I can’t remember a time when the U.S. political scene was in such a state of turmoil. These days you can’t talk politics on social media (or even with family over a holiday meal) without somebody getting worked up and going into an all-out rant.
During election season, there were plenty of people on both sides threatening that they were going to “leave the country if [fill in the blank] gets elected.” And apparently some thought pretty seriously about it, as Google reports that searches for the phrase “move to Canada” hit an all-time high in the days following Super Tuesday.
Well. It’s all over. The chips have fallen. Donald J. Trump has officially been inaugurated as the 45th President of the United States. So now the question becomes…who’s really going?
How many people are actually leaving the U.S.?
Sure, they threaten. It happens every time there’s an election. But does anyone actually even follow through on their threat to expatriate merely because they’re unhappy about a change in the presidential administration?
The answer? Well, no one really knows.
That’s because, as concerned as the U.S. is with how many people are coming into the country, they’re actually surprisingly lax on tracking how many are leaving. In fact, among developed countries, the U.S. is almost the only one that doesn’t collect any data on its emigrants.
That’s right. The U.S. government has absolutely no idea how many of its citizens are living abroad. If you ask the State Department, they’ll tell you it’s somewhere between 3 million and 8 million. (Really narrows it down, right?)
But other sources indicate there are closer to 9 million non-military U.S. citizens living abroad. That’s more than double the 4 million estimated in 1999, and it’s increasing every year, as is the number of U.S. citizens renouncing their citizenship.
Where are they going?
The next question is, of the estimated 3 million U.S. citizens who could potentially become expats this year, to which countries are they emigrating?
What little data that does exist suggests that most U.S. expats move to locations physically close to the U.S., those whose residents speak English, countries that are political allies, and those that have a large number of immigrants to the U.S.
Not surprisingly, the largest number of U.S. expats live in Mexico, with some estimates putting that number as high as 1 million people. The countries in the Latin Tropics also rank high on the list. In fact, there’s practically no country outside of the Caribbean or American possessions where more than 1% of the population is U.S. citizens.
Why are they leaving?
Sure, there are people who actually do leave the U.S. based on nothing more than election results. A ton of folks moved down to the tropics after Obama was elected. They bought houses right next to people who left because they hated Bush, and guess what happened. They all got along swimmingly.
It’s not because the political systems in the Latin Tropics are any better. In fact, in many ways they’re way worse. Newly installed political leaders come in and clean house, all the way from cabinet leaders down to the guy who’d been reviewing your building permit request for a month already.
The entire government shuts down for weeks. When things do get up and running, it’s with all new people who have no idea what the hell’s going on. It’s a nightmare! Not to mention, corruption is rampant.
The biggest difference is that, while there’s plenty of political turmoil in the tropics, not much of it affects your average expat. Even the laws that do exist (like some really ridiculous traffic regulations) often aren’t enforced, because there simply aren’t enough resources available.
If not politics, then what?
That being said, politics is still very low on the list of reasons people move away from the U.S. So what are the top draws that entice so many U.S. citizens into living abroad?
Business Opportunities
This one dates back as far as the 19th century, when the increase of whalers and clipper ships led Americans to travel all across the globe for commercial reasons. Treaties with China, Japan, and Korea paved the way for North American traders to settle in those countries.
After the Cold War, the countries of Eastern and Central Europe and Central Asia represented new opportunities for U.S. business owners. With the U.S. dominating the world economy, there was also an increasing need for English as a Second Language (ESL) education in these emerging markets.
Technology and globalization have continued to fuel overseas emigration. Then the economic crisis of 2008 led even more U.S. citizens to look outside the borders for job opportunities or more affordable retirement. Overseas jobs have also become increasingly popular among new graduates facing a tough job market after college.
Education
You can thank Cecil Rhodes for beginning this phenomenon when he created the Rhodes Scholarship in 1902 to foster cooperation between the U.S., Germany, and the British Empire by allowing students to study abroad. The trend caught on as other similar initiatives, like the Fulbright Program, were created to allow students to participate in cultural exchanges.
Today the number of college students studying abroad continues to increase. Not to mention, more and more students are realizing that experiencing life in another part of the world and learning to adapt is a valuable part of preparing to live and work in an increasingly global society. As a result, many are choosing to take a gap year and spend time overseas before resuming their studies.
Roderick Eime
Quality of Life
But the number one reason that most expats I meet choose to leave the U.S. is simply because of a desire to experience something new and to immerse themselves in another culture. For this trend you can thank the “Lost Generation” expats in Paris: Ernest Hemingway, Scott and Zelda Fitzgerald, and Gertrude Stein, to name a few.
Paris was the place to be in the 1920s. So that, as a result, was where they were. Other European cities like Amsterdam, Rome, Berlin, and Prague also grew in popularity among North Americans. Today, an increasing number of expats are choosing the Latin Tropics as their destination abroad, where they can enjoy a more laid-back lifestyle, often at a fraction of the cost.
U.S. citizens are moving all over the globe for no other reason than the fact that they’ve identified a place (or perhaps many places) that offer something they want to experience. It could be culture. It could be a slower pace of life. It could be a value system that more closely aligns with their priorities.
Whatever it is, they’re finding it elsewhere. And that trend is going to continue in the years to come. It doesn’t matter who’s sitting in the Oval Office.
What’s your motivation for setting your sights overseas?
If you’re planning on becoming an expat in Costa Rica, it would probably be a good idea to learn a little bit of Spanish before you go. It isn’t necessary to be fluent in the language, especially if you’re headed to a town that’s home to a lot of expats. But you need to know at least a few basic phrases to help you get around.
A few good ones to know would be “¿Dónde está el baño?” (Where’s the bathroom?); “¿Cuánto cuesta la papaya?” (How much does the papaya cost?); and “Necesito un medico.” (I need a doctor.). Beyond that, you’ll be surprised how quickly you’ll start to catch on.
Daniel Lobo
If you’re someone who considers yourself to have an excellent command of the Spanish language, you’ll have a bit of an advantage when you arrive. However, don’t assume there won’t still be a learning curve as you try to pick up on some of the local lingo.
The Costa Rican dialect is as laid back as the Costa Rican lifestyle. It’s full of slang and idioms that may not mean exactly what their literal translation might suggest. There are even a few words and phrases that are unique to Costa Rica and have no real Spanish translation.
Some are informal and mostly used by the younger generation. Others may be acceptable for formal conversation. Some could get you into a whole heap of trouble if you throw them around in the wrong situation.
Here are 15 words and phrases you need to understand to avoid looking awkward in your first social encounter with your new Tico friends and neighbors:
- Pura vida – If you’ve spent 5 minutes in Costa Rica, then you’ve definitely heard this phrase. But what does it mean? Literally translated as “pure life,” it’s the unofficial motto of Costa Rica. It’s often used as a greeting or just a general acknowledgement of anything that’s good, particularly in response to “Cómo estás?” (How are you?) ¡Pura vida! (Pure life!)
- Rojos and tejas – “Rojos” means “reds” and tejas are “tiles.” But they’re also often used to describe the Costa Rican currency, colones. A rojo is a red bill that’s worth 1,000 colones ($2 US), and a teja is 100 colones. On that note, “una teja” can actually mean 100 of anything. So if someone tells you to turn right after una teja, then go 100 meters (about a block).
seadog1976
- Harina – Speaking of currency, if someone asks you for harina when making a purchase, they’re not actually asking you to barter with what the word actually means, which is “flour.” Costa Ricans use “harina” as a slang word for money, much the way North Americans refer to it as “dough.”
- Deme un toque – Get this one wrong, and you could be in some trouble. While it’s literal meaning is “give me a touch,” someone who requests this of you is more likely asking you to “give me a second.”
- Soda – This is the word for the mom-and-pop style restaurants you’ll see all over Costa Rica. They’re small diners that serve up local cuisine. You can get a huge plate of meat, beans, and rice for not a lot of harina.
- Pipa – Here’s a word that has multiple meanings, so it’s important to know when you should and shouldn’t use it. It’s okay to request a pipa from the waiter at your local soda. He’ll bring you a coconut drink. Don’t ask the same of a shady vendor in a dark alley. To him it’s a hash pipe.
- Chunche – When your handyman asks you to hand him one of these and motions towards a hammer, you’ll assume that’s what it means. Not necessarily. He may use the same term again, this time pointing at a wrench. That’s because a chunche is basically just a “thingamajig.”
- Buena/mala nota – The literal translation of this phrase is “good/bad grade.” It’s most often used to describe someone’s performance or character. For example, you could exclaim “¡Que buena nota!” when the mariachi band finishes up their last set on the restaurant patio.
- Detrás del palo – If someone says they’re this, which literally means “behind the tree,” they mean that they’re unfamiliar with the topic or situation or that they don’t know what you’re talking about. Another way of saying this is “Miando fuera del tarro,” which literally translates as “taking a pee out of the can.”
- Que pega – This one literally translates to “what a stick,” and it’s used to refer to someone or something that’s really annoying.
- Mae – While this word doesn’t have an exact literal translation, it’s derived from another word that means “dummy.” But in Costa Rica it’s used as a nickname for your pal or buddy, sort of the way North Americans might use the word “dude.”
- Cabra – If your mae mentions he’s bringing his cabra to dinner, there’s no need to search for restaurants that allow livestock. Though its literal meaning is “goat,” “cabra” is a slang term Ticos use to refer to their girlfriends.
- Pura paja – Not feeling so pura vida today? There’s another term you might use when things aren’t going quite as well. “Paja” is actually the word for “straw,” but instead of “pure straw” using the term “pura paja” is actually how you say “bull$#!%.”
- Que torta – This phrase literally translates as “what a patty.” In general it’s used to describe someone who has royally screwed up something. It’s also the phrase used to refer to an unplanned pregnancy.
- Lava huevos – Someone described as this isn’t actually “washing the eggs,” as the literal translation would indicate. They’re probably “sucking up” to someone.
Now that you’re up-to-date on your Costa Rican lingo, there’s nothing else to keep you from heading on down and starting your expat journey!
The investment and securities industry can be a complicated thing for most people to understand. As a result, many depend on the services of a licensed broker or financial advisor to help them navigate the many options available for building wealth and preparing for retirement.
And, while most of these individuals are very knowledgeable and well-meaning professionals, they’re not necessarily the only (or even the best) solution for determining how to invest your dollars. But you won’t hear that from them.
Of course, your broker has your best interest at heart. But he also has some interests and limitations of his own. Ones he’s not likely to disclose to you. Here are five statements that, while true, probably won’t ever come up in your quarterly review.
1. “I’m a salesman, not a stock analyst.”
Your adviser probably sounds like he’s up-to-the-minute on market trends and the hottest new investment products. He may also provide colorful graphs and charts and use lots of financial jargon. But the fact is that selling investment products has no education or experience requirement. Candidates just have to pass a test, albeit a relatively difficult one.
That’s because, at the end of the day, the role of a financial advisor is essentially a sales job. The company your broker works for has experts who research individual stocks, mutual funds, and other financial tools. Any insights he offers to you he’s learned from reading his corporate literature, not analyzing the annual report of every company in the S&P 500.
2. “I have ulterior motives.”
Brokers are sometimes offered extra incentives for selling certain mutual funds or products. So, while he would never intentionally recommend something that’s a BAD investment, he could have his own selfish reason for suggesting one investment vehicle over another.
Not to mention, he may also have a quota to meet. Even if your portfolio is performing just fine, he could suggest that you buy into a different fund or company, since he only gets paid when you make a transaction.
These practices do happen, but that doesn’t mean they’re true of every broker or firm. It might be worth looking into how your advisor gets compensated.
3. “I’m biased towards domestic investments.”
Most advisors suggest putting anywhere from 10 to 25 percent of your portfolio in international investments. This recommendation reflects something that’s know as “home country bias.” People tend to assume that their home markets are less volatile and more likely to earn higher returns, when that isn’t necessarily the case.
While it’s true that international markets do fluctuate, they’re no less stable overall than the U.S. market. In fact, looking over a long range of time, the results have actually been quite similar.
Furthermore, while the U.S. once made up over half of the global market, that’s no longer true. So, if you want a portfolio that more closely resembles the global ratio, you’d end up with closer to 50% in foreign investments, leaving you better poised to shoulder both the political and economic risks.
4. “You should be thinking outside the box.”
Your broker has probably talked to you about the importance of diversifying your portfolio. He may have stressed the importance of having a mix of large- and small-cap or domestic and foreign funds.
He’s probably touched on any other business or personal property that factors into your net worth, such as your home. But outside of that, he’s probably never mentioned any product that he doesn’t offer.
When it comes to investing, stocks, bonds, and mutual funds are only part of the picture. You shouldn’t overlook the myriad of other options out there, such as real estate. These non-traditional ventures are often very profitable options, but they’re probably not on your advisor’s radar. Not even close.
5. “Your best investment option may be one I could never sell you.”
Not only will your advisor probably not mention any non-traditional investments, he might not even be able to help you with any that you suggest on your own. International real estate is a good example.
Buying land or a home overseas can be a fantastic investment, particularly if you’re able to hold on to it long-term. There are a number of areas in the Latin Tropics where real estate is getting ready to take off, due to infrastructure improvements or other development nearby. Plus there are many tax advantages to buying foreign real estate.
The problem is that your broker’s firm probably won’t allow him to assist you with the purchase. That’s not because it’s a bad or risky investment. It’s merely because it’s beyond their capacity. They simply don’t have the time or resources to research these kinds of investments for every client. So they’ll have to send you elsewhere.
However, for those who want to include international real estate in their financial portfolio, there are plenty of options available. It’s just a matter of finding a custodian who deals with these types of transactions and is better equipped to work with a more informed, entrepreneurial client.
Bottom line…there’s no need to fire your broker just yet. When you make money, he makes money. So, for personal and professional reasons, he wants to see you build as much wealth as possible. But you should definitely go into your next quarterly review with a more open and inquisitive mind.
He knows a lot of ways to get you a great return on investment. But only you can decide what’s truly the best strategy for your future.