#832 – The Expat Files: Nomadic Life in Latin America

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border down Mexico way That's where I fell in love when the stars above came out to play and now I wonder Hello there all you ex-pat wannabes. I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Okay, as Monty Pythonites would say now for something completely different. How about this email starts? Hey, Johnny You know, I've binged on about the last three years of your show over the last few months

[00:45] I certainly enjoy your show for the most part But I personally have a plan B version that you've never addressed as a concept at least not as far as I've heard in the past couple of years Your seminar and plan B discussions focus on picking a country getting residency and perhaps eventual citizenship there However, in my case and I assume many other people's cases I am a single person a single man never been married either No kids that I know of and I'll be 50 in a couple of months Turns out my business partner screwed me over and now I'm thinking of cashing it all in getting my piece and now leaving the rat race in the US If I play it, right I should be able to plan on around 50,000 bucks a year as I liquidate my assets and then plan my budget for the next few decades

[01:32] But and this is a Kardashian sized but I do not want to be ever tied down to one place one house Or one country. I'm happiest being alone and the idea of spending four months in any place like Cuenca Eriquipa, Medellin, Montevideo, Guatemala City and so on seems like a fascinating option But not for me. I plan to leave the US with nothing but a backpack and a couple of suitcases I'll travel light after all those years of being tied down to a business stuck on that treadmill Dealing with my own house warehouses employees labor problems insurance, etc. Etc. I just want to be free from it all in fact I don't even want to own a car or plant roots or even have a single plant

[02:19] You know the ones you got a water for a long long while. Maybe never to me using Airbnb would be my method of short-term Housing at least so my question is to you Johnny are about banking health insurance visa renewals, etc Etc for a guy on the move and of course any thought you might have about what I've not considered I've lived and worked in Africa for many years. I used to move around a lot I speak French some Arabic and used to speak pretty decent Spanish some years ago So I guess it could come back fast when I'm immersed so I do need some advice, but Maybe I need to suck it up for two years or so and get Residency in a place like Ecuador and start my wanderlust journey going and Johnny if I do this

[03:08] Get residency in one particular country would a private health insurance plan cover me in the other Latin American countries I happen to be wandering through are there reciprocity laws and what about banking across different borders? Like for example maintaining one account in Ecuador or Colombia and using those credit cards in other Latin countries Oh and about crossing borders I do know of some Latin countries that allow a three-month Visa stay and perhaps a three-month additional extension by which time if I stick to the plan I'd be moving to a new city country county or even continent So in closing Johnny, I'm wondering if you ever heard of this option the traveling Nomad style option for gringos expats wannabes and gone a bees though in listening to your show

[03:55] I hear you talk occasionally about backpackers, but that's not quite the same thing is what I'm referring to They aren't banking getting health insurance visa extensions and don't have the kind of dough I have and besides being a kind of loner myself. I never want to share a bathroom with anyone Oh and another thought should I perhaps think about getting residency in one country first and then getting it in another and yet Another then another you know what I mean, then he finishes off by saying Johnny your seminar sounds cool But it does not seem geared to my concept of my particular plan B, which is unfortunate for me Anyway, thanks for all you do Johnny and all the great info signing off now. Hope to hear from you soon. Mr. D All right. Thanks for that. Mr. D and you're right

[04:41] I don't talk about the constant nomad or perpetual mover or as some people say Perpetual tourist or PT and I'll tell you mr. D in the eight plus years. I've been doing this show I have received a few emails like yours and they really were from backpackers people who didn't have much of a pot to pee in They just wanted to live cheap meaning Latin America on 5 10 or 20 bucks a day You know, they've been books and blogs written on that subject. Maybe way too many of them But what you're saying mr. D is you've got an income of 50 grand a year for life I assume and you know what that allows you to do Practically anything and everything you want to do as a single person in Latin America You will truly be able to live like a king or a queen depending on your personal persuasion That is unless you have some extremely bad habits like gambling or you go to fancy restaurants all the time

[05:31] Love top-shelf booze or have a designated Engraved mug at the local strip club though barring the bad habits man. You've got it made now as far as your 50 grand a year Payout sounds great and it is except I'm sure you know, there's a big economic blowout coming We don't know when but we're on the edge and it's coming soon That in mind Have you considered the fact that if your money and income is tied to bank accounts up in the states your money and assets are not Safe and it would be very wise for you to somehow move part of your assets At least out of the US out of the reach of your uncle Sam and big brother So that you have free and easy access to at least some of your money and accounts when the feces hits the ventilator

[06:19] And it will and I assume you're well aware of that Especially if as you say you were a former world traveler and spent a lot of time in Africa and such But I'll tell you your particular plan of action was my plan of action to some 28 years ago Now I too figured I just keep traveling around constant nomad and all that Traveling Latin America going from place to place country to country every three to six months or so that way you never overstay that 90-day visa, but let me tell you it sounds great But for a variety of reasons it gets old fast You can talk all day about how that's the coolest thing in the world to do and especially if you got some money But the thing is even if you call yourself a loner you end up bonding with people You certainly end up with like-minded friends and a boyfriend or girlfriend or two and then you leave

[07:09] They can't go with you because their life path is kind of fixed and they haven't got your dough So the whole cycle starts again finding good friends and having great relationships It's not easy and then every time you land in a new place You got to find a favorite restaurant or two coffee shops hardware stores food markets favorite areas to hang out and such You start to realize in a short time us humans like our routines Don't we of course there are good routines and bad routines just like there's good crazy and bad crazy With some routines you end up in a rut and they're mind-numbing and those are the ones we're trying to escape from now Mr. D. If you're a betting man, I'd be willing to bet you a Bitcoin soon enough. You'll get tired of roaming I mean regular like every three to six months, you know

[07:55] After a couple of years of moving from place to place every three to six months myself I ended up staying a couple years in Colombia and Costa Rica That was bi and ba before the internet and before Amazon And you know, initially I based my movements on the amount of time They'd give you on a visa usually 90 days, but that never did work out so well for me I found out what was best for my rhythm was to stay in a place three four or five years at a time You know, I used to think the greatest job in the world was one where you traveled all the time And you had a nice fat expense account. Well, just remember that old cliche Be careful what you wish for, you know, where you beat a lot of people who have those kind of jobs at airports Sitting around the lounge pounding them down waiting for their connecting flights

[08:44] And guess what? If you get them started, they'll all say, man All my friends think I won the lottery. I got the greatest job in the world Luxury hotels, expense account, eat, drink, whatever I want But living out of a suitcase month after month, man, that really does get old Not to mention, Mr. D, have you thought about the fact that since you jettisoned everything up in the States, that's the plan, right? When you come down with just a backpack and a couple of suitcases, you're gonna start accumulating things You have to Starting with clothes, shoes, stuff like that You can't just have three pairs of socks, hiking boots, underwear, and a Justin Bieber and Freddie Mercury t-shirt Hmm, what will the ladies think? You don't want to stretch that gringo advantage too far now Then, suit enough, two suitcases turn into three

[09:30] And your hotel or Airbnb closets start filling up You know, furnished apartments and Airbnbs do lack in the creature comforts They generally buy the cheapest, most uncomfortable Ikea furniture, you know And since you got the dough, you find a good chair, you buy it You get a modem or a router to have better internet Soon enough, you're longing for a bigger screen You get a big monitor or TV Then you buy a UPS if you're on the computer a lot For those momentary power outages Then maybe it's a custom coffee maker, juicer, and of course decent pots and pans That's a must Do you ever see the ones that are furnished in Airbnbs? Teflon coated junk, and usually there's not much Teflon left And where did it go? It's one of life's mysteries, huh?

[10:16] Where'd all that Teflon go? I'll give you one guess Oh, and I've done the Latin American Airbnb thing enough to know all about it Let me tell you, at least half of them ain't what they're cracked up to be They all post great pictures and great reviews But, and it's one of those big, retired, ashy and butts Yet again, there's always a thing or three they're not telling you Like, for example, right outside your door There's some heavy construction going on Day and night all weekend, too Or the neighbors got six young kids, two dogs, and a swimming pool Or you're just one block from a superhighway or a truck loading zone Or a red light district For some, that might be a plus So I'd just like to point out that only one in every five Airbnbs is exactly as you expected it

[11:01] Based on the reviews you see online and the photos So in my experience, four out of five are hiding things from you Though, it really depends how picky you are Whether that stuff's gonna piss you off or not Because you're stuck there once you're in And here's a tip I stayed at an Airbnb recently for a month It was 900 bucks and pretty nice Because that was the first one in, it was brand new Only to find out whilst hanging around the pool It was a high rise tower That some of the other people there staying in identical apartments Who hadn't booked through Airbnb Were paying around 500 a month Because they booked direct So when my month was up I had a little pow wow with the owner He gladly agreed to 500 bucks a month if I'd stayed on So we cut Airbnb right out of the picture But you can only wangle deals like that if you're renting by the month

[11:48] Just remember this is Latin America and everything's negotiable But not Airbnb when you go to their website You have to go direct to the owner Oh and Mr. D and his email said his business partner in the States ripped him off Join the club man Must have heard that story a hundred times Happened to me too up in the States Twice Funny thing though, when you talk to gringos and expats Who've settled in Latin America When they tell you that story they say You know after some time passed I realized it was a good thing Many say it was the very thing that gave my cake in the ass and got him off the treadmill Of course in the moment you want to buy an AK-47 But that's the way the human mind works Anyway Mr. D you'll find out As you travel with just a suitcase or two in a backpack Soon enough you'll want things

[12:34] Necessities and you won't be traveling light anymore And here's what'll happen I guarantee it You'll get into your first Airbnb You'll stay there a month or two You'll start wanting a certain favorite thing And you'll be able to get it all on Amazon Certain pots, pans, dicers, shoes, travel products Especially electronic stuff Cables, chargers, battery backups Vitamins, supplements, maybe a mini drone or two And now after a couple of months you're thinking of moving on And you don't have a backpack or two and a suitcase anymore You'll start needing boxes and that's when it'll get out of hand So what are you gonna do sell off or give away Those certain items you just had to have to make your life just a little bit better Do you give it to a friend to hold for you Or rent a storage unit? Some people do And here's the problem or one of the big problems anyway

[13:20] These days you've got the availability of everything Because of that monster company Amazon I know, I know You said you'd traveled around a lot before you lived in Africa But I'll tell you Mr. D Yep, another big butt I'll bet you Bitcoin that was way before Amazon And if there was an Amazon it certainly didn't ship to Africa But man, just in the last year or two things have really changed The first 20 or so years when I came down Us Gringos and Expats had to make do with whatever was in stock at the stores in Tienes There was very little variety For example, if you went into a hardware store or a variety store They'd maybe have one kind of blender An Oster or Black and Decker blender One or two kinds of air conditioners One or two different kinds of fan

[14:06] Often odd cheap ass Brazilian or Mexican knockoffs too But now we can get everything So before that, BA before Amazon It was a lot easier to live a low budget Spartan lifestyle in Latin America Because there just weren't a lot of buying options That's why when a Gringo relative or friend was coming down from the States We'd give them a big list of stuff to buy and bring down for us By the way, when you order stuff on Amazon and get it in a week or two You can buy most of that same stuff in medium and large Latin cities They've got Walmart, Costco, Ace Hardware, Sears, even Army Navy stores Though oddly enough, if you're buying, for example, the very same blender on Amazon It'll be half the price And for most stuff, unless it's big heavy stuff If you figure the price of shipping from your Miami destination to your Latin country

[14:56] It's still cheaper than buying the very same product that Costco And often, as many Latin ladies have pointed out to me They can buy their favorite makeup cosmetics and personal items For less than half of what the same item costs in a local tienda That's why with lightweight items like cosmetics and electronics It really pays to use Amazon So let me repeat, to be a traveling nomad here in Latin America Sort of backpacker style, but with money I think you're kind of deluding yourself thinking you're going to be able to pull that off For months or years at a time and travel light Because if you're down here in Latin America for a long time Traveling light is really for the diet in the wool Five dollar a night fleabag, hostile, cheap ass backpacker And you know some skin flint backpackers can't even manage to travel light

[15:42] Have you seen some of the rigs they carry on their backs these days? Talk about a high-tech sack of potatoes All those dangling bottles, straps, hooks, holsters, even solar panels What's that all about? You know, every time I see that I'm thinking That's supposed to be a fun hobby You know when they look relaxed and happy? At breakfast Right before they strap on their Echo coffins But once on the road, they always look a little pained All right, enough with the ripping on backpackers Back to Mr. D, who says he would not want to plant roots Even have a plant or own a car Well, Mr. D, you're 50 years old, a businessman And I'm sure you've had a car or two or three or ten So again, in that case, I'm willing to bet a Bitcoin That after a year or so or even less

[16:29] You'll be seriously thinking about getting a car And it's not about the money either It's about walking, taking taxis, chicken buses, metros, Ubers, tuk-tucks Et cetera, et cetera And man, I'll tell you, that gets old pretty fast too And even if you've got the dough, it gets expensive However, when it comes to banking, the cool thing is There are quite a few Latin banks that don't have branches up in the US So you're completely judgment-proof from up there That's cool What I'm saying is there are many banks here in Latin America That are very strong and solid They've been around 50 years or more That have branches in many different Latin countries For example, BAC out of Colombia And then you've got Banco Cusquatlan all through Central America And oh, there's a ton more But those are just a few that come to mind

[17:14] Of course, there are first world bank branches here too Like Citibank, Bank of America, and Scotiabank But you long-time listeners know You don't want to have a bank account in a Latin bank That has a branch up in the States Why? Because no branch bank in the States Means you're judgment-proof That is as far as first world courts and creditors trying to go after you But you knew that already, right? Anyway, banking with a Latin American bank Is not a problem if you're moving around And have a nomadic kind of lifestyle For one thing, when you get a bank account You always get a debit card And after a while a credit card if you want And those cards are either a Visa or a MasterCard So you can use them in practically any ATM machine Or go to any bank Either yours or one that's not your own

[17:59] And get a cash withdrawal And of course, if you've got a debit or credit card Issued from a Latin bank or any bank You could use it anywhere in the world They take plastic Restaurants, supermarkets, hotels, airports Starbucks, Pizza Hut, anywhere However, you long-time listeners know I don't recommend using debit or credit cards Willy nilly in Latin America I only use it myself to pull out cash from ATMs Or shopping online That's the only way you can buy stuff Through a credit or debit card All right, the next thing Mr. D, our future nomad traveler Mentions is health insurance He's wondering if there's a type you can buy That's good all across Latin America Well, there's good news There are many, many Latin American health insurance options That, for example, let you select the country

[18:44] Or countries you have coverage in And some will even let you select coverage worldwide In fact, just the other day I was analyzing A particular health care package for a gringo lady Basic coverage for a 45-year-old adult Was around 65 bucks a month It was a great policy where they'd pay 100% If you use doctors, hospitals, clinics, and labs Within their group And they'd pay 80% if you went outside the group And the premium went up to a whole $90 a month If you wanted coverage throughout Central America And it went up to $125 a month If you wanted coverage throughout all of Latin America North and South But get this, as usual, the only Latin country They provided no coverage in at any cost was Belize

[19:32] You long-time listeners know what I've got to say about living in Belize The health care situation there is one of the main reasons I don't recommend you have your plan B That is live full-time or even part-time there It's a great place to visit Fantastic beaches and such But you certainly don't want a chance to have a medical emergency in Belize They can handle the routine medical things, all right? But forget about it If you need any kind of difficulty or specialty care I know, I know, you knew that already The irony is you could be renting or living in a beautiful condo On one of those excellent white sand cays And your next-door neighbors could very well be Some of the greatest specialists and surgeons in the world You know, a lot of first-world doctors have condos down there But they're busy people, too And they're only down a couple of weeks a year at the most

[20:18] So what good is it if a famous heart or thoracic surgeon Owns the luxury condo right next to you And he's your neighbor now Suddenly you or yours has an emergency And he's only down a couple of weeks a year Even if he's around He just might hide in the bushes when he hears the ruckus Because he's on vacation, too And wants to get away from all that You get the idea So yes, Mr. D, do get health insurance And opt for one of the plans that gives you full coverage Throughout Latin America At your age, 50, you should be able to get The absolute top-of-the-line platinum plan For around $200 a month And it'll cover you throughout Latin America Although you should know that a lot of those gold And high-end platinum plans are overkill So then, what's a platinum, gold, or maximum coverage Healthcare plan here in Latin America

[21:03] Compared to some of the other options? Well, those very high-end plans pay 100% of everything Even if you use doctors, hospitals, clinics, and labs outside their list They include life insurance, burial insurance, private ambulance service, helicopter and flight for life Along with a ridiculously low deductible Like $250 or even zero deductible Now, I've analyzed many Latin healthcare plans I do it all the time And I'm giving you this little tip right now Don't get the platinum or so-called gold or maximum plan Go down the list a little bit And pick a plan that pays 100% of the doctors, clinics, and hospitals Within your own HMO-style group With those plans, they'll pay 80% if you're outside the group And that's just fine And a plan like that will usually cover 80% of prescription drug costs, too

[21:52] You'll still get private ambulance service, flight for life They'll even throw in $10,000 or $20,000 with a wife and funeral insurance Yet, a plan like that will cost half of what the gold or platinum or maximum plans will run you So, when you come down, you have to do some investigating on your own Don't rush in and buy the first plan you see Unless it's been recommended by a local doctor, you happen to know And that's not usually the case, right? Or recommended by other expat gringos On the plan who actually know what they're talking about People who have used it before By the way, you all know I have a 100-page Latin American healthcare report It'll give you the lowdown on everything you need to know About getting first-world healthcare at third-world prices in Latin America Just go to the expat files dot com slash healthcare

[22:39] So, do pick that up But let me give you a little hint that I don't even have in my healthcare report If, let's say, your plan B turns out to be Bogota, Colombia If you really want to cut through all the crap an investigation will take You to find the best insurance plans Even if you don't speak a lick of Spanish Try this I have, and it works You make an appointment for a basic physical at a local GP's office Preferably, a guy who's got an office in a medical professional building And, of course, if he's the doc that's under 50 He's going to speak English, and that's good Oh, and another thing you'll notice right away is He'll actually spend some quality FaceTime with you Maybe a half an hour Maybe 45 minutes Maybe even an hour So, you go for your checkup It'll probably cost you all of 35 bucks And during that time when you got him in the room

[23:26] You tell him, look, I'm going to live down here Which insurance company and plan should I get on? He's going to know exactly which ones are good for expats and gringos And if he doesn't, because you happen to be way off the gringo tourist trail For sure, he'll check it out and have the lowdown for you in a few days to a week So, you get it from the horse's mouth At least he'll definitely pointed you in the right direction And you might ask him which plans and companies aren't much good He'll know that too And here's another point to consider If you're going to be a PT, that's Perpetual Traveling Nomad You've heard me say this before But many health insurance plans won't accept you Unless you apply for residency or are a permanent or temporary resident So, Mr. D, I'm advising you do buckle up and get residency in at least one Latin country

[24:14] Oh, and another thing It seems like most Latin American health insurance policies will require you to put down A permanent address in a country they're located in Or they just might not cover you You have to live there or appear to be living there And of course, if you're nomading around everywhere That might not be possible That's why you need to have a lawyer in a particular Latin country You can use his address as your mailing address That's one of the conveniences of having a Latin lawyer And he or she generally won't charge you for that Because, hell, you're a gringo client It's part of your gringo advantage Oh, and it's very true, Mr. D If you don't have temporary or permanent residency in at least one Latin country You're going to have to pop in and out of the country you're in Every three to six months, depending on the country For most Latin countries, it's every 90 days

[25:01] And you can get that extension for another three, making it six months But some countries, like the Dominican Republic, it's only 30 days Oh, and it's also true, you can overstay But you'll pay a little fine for each day But the problem, as I see it, for not having residency in at least one Latin country Is that every time you go through a border in another country You have to stay overnight So you're stuck in a crap border town In generally a fleabag hotel Border towns don't have very nice hotels And you have to get there, so you're on an uncomfortable, usually sweaty bus ride It's just not a pleasant experience And it cuts a couple of days out of your life Nobody likes doing that It's just not fun So the trick is, and here's a great tip You get your residency in a Central American country

[25:47] Like El Salvador, Guatemala, Honduras, and others Because when it comes to Central America They've got an agreement, all except Belize You know, they're always the odd man out Anyway, that means if you have temporary or permanent residency in most Central American countries No matter which country you have it in Let's say you have it in Guatemala And you decide you want to hang out in Honduras for a half a year That 90-day visa rule won't apply to you They won't kick you out or make you pay a fine Same is true if you decide to hang out in Nicaragua, El Salvador, Panama Most any country in Central America The only thing is, to keep your residency active You have to pop back into Guatemala at least one day a year Which is really a gift Because some Latin countries make you stay up to 90 days

[26:32] Each year or over a period of a few years Just to maintain that residency So Mr. D, in the end, if you or anyone out there is planning to be a permanent nomad Yes, I do recommend you apply for permanent or temporary residency as soon as you can Then hook up with a health insurance plan That gives you coverage throughout Latin America There are plenty of them One last thing, Mr. D You're going to have a hell of a lot of time on your hands And being that you were an entrepreneur up in the States The wheels will be turning You're going to see lots of opportunity And you're going to have to stay busy I guarantee you're going to find a niche I'm talking about a niche that makes you money And makes you happy while you're doing it And you know what, chances are That's going to tie you down to a particular Latin city or country That's what businesses generally do

[27:17] Especially brick and mortar ones Have you thought about that? Or maybe you're thinking about beach resort living Sitting by the pool and sucking down my ties, daiquiris and pina coladas Yep, Mr. D, we've all got vices and you never did Mention yours Perfect plan B blueprint by going to expatfinals.com Slash academy Los bemos