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Return to Tucson Arizona, the only constant is change

May 11, 2013 by 9 Comments

It has been more than three years since my last trip to Tucson, Arizona from Boquete Panama. It has been great to see friends, see my son Sebastian and his lovely wife Carol. Sebastian and Carol are back in the University, he in a doctoral program in Biology her in graduate school in Nutrition, I am proud of both of them.My son Sebastian and his sanity, wife, Carol.

My son Sebastian and his sanity, wife, Carol.

I was in Tucson in Jan 2010 and witnessed what appeared to be a dying city. Credit what ever you wish, government or sun spots, the city is recovering. There is a lot of new infrastructure built with Federal pump the economy funding, a turn around in the housing market and apparently fewer empty commercial properties. It seems that Tucson is bouncing back.

I have had one day with boots on the ground, or I should say a with a 2013 Mustang on the ground. I rented a Ford Focus, AVIS gave me a Bright Blue Mustang, something so totally out of character for me that I am enjoying the surprised faces of friends an family when I arrive.
tucson221

The trip was uneventful except for one question at immigration in Houston. The immigration officer started with welcome home, then looked at my form which said I was a resident of Panama. After asking the apparently obligatory, why are you here, he asked about the cost of living in Panama. It was fast and I answered that it was lower than in Houston unless you picked Panama City.

I was wrong, what a change, the government seems to think there has been no inflation for years, my guess is the statisticians have a disconnect between their numbers and their reality. Some thing are less expensive here than in Panama, housing being the biggest bargain. Diesel is about the same price, gasoline lower, cars are less expensive and depending on your choice of restaurants either lower or higher.

It is said that confession is good for the soul, so I confess to eating a Sausage McMuffin with egg, my favorite on the run breakfast. I cannot remember the cost in David, but here it was $3.70 when they gave it to me it lacked the potatoes and coffee, they said that was extra, it did however include 620 calories, no extra charge.

From what I can see overall eating the way I eat, is more expensive here than Panama. Most of my eating habits have evolved in Panama, (hypocrisy of Egg McMuffins noted) to lots of seafood, grass feed beef, free range pork and chicken served with fresh locally grown vegetables and tropical fruits. Even some of the trash food I like is expensive here. When I return I will post a short super market survey for comparison of food costs. I have been working on my list of food related items as I take care of the business that lured me back.

My neighbor and friend Phyllis  has tried to inform me that taking picture of food is related to some mental disorder, perhaps, but if that is my major infirmity I will accept the diagnosis and move on.  I do travel on my stomach and each trip is a struggle with not being able to enjoy all the smells, tastes and textures I want to try. Yesterday it was McDonalds, Rosas on Campbell and Ft Lowell for a Chimichanga and Lil Abners on Silverbell for beef. I realized that I have been eating steak at lil Abners for more than forty years, it used to be miles out of town on a rural road. Now it is the still the same funky building surrounded by “progress” and environmental destruction.

 

Phyllis these photos are for you!

Little Abners Tucson Arizona

Little Abners Tucson Arizona

Mexican food on the grill

Mexican food on the grill in parking lot

Carne Seca Chimichanga at Rosas in Tucson AZ.

Carne Seca Chimichanga at Rosas in Tucson AZ.

 


Filed Under: Featured, retirement, Travel from Panama

Robinson Crusoe never it so good

May 3, 2013 by 3 Comments

Isla Palenque is a island in the Gulf of Chiriqui about thirty minutes from the small port of Boca Chica, Chiriqui Panama. This is the last of three posts about what we experienced in one weekend exploring Isla Palenque.

Here are links to the earlier posts if you missed them, the first on the hotel, the second on the food.

IslaPalenquemap1

The island is the polar opposite of the desert Island of Daniel Defoe’s novel Robinson Caruso. Isla Palenque is tropical rain forest and most of it will remain as it is, a nature preserve. The coasts and beaches, about five percent of the island, are scheduled for development. The development is environmentally sensitive, no clear cutting, minimal environmental footprint. The developer is integrating the homes into the landscape as much as possible.

The entire island is privately owned and varies between 400 acres at high tide and 440 acres when the ocean recedes and reveals some wonderful sand beaches and great tide pools.

Tide pools

Tide pools

Beach Isla Palenque

Beach Isla Palenque

Beaches and more

Beaches and more

Mayra hiking with a guide

We stayed in the current six room resort which will become someone’s home and ate some wonderful food. In addition we took a hike, saw some howler monkeys and a lone monster iguana marching the narrow roads cut into the island.

Howler Monkeys outside the hotel

Howler Monkeys outside the hotel

The developer Amble Resorts, is an American company and is selling innovative houses on the island. I doubt anyone will want to live on Isla Palenque full time, so the houses have the option to enter a rental pool.  If you did decide to invest $300,000 or more in a home you will have the potential to reap some rental income. If you choose not invest and just want to rent for short stays there should be many options to choose from.

Houses are selling and many more have been reserved. The developer is doing something not seen in a Panamanian project, they are using a US based escrow company. Buyers put down a deposit into escrow with payment due on delivery, something that makes purchasing pre-construction a bit safer than normal in Panama.

If you ever wanted to have a piece of a tropical island for escape from reality this might be an opportunity for you. I suspect we will be intermittent visitors and enjoy the change from the mountains periodically.

For more information see their website. This is the LINK to their website for more information.


Filed Under: Featured, Real Estate, retirement, Survival Kit Items

Living in Boquete Panama, a 6.5 year perspective and some advice

February 25, 2013 by 13 Comments

I started writing this blog of my life experience in Boquete Panama about six years ago. Not long after that I started a series called Panamania, a theme I revisit regularly as I have have time to assess my life in Boquete. Today as the sun is shining, the temperature like spring in New York and the winds gone it seems like another day perfect for reflection.

Sitting with my view of Volcan Baru and listening to Mozart with a cup of coffee makes a perfect theme to stimulate thoughts of life gone by, and life in the future. I have spent about ten percent of my life living on this mountain top and have no regrets.
IMG_1172
As I watch the clouds rest on the volcano, I realize I am perched in a perfect place in a perfect time. After returning from my recent trip to Chile and Argentina several people have asked if I am considering a move south. Boquete is a transient community for expats, many come, many go and then more come to fill the vacancies. I have not seen any reason to leave for more than a vacation.

In my time here I have made two trips to the US, one to Canada, one to Ecuador, one to Guatemala, two to Argentina and two to Chile. I have cruised the Caribbean twice, the south Atlantic once and always return to Boquete, happy to be home. The question others may ask is, why. In the great debate on retirement overseas why do I choose to remain in Boquete?

The reasons are many, some of what attracted me keeps me here. I came because of the low cost of living, the large English speaking community, the tranquility, the weather and the desire for a change of pace. I wanted off the treadmill of work and even though I owned my own business, it was still a wage slave treadmill. Work to pay the bills, I had little time for more than work.

After traveling to many places I have seen lower costs of living, I can just drive to David and pay less to live, but there are other costs like enduring the heat. There are more English speakers, I think, in Mississippi and it probably would be easier to live there, but I don’t want too. I also came to learn, learn a new language and immerse into a new culture. In my time here I have almost mastered preschool Spanish and now spend much of my time immersed in the local culture.

People are the same everyplace, people want a better life for themselves and their children. Here in Panama the government gives little except jobs and they are usually political payoffs. People still need to survive on their own sweat and most do. People rely on family and friends more than government, I like that.

One commentator I enjoy reading is Fred Reed, he has a refreshing and often caustic view of the world from his perch in Mexico. I think this column of his reflects my view of the United States, one I do not wish to live in any more.

Perhaps it is the fact that I live in the wild west of Panama, not the urban center which is hours away by car, bus and culture. Cities are cities, many have flavor like San Francisco, Montreal or Buenos Aires some are just urban jungles like Panama City, but I did cities for ninety percent of my life. I relish the change of living in a small town in the boondocks.

Boquete is a point of transition for people who want to learn a language and a culture. Some of those who leave achieved that and move on to other parts of Latin America, others never can make the mental changes necessary and return to their point of origin. Each to their own, I like living here.

There is a lot of discussion in various online communities about retirement, there are companies like International Living and Live and Invest Overseas that earn their revenue convincing people to expatriate. I actually think they sell the wrong thing, they try to sell a lower cost of living as a primary justification. The real reason to move to a new country is different. The best reason to retire overseas is to take the opportunity to grow, to grow mentally, grow emotionally and grow culturally. If you just want to kick back and watch television and be a couch potato, Mississippi is a better and probably cheaper option. If you stretch your mind and your body to make real change in your life you might just find a happier person living in your body.

Carpe Diem, Seize the moment and use your third life as a chance to enhance your total life.


Filed Under: Featured, Panamania, retirement, Survival Kit Items

TCM: Rainelda Mata-Kelly, a legal update

February 5, 2013 by Leave a Comment

Rainelda Mata-Kelly made trip to Boquete to provide our community with an update on some of the changes in immigration law and in a long question and answer period clarified many other issues for people.

I am going to attempt to summarize.

If you are looking for a Visa she recommended two options as best today. The Pensionado visa if you are retired, do not want to work and can show a pension of $1,000 a month for yourself and another $250 for a dependent.

The other option is a creation of this government and allows anyone from forty seven different countries to put $5000 in a bank account and apply for a visa that includes a work permit. This is the winner right now, no income requirement, work permit and permanent resident status in about six months. Rainelda pointed out the rules on this visa are cloudy and interpretation might vary with a new director of immigration, but for now this is a great option.

She emphasized the current need for an FBI report for US citizens and the fact they are rejecting people with arrests, even if never convicted of a crime.

If you are a pensionado and want a Cedula E she recommended getting one. She is going to confirm that the costs have not increased from the $60 government fee. Under the current interpretation of the law Pensionados with five years residency and a Cedula E , can request citizenship. In response to a question she did point out that you are required to renounce your prior citizenship when accepting Panamanian citizenship and the impact of that will vary depending upon your original citizenship.

The question came up about the email circulated by News.boquete from a local law firm saying bearer shares are going away by 2016. Rainelda said there is discussion of a change in law due to international pressures but no law has been introduced into the legislator and nothing has changed at this time. The law may or may not change in the future. Her advice was that she does not recommend bearer shares to her clients but if you have them, the fear of an uncertain change to the law is not reason to do anything now; wait.

In response to questions she discussed the use of Private interest foundations for protecting assets and how they differ from Trusts and corporations in Panama. If you do have a Private Interest Foundation be aware the Tasa Unica, the annual fee to the government for the Foundation has be raised from $300 to $400. The rate of $300 remains the same for corporations.

There was a lot more but I failed to take notes. :)

For more information contact Rainelda Mata-Kelly

Telephone:
 (Int. access code+507) 216-9299
Fax:
 (Int. access code+507) 216-9298
Mobile phone:
 (Int. access code+507) 6618-0515
e-mail:
 rmk@mata-kelly.com Website: www.mata-kelly.com
Office Address:
 Suites 406-407, 4th Floor, Tower B, Torres de las Americas, Punta Pacifica, Panama City, Rep. of Panama.
Mailing Address:
 P.O. BOX 0818-00534, Panama City, Republic of Panama

 


Filed Under: Government, Legal, retirement, Survival Kit Items

Why I chose and live in Boquete Panama

August 23, 2012 by 16 Comments

This post is personal and will not apply to everyone, in fact I doubt 100% of it will apply to anyone except me. Like the previous post on budget, these reasons I stay in Boquete will not be the reasons anyone else might choose to live here.

“The longest journey begins with the first step”

I needed a change in life. I was wearing down, too much work, too much stress and a bad feeling about the future.  However the primary motivator for my wife and I to leave Arizona was physical and emotional fatigue, a need for a change and an opportunity. When my youngest daughter completed High School and chose not to live at home for University, we decided this was the opportunity.

In exploring options for a change my wife and I looked at Europe and Latin America. We explored Costa Rica and then Panama.  I spoke very little Spanish, she none. Neither of us wanted heat or beaches, we needed cool and wet after almost forty years of Arizona. We discovered the expat mountain community of Boquete Panama and it was perfect for me, she reluctantly agreed.

After a year and a half the charm of Boquete wore off for my wife, it grew for me. This point is important to people considering a move to any new place for retirement. Retirement is difficult, instead of a couple sharing a few hours a day suddenly they are sharing all day and all night. Toss in a new environment and it can either forge a new stronger tie or drive a wedge. Many people arrive here as couples and some leave uncoupled, others arrive single and find new loves.

What drew me was a change.  Life in Boquete was less expensive than our life in Arizona, with less stress. The climate of Boquete is perfect for me, I love the clouds and year round temperate climate; no air-conditioning, no heating.  Here in Boquete I discovered fishing as a recreation, it is not my favorite thing but a couple of times a year I find myself on a boat with a group of friends angling for tuna. i discovered tropical beaches and learned to relax, something new for me.

As a city boy looking for a change in life, I bought a small farm. I grow my own vegetables, raise chickens, have citrus trees and coffee. Food was one of the motivators for the move. The food chain in the US is broken, the food production by a handful of companies in the US has destroyed the family farm and the quality of food. Yes, prices on food in the US can be lower than what we see in Panama, but the food itself is also lower quality. That is changing here, in October 2012 the US Panama free trade agreement will open the floodgates to US government subsidized exported foods. I suspect that as in Mexico and other countries many small local farmers will lose their battle for survival. Still, at this moment the quality of food is better in Panama. Because I have my own farm my tomatoes will still ripen on the vine, my chiles will still be harvested and roasted by me, I will still pick my own bananas and my eggs and chickens will not get antibiotics or hormones.

As all new immigrants to any place learn, immigration is not easy. You can learn a new language or be isolated from the mainstream culture. You need to deal with a different form of government and entirely different and ineffective legal system. You will need a lawyer for property purchases, immigration and who knows what else. I have been learning Spanish for six years, a little classroom time and a lot of immersion. Slowly I am getting both the language and the culture. It has been said that learning a second language as an adult is difficult, for me it is. However it has also been said that learning a second language as an adult helps prevent dementia, maybe, but even if that is not true it does stimulate the little grey cells, I like it.

When I arrived the healthcare system was not something of much concern, I was still twenty years old, in my head. Later as I used the healthcare system both for my wife, for my daughter when she visited and for myself when my heart decided to be testy, I learned a lot. I and my family received better healthcare in Panama than we received in the US. Doctors here are not yet caught up into the insurance company assembly line process. I have the cell phone number of my doctor.  I feel better about medicine here, with some exceptions, than in the US. Medicine is also more affordable if you are forced to go out of pocket you can for most things. I do pay for a high end international health insurance policy, but I would pay almost as much for far less coverage in Arizona at todays inflated health insurance rates.

I like the people in Panama. Many of the expats I have met here are people, not sheep, and they are from all around the globe. They took a risk leaving their native countries, those who stay are open to new ideas and new cultures. I try to avoid the carpet baggers who are also here being parasites on the new comers, in time people learn who they are and learn to avoid them. I like the Panamanians I know, I have developed some excellent friends who were born here, live here and work here, they also help keep me here.

Then there is the opportunity to grow personally. City boy turned farmer, businessman turned writer and at times a social gadfly. These are all positive changes for me. Many of my peers came here to retire and created new adventures either in business or for the good of the community. Just like any community in any country there are vast needs in Boquete Panama and both expats and locals have banded together to tackle some of those needs. We are a community.

The summary for me is that I moved from the city to the country, I could have done that in Arizona.I found a perfect climate in the mountains a couple of hours from tropical beaches and fishing, not possible in many places. I can swim in both the Pacific and the Caribbean in one day, if I wanted to. I forced myself to learn and grow intellectually both with a new language and a new culture. I learned patience, any Type A personality coming to Panama needs to learn patience or die trying. I enjoy the diversity of geography, language, culture and opportunity. Those are the things that attract me to staying here. Equal are things going on in the US that repel me from returning, but that is another story.

 


Filed Under: Contrasts, Featured, General Interest, Opinion, retirement Tagged With: , ,

The Cost of Living in Boquete Panama

August 21, 2012 by 9 Comments

So many people ask what is the cost of living in Boquete Panama that I decided to provide a working budget. This budget is going to be based upon two different scenarios, first someone who buys a home and second someone who rents. Each will have some variables because clearly not everyone lives the same lifestyle.

I want to make a few points going in to this discussion. First and most important that this entire post is nonsense because each person will have variations on either theme. The purpose of the exercise is to demonstrate a low and high end budget, but neither is real, because once again we all choose to live differently.

For the Home owner I am going to use myself as an example. I do not live in a subdivision so I have no Homeowners fees. I pay for water and electricity directly without markup. The expenses are for one person but in reality would not change much for one or three. except for health insurance.

Home Paid in Cash, no mortgage

Property Taxes  $200  (there might be property taxes in Panama, I have them)
Electricity            $ 40
Gas                        $  5
Water                    $  3
Cell phone           $ 25
Internet               $ 60   ( I do not have cable or Satellite TV) Add $40 minimum
Home Insurance $ 20
Food                     $300
Diesel  (car)         $200
Car insurance      $ 65 ( I have Maximum coverage)
Clothing               $100
Car                          $400   I paid cash but if I needed to take a loan this would be a guess
Health Insurance   $1000  (This is a US 100% Medical and Dental Policy good anyplace in the world.  Local options like                    MS Chiriqui would cost less and cover less.)
Entertainment         $300

Total:   $2718

Note: My biggest monthly expense is health insurance.

A rental solution using most of the same numbers but eliminating a car and those things normally included in rent.

Rent :  Range from $500 to $2000 You can spend $2000 or more if you wish. I will use $1000 for the total below.

Electricity            $ 40
Gas                      $  5
Water                  $  3
Internet               $ 60
cell phone           $ 25
Food                     $300
Clothing               $100
Health Insurance   Self Insured
Entertainment         $300
Transportation        $100 Assuming local taxi and bus expenses

Total:   $1933          Assuming no car and that rental has satellite or cable TV

Health insurance is the loaded gun for retirees in Panama. You have options, you can self insure for almost anything.  Self insurance will work out to be less expensive unless you have a catastrophic emergency and want to use a private hospital. Public hospitals are very inexpensive but unless you have a local person to be your advocate you might die before you see a doctor.

If you are a US Medicare recipient, Medicare will not help here, but you can return to US for non urgent care situations. There is a rumor floating about that Medicare will cover emergencies, according the website Medicare.gov, there are only three conditions that would be covered, none of which will apply for a resident in Panama. A tourist might be able to make a case for #3.

1. You’re in the U.S. when you have a medical emergency, and the foreign hospital is closer than the nearest U.S. hospital that can treat your illness or injury.

2. You’re traveling through Canada without unreasonable delay by the most direct route between Alaska and another state when a medical emergency occurs, and the Canadian hospital is closer than the nearest U.S. hospital that can treat your illness or injury. Medicare determines what qualifies as “without unreasonable delay” on a case-by-case basis.

3. You live in the U.S. and the foreign hospital is closer to your home than the nearest U.S. hospital that can treat your medical condition, regardless of whether it’s an emergency. Remember, in these situations, Medicare will pay only for the Medicare-covered services you get in a foreign hospital.

http://www.medicare.gov/Publications/Pubs/pdf/11037.pdf

If you have no pre-exisitng conditions you can buy far less expensive Panama only or even International health insurance policies. If you have pre-exisitng conditions you will find qualification for those policies difficult or impossible.

In my personal opinion life in Panama is not that much less expensive than life in the US. I will submit my utility bills are much lower here than they were in Arizona, but that is more a function of not needing heat nor air-conditioning, less a function of lower costs for electricity. Water and gas are an exception because water is far less expensive and propane can be government subsidized.

I do not live here because it is less expensive, I too bought into the myth, but I think you can buy a house for less in many places in the US now. I left before the bubble burst.

I live here because I like living here far more than I enjoyed life before I moved here. This is a personal decision based on my life experience and although my opinion is shared by many, it is not shared by all.

 


Filed Under: Contrasts, General Interest, Opinion, retirement

Panamania 23: Do not flee to Panama, come for the positive

July 10, 2012 by 10 Comments

This is a message to the many people who have written me on a collective theme. Chicken Little and the falling sky. If the sky falls, the pieces will land on your head where ever you are, including Panama.

The theme I keep hearing is that Barak Obama is destroying the US. That there will be hyper inflation, that the government is going to take everything I own, that Obamacare is evil, that fiat currencies are worthless only gold and silver have value and on and on. This fear is being reinforced by several companies that profit from selling seminars and real estate tours of Panama.

I confess as always up front I am not an economist, I do not and never have worked for the US Federal Government.  I was a instructor in an Arizona Community College and at times for the University of Arizona, but since the topics were not related to politics or economics, that bit of history is irrelevant. What I do is observe, read and try to stay educated.

About the decline and fall of the US dollar, a fiat currency. According to Wikipedia the term fiat money has been defined variously as:

  • any money declared by a government to be legal tender.
  • state-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.
  • money without intrinsic value.

People say the presses are wearing out because they are printing dollars so fast, probably true; but the real money is inside the computers not on paper. There is little question the amount of currency and inflation are increasing. Inflation is planned, it is deflation and hyper inflation that are feared.  Inflation is important to you and to banks. If anyone lends money for anything and it is soon worth less than the loan made  the borrower might not pay. This happened as housing prices fell in the US and people walked away from debt, not good for lenders and therefore not good for the economy.

Hyper inflation makes the asset more valuable and the currency less so. Hyper inflation also hurts the same lenders, they lend money and it becomes worth less over time. With hyperinflation the notes and interest become less than profitable in real terms.  Good planners try to balance lending and inflation with interest rates ahead of the rate of inflation. Consumers with money try to place it where it will grow faster than the rate of inflation.

“During the Revolutionary War, when the Continental Congress authorized the printing of paper currency called continental currency, the monthly inflation rate reached a peak of 47 percent in November 1779 (Bernholz 2003: 48). These notes depreciated rapidly, giving rise to the expression “not worth a continental.”

A second close encounter with hyper inflation occurred during the U.S. Civil War, between January 1861 and April 1865, the Lerner Commodity Price Index of leading cities in the eastern Confederacy states increased from 100 to over 9,000.  As the Civil War dragged on, the Confederate dollar had less and less value, until it was almost worthless by the last few months of the war. Similarly, the Union government inflated its greenbacks, with the monthly rate peaking at 40 percent in March 1864 (Bernholz 2003: 107). ”

Wikipedia

When I moved to Panama my lawyer said if you are coming to Panama to run away from anything in the US,  find another country. To quote him, Panama is a tail wagged by the big dog up north. I will add that the world banking industry is the tail wagging the world economy. They wag the US government, they run the Federal Reserve,  but sometimes, somethings happen they cannot control.

Wars and panic mess with the best laid plans of governments and bankers. Those who control the economy want a balance, inflation, but slow and easy. The Federal Reserve which is run by bankers makes every effort to control inflation. It is true that a dollar today buys far less than a dollar in 1900 but then again earnings today are far higher than in 1900; part of the plan.

If your paycheck or retirement is in US dollars then any increase in inflation adversely effects your buying power. It is so in the US, in Panama where the Balboa is the dollar, or anyplace else where you will need to exchange your dollars for the local fiat currency.

What then is an alternative? Some people say gold, silver or other metals are a hedge on inflation. There is certainly some truth to the fact that precious metals have increased in value relative to fiat currencies, surprisingly the rapid increase has only been in the past ten years.

This is a long term graph or the value of gold in US dollars since 1973, source http://www.goldprice.org/spot-gold.html.

Note the cost of gold in dollars started it’s current ascent, 2002. This phenomenon has not just affect US currency. This chart is the Euro from 1999.

Many people view gold as a good long term investment, it was a low return investment until 2001-2002 and is not looking so good this month either.

Oil, black gold has a interesting parallel chart.

Compare it to gold and note the date September 11 2001. Gold and black gold started there current ascent in the same time frame. What started the rise:  fear, uncertainty and doubt. The legacy of 9/11 has been to change everything about the world.

The current world economy is tied to a consumable product, oil, not gold. The economy can survive without gold.  The dependency on oil is world wide with those countries that import it going through inflation caused by the cost of the commodity. Panama imports all it’s oil. Our economy consumes it at world market rates and when oil goes up so does everything in the economy except wages.

Wages are the one thing lower in Panama than the US. Everything produced locally is less expensive because the current minimum wages paid in Panama start at $1.43 an hour for agricultural workers, higher for others. If the cost of labor in Panama was equal to the US most everything would be more expensive here. In my six years here I have seen two government mandated increases in minimum wages and each time the prices of everything, including healthcare has increased.

If you are too young for Medicare,  Obamacare mandates that US insurance companies need to sell you insurance regardless of preexisting conditions; not so in Panama. If you are not covered by Panama’s Social Security system, and have a preexisting condition, you cannot purchase medical insurance in Panama. You can buy into some limited programs offered by some hospitals, but in this system you are on your own. Medicare does not work in Panama. Tricare provides civilian health benefits for military personnel, military retirees, and their dependents and it does work in Panama.

My message is that if you are fleeing the US because of the the dollar, we have it here. If you are fleeing because of the cost of living, it might not be that much lower here for the same lifestyle you have. If you are fleeing because of inflation, it’s here too. If you cannot stand government in your life, this is just another government and they make changes much faster with less thought to the long term consequences.

If however, you want to have a whole new life experience, learn a new culture, learn a new language, live on a tropical beach or in temperate mountains close to a tropical beach, this might be a good place to consider. Just do it as an affirmative action, not in fear. Many of those who fled to Panama came, saw and left. Those who elected to be here for positive reason have reasons to be positive.

I love it here, I enjoy the mountains where I live. I reluctantly confess to enjoying the beaches, as long there is shade and no expat targeted development. I love the people, the culture and I am and suspect I will always be learning the language. I haven’t mastered English yet so why should I think I could ever master Spanish. I also confess I cannot stand Panama City, I rather be in Buenos Aires, Argentina or Valpariso, Chile for urban life. Latin America is a delightful contrast in living from my native North America.


Filed Under: Panamania, retirement, Survival Kit Items

Panamania 22 : Retirement in a new culture, a new adventure

February 7, 2012 by 16 Comments

Now in the middle of indigenous protests and road blockages which are not being reported outside of Panama is a perfect time to respond to people who are considering retirement in Panama or any other developing country. Here when the pressure boils over and people want to get the attention of their government they take to the streets.

I have a local reader who cannot understand why I appear to discourage people from moving to Panama; I don’t. I just try to discourage those who are moving here for the wrong reasons. Do not believe the various companies who sell moving overseas as a must do to flee tyranny or taxes and describe the transition as a piece of cake. You do not need to do leave the perceived security of the world you know to change your life and making the transition is not necessarily easy. These businesses often mislead on the costs of living, yes you can live in Panama for less than the US, but not perhaps with the same lifestyle you have. There are many other reasons to consider a move to Boquete, to Panama or to anyplace new and alien.

Ngobe_Bugle_dance

Ngobe_Bugle_dance

When my father retired he shriveled up and died. He spent his days watching television and waiting for something, neither he nor I ever knew what. I never considered retirement, I have never retired and doubt I will. I do collect Social Security and I no longer work an 8- 7 job. Instead I play, I write and above all I learn. Playing and writing are new for me, learning has been life long. I made the decision to move from Arizona to Panama for many reasons, I never considered it retirement, just a new horizon.

In relocating to Panama I needed to stretch my mind. The only class I came close to failing in University was Spanish, I knew I could never learn a new language. I even took a Bachelor of Science instead of Arts to avoid a second year of language. Although I had a tourists views of Mexican culture, I certainly never was part of the culture. Here in Panama I had a new adventure. When my wife left I decided to immerse myself in the whole enchilada.

If it is true that learning fights dementia then I am immune. I have struggled with Spanish and can carry on a conversation now. I have learned the cuisine, bits of the culture and even some of the politics. I have discovered Panama to be an engrossing opportunity. The natives here are warm friendly people and yes, opportunistic too. They have learned that many new immigrants have money and they of course want as much of it as they can get. That is not any different than anyplace else. The difference here is that many new immigrants make no effort to learn the language or immerse into the culture; they are missing a lot and they wear targets on their backs.

Living in Panama you can find a large expat population, in Boquete in particular there is no need to learn language or culture, many expats do not. Many Panamanians speak passable and sometimes perfect English, they cater and occasionally pander to the community. If you make an effort with Spanish many people will respond in English to demonstrate or just practice their ability. Some bilingual people both native and imported, use their skills with language to exploit others more ignorant; most are just helpful but it is important to know the difference.

Panama is not never never land, it is a real place. For me a bit more like James Hilton’s Shangri-La, a place I stopped aging but kept on growing. In my time here I have seen many people come and many leave. Those who leave give similar reasons, family issues at home or health fears, I not yet met a person who has honestly said, I made a mistake, Boquete is not like Kansas, or California, or wherever. These people if they were honest with themselves would admit they did not do their cultural homework. Panama is a different country not a different State or Provence.

The recent political disturbances with the indigenous will probably spark some people to start packing their suitcases in fear, Panamanians just take it in stride. There is nothing new with protests in the street, they are the loudest statement of people without a voice. Panamanians  survived Noriega and they will survive Martinelli and whom ever comes after him. They understand their culture and they understand the evening news, they have weathered times more disruptive than these demonstration.

For me this has all been a lesson in reality, the last time I was in a street demonstration was protesting against the Vietnam war. Once I became immersed in the reality of family and the need to earn to pay the bills my days of political awareness  became limited to the daily newspaper.   In my version of US culture work was first, then play or family. In Panama I have learned it is almost always family first and then other things second. The most educated and successful Panamanians I know take time off for family and holidays. I had to learn that from a book written by Lee Iacocca. Here in Panama it is part of the culture and it took me some time to adjust despite the fact I am technically retired.

Instead of me writing, Don’t move to Boquete, let me lay out the red carpet. If you want to share Shangri-la I welcome you. I do want to make a few suggestions to make your life better. Please try to learn some basic Spanish before you come here, please do not check your brains at the airport. There are thieves and con men here who will gladly lighten your wallet and the local legal system will not help too much. Come with a lust to learn and experience the culture, the environment and the people. Please leave any perspective that you might be from a superior culture at the airport because you do not, you just come from a different culture.

Panamanians have a title for retirees, third life. Make this a third life, a break from what was breaking you into something that can mend the soul and enhance your life tremendously.

Join us for some fun in a culture that many people, including me, miss until you make the effort.

 

This a unedited driving tour through the town of Boquete Panama, come visit.

 


Filed Under: Contrasts, Featured, General Interest, Panamania, retirement Tagged With: ,

Retire Overseas, lets all move to Colombia, Uruguay, Costa Rica or maybe stay in the USA

October 21, 2011 by 5 Comments

I have been following the current trend of emails from Live and Invest Overseas and others encouraging people to flee the USA and retreat to the inexpensive environs of places like Colombia. I do not want to bad mouth Colombia, I personally like the country and each time have visited I have enjoyed my experience, for me it is a nice place to visit but I would not want to live there.

Permit me to provide a little guidance to some who are being convinced to flee the USA and move to Latin America. I do not want to discourage you, I made the move more than five years ago and do not regret the decision. I do want to provide some sobering factoids you should consider to make an intelligent decision.

If you are leaving the US or Canada because of economic reasons, Latin America is still a good choice. Many things are more expensive here including cars and most imports, other things are less expensive. Anything created locally is less expensive, if you are not a victim of Gringo Bingo, that is because labor is still inexpensive. That makes local foods, local construction and locally manufactured products less expensive. Imports by and large are more expensive due to transportation and tariffs. Land is still a bargin but as always that depends upon location.

Gringo Bingo is the game of some locals who have learned that Gringos often buy before they research and pay too much, so they roll up prices on anything from food to land as soon as they see you. It is fun to play it right back if you do your homework and know what something should cost.

The current venues that seem to be enticing people are Panama, Columbia and Uruguay. I have visited all three and each has it’s virtues and which might be best for you depends upon you, your goals and needs.

If the climate, having four distinct seasons is your top criteria then look south to Uruguay, it might have more cows than people but it also has four seasons. If cheap is the top criteria then think seriously about Colombia, for now it is the best buy in town. If you still believe all the marketing about Costa Rica and have lot’s of money you can think about paradise for Colones. Finally if you are looking for the best infrastructure, most rapid growth, lowest tariffs and a currency that is the US dollar, Panama is the place.

I want to point out the currency issue first, it was one major consideration for me when I selected Panama. When I started searching for a retirement destination I considered the Netherlands, I know the seemed crazy but the dollar bought 1.24 Euros when Bill Clinton left office and I wanted a base in Europe. I watched the Euro trash the dollar as I continued looking. I decided since my retirement income was dollars it would be safest to be in a dollar economy. The chart below is the dollar vs the Colombian Peso for five years.

Dollar vs Colombia Peso 5 years

As you can see there is quite a range. We have an influx of retirees from Costa Rica coming to Panama now because at least a few months ago the combination of inflation in Costa Rica and appreciation of the Colon vs the dollar was making it too expensive to live there. The dollar has appreciated a little so the pain is not as bad, but as you can see from the graph on the Colombian Peso things go up and things go down. If your retirement income is in dollars you must consider the dual bite of currency valuation and cost of currency conversion.

I have historically discouraged people from moving out of their sphere of comfort and I will reiterate some points that apply to every country in Latin America. The cultures here are different, each country is different, the people are different and most significantly the language is different.

Unless you plan to live in an all English speaking colony you must learn some of the local language and culture. Too many people come here not understanding that fact and they leave within a couple of years with rancor. This is not Kansas, although speaking Spanish there might help also.

Another major parameter is not trust people just because they are expats and befriend you. All of the countries listed above are havens for some of the living refuse of other countries. Because the law and culture is different south of Texas these human ectoparasites profit from exploiting newcomers and do it over and over with no consequences. Please do not check your brains at the airport.

I have seen people turn over hundreds of thousands of dollars for the purchase of real estate without a lawyer or even documentation that the seller is the owner. You will find the legal system will not protect your ignorance and I am sure you would never do the same thing in the US. For some reason people forget all they learned in life when they visit any of these paradises.

If you plan to immigrate please use your head, visit, stay extended times in rentals and be sure before you invest in anything. I am glad I did what I did and hope that if you do the same you are also grateful for the new life you can live. Just do not buy all the hype, buy the reality.


Filed Under: Featured, Opinion, retirement Tagged With:

TCM: Immigration, Banking and Property by Rainelda Mata- Kelly

September 6, 2011 by 4 Comments

As always Rainelda did a sterling job on explaining a great deal about the law in Panama as it relates to areas near and dear to people immigrating here. All the basics from her powerpoint are covered on her website. Mata-Kelly.com so I am not going to do Panama Law  101 here.

I want to simply repeat a few questions and answers from the the discussion.

How long can I stay on a tourist Visa?  The tourist Visa is 90 days. The current government is not fining people if they stay up to 180 days but the law remains 90 days. This complicates the drivers license issue. A non Panama drivers license is only good for 90 days, Police are doing their job correctly if they confiscate your car for driving illegally after 90 days. You cannot get a Panama drivers license on a tourist Visa.  The summation, if you are a tourist and you drive you need to reset your passport every ninety days by leaving the country for 72 hours.

Is there anything happening to allow people on Pensionado Visas to have a more permanent ID number so they do not need to change documents each time they change passports and what must they really change?

Rainelda said she knows of no changes currently under consideration on simplifying this. She did say that you should maintain your old passport and although you do not need to change every legal document on file with a new passport, the old and new passport numbers should be referred to in all new documents. You do need to register your new passport with immigration and they do stamp it registered. They will not replace your permanent Carnet but they record the new number. I also know from experience you do need to change you car registration documents or you will have a problem getting a new drivers license.

Some one asked about whether she should have shares to her corporation.  Rainelda responded yes. An attorney should issue the shares and you should designate whether they will have names or not. He who has bearer shares is the owner of the corporation and replacement of lost shares requires a trip to court.

When asked about Panama’s banks and FDIC type insurance she stated that there is no such thing as FDIC in Panama. She was also asked about Credit Unions in Panama and said that she did not recommend putting large sums into credit unions they are not regulated as well as banks.

She commented on people who are still in the process of getting cedulas and citizenship under the pre 2008 immigration law. Immigration is looking to close down that operation and she suspects they will push out documents faster, rather than slower to end the backlog and shut down the office handling pre 2008 files.

She warned people who are immigrating not to close their existing bank accounts before have new accounts opened in Panama. Stating that it is almost impossible to open an account here with out a letter from your existing bank. In addition she thinks that US Citizens will find themselves excluded from many banks in a couple of years when FATCA goes into effect.

One other question was to differentiate the Pensionado and Jublilado status and how they apply to discounts. Pensionado is a Visa that provides a discount to anyone who has the Visa regardless of age.  Jubilados are residents who reach the statutory ages. She emphasized that use of this discount comes directly from the businesses, it is not funded by the government.

Only the primary person who has the Pensionado visa, not a dependent is entitled to a discount at any age as a pensioner. A hypothetical family of six with one pensionado visa holder, permits a discount for the one Visa holder regardless of age. The other dependents are not eligible unless they are over 55 years for a woman, 60 for a man. If they are over those ages, since they are residents they qualify under the jubilado law. In reality a retired husband and wife, not minor dependents with Pensionado dependent carnets will qualify for discounts.

She discussed the tax issues on both property and income. Discussed reappraisal to lower tax rates and the various ways to transfer property.  One comment was about the sale of corporate stock. Rainelda said it is the responsibility of the buyer to withhold 5% of the selling price of the shares from the seller and turn it over to the tax authorities. This complicates what was the fastest easiest way to move real estate.

There was much more but I was the AV monkey pushing powerpoint buttons so perhaps if anyone else who was there can add please do make a comment here or better in the Ning discussion

I am not going out on limb endorsing Rainelda as an attorney for her areas of specialty. You will find people quoting lower prices and too often find yourself paying much more die to their errors or omissions.

Rainelda Mata- Kelly

Telephone:
 (Int. access code+507) 216-9299
Fax:
 (Int. access code+507) 216-9298
Mobile phone:
 (Int. access code+507) 6618-0515
e-mail:
 rmk@mata-kelly.com Website: www.mata-kelly.com
Office Address:
 Suites 406-407, 4th Floor, Tower B, Torres de las Americas, Punta Pacifica, Panama City, Rep. of Panama.
Mailing Address:
 P.O. BOX 0818-00534, Panama City, Republic of Panama

Filed Under: Government, Immigration, Legal, retirement, Survival Kit Items, Taxes
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