investment income (think coffee, cocoa, teak farms, etc.). Add in 25% retiree resident discounts on electricity, airlines, restaurant meals and so much more, and it is compelling. Because we bought in a UNESCO district, property tax is waived for 30 years. Panama is politically stable and safe with excellent world class accessible health care and a very good and expanding infrastructure. It’s an easy choice for our principal home base.
I read about a “trifecta approach” a few years ago in the book Nomad Capitalist. The author, Andrew Henderson, wrote most places are not utopia 12 months of the year, so why not have two or three different places to stay – the best of both worlds or in his case, three worlds. Some of you have this and own property in winter locations (Florida, Arizona, and Costa Rica come to mind) and/or summer cottages. That is why I believe so strongly in wealth creation and preservation. It provides the freedom to choose one’s location and lifestyle. Panama is hot and during the rainy season, which begins in May and winds down late October, we prefer to be absent from Panama and visit Europe and spend our summers/early fall in northern NY. There’s nothing wrong with Canadian or northern USA summers. They are great. However, as Audrey used to say, “Mother’s Day was chosen by a man because it snows 50% of the time in Ottawa on Mother’s Day”. April and May are transition months in Ottawa as they are in northern NY, so why go there then? Spain’s Costa del Sol area (one of many in Europe) is beautiful at that time of year, so we prefer to be there and then settled in NY at the beginning of June. That’s just us and everybody has a different option, some loving winter for example, but again, wealth provides those choices no matter what yours are.
Some of the other international initiatives we began over the past couple of years are moving through the system…some are pretty much complete and others are still in progress. I hope to provide a full update on that in the winter newsletter next January.
In the meantime, I maintain creating and preserving wealth is simple but not easy. The average individual, intelligent as they may be, is usually derailed by emotions. Wealth is attainable with dedication and most often enhanced with a knowledgeable and experienced guiding hand. Obtain and adhere to a written plan for success and follow it. No different than a road map from Ottawa to Austin Texas. Throw the map away or think you have a better idea, and you may end up on dirt roads or in another state. Wealth is created over time and I am living proof you don’t need to be a genius, have access to insider information, or other advantages. In my early 20’s, I had some good mentors/coaches who encouraged and guided me. When opportunity knocked, I opened the door and listened. I assessed and acted. I also invested at least 10% of all I earned in good and bad times and lived on the rest. I also made prudent use of leverage to take advantage of down markets – like in 2008-09. I know of many very smart people who have or had wonderful high-level jobs and career cash flow, but are not wealthy. If you want financial freedom for health care choices, retirement, or any desirable item or activity, you need to have a plan and follow it! It boils down to a proven framework for investment success and investment selection, along with control of emotions so they don’t corrode that very framework. Who knows what becomes of the upcoming US or Canadian elections, or the growing international tensions. What matters is your ability to stay focused on your objectives, invest and stay invested. Learn to look further down the road and ignore the current noise. Adam is well versed, experienced and qualified to assist you in this area.
Hasta la vista. Michael.
