Tell a person that it's a big beautiful world, full of fresh opportunities
and a sense of freedom that is just not available by staying put and you will
inevitably be treated to a litany of reasons why expanding your life into
more than one country just isn't practical.
Let's consider some of those commonly stated reasons, and why they might
be unjustified. While largely directed at Americans, these are also
applicable to pretty much anyone from any country.
"America is the best country in the world. I'd be a fool to
leave."
That was absolutely true, not so very long ago. America certainly was the
best – and it was unique. But it no longer exists, except as an ideal. The
geography it occupied has been co-opted by the United States, which today is
just another nation-state. And, most unfortunately, one that's become
especially predatory toward its citizens.
"My parents and grandparents were born here; I have roots in
this country."
An understandable emotion; everyone has an atavistic affinity for his
place of birth, including your most distant relatives born long, long ago,
and far, far away. I suppose if Lucy, apparently the first more-or-less human
we know of, had been able to speak, she might have pled roots if you'd asked
her to leave her valley in East Africa. If you buy this argument, then it's
clear your forefathers, who came from Europe, Asia, or Africa, were made of
sterner stuff than you are.
"I'm not going to be unpatriotic."
Patriotism is one of those things very few even question and even fewer
examine closely. I'm a patriot, you're a nationalist, he's a jingoist. But
let's put such a tendentious and emotion-laden subject aside. Today a true
patriot – an effective patriot–- would be accumulating capital elsewhere, to
have assets he can repatriate and use for rebuilding when the time is right.
And a real patriot understands that America is not a place; it's an idea. It
deserves to be spread.
"I can't leave my aging mother behind."
Not to sound callous, but your aging parent will soon leave you behind. Why
not offer her the chance to come along, though? She might enjoy a good
live-in maid in your own house (which I challenge you to get in the US) more
than a sterile, dismal, and overpriced old people's home, where she's likely
to wind up.
"I might not be able to earn a living."
Spoken like a person with little imagination and even less
self-confidence. And likely little experience or knowledge of economics.
Everyone, everywhere, has to produce at least as much as he consumes – that
won't change whether you stay in your living room or go to Timbuktu. In point
of fact, though, it tends to be easier to earn big money in a foreign
country, because you will have knowledge, experience, skills, and connections
the locals don't.
"I don't have enough capital to make a move."
Well, that was one thing that kept serfs down on the farm. Capital gives
you freedom. On the other hand, a certain amount of poverty can underwrite
your freedom, since possessions act as chains for many.
"I'm afraid I won't fit in."
The real danger that's headed your way is not fitting in at home. This
objection is often proffered by people who've never traveled abroad. Here's a
suggestion. If you don't have a valid passport, apply for one tomorrow
morning. Then, at the next opportunity, book a trip to somewhere that seems
interesting. Make an effort to meet people. Find out if you're really as
abject a wallflower as you fear.
"I don't speak the language."
It's said that Sir Richard Burton, the 19th-century explorer,
spoke 10 languages fluently and 15 more "reasonably well." I've
always liked that distinction although, personally, I'm not a good linguist.
And it gets harder to learn a language as you get older – although it's also
true that learning a new language actually keeps your brain limber. In point
of fact, though, English is the world's language. Almost anyone who is
anyone, and the typical school kid, has some grasp of it.
"I'm too old to make such a big change."
Yes, I guess it makes more sense to just take a seat and await the arrival
of the Grim Reaper. Or perhaps, is your life already so exciting and
wonderful that you can't handle a little change? Better, I think, that you
might adopt the attitude of the 85-year-old woman who has just transplanted
herself to Argentina from the frozen north. Even after many years of
adventure, she simply feels ready for a change and was getting tired of the
same old people with the same old stories and habits.
"I've got to wait until the kids are out of school. It would
disrupt their lives."
This is actually one of the lamest excuses in the book. I'm sympathetic to
the view that kids ought to live with wolves for a couple of years to get a
proper grounding in life – although I'm not advocating anything that radical.
It's one of the greatest gifts you can give your kids: to live in another
culture, learn a new language, and associate with a better class of people
(as an expat, you'll almost automatically move to the upper rungs – arguably
a big plus). After a little whining, the kids will love it. When they're
grown, if they discover you passed up the opportunity, they won't forgive
you.
"I don't want to give up my US citizenship."
There's no need to. Anyway, if you have a lot of deferred income and
untaxed gains, it can be punitive to do so; the US government wants to keep
you as a milk cow. But then, you may cotton to the idea of living free of any
taxing government, while having the travel documents offered by several. And
you may want to save your children from becoming cannon fodder or indentured
servants, should the US re-institute the draft or start a program of
"national service" – which is not unlikely.
But these arguments are unimportant. The real problem is one of
psychology. In that regard, I like to point to my old friend Paul Terhorst,
who 30 years ago was the youngest partner at a national accounting firm. He
and his wife Vicki decided that "keeping up with the Joneses" for
the rest of their lives just wasn't for them. They sold everything – cars,
house, clothes, artwork, the works – and decided to live around the world.
Paul then had the time to read books, play chess, and generally enjoy
himself. He wrote about it in Cashing In on the American Dream: How to
Retire at 35. As a bonus, the advantages of not being a tax resident
anywhere and having time to scope out proper investments has put Paul way
ahead in the money game. He typically spends about half his year in
Argentina; we usually have lunch every week when in residence.
I could go on. But perhaps it's pointless to offer rational counters to
irrational fears and preconceptions. As Gibbon noted with his signature brand
of irony, "The power of instruction is seldom of much efficacy, except
in those happy dispositions where it is almost superfluous."
Let me be clear: in my view the time to internationally diversify your
life is getting short. And the reasons for looking abroad are changing.
In the past, the best argument for expatriation was an automatic increase
in one's standard of living. In the '50s and '60s, a book called Europe
on $5 a Day accurately reflected all-in costs for a tourist. In those
days a middle-class American could live like a king in Europe; but those days
are long gone. Now it's the rare American who can afford to visit Europe
except on a cheesy package tour. That situation may actually improve soon, if
only because the standard of living in Europe is likely to fall even faster
than in the US. But the improvement will be temporary. One thing you can plan
your life around is that, for the average American, foreign travel is going
to become much more expensive in the next few years as the dollar loses value
at an accelerating rate.
Affordability is going to be a real problem for Americans, who've long
been used to being the world's "rich guys." But an even bigger
problem will be presented by foreign exchange controls of some nature, which
the government will impose in its efforts to "do something." FX
controls – perhaps in the form of taxes on money that goes abroad, perhaps
restrictions on amounts and reasons, perhaps the requirement of official
approval, perhaps all of these things – are a natural progression during the
next stage of the crisis. After all, only rich people can afford to send
money abroad, and only the unpatriotic would think of doing so.
The most important first step is to get out of the danger zone.
Let's list the steps, in order of importance.
- Establish a financial account in a second country and
transfer assets to it, immediately.
- Purchase a crib in a suitable third country, somewhere
you might enjoy whether in good times or bad.
- Get moving toward an alternative citizenship in a fourth
country; you don't want to be stuck geographically, and you don't want
to live like a refugee.
- Keep your eyes open for business and investment
opportunities in those four countries, plus the other 225; you'll
greatly increase your perspective and your chances of success.
Where to go? In general, I would suggest you look most seriously at
countries whose governments aren't overly cozy with the US and whose people
maintain an inbred suspicion of the police, the military, and the fiscal
authorities. These criteria tilt the scales against past favorites like
Australia, New Zealand, Canada, and the UK.
And one more piece of sage advice: stop thinking like your neighbors,
which is to say stop thinking and acting like a serf. Most people – although
they can be perfectly affable and even seem sensible – have the attitudes of
medieval peasants that objected to going further than a day's round-trip from
their hut, for fear the stories of dragons that live over the hill might be
true. We covered the modern versions of that objection a bit earlier.
I'm not saying that you'll make your fortune and find happiness by
venturing out. But you'll greatly increase your odds of doing so, greatly increase
your security, and, I suspect, have a much more interesting time.
Let me end by reminding you what Rick Blaine, Bogart's character in Casablanca,
had to say in only a slightly different context. Appropriately, Rick was an
early but also an archetypical international man. Let's just imagine he's
talking about what will happen if you don't effectively internationalize
yourself, now. He said: "You may not regret it now, but you'll regret it
soon. And for the rest of your life."
Spreading your wealth to different countries is like giving it diplomatic
immunity – it protects what's rightfully yours from the shenanigans of your
home government. That's the subject of a must-see video from Casey Research: Internationalize
Your Assets. This timely event features five financial luminaries
who will show you how to legally transfer assets abroad: Casey Research
Chairman Doug Casey; Euro Pacific Capital Chief Global Strategist and CEO
Peter Schiff; GoldSilver.com founder and owner Michael Maloney; World
Money Analyst Editor Kevin Brekke; and Casey Research Managing Director
David Galland. Internationalize Your Assets premiers at 2 p.m.
Eastern Time on Tuesday, April 30. Details and signup information
here.
