Fire the IRS

* The Ultimate Retirement For Today's American continues. Rest assured, your editors are back in control; we apologize for yesterday's ghost in the machine. If you've fully recovered, please read on to learn how you could soon have the pleasure of telling the IRS "Your services are no longer required."

International Living Postcards-- your daily escape

Wednesday, Nov. 1, 2006
On the outskirts of Panama City, Panama

Imagine…living overseas--often in the lap of luxury, invariably in a manner to which most of us have definitely not become accustomed, occasionally even in a fashion once exclusively reserved for the rich and famous--and doing it all for, that's right, pennies on the dollar!

I'd pinch myself--but why would I want to wake myself up from a dream come true? Better yet, why would you not want to wake yourself up to a dream come true?

Welcome to Day 2 of the "Ultimate Event:" Retire Overseas for Pennies on the Dollar. Today's speakers covered the waterfront (after all, what else would you expect in a Caribbean paradise?) on every topic from the "Top Five Places to Retire Overseas"…to staying in touch from anywhere in the world for less than you'd pay for a piece of gum…to cutting your taxes down to zero while living the 'Life of Riley' with a twist of lime.

Sound enticing? You bet it was! And, in fact, I personally can't wait to move to my own offshore paradise found, dial up the U.S. for next to nothing, and tell the IRS they're going to have to learn to get along without me for the remainder of the millennium.

So, if that sounds like your idea of the ultimate retirement, then stay tuned--because the "Ultimate Event," Day 2 was made with you in mind!

Before I move on to the highlights of today, let me briefly tell you what there's no time to report on in-depth--I won't get to tell you about the Belize resort community where you can buy an off-plan ocean-view cottage for under $100,000…the exquisite, exclusive Roatan beachfront community where you can still get a $600,000 ultra-luxury condo that would cost two to three times as much in a similar stateside development…or the old textile factory in beautiful Buenos Aires where just $69,000 gets you a 1,000-square-foot condo in a gorgeously refurbished building with 24-hour security, a quaint coffee shop, and a semi-private swimming pool.

But if that's what I had to throw out, you know what follows is gold.

Lee Harrison's Top Five Places Where You Can Have it All for Next to Nothing!

If you haven't yet met Lee Harrison, International Living's Roving Latin America Editor, you need to take my advice and from now on, don't leave home without him.

The more I hear Lee talk, the more I'm convinced that he's been everywhere worth going and done everything worth doing--for less money than the rest of us spend for a cross-town bus fare. He spends at least 75% of his time on the road living the good life for about 75% less than most of us spend sitting at home surfing channels.

That's why, when I heard that he was going to share with us today his own "Top Five Picks Where You Can Live for Pennies on the Dollar," I grabbed a front row seat, pen in hand, poised to pass on to you the final word from the ultimate authority. So, here they are: Lee's Top Five, where more is less--and the only thing missing is you and me (at least for the time being).

Now, here's what makes Lee's Top Five all the more amazing: In each of those Eden-like environs, you can live life to its fullest for considerably less than $1,500 a month. And that includes your rent (or house payment), utilities, transportation, health care, groceries--even regular nights out with family and friends.

But, still, as Lee said this morning: "Don't make your decision on cost alone." It's the quality of life that makes any one of the Top Five your bottom line for a haven on earth!

And Lee should know…because he's been there, done that--and is ready, willing, and able to help you do the same:

1. Vilcabamba, Ecuador. Located in the legendary Valley of Longevity, this garden spot is snuggled in mountains so lush and majestic that the view alone is worth the trip. Here, life is slow and serene, Old World architecture lends an aura of invincibility, and New World conveniences and conveyances haven't yet impeded on man's commune with the beauty of nature.

2. Arequipa, Peru. Peru's second largest city, Arequipa is known as "The White City" because of its pristine stone structures. Located high in the Peruvian Andes, this is a town with perfect weather year-round, a town of legendary antiquity where artists and artisans gather in the quaint cafés and along the bustling byways to share their wares and tell tales of a life well lived.

3. Popayon, Colombia. Located in southwestern Colombia, Popayan sits on a volcanic terrace above the scenic Cauca River. Founded in 1536 by Sebastian de Benalcazar, Popayan was a wealthy trade center during colonial times, and its stunning Spanish architecture is highlighted by the magnificent university built in 1640. It's a sparkling clean city of nearly 170,000 with a phenomenal variety of first-rate restaurants.

4. Santa Lucia, Honduras. Finally, a Top Pick where I've actually enjoyed the ambiance. Just 45 minutes from the thriving metropolis of Tegucigalpa, this picturesque colonial town reminds you of Mayberry--much further south. On one side of the main street, brightly painted shops lend a festive air to the passing parade of smiling townsfolk. And on the other side, a placid lake filled with rowboats bespeaks the gentling joys of a bygone era.

5. Leon, Nicaragua. Once the capital of Nicaragua, Leon is now the home to the National University, the country's premier academic institution. A bohemian destination extraordinaire, but 20 minutes from the beach, this beautiful colonial city is perfect for those seeking to get away to the good life.

Introducing Rainelda Mata-Kelly--Panama's Second Wonder of the Modern World…

The first time I met Rainelda Mata-Kelly, one of Panama's top attorneys in the fields of corporate, immigration, commercial, real estate, and shipping law, I thought to myself, This is a person with whom I would trust my life, limbs, and livelihood. Even my dog. And hearing her this morning reaffirmed that decision.

Let me put it this way: If you're thinking of investing, retiring, or resettling in Panama, your first call should be to Rainelda. Then, your second can be to reassure the family that everything is under control.

Simply put: Rainelda's meticulous guidance right from the start can mean a major difference in how you make your move right to the finish. For example, what kind of visa should you obtain before coming to Panama? If you're anything like me, your answer was "Duh." But Rainelda detailed all the options:

* Tourist Pensioner Visa. Easy to obtain, this visa simply requires that you show an outside income of $500 a month (so bring your check stubs). Under the Tourist Pensioner visa, you are entitled to enjoy Panama's lavish pensionado benefits. But, you are not allowed to work in a Panamanian business (so make sure you have your outside income).

* Immigrant Visa. For this visa, you have to have evidence that you are investing $150,000 in a Panama business with three Panamanian employees. But, there is a caveat: It cannot be a retail business.

* Full Forestry Investor Visa. If you can put $80,000 into a forestry organization, you will be welcomed with open arms. And if you buy your own plantation, you needn't worry about paying taxes for the next 20 years.

* Personal Means Visa. Deposit $200,000 into a bank in Panama for a minimum of two years, or purchase real estate for the same amount, and you're welcome in Panama.

That's just the tip of the iceberg of all the valuable information Rainelda provided in her rapid-fire presentation. She touched on the do's and don'ts of forming Panamanian corporations…the whys and wherefores of real estate conveyance…and the clear advantages of setting up a private interest foundation (among which is the fact that your assets are protected against voracious liens by circling vultures--I'll pause here while you complete your applause!)

Let's just put it this way: Clearly when Shakespeare wrote that in order to preserve our sanity and serenity, we first had to "kill all the lawyers," he obviously hadn't met Rainelda Mata-Kelly. But, if you're coming to Panama, you'll be glad you did.

Zero Taxes

Frankly, I prefer to write to you about great land bargains, low-cost lavish lifestyles, and beautiful places under the sun where palm trees wave in a gentle breeze and rolling waves cascade up on soft white sands. Especially when I can look out my window and see if for myself!

But, as Longfellow wrote, "Into each life some rain must fall and some days must be dark and dreary."

So, let's talk about taxes.

Well, it's really not that bad-- honest--as I learned to my delight earlier today when Nagel & Associates' Joel Nagel informed "Ultimate Event" attendees that with proper planning you can legally pay little or no taxes during your lifetime. And even after death. (Please don't tell the IRS I told you that.)

To illustrate his point, Joel told the story of the Two Kings. I'll briefly relate it to you, because it could literally mean money in the bank.

One King--the King of Rock and Roll (need I say more?)--died with an estate worth some $300 million. But he had no asset protection. So, his lawyers, family, and, of course, the government tax collectors, fought tooth and nail for every hard-earned cent. And in the end, only $30 million went to his heirs.

The other King--Bunker Hunt, the King of Silver--died with an estate worth some $2 billion. He had great asset protection and estate planning. And on his final tax return, his only asset that the government could glom onto was one single old rusted out, barely running Ford pick-up truck.

One way toward asset protection, as Joel explained, is to move your assets offshore--in a very carefully ordered and orchestrated fashion. Here are some of the tips he gave:

* Take full advantage of Section 911 of the U.S. tax code, which provides that a whopping $82,400 of annual foreign earned income is excluded from federal taxes. Plus, an additional $11,500 of annual housing expenses is also excluded. That is a $93,900 annual income tax exclusion. And if you and your wife file separately, you can double that!

* Seek out countries that have genuine Bank Secrecy Laws protecting your assets from any outside intrusion--even by other governments. Panama, Belize, Switzerland, Austria, and Liechtenstein come immediately to mind.

* Seek out countries that provide you with jurisdictional benefits. Today in the United States, the "nuisance value" of a lawsuit is $50,000--which means insurance companies would rather pay this than fight for your rights. Which may help explain why in the U.S. a new lawsuit is filed every seven seconds.

On the other hand, if someone gets a judgement against the assets you've placed in a Panamanian bank, the government won't even recognize the claim. Refreshing, isn't it?

* And finally, find countries that protect your assets even after you're long dead and gone. In most systems, you're limited to life plus 20 years (which really isn't that long unless you're serving it behind bars). In countries like Panama and Belize, no one can ever touch your estate benefits. So, you can truly say to your heirs for generations to come, "What's mine is yours!"

The long and short of it all? When you follow the advice of IL's expert analysts like Joel Nagel, your offshore money goes further and lasts longer--while you live the lavish lifestyle you deserve under the sun where palm trees wave in gentle breezes and rolling waves cascade upon soft white sands.

So Much to Tell, So Little Time…

Outside my window, I can see the distant lights of shadowy vessels as they inch their way out of the Panama Canal and solemnly proceed in single file out to the beckoning sea. It's nearly midnight now, and I haven't even covered half of what I had hoped to share with you from Day Two's fact-filled presentations.

But, night falls, and the haunting horns of passing ships tell me it's time to call it a day. So, stay tuned, and we'll do it all again tomorrow on Day 3 of the "Ultimate Event" when we'll learn from the experts how to "Reinvent Yourself Abroad."

Until then, this is your Roving Reporter wishing you good night and Godspeed.

Onward and upward!

Carter L. Clews
On-the-scene Conference Reporter, International Living

[Don't miss out. Get your free IL Postcards subscription today.]

Editor's note: Kick start your new life in paradise with the most groundbreaking ideas covered at the Ultimate Event, including How to Retire to Paradise on $19 a Day, nine overlooked overseas destinations where it's still possible to enjoy a comfortable retirement for as little as $19 a day. You'll discover:

* A place where you can rent a fully furnished apartment at a good downtown location in a First-World city for $550 a month. Here you'll find any type of cuisine you might have an appetite for, along with shopping malls, dry cleaners, pizza delivery, first-run movies, top-notch hotels--in short, every imaginable necessity, amenity, and luxury imaginable--and, best yet, these luxuries and services are a fraction of the price you would expect to pay in the U.S.

* One of the best--and still largely undiscovered--retirement havens in the world, where the cost of living is low and the standard of living high. In this undiscovered, peaceful, charming country, you can hire a full-time, live-in maid who will also shop and cook for you for $73 a month, play a round of golf for $3.12, or pay just 70 cents for a five-mile taxi journey. And this is one of the few places in the world where property is still a good investment--and it's still cheap.

* Why now is the best time in decades to invest in real estate in "The New Costa Rica." We'll tell you how to get in on the ground floor here and take advantage of low prices on some of the most gorgeous beachfront and ocean-view property you will ever see. And it's important that you explore your options now. The way the market is going here, these bargains will soon be gone.

When you sign up for the Ultimate Retirement For Today's American, this report comes free.