Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-28-2011, 09:17 PM   #41
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Yet you feel it's OK that Uncle Sam will support your wifes kids. Sheeeesh~
__________________

__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-28-2011, 09:19 PM   #42
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,467
Quote:
Originally Posted by NYEXPAT View Post
I was motivated in 2003 by what I saw as the coming housing crisis and ultimate global crisis which still has much further to go (IMHO). I wanted to move to a country that was fiscally conservative (Debt Free) with a strong economy, no capital controls and the ability to easily acquire citizenship.

As you probably know Peru was growing by 9.5% a year back in 2008, The Global financial crisis was barely blip and we were one of the few countries that did not experience recession.

As a result RE has appreciated (in dollars) by 300-500% since 2007, before that I found it quite cheap $100,000 for a 1200 sq ft apt on a bluff 200ft over the Pacific.

Now, that I have "gone Peruvian" it seems quite expensive to me. When I first started buying the Nuevo Sole it was 3.6 to 1 and has appreciated to 2.72 to 1 as the Dollar lost it's value!

The problem now is with one of the worlds fastest growing export economies, they are forced to use their billions in reserves to prop up the dollar in support of exporters.
You are quite prescient seeing all the global financial woes – why limit yourself to Lima? There’s never any sun – the grey sky and lack of rain is depressing.

The gov’t may be debt free but it is hardly fiscally conservative. More like a commodity country benefiting from high prices, few social programs to drain the public reserves and among the world’s worst distribution of income. High growth has done little to reduce poverty in Peru, also among the worst in the western hemisphere.

Good luck with the Nuevo sol. I still have original soles – which of course are now only good as poker chips. These too will have their day.
__________________

__________________
MichaelB is online now   Reply With Quote
Old 08-28-2011, 09:34 PM   #43
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,467
Quote:
Originally Posted by NYEXPAT View Post
That all depends on what assets you are talking about! A bank account in my name or under my control would have to be reported as would any income I generated. A thousand hectares of land would not have to reported even if there was a large gold deposit underneath. If I have a goose that lays "Golden Eggs" ? Nope, as long as I do not sell them. If I eat the Goose it is my problem ! If my wife is not a citizen of the USA and has no USA derived income Uncle Sam can make no claim on her assets!
You obviously file your own taxes using "married, filing separately" tax status to make sure that in the future your wife's assets are beyond the reach of US tax authorities. Otherwise, with no statute of limitation, your dependents would be subject to any SS means testing indefinitely - and even retroactive income tax.
__________________
MichaelB is online now   Reply With Quote
Old 08-28-2011, 09:54 PM   #44
Full time employment: Posting here.
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 883
Quote:
Originally Posted by 73ss454 View Post
Yet you feel it's OK that Uncle Sam will support your wifes kids. Sheeeesh~
My children are American citizens (like you) and are entitled to receive my benefits which I paid for! I also have a 22 year old (studying for a Doctorate) and she is not entitled to MY benefits. My wife on the other hand is and never will be entitled to anything from Uncle Sam unless she decides to move there and work for the next 40 years (age 30)!
__________________
NYEXPAT is offline   Reply With Quote
Old 08-28-2011, 10:05 PM   #45
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
You have said that if means testing is enacted you wouldn't tell Uncle Sam about your off shore assets. Do you really think this is the correct thing to do. You say "your" children, but you can't make them by yourself.
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Old 08-28-2011, 10:32 PM   #46
Full time employment: Posting here.
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 883
Quote:
Originally Posted by MichaelB View Post
You are quite prescient seeing all the global financial woes – why limit yourself to Lima? There’s never any sun – the grey sky and lack of rain is depressing.

The gov’t may be debt free but it is hardly fiscally conservative. More like a commodity country benefiting from high prices, few social programs to drain the public reserves and among the world’s worst distribution of income. High growth has done little to reduce poverty in Peru, also among the worst in the western hemisphere.

Good luck with the Nuevo sol. I still have original soles – which of course are now only good as poker chips. These too will have their day.
Where is this coming from and what does it have to do with the OP?

We all make our own choices where we will retire and what I want obviously does not work for you.

I have never said I hold Soles and agree all Fiat currencies inevitably revert to their intrinsic values.

Not here to debate social policy ($1 billion a year in new taxes on mining companies to fund social inclusion programs) poverty levels (declining from 40% to under 20% in under 15 years) Peru's GDP (+7% growth rates before the increase in Silver and Gold prices) or the weather in Lima (Sunny everyday and 82 from Jan-May) Income distribution (USA now ranks on par with Mexico and Venezula) or what other problems you have with Peru.

As far as seeing the housing bubble (who didn't) I made 200% (tax free) in three years on a condo in NY and still managed to leave 150,000 on the table for the next guy.

Did you know that Americans are snapping up Macchu Pichu NS coins (on Ebay) worth about 37 cents for 10x that amount.

To the OP, it was not my intention to hijack this thread
__________________
NYEXPAT is offline   Reply With Quote
Old 08-28-2011, 10:36 PM   #47
Full time employment: Posting here.
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 883
Quote:
Originally Posted by 73ss454 View Post
You have said that if means testing is enacted you wouldn't tell Uncle Sam about your off shore assets. Do you really think this is the correct thing to do. You say "your" children, but you can't make them by yourself.
Where in my post's DID I EVER SAY THAT?

You inferred they were my "Wifes children", not me!
__________________
NYEXPAT is offline   Reply With Quote
Old 08-28-2011, 10:49 PM   #48
Full time employment: Posting here.
 
Join Date: Mar 2004
Location: No Where for Very Long
Posts: 747
Quote:
Originally Posted by Midpack View Post
That's a provocative exaggeration. There may be some, but I'm not aware of any sitting politician who has proposed eliminating SS altogether. Irresponsible to suggest same IMHO, sounds like tea party tactics...
Provocative to disagree? If I have an opinion about the future, then that make me a Tea Party member?

I often hear people say "SS wil not be there for me..." and I disagree with that. I'm saying that if SS were to be eliminated, there would be significant social unrest. Same for continuing the program but significantly reducing benefits.
__________________

Lancelot is offline   Reply With Quote
Old 08-28-2011, 10:58 PM   #49
Full time employment: Posting here.
 
Join Date: Mar 2004
Location: No Where for Very Long
Posts: 747
Quote:
Originally Posted by chinaco View Post
It is more of a hypothetical situation IMO.

But, if it were ended in a way that threatened a lot of people's well being. It could very easily happen.
Thanks C, you get my post. Its a real challenge for the leadership (?) to even modify the COLA adjust ment formulas, let alone end or make meaningful benefit reductions to existing or soon to be retirtees. But, if the program were to be hacked at, oh boy

I believe SS will be there and still significantly contribute to my and the next generation's retirement income. Sure the program will change but incrementally and over several generations.
__________________

Lancelot is offline   Reply With Quote
Old 08-28-2011, 11:32 PM   #50
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,870
I have SS in my long-term ER budget calculations. It is one of my 3 "reinforcements" coming to me starting at age 59.5. If the benefit is reduced (probably through some change in the formula), which I see as likely, I will be fine. If the SS benefits are taxed more, which I also see as likely, I will be fine.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 08-29-2011, 02:25 AM   #51
Full time employment: Posting here.
old woman's Avatar
 
Join Date: Dec 2005
Posts: 551
Since I am 63 I believe what was on my statements but mentally deduct 300 because they will deduct something for medicare.
__________________
old woman is offline   Reply With Quote
Old 08-29-2011, 08:58 AM   #52
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Quote:
Originally Posted by NYEXPAT View Post
As all my assets are now overseas, means testing should not present a problem.
Right here.
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Old 08-29-2011, 09:35 AM   #53
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,467
NYExpat: maybe we misunderstood. It sounded like you were saying if SS enacted means testing this did not concern you because all of your assets were out of the US so they couldn’t be traced, and they might be in your wife’s name, and because she is not a US citizen she would receive your benefits while enjoying your assets. Apologies if this was a misinterpretation.

My questions on your choice of Peru were unrelated but I am interested, having been there once or twice. Why not Brazil, for example? Latin America is well known for its boom-bust cycles and few have escaped harm financial harm. Not challenging and I am genuinely interested in how/why Peru and also how you protect your local purchasing power intact without excessive exposure to soft currency risk.
__________________
MichaelB is online now   Reply With Quote
Old 08-29-2011, 12:56 PM   #54
Full time employment: Posting here.
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 883
Quote:
Originally Posted by MichaelB View Post
My questions on your choice of Peru were unrelated but I am interested, having been there once or twice. Why not Brazil, for example? Latin America is well known for its boom-bust cycles and few have escaped harm financial harm. Not challenging and I am genuinely interested in how/why Peru and also how you protect your local purchasing power intact without excessive exposure to soft currency risk.
Probably, should start a separate thread (when I have the inclination). Brazil, probably would have been a fine choice. I wanted to live in a large oceanfront city (Rio) but prefer Sunsets over Sunrises, I prefer Spanish over Portuguese . At the time the Sol was weaker than the Real (and I was in dollars), rightly or wrongly I perceived greater value in Peruvian real estate. The Brazilian Gov't (at that time) was to far left and had not distanced themselves from Chavez yet. Having worked on Wall Street (in my younger years) I was a great fan of PPK ( what he accomplished in Peru) and wrongly thought that he would be President today! Peru, did not have capital controls (meaning money can flow in and out without reporting requirements). Real Estate could be easily bought/sold on a tourist Visa. CD rates were and still are high at 8.5% and inflation is low.

Central location put all of SA at my doorstep as well as making it the Economic bridge between Brazil and China, Peruvian cuisine is the the best in the Western Hemisphere and considered top 3 in the world. People work to live as opposed to living to work. As a single gent, I found most Women were interested in your heart as opposed to your wallet.

I love the culture, and the fact that everything in Life is within 20 square blocks.

BUT, I came here years ago and Peru has changed a lot. While it works for me in my situation , YMMV!
__________________
NYEXPAT is offline   Reply With Quote
Old 08-29-2011, 02:21 PM   #55
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,467
Thanks for answering. Brazil was just an example, but when Lula was elected everyone was concerned so doubts were understandable. Do you speak both languages?

Quote:
Originally Posted by NYEXPAT View Post
Central location put all of SA at my doorstep as well as making it the Economic bridge between Brazil and China, Peruvian cuisine is the the best in the Western Hemisphere and considered top 3 in the world. People work to live as opposed to living to work. As a single gent, I found most Women were interested in your heart as opposed to your wallet.

I love the culture, and the fact that everything in Life is within 20 square blocks.

BUT, I came here years ago and Peru has changed a lot. While it works for me in my situation , YMMV!
Central location and best cuisine were not the first things in my mind when thinking about Peru, although the food is quite tasty. As for Latin women, I married one and fathered two, and have an opinion on the subject. Comparing women in Latin America with the US is a bit unfair because in most LA countries if they are not born into affluent families they have very little resource or opportunity and are easily exploited.

Life in 20 blocks does have an attraction. We can continue on another thread at your leisure.
__________________
MichaelB is online now   Reply With Quote
Old 08-29-2011, 02:35 PM   #56
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 2,260
They way Americans are saving money these days (I cannot remember the exact figures, but I remember reading on this forum some news clips in which many people couldn't even come up with a couple of grand in a short notice), no SS or even drastically reduced SS would make too many people homeless, so I'd dare say SS will stay semi-intact.
__________________
tmm99 is online now   Reply With Quote
Old 08-29-2011, 03:08 PM   #57
Recycles dryer sheets
Retch The Grate's Avatar
 
Join Date: Jul 2010
Location: Mountain View
Posts: 252
I'm 39, for planning purposes I assume I will get no Social Security (which has been my assumption since the 80s), and if it turns out that it is there after all, I will enjoy an extra luxurious old age with fancier travel accommodations than I would book otherwise, more sushi, etc. And if it turns out that it is gone, well, I won't be derailed because I'm working towards a happy and secure retirement without it.
__________________
Retch The Grate is offline   Reply With Quote
Old 08-29-2011, 03:20 PM   #58
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,129
Quote:
Originally Posted by Retch The Grate View Post
I'm 39, for planning purposes I assume I will get no Social Security (which has been my assumption since the 80s), and if it turns out that it is there after all, I will enjoy an extra luxurious old age with fancier travel accommodations than I would book otherwise, more sushi, etc. And if it turns out that it is gone, well, I won't be derailed because I'm working towards a happy and secure retirement without it.
Mmmm....more sushi..........
__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Old 08-29-2011, 09:32 PM   #59
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,467
Quote:
Originally Posted by NYEXPAT View Post
Probably, should start a separate thread
I started one here, hopefully you can add your views. Question for the expats
__________________

__________________
MichaelB is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Net Present Value of State Government Pension and Social Security Benefit nico08 FIRE and Money 19 08-22-2011 12:44 AM
DIY Replacement for Social Security or DBP kyounge1956 FIRE and Money 21 08-07-2011 07:41 AM
Become Amish, Gain Social Security Exemption? pimpmyretirement FIRE and Money 28 07-23-2011 11:34 AM

 

 
All times are GMT -6. The time now is 07:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.