Thread: 150,000

How long do you think you could live on say, $150,000 in Panama? (you are single, have no kids, and no income, not even soc. sec.) Just curious, as I worked with someone who inherited some money, about 150-200k, and he is right around 50 yrs old, if memory serves.

On the Azuero and probably some other areas, about 150 months, no kidding. My living expenses, including booze and food, are about $800-$1000 per month. Keep out of the city and you can live a good long time. Heck, if your friend were to invest that money into something earning interest a person can probably live a couple of decades in the interior. Just stay out of Panama City, it's expensive.

Are you kiddin me???????? :O

That is more than 10 years....

Exactly!!!!!

something earning interest... such as?

Is it not extremely difficult t open an account in Panama for Americans? I just don't trust the U.S. banking system and will NOT invest money in it...

Ed, another moderator, as well as No-Non-Sense-Matt can probably give you better specifics. You still can open up accounts here even though it has become more troubling.

You have got to be the most helpful moderator I've run across. Thank you.

I am trying to do the same stunt by investing into cash flow strong businesses (not publicly traded) to not depend on the banking system and Wall Street too much and protect against inflation. I also saw a post on here by EdBrowers that there is also an option to use a trust to qualify for the pensionado visa. The combination of both could be a good way to take care of income and visa. It sure looks promising. Rule number one in investment "diversification" applies here too.

Originally Posted by explorer

You have got to be the most helpful moderator I've run across. Thank you.

My Pleasure

wonder how much must be invested in such a trust.

Originally Posted by explorer

wonder how much must be invested in such a trust.

I understand that the requirement for the pensionada visa is $1000 per month for life guaranteed by a government or foreign company / entity. I am trying to hunt down more details as this has become the most attractive solution for me. The mount to invest would depend on how $1000 can be earned every month consistently for the entity to give that guarantee in a legit way. Most of my investments make 15% or better. A good $80K would do. But there is always the risk of failure for any form of investment, which requires to build in a safety buffer. Plus the entity itself has cost of operations that need to be earned in access of the $1000. (For a low maintenance setup I would account for $250 a month for overhead).

Here are some examples of Capital vs ROI that would produce roughly $1000 a month not counting overhead.
7% = $172K
8% = $150K
10% = $120K
12% = $100K

Those are great numbers!

Wish I could find an investment whose returns even approached the lowest of those percentages.

I find businesses like this and have my way of creating value that justifies high returns. For somebody less active there are "unsecured bonds" normally dangerous investments, that pay really good returns. I know of one finical company in California (I monitor them for years) that is in the business to make car loans and sell these loans in bundle to banks and mutual funds. They have weathered the banking debacle and pay in access of 10% on $100K for 10 years. The highest risk is that they have the right to repay you at any time and you may end up not having an alternative investment of similar performance. these things are out there. Financial advisors don't make any money on these kind of investments, that,s why they are not known to the public. If anybody brings an investment to you that sounds really good, run. You must find that stuff yourself. Too good to be true offers are nearly by guarantee scams. I only invest in opportunities I find myself. And no rush. No investor ever lost money on a deal he didn't make.

I found out that Article 204 governs the source of retirement benefits. It basically spells out that a FOREIGN entity Bank, Insurance, Government, Company, Mutual Fund, Trust must issue a letter stating lifetime benefits of $1000 for singles or married couples + $250 for each depended under the age of 25. In addition there has to be proof (Bank Statements / Account Statements) that these benefits are being paid. In addition it calls for proof that the entity really exists. On top of that apply all the general requirements (Passport, Pictures, Health, ....).

This actually gives a lot of flexibility to set it up any which way it makes sense for an individual. The US has plenty of options, much more than most European countries.

For your own research google: panama pensionado visa

I don't understand how any mutual fund could issue such a letter - they don't guarantee lifetime benefits of any kind. But one can purchase a lifetime annuity. How carefully they check and recheck the financial viability of the company behind a pension or annuity is another question. A pension from Fly-by-Night Inc. doesn't mean much.

A mutual fund couldnt- unless you were invested in govt backed bonds and had so much money that you were able to predictably pocket $1K/mo (in which case, you're probably not worried about the pensionada. Of the above, a govt retirement, a company or a trust (for something you owned) would ideal.