#984 – The Expat Files: Travel, Health Insurance, and Economic Challenges 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 All right. Let's start with an email from art and I'll paraphrase it where necessary. He says Johnny Thanks for making me laugh my ass off with your August 14 2020 podcast Seems you see the world much as I see the world, too

[00:45] Alright, if you heard that show art was referring to my Bhutan ground report coming from a hard rock cafe All-inclusive resort that really was a complete disaster. And I mentioned that never go back again was a total waste of money Then he says it seems like all the BS Distancing and no food buffets, etc. Are being implemented there just as they are here in the states Could you please let us know if they will be requiring vaccines to shop take buses fly, etc Will all that come to pass south of the border to it will certainly be applied when vaccines arrive here north of the border And suck ass bootlicking lemmified America as for me I've not initiated yet all the forms necessary to get residency in Guatemala

[01:32] I don't want to fly just yet and I'm wondering about the vaccine requirements to unfamiliar territory I'd hate to find I need a vaccine to use my bank shop at Costco's and similar stores, etc. Etc. Anyway, Johnny Thanks for honestly sharing your views signed art full hmm So what are you full of art or are you just an artful guy? Hey, it's all about context and perspective, right? Speaking of Covid it tests vaccines and airport requirements, etc Lots of people have been asking me to forward the information. I found out about a new website designed in conjunction with MIT That's Massachusetts Institute of Technology, which is by most measures the world's best engineering school

[02:17] It's called the escape travel site and it really is the finest smartest flight search tool on the internet You've got to check out this website you just plug in your dates or a range of dates and the airport you're flying out to in the country you're flying to and It'll find you the absolute lowest prices on airfare Not only that as soon as those numbers pop up It'll give you all the latest greatest up-to-date dope on the Covid it restrictions and such for the airports You'll be traveling through as well as the restrictions for the country you're heading to After all isn't that what every traveler or prospective travelers on pins and needles about what you will or will not have to go through When you land in any particular foreign country So anyway, if you want the link to this what I consider the best air flight search engine website

[03:04] Send me an email the expat files at gmail.com. Alright, then we have an email from Dave lots of Dave's listen to the show I think this is Dave number 46, but who's counting? He says good morning John as usual I await Friday and Sunday with baited breath. I have planned my entire week around your podcast and today's podcast was especially interesting for me This email came in on Sunday August 16. So I guess he's talking about that show Anyway, then he says I'm very rapidly coming up on magical birthday number 65 and I can ill afford health insurance in the land of the once free So your mention of private $100 a month health care insurance in Latin America was extremely important for me Question is can I purchase health care insurance in the Latin American regions while still living in the US if you have any words of wisdom

[03:55] I'm all yours another interesting subject to mention was the great escape tool for travel and how to access it All right meet Johnny here for a second funny. You mentioned that Dave again I have to say it's the best flight search app I've ever seen just shoot me an email the expat files at gmail.com and I'll give you the link All right Then Dave says I work as a contract English Spanish interpreter for the very corrupt state of New York and Johnny I spell New York with lower caps purposely as a sign of disrespect All right, Dave, you're my kind of guy then he says I should actually clarify this I did work there until they locked down my workplace on March 30th and have yet to reopen Then he says due to unusual circumstances I'm unable to suck at the government tit any longer thereby making my own circumstances absolutely dire

[04:44] I'm at the point of losing my house and I am at the mercy of Trump's most current eviction ban if it applies to me My hopes of attending your January seminar have thus very quickly evaporated I hope you remain well and look forward to next Friday's show PS Johnny Can you use a professional English Spanish interpreter? Or how about a salesperson for your seminar? I'm also a certified international tour manager That's my story Johnny warm regards signed Dave. All right, Dave. Thanks for that Let's take up a couple of your points starting with Latin American health care insurance for gringos and expats. Yep I agree. You're right at the edge age wise and you say you're closing in on 65 Well, Dave, your window is pretty tight because as mentioned in that Sunday show most all private Latin American

[05:33] Insurance plans have an age limit to get in at either 59 or 64 So Dave, there's a lot of plans you can still get in on but only by the skin of your teeth because when you click over To 65 it's gonna be very difficult to find a company that will ensure you Although if you do hook up with a private insurance broker They'll know all the plans that are available and you just might be able to find something over 65 But you won't have a lot of options However, there is some recent good news on the subject now You've all heard me talk about banks that offer health care insurance and some of them have fantastic plans now the thing is with bank health insurance plans you can generally choose between good better and best and Most often they'll name their plans like bronze silver or gold or standard deluxe

[06:21] Executive and all you have to do is have a bank account put a hundred bucks in there and automatically you're eligible You just fill out the forms and start paying the premiums. Oh, and I always say get the best plan They're so cheap You can't afford not to because for example a good plan might cost 30 bucks a month a better plan might cost 70 and the deluxe plan or the gold plan a hundred bucks a month But it won't do you much good if you're over the age limit to get on generally between 59 and 64 However, the good news is that some bank plans are now offering a plan for seniors Specifically for seniors. In fact, I noticed recently that one of the best bank plans in all of Guatemala That's Banco industrial is now offering a new plan just for seniors. That'd be for people over 59

[07:07] They also have the other three plans good better best as mentioned So that's one bank that's actually catering to the older crowd In fact, I was surprised to see that but they've got a plan for older folks and it's very good and still around a hundred Bucks a month. However to get a bank account and get on a plan like that You have to have residency in Guatemala. That's true for Banco industrial You've heard me mentioned that many banks throughout Latin America Do not want gringos and expats as clients unless they're residents because it's just too much Paperwork to send all those know your customer fat gun gatka data and account movements to the US Treasury and IRS Departments because you know, that's the way it is these days pretty much all the banks in the free world And we know that's an oxymoron are forced to use the international SWIFT system

[07:54] To transfer money around internationally, you know, it has to go through a New York bank first You've heard of the SWIFT system SWIFT it's a total ripoff and a big racket how the US government has forced every single bank in the so-called Free world to report the banking activities and movements and accounts for US citizens all over the world And that's why so many banks just don't want US citizens anymore. You walk in the first thing They say is are you a US citizen? If so, we won't open an account for you unless you're a resident So in the case of Banco industrial, even though they're offering a really nice plan for seniors And I don't believe there's even an age limit on getting in but the obstacle is actually getting the bank account itself for which you need Residency and in order to get residency in the case of Guatemala and most every Latin country

[08:44] You have to get your paperwork together Sheriff and FBI report hook up with the Guatemalan lawyer take a trip down at least once to sign the paperwork Get the photos and the fingerprints and all that. Nope You can't do it all online or by mail you have to make at least one trip down And that's why a good percentage of people who come down to my expat insider's seminars Stay an extra five to seven days to get that residency process going now Of course when we're talking about health insurance through a Latin American bank that involves no insurance brokers at all You just need a bank account. You're automatically eligible And yes There are still a few Latin American banks that don't require you to be a resident to get an account just a few though That means you can get on their insurance policies right away, too But I know in the case of Guatemala Banco industrial has one of the best health care plans

[09:32] I've ever seen and for that bank You do need residency to open an account as for other Latin American banks that you don't need residency to open an account like BAC they have good health care plans too, but I'm not sure they have a senior plan like Banco industrial That's why when you end up coming down to Latin America to get some boots on the ground You've got to have a kind of a network to hook up with because you're never gonna find that stuff out on your own You're just never gonna and without a network You won't be able to find that stuff on the Internet either For one thing Latin American banks that don't have a branch in the US are the ones you want to have bank account at Obviously because then in no way could any kind of judgment up in the US lock up your account But that also means if it's a pure Latin American bank all other paperwork and Internet sites Etc are gonna be in Spanish and that's why when gringos and expats come down to Latin America to get their plan be going

[10:21] I always hook them up with my bilingual expat insider seminar logistics lady who can do some of the legwork for you You just give her a wish list like for example find me an insurance company It'll give me good cheap coverage at my age Whatever that happens to be and then she'll suss it out for you before you come down that way when you finally do come down You could quickly tick off all the boxes on your bucket list. Oh, and did I tell you my seminar logistics? Ladies father is a very well-known physician in Guatemala So definitely she knows all about the health insurance and health care angles By the way at my expat insider seminars We spend about four hours going over insurance plans And we do some first-world boots on the ground and at a first-world hospital and clinic, too So the point is if you don't come to this seminar and you come down alone by yourself and hope to be able to suss that

[11:11] Stuff out you still need to have some kind of network Are you just gonna be spinning your wheels and that's what my expat insider seminars are all about when you walk out of there Not only have you got a two to five year head start on your plan B You know exactly what and what not to do best of all You'll have a great network of people to lean on when you need them now I understand you Dave have perfect Spanish because that's your job. You're a bilingual translator, right? So if you come down, you'll have a huge head start except you're working against a pretty tough timeline If you're just about to turn 65 Regarding health insurance, but it still can be done Then again, if you're really short on cash and are close to losing your house I don't know what to tell you because I really don't know your complete circumstances And by the way, that's why I do a half hour and one hour one-on-one phone

[11:59] Consoles because everyone's got a different story goals objectives and a different bucket list So I think Dave since you're up against a pretty hard timeline You might consider a one-on-one call with me then we can go through everything Oh and speaking of one-on-one calls, man, I'm telling you since this Covid it crisis I've done more one-on-one calls and consoles last three four months and I've done it last three or four years I'll tell you this Covid you think combined with lockdowns and restrictions chaos and riots in the streets All that has really been a wake-up call and a slap some sense into so many people who were previously on the fence And man, if anyone out there thinks the US is gonna be able to print their way out of this one You're going down with the ship and you probably deserve it. Oh and one more thing Dave

[12:44] You mentioned you're a professional Spanish English interpreter and translator as far as for my seminars, etc I have my usual handful of bilingual people helping out and there are just tons of Helicopter school college lady who are just chomping at the bit to help out during the seminars, too You know when you're off the gringo tourist trail everyone wants to hang out with real live gringos because when off the trail We are quite rare. So for me anyway, there's never a shortage of highly qualified extremely inexpensive bilingual interpreters and you say you're also a certified international tour manager Well, Dave you got unlucky with that one too because tourism is absolutely dead But you sound like a real smart and educated guy So I'm sure you've got some other skills up your sleeve So just make a top 10 list of the things you're really good at I'm certain you've got a hidden or not so hidden talent or two

[13:32] No doubt when you get boots on the ground and have your eyes wide open You can put those talents to good use and make some dough and that little bit of advice goes for all you guys and gals Looking to get the hell out of dodge and no when you finally get down to Latin America Your money won't last forever and you got to have some kind of income Just put together a list of all the things you do Well, then when you finally get down here to Latin America and get some boots on the ground You'll get all kinds of ideas and start seeing all kinds of opportunities You never would have thought of up in New York or Cleveland That's the way it always turns out you longtime listeners have heard me say this before The fact is almost all gringos and expats making money and doing business here in Latin America Are in some kind of job or service that never came to mind when they were living back up in the states They had to get boots on the ground here first to find their niche. All right, switching gears a bit

[14:21] You know, I get a steady stream of emails saying Johnny. What about Argentina? It's a huge country with all kinds of farmland and some say it's the most educated and European iced country in Latin America And it's a place where great successful authors and libertarian Renaissance men like Doug Casey have set up shop and bought land out in the boonies Why because they know it's got wide open spaces and they can enjoy a first world lifestyle there and in no way Will they ever be under the thumb of Big Brother? Well, let me tell you in my opinion It's a big mistake to move to Argentina and it's not just because they've got a corrupt government Every Latin government is corrupt and every first world governments corrupt to to me it all boils down to how big your government really is that is how many of the working adult population are employed as useless government bureaucrats compared to

[15:12] Useful employment in the private sector because as long as you've got a high percentage of people working for a government It will always be a difficult place to do business Governments are exactly like cancers. They suck the life out of everything around them And all they want to do is keep on growing in Argentina. It's got a government that's completely out of control So right now I want you to hear some facts about Argentina that are gonna blow your mind And once you hear this stuff, you're never gonna consider having a plan B in Argentina Though Argentina just like every other Latin country even Cuba and Venezuela They have some very nice vacation spots, but you wouldn't want to live work play and or do business there That's for sure. That said let me highlight parts of an article that came out in a business journal just about two weeks ago entitled International companies flee Argentina in the face of unprofitability and the coronavirus it starts out by saying

[16:03] Argentina faces the mounting exodus of multinationals that have concluded doing business in Latin America's third largest economy It's just way too complicated and unprofitable. It's been a bad place to do business even before the coronavirus Starting with the fact that the labor unions are way too powerful calling strikes and slowdowns at the drop of a hat and on top Of that, they've got pricing currency controls Entrepreneurs are pulling out by the thousands Realizing it's just too costly to do business in Argentina and now faced with a third straight year of double-digit inflation recessions and anti-business Legislation many foreign companies from airlines to auto parts makers are pulling up stakes and leaving or just close in their doors For example, the ATOM Airlines group announcing their ceasing flights in Argentina after 15 years in the country turns out in a previously

[16:57] undisclosed letter to the Argentine labor ministry a copy of which was obtained by Bloomberg shows a long list of airline grievances claiming that the cost of doing business in Argentina is 41% higher than in other countries all of it due to excessive government regulation Pointing out that manpower in Argentina due to government regs cost 30% more than in any other of the 26 countries in which it operates the letter cited terrible union problems along with a very weak local currency and a new Solidarity tax that applies to all airline tickets and as a result airlines have had enough and are thrown in the towel Citing their number one grievance constant conflicts in an operation plagued by repeated union strikes

[17:43] Causing significant losses and uncertainties year-over-year and it's not only airlines that are leaving There's Warren Buffett backed exalta coding systems and German paint company BASF French auto parts makers San goblin secret and it does another big companies have announced in recent weeks They're shifting all of their production facilities out of Argentina to neighboring Brazil Even though medical specialists say the virus outbreak in Brazil is much worse than in Argentina Then you have Honda Motor Company who stopped making cars in Argentina and made they closed shop with American Airlines and Delta Airlines ending the major routes to the country then there's Alisa a fast-food franchise in the region who closed down

[18:28] 37 Starbucks, then you have Volkswagen and Ford Motor Company canceling their plans to manufacture more pickup trucks in Argentina and get this Argentina is placed a hundred and thirty-ninth out of 141 countries in the ranking of economic stability compiled by the World Economic Forum Placing it in the bottom three percent of the most precarious countries in the world to do business all that along with the Argentine Government's decision to default on the country's foreign debt for that tenth time Along with the government's recent move to expropriate businesses like for example one of the nation's largest Soybean exporters with nationalization efforts having foreign investors very worried then it says according to Andres

[19:15] Borenstein head economist at consulting firm econ views and Buenos Aires says the shutdowns closings and Transference of foreign operations have nothing to do with the pandemic It's just that transnationals and franchises have lost faith in doing business in Argentina After years of recessions and defaults and the government's answer to all this further restricted access to dollars increased taxes and the banning of business layoffs And with corporate layoffs banned companies without the cash flow to keep paying their workers They just closed their doors and turn off the lights with more than 70% of Argentine businesses saying they can't sustain operations into the new year with government stats showing that over 20,000 private businesses

[20:02] Already closed down completely Turns out these days Argentina's two biggest exports are people and Businesses just like Venezuela then it says Argentina is accustomed to a presidential executive orders Man does that sound familiar that is rolling the printing presses and creating more fake wealth Then it says just in the last few weeks We've seen where this all leads the economy has been largely shut down since March Says the author of this article who goes on to say the province where I live salta is Loosening up on the kovit thing Alright now I'm gonna paraphrase this boots on the ground story that comes from a gringo expat Who's been living in Argentina for quite a while? He says now that the economy in salta is loosening up

[20:51] The wife and I went out with some friends to visit a very old winery there a family's been making boutique Artisanal wine for more than a hundred years it's a place where the grapes are hoisted into big wooden barrels open at the top about eight feet high and 20 feet around and Just like in the movies It's a sight to see the workers stomp the grapes with their bare feet and the juice comes out of a tap at the bottom Of the barrel. Well, I'll tell you this artisanal winery was an absolute wreck The old adobe house that was once elegant with arched walls was falling apart The roof on the winery itself had collapsed long ago and much of it hauled away There was junk and trash everywhere including the visitors bathroom Which was disgusting and in the business office an old hand operated pump sat in the corner

[21:37] With dead cactus and broken pots lining the walls with dust and grime everywhere Nevertheless, the place was open for business and they even had a wine tasting counter So then a worker passed out some glasses and said the wines made with our local grapes called mistella To me it tastes of like fermented prune juice Not that bad but way too sweet though dirt cheap at a buck and a half a bottle a dollar is really strong here But almost no one has any because the bank restricts you to something like $200 a month So the question on most everyone's mind is how the country like Argentina that was nearly first world one of the richest Countries in the world come to this the short version of the story is that the country replaced real earned wealth with government

[22:23] giveaways for years insiders have been benefiting from special government favors crony contracts and corruption and The poor they know they're corrupt but they keep voting them in because they get subsidies subsidized electricity other utilities welfare payments and Extremely generous unemployment compensation and if you're a government worker great pensions It worked for a while though working class Argentines will tell you looks like we're going the way of Venezuela It's all ending they say it has to and when they ask what's happening up in the u.s And we explain that a person can receive 600 to a thousand bucks a week in unemployment compensation Argentines are just dumbfounded. They say even government department heads don't make that kind of money here So anyway, there you have it a few big reasons why I don't recommend Argentina for your plan B destination

[23:14] Of course as always it's your call Oh, and ever since I mentioned getting the hell out of dodge and the worst place in dodge right now, Mississippi, California I've been getting all kinds of emails and notifications from people living in California working on their plan B For example, i'm getting stuff like this johnny California does not seem to understand the rich continue to flee the state and droves companies like tesla are out Moving companies are overwhelmed and what does the state legislature do raise taxes on the rich? And get this retro actively too. That's gotta be illegal But hey any legislature can make illegal legal and vice versa in a minute by just voting And johnny, you're right a bill just passed the California assembly that proposes Increasing tax rates on high income californians by three and a half percent

[24:03] And if the bill passes and gets signed by the governor, it'll be retroactive Till january 1st 2020 and that even though california already had the highest income tax rate of any state in the country However, you were wrong about one thing johnny. You said the top rate would be 13 or 13 and a half percent You're wrong. The top rate will be 16.8 On top of that just a couple days ago several state lawmakers introduced a new bill a wealth tax Which would take a slice of someone's net worth and tax it instead of just taxing their annual income Though thankfully most of the people who are subject to paying those kind of taxes already working from home and thus are incredibly mobile So as you might imagine the majority of california working people are surely thinking about getting the hell out of dodge

[24:52] I've got lots of friends myself. We're talking about it before the covid lockdown thing I never heard people talking like that before in the end The government will have shot itself in the foot because there are so many people working from home They now realize they can easily just leave the state And that for sure will result in a big tax loss for california Yep, johnny. We can chalk up another victory for creeping socialism though. It's not creeping. It's galloping signed Sacramento sally in the heart of the viper's nest She says by the way, she sent me a link to the actual tax bill makes you want to puke And finally a bit more about real estate The bubble is bursting and if you go to any of the craigslist type websites Like olx.com you'll see hundreds and hundreds of property listings with more and more coming on every day

[25:40] There are tricksters out there too where a listing seems new But it's a listing that's been up there for a long time and they just put up new photos So now what looks like a new listing is actually an old one repackaged with some of these properties having been up for sale and rent For many many months even up to a year or so Yep, desperate sellers are coming out of the woodwork and the realtors They just don't get it But they will by january when all of their sales have completely dried up and they can't pay their bills either Though right now most latin american realtors are like deer in the headlights They see something crazy up ahead, but they just don't know how to handle it or what it is Oh, but one thing I have noticed with upscale latin american people putting their houses and apartments on the market They've got this really idiotic idea that if they show you a picture of their jacuzzi that somehow that's the clincher

[26:30] That's the selling point Well, i'll tell you i've seen dozens if not hundreds of latin american homes with jacuzzis in them Whether the house is for sale or not. They never do the maintenance on those things When you're close up doing an inspection, they're stained scratched scummed up and look like And most of them I wouldn't bathe my dog in still they'll highlight a picture of that thing in the house listing My advice unless the jacuzzi is brand new if there's a hot tub and a used house listing that automatically makes the house worth less Not more It's like my mother always said if you move into a used house or apartment First thing is you change out all the toilet seats and for my money same thing with the jacuzzi Believe me down here in latin america where maintenance is a four letter word I've yet to see a used jacuzzi that didn't look toxic

[27:16] That means you either cover the thing so you don't have to look at it Or you replace it with a brand new one and that'll cost you thousands So when your apartment or house hunting and the owner or realtor says guess what? It's got a jacuzzi Well, if it was me i'd offer him five grand lists You've been listening to the expat files living in latin america If you need some help with your own plan b we can schedule a one-on-one phone or skype consult Just send me an email the expat files at gmail.com And if you want to get on the waiting list for my next week-long expat insider seminar in central america Where you're guaranteed to get a two to five year head start on your plan b. Send me an email the expat files at gmail.com nos vemos