By: Khaki Scott
Simply finding a job in Mexico is not a career destination. Finding a job in Mexico that pays enough to leave plenty left over for investing in Mexican real estate is the next best thing to finding Nirvana. The three most active job markets in the U.S. today are Health Care, Information Technology, and the catch-all phrase of Professional Services. In order to immigrate to Mexico, foreigners must prove that they have an income of approximately $1,500 USD per month, depending on the current exchange rate. In addition, Mexico does not hire foreigners unless it is for a position for which no Mexican worker can be found. This investigation will look at the most sought after skills north of the border and give Americans and Canadians an idea of whether or not training in these areas will win them a successful career in Mexico.
There is a great need for Home Health Aides in the U.S. and the pay is low but rising because it is cheaper to hire home health aides than to support people in nursing homes. This job does not translate well to a job in Mexico because the Mexican culture, as a whole, produces service-oriented citizens and English is now required in schools. This means these jobs all go to Mexican citizens at Mexican rates of pay. American Home Health Aides, if they can find a job, will be paid Mexican wages and will not earn enough to even meet immigration income requirements, much less be able to invest in real estate.
Medical Assistants, such as Nurse Practitioners and Physician Assistants, are in a great position in the U.S., in Canada and in Mexico. The key here is learning Spanish and then hiring out to a Spanish-speaking specialist in Mexico as a liason to English-speaking patients. Medical tourism, plus an exploding population of resident expats, is making this a great job for Americans who opt to live south of the border. School is no cake-walk, but the option to live and invest where one chooses is the prize for finishing – and what a prize it is!
Mental Health Counselors and Social Workers are also in a good position both north and south of the border. The demand for psychologists is growing, especially as baby-boomers age. With the proper documentation, psychologists can develop quite nice practices in areas in Mexico that have a large expat community. Social workers would do well to get nursing home experience north of the border and then look for those same positions in the growing American assisted living and nursing home community in Mexico. These careers also require a degree and speaking Spanish would be a huge plus here as well. Medicare will soon be coming to Mexico, so keep these career areas in mind.
Information Technology does not translate well to finding a job in Mexico because Mexico is the Godzilla of Information Technology in the 21st century. However, this does not mean that there are no jobs for Americans in this area in Mexico. One could, given time and financial backing, build quite a nice web design practice. It would be tough going and many fall by the wayside, but it can be done. The best IT jobs are the remote positions in which Network Systems and Data Analysts work for American companies online, get paid in dollars, and are allowed to live anywhere in the world they want to live. This is a highly competitive job market and a degree in Information Technology or Computer Programming is a must.
Professional Services included careers such as: paralegals, financial services, accountants and auditors. Many Americans think there would be opportunities for them as paralegals in Mexico. This is probably not the case because a rapidly growing segment of the Mexican legal community is bilingual. Financial services does offer an open career path but, like Web Design, would take a good deal of financial backing, time and proximity to large expat communities to build a successful practice. Accounting, on the other hand, coupled with a little financial services background, is a real winner for the potential expat. American and Canadian expats both need tax experts with whom they feel comfortable. If that tax person just so happens to know their way around Social Security rules and how to use IRA money to purchase investment property, then so much the better! This is a wide-open field that is just coming into its own for American and Canadian accountants who want to live in Mexico. All of the professional services careers require a degree and, if the career seeker is planning on moving to Mexico, the ability to speak Spanish is strongly recommended.
The best future opportunity for gringos in Mexico is the one that is now expected to become the fastest growing segment of the professional and business services sector: Employment Services. A degree in Human Resource Management and the ability to speak Spanish translates here to having one’s finger on the pulse of every expat job market in Mexico. Here too there are online jobs with some of the largest employment companies in the world. They need recruiters and placement specialists who will be paid in U.S. dollars and are allowed to live anywhere they want to live. Although this too is a competitive environment, its rewards make it well worth investigating.
Understanding the Mexican culture, the south of the border job market and its rules, and what Americans are and are not allowed to do in Mexico will make it easier than ever before for younger Americans and Canadians to make the leap into a new life in Mexico, where investing in a secure future is still a reality and where the quality of life is better than ever.
Resource: Ten Careers That Make Employers Look for You
Friday, September 11, 2009
Medicare In Mexico
By Richard C. Morais, Forbes.com
American retirees push Congress to allow Medicare benefits in Mexico
WASHINGTON -- The U.S. government should pick up the cost of health care for the elderly Americans living in Mexico. That's the gist of a new lobbying effort aimed at pushing Washington into covering foreign medical expenses for the first time via its sprawling Medicare programs. There are over 1 million U.S. citizens living south of the border, many of them retirees.
The government's current position is that retired citizens cannot claim benefits for medical treatments received overseas, even if they paid into the Medicare system during their working lives.
The U.S. government is worried that creating a Mexican Medicare exemption might be too complicated and costly to implement and would open the door for Americans in countries as far afield as Poland and Thailand to press for similar benefits, according to David Warner, a professor of health care policy at the University of Texas at Austin and a specialist on Medicare in Mexico.
Paul Crist, a former aid to Sen. Paul Sarbanes, D-Md., now running a hotel in Puerto Vallarta, Mexico, isn't buying it. Last March, Crist founded the non-profit Americans For Medicare In Mexico. The American businessman has since lobbied 85 members in the U.S. Congress to get Medicare accepted south of the border.
It is Mexico's unique proximity to America that makes the whole process economically viable, he says. The current inflexible Medicare benefits system is the reason why 64% of retired Americans in Mexico currently return to the U.S. for medical treatment; the remaining U.S. retirees are getting treated in Mexico but picking up the costs themselves.
They can pay out-of-pocket because "health care is extremely affordable in Mexico with or without health insurance," as are "comprehensive private insurance policies," according to MedToGo.com, a Web site owned and operated by U.S. physicians.
Comment On This Story
An office visit to a doctor in a Mexican city typically runs between $30 and $40, according to MedToGo, while a hospital room costs $90 to $100 a night. Besides private health care insurance, the Mexican Institute of Social Security (which goes by the Spanish initials IMSS) provides affordable, if basic, health insurance for all Mexican residents, regardless of nationality. Studies suggest that health care services are 70% less expensive in Mexico than in the U.S.
If Medicare were accepted in Mexico, the 64% of American retirees currently flying back to the U.S. for expensive care would instead opt for treatment nearer their homes, cutting Medicare's overall costs by a minimum of 22% net, Crist figures. The Mexican government, hoping to lure more retirees from the U.S., including those born in Mexico, is largely open to accepting Medicare, says Professor Warner.
So is the U.S. Congress, claims Crist. "Response has been quite positive, especially on the House side," he says.
But the offices of Reps. Jim McDermott, D-Wash., Carolyn Maloney, D-N.Y., and other sympathetic legislators have also told Crist that this year they have too much on their plate, and that it would be politically wiser to introduce a stand-alone Mexico-Medicare bill next year, separate from the complex health care reform package currently working its way through Capitol Hill.
Professor Warner, who also supports the granting of Medicare coverage in Mexico, says an in-depth three-year Mexico-Medicare pilot project is needed to better understand the economics, determine whether Mexican health care meets Medicare's quality standards and determine if the payment system is sufficiently free of fraud.
"I don't think it need be a big deal," he adds. "The Center for Medicare & Medicaid Services ... is taking the position that Congress has to give it [a special] waiver to pay overseas. But this does not require a large appropriation of money. If any."
While AARP, the retiree interest group, has yet to take a position and did not respond to Forbes' request for comment, Crist's lobbying efforts appear to be picking up support, including from real estate developers hoping to build assisted-living villages for American retirees in Mexico and influential lobbying groups, including the Association of Americans Resident Overseas.
The association and others are instructing members to send letters to their congressional representatives, urging that at minimum a demonstration project be undertaken to study the consequences of accepting Medicare benefits in Mexico.
"As an American who has worked outside the USA, I will be eligible for Medicare benefits, having paid for them during my working life. Because I live outside the USA, however, I will not be able to receive these benefits in the country where I live," one letter from the AARO states.
In a year when U.S. politicians have been battered by constituents' claims that the U.S. government is trying to take away their medical choices, a potentially cost-saving pilot allowing for more choice in Medicare seems, on the surface, a political slam-dunk.
It would also help ease immigration pressure: Long-term U.S. residents who were born in Mexico, and are interested in returning when they retire, would no longer be reluctant to do so for fear of losing their Medicare benefits.
American retirees push Congress to allow Medicare benefits in Mexico
WASHINGTON -- The U.S. government should pick up the cost of health care for the elderly Americans living in Mexico. That's the gist of a new lobbying effort aimed at pushing Washington into covering foreign medical expenses for the first time via its sprawling Medicare programs. There are over 1 million U.S. citizens living south of the border, many of them retirees.
The government's current position is that retired citizens cannot claim benefits for medical treatments received overseas, even if they paid into the Medicare system during their working lives.
The U.S. government is worried that creating a Mexican Medicare exemption might be too complicated and costly to implement and would open the door for Americans in countries as far afield as Poland and Thailand to press for similar benefits, according to David Warner, a professor of health care policy at the University of Texas at Austin and a specialist on Medicare in Mexico.
Paul Crist, a former aid to Sen. Paul Sarbanes, D-Md., now running a hotel in Puerto Vallarta, Mexico, isn't buying it. Last March, Crist founded the non-profit Americans For Medicare In Mexico. The American businessman has since lobbied 85 members in the U.S. Congress to get Medicare accepted south of the border.
It is Mexico's unique proximity to America that makes the whole process economically viable, he says. The current inflexible Medicare benefits system is the reason why 64% of retired Americans in Mexico currently return to the U.S. for medical treatment; the remaining U.S. retirees are getting treated in Mexico but picking up the costs themselves.
They can pay out-of-pocket because "health care is extremely affordable in Mexico with or without health insurance," as are "comprehensive private insurance policies," according to MedToGo.com, a Web site owned and operated by U.S. physicians.
Comment On This Story
An office visit to a doctor in a Mexican city typically runs between $30 and $40, according to MedToGo, while a hospital room costs $90 to $100 a night. Besides private health care insurance, the Mexican Institute of Social Security (which goes by the Spanish initials IMSS) provides affordable, if basic, health insurance for all Mexican residents, regardless of nationality. Studies suggest that health care services are 70% less expensive in Mexico than in the U.S.
If Medicare were accepted in Mexico, the 64% of American retirees currently flying back to the U.S. for expensive care would instead opt for treatment nearer their homes, cutting Medicare's overall costs by a minimum of 22% net, Crist figures. The Mexican government, hoping to lure more retirees from the U.S., including those born in Mexico, is largely open to accepting Medicare, says Professor Warner.
So is the U.S. Congress, claims Crist. "Response has been quite positive, especially on the House side," he says.
But the offices of Reps. Jim McDermott, D-Wash., Carolyn Maloney, D-N.Y., and other sympathetic legislators have also told Crist that this year they have too much on their plate, and that it would be politically wiser to introduce a stand-alone Mexico-Medicare bill next year, separate from the complex health care reform package currently working its way through Capitol Hill.
Professor Warner, who also supports the granting of Medicare coverage in Mexico, says an in-depth three-year Mexico-Medicare pilot project is needed to better understand the economics, determine whether Mexican health care meets Medicare's quality standards and determine if the payment system is sufficiently free of fraud.
"I don't think it need be a big deal," he adds. "The Center for Medicare & Medicaid Services ... is taking the position that Congress has to give it [a special] waiver to pay overseas. But this does not require a large appropriation of money. If any."
While AARP, the retiree interest group, has yet to take a position and did not respond to Forbes' request for comment, Crist's lobbying efforts appear to be picking up support, including from real estate developers hoping to build assisted-living villages for American retirees in Mexico and influential lobbying groups, including the Association of Americans Resident Overseas.
The association and others are instructing members to send letters to their congressional representatives, urging that at minimum a demonstration project be undertaken to study the consequences of accepting Medicare benefits in Mexico.
"As an American who has worked outside the USA, I will be eligible for Medicare benefits, having paid for them during my working life. Because I live outside the USA, however, I will not be able to receive these benefits in the country where I live," one letter from the AARO states.
In a year when U.S. politicians have been battered by constituents' claims that the U.S. government is trying to take away their medical choices, a potentially cost-saving pilot allowing for more choice in Medicare seems, on the surface, a political slam-dunk.
It would also help ease immigration pressure: Long-term U.S. residents who were born in Mexico, and are interested in returning when they retire, would no longer be reluctant to do so for fear of losing their Medicare benefits.
Saturday, September 5, 2009
Baby Boomers Will Drive Real Estate Growth
Baby boomers have been a driving force in many areas of the economy, culture and consumer attitudes for several decades. As the oldest boomers approach retirement in the next few years they will begin contemplating not just whether to retire, but also where they want to live in the next stage of their life. One big component of this decision is the housing choices that boomers will make as they decide whether to sell a home, relocate or invest in real estate.
As a group, baby boomers comprise the largest population cohort in the history of the United States & Canada. The size of the group gives it vast influence over North American politics, popular cultural, and of course, real estate & interantional real estate.
To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow.
Even that the study is from 2006, and that we have lived tremendous times lately, that is exactly why the name of the study was "Baby Boomers and Real Estate: Today and Tomorrow". Demographics are demographics, and Baby Boomers are Baby Boomers. "Baby Boomers are the most powerful consumers in the marketplace today and will continue to be, regradless of the economic climate, for many years to come." - say David Weigelt & Jonathan Boehman in their great Book "Dot Boom."
Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow
As a group, baby boomers comprise the largest population cohort in the history of the United States & Canada. The size of the group gives it vast influence over North American politics, popular cultural, and of course, real estate & interantional real estate.
To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow.
Even that the study is from 2006, and that we have lived tremendous times lately, that is exactly why the name of the study was "Baby Boomers and Real Estate: Today and Tomorrow". Demographics are demographics, and Baby Boomers are Baby Boomers. "Baby Boomers are the most powerful consumers in the marketplace today and will continue to be, regradless of the economic climate, for many years to come." - say David Weigelt & Jonathan Boehman in their great Book "Dot Boom."
Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow
Wednesday, August 5, 2009
The Death of Foreign Earned Income Exclusions?
Copyright © 2009 Nick Hodges
President Obama is tagging your Foreign Earned Income Exemption to help pay for huge federal budget deficits. He thinks to hide this motive behind recent White House announcements about U.S. companies, providing smokescreens such as: "I want to see our companies remain the most competitive in the world," and "...the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."
The reality is that with tax gaps estimated in the $400 billion range, this administration is hard-pressed to come up with new sources of revenues to fill the deficit. It is estimated that offshore tax abuses cause the United States to lose approximately $100 billion each year in tax revenues. Recovering these funds represent a substantial portion of the annual U.S. tax gap, which is why President Obama has authorized an additional $128 million for the 2010 IRS budget, which includes the addition of 800 new IRS agents. Do not be fooled, they have declared war on YOU and are coming after YOUR money.
First, they are going after the companies you work for because they see companies operating abroad as a viable source of additional revenues. Currently, companies with overseas operations pay U.S. taxes only if they bring the profits back to the United States. They can defer paying U.S. taxes indefinitely if they keep the profits offshore. Obama's plan, which would take effect in 2011, cracks down on these loopholes so that companies would no longer be able to write off domestic expenses for generating profits abroad. It is estimated that this change alone would generate $210 billion in new taxes over the next 10 years, making a modest dent in the forecasted $1.8 trillion federal deficit. Rest assured, this administration will encourage any possible avenue to be able to bring these monies back into the U.S.
And, they are coming after YOU. The recently released IRS report on the 2006 tax year indicates that the Foreign Earned Income Exclusion might be another modest source for helping to fill the tax gap. In tax year 2006, about U.S. taxpayers living abroad reported approximately $36.7 billion in foreign-earned income and claimed nearly $18.4 billion in income exclusions. And that was three years ago. There are more Americans living and working abroad now than ever. Can't you just see the wheels turning in the minds of our government leaders? Removing the Foreign Earned Income Exclusion could add billions to U.S. tax coffers.
Perhaps you think they won't find YOU. The historic legal struggle that has cracked Switzerland's renowned reputation for banking secrecy is part of an on-going IRS quest to identify nearly 52,000 suspect offshore bank accounts. When the IRS increases their workforce by 800 new agents, they won't be hiring new college recruits. They have announced that they will be hiring the fancy attorneys and investment advisors that have helped hide those assets offshore. Now, multiply the number of suspected offshore accounts by the $10,000 or possibly $20,000 in allowable fines for non-reporting, and you come up with another modest number toward the filling of the U.S. tax gap. If you have been one of those 'tax evaders' thinking they can hide assets in offshore bank accounts, think again. The IRS is already searching for you, cracking the international bank privacy policies and gearing up to hire professionals to find you.
All of these items add up to making the American Expatriate look like a great big piggy bank to the current administration. While there will likely be a huge fight in Congress regarding closing the corporate loopholes, it is even more likely that the tax benefits associated with your Foreign Earned Income Exclusion will be taken from you. Fines for unreported bank accounts will soon become automatic bills. This means that for you, the individual American Expatriate, the stakes are high and getting higher if you seek to hide your income off-shore or evade paying U.S. taxes on that income.
What action do you need to take as an expatriate? Stay abreast of the latest information that develops about the foreign earned income exclusion. The best way to accomplish this is to work with a reputable advisor who will focus on keeping you out of the scrutiny of the IRS by keeping your activities well above board and within the law. Your advisor must be well-versed in the nuances of expatriate tax law, so check with your advisor about his/her expertise in this arena and be ensure you've chosen your advisor wisely.
--------------------------------------------------------------------------------
Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com
President Obama is tagging your Foreign Earned Income Exemption to help pay for huge federal budget deficits. He thinks to hide this motive behind recent White House announcements about U.S. companies, providing smokescreens such as: "I want to see our companies remain the most competitive in the world," and "...the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."
The reality is that with tax gaps estimated in the $400 billion range, this administration is hard-pressed to come up with new sources of revenues to fill the deficit. It is estimated that offshore tax abuses cause the United States to lose approximately $100 billion each year in tax revenues. Recovering these funds represent a substantial portion of the annual U.S. tax gap, which is why President Obama has authorized an additional $128 million for the 2010 IRS budget, which includes the addition of 800 new IRS agents. Do not be fooled, they have declared war on YOU and are coming after YOUR money.
First, they are going after the companies you work for because they see companies operating abroad as a viable source of additional revenues. Currently, companies with overseas operations pay U.S. taxes only if they bring the profits back to the United States. They can defer paying U.S. taxes indefinitely if they keep the profits offshore. Obama's plan, which would take effect in 2011, cracks down on these loopholes so that companies would no longer be able to write off domestic expenses for generating profits abroad. It is estimated that this change alone would generate $210 billion in new taxes over the next 10 years, making a modest dent in the forecasted $1.8 trillion federal deficit. Rest assured, this administration will encourage any possible avenue to be able to bring these monies back into the U.S.
And, they are coming after YOU. The recently released IRS report on the 2006 tax year indicates that the Foreign Earned Income Exclusion might be another modest source for helping to fill the tax gap. In tax year 2006, about U.S. taxpayers living abroad reported approximately $36.7 billion in foreign-earned income and claimed nearly $18.4 billion in income exclusions. And that was three years ago. There are more Americans living and working abroad now than ever. Can't you just see the wheels turning in the minds of our government leaders? Removing the Foreign Earned Income Exclusion could add billions to U.S. tax coffers.
Perhaps you think they won't find YOU. The historic legal struggle that has cracked Switzerland's renowned reputation for banking secrecy is part of an on-going IRS quest to identify nearly 52,000 suspect offshore bank accounts. When the IRS increases their workforce by 800 new agents, they won't be hiring new college recruits. They have announced that they will be hiring the fancy attorneys and investment advisors that have helped hide those assets offshore. Now, multiply the number of suspected offshore accounts by the $10,000 or possibly $20,000 in allowable fines for non-reporting, and you come up with another modest number toward the filling of the U.S. tax gap. If you have been one of those 'tax evaders' thinking they can hide assets in offshore bank accounts, think again. The IRS is already searching for you, cracking the international bank privacy policies and gearing up to hire professionals to find you.
All of these items add up to making the American Expatriate look like a great big piggy bank to the current administration. While there will likely be a huge fight in Congress regarding closing the corporate loopholes, it is even more likely that the tax benefits associated with your Foreign Earned Income Exclusion will be taken from you. Fines for unreported bank accounts will soon become automatic bills. This means that for you, the individual American Expatriate, the stakes are high and getting higher if you seek to hide your income off-shore or evade paying U.S. taxes on that income.
What action do you need to take as an expatriate? Stay abreast of the latest information that develops about the foreign earned income exclusion. The best way to accomplish this is to work with a reputable advisor who will focus on keeping you out of the scrutiny of the IRS by keeping your activities well above board and within the law. Your advisor must be well-versed in the nuances of expatriate tax law, so check with your advisor about his/her expertise in this arena and be ensure you've chosen your advisor wisely.
--------------------------------------------------------------------------------
Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com
English Comes to Mexico
By: Khaki Scott
Many Americans and Canadians hesitate to purchase property in Mexico simply because they cannot get over their fear that they may, somehow, be taken advantage of by unscrupulous real estate agents and attorneys because they do not speak Spanish. That is, in reality, probably not a significant problem anywhere in Mexico, since many Mexican attorneys speak fluent English, as do their staff members. However, this innate fear of doing business in a foreign language is now on the way to being completely resolved, especially in states such as Tamaulipas and Nuevo Leon.
Tamaulipas has officially declared itself bilingual and now English is mandatory in public schools for all of its over 300,000 public school children. Nuevo Leon is right behind Tamaulipas and will be officially bilingual in the very near future. Other states, such as Chihuahua and the Mexico City area are also pushing hard to become officially bilingual. Still other states, such as the State of Yucatan, have long required English in their public schools but have not yet begun to talk of becoming officially bilingual.
The reasoning behind the pressure to become bilingual is to provide the Mexican people with the tools necessary to protect themselves in the global English speaking marketplace. Speaking English gives them entre to the world of technology, a wave that Mexico is riding into the 21st century and beyond. Speaking English also allows them to defend themselves in difficult situations when they are in an English speaking area, such as the United States. It is a happy accident that the Mexicans’ ability to speak and write in English is translating into providing Americans and Canadians with the same protective tools necessary to protect themselves when they come to invest in real estate in Mexico.
There is a flip side to the news that the Mexican people in several states are now speaking English, or are moving rapidly in the direction of speaking English in their business environments. That is the risk that potential American and Canadian real estate investors may end up trusting anyone who can speak English, over someone who might be both honest and ethical, but only speaks Spanish. Gringo on gringo fraud and deception has long been a problem in all forms of business in Mexico, and none more so than in real estate. Therefore, it is still strongly advised that every potential investor in Mexican real estate who only speaks English checks with local expat communities and/or local consulate offices for a list of Mexican attorneys who not only speak English, but whom they can trust to always have their best interests at heart
Many Americans and Canadians hesitate to purchase property in Mexico simply because they cannot get over their fear that they may, somehow, be taken advantage of by unscrupulous real estate agents and attorneys because they do not speak Spanish. That is, in reality, probably not a significant problem anywhere in Mexico, since many Mexican attorneys speak fluent English, as do their staff members. However, this innate fear of doing business in a foreign language is now on the way to being completely resolved, especially in states such as Tamaulipas and Nuevo Leon.
Tamaulipas has officially declared itself bilingual and now English is mandatory in public schools for all of its over 300,000 public school children. Nuevo Leon is right behind Tamaulipas and will be officially bilingual in the very near future. Other states, such as Chihuahua and the Mexico City area are also pushing hard to become officially bilingual. Still other states, such as the State of Yucatan, have long required English in their public schools but have not yet begun to talk of becoming officially bilingual.
The reasoning behind the pressure to become bilingual is to provide the Mexican people with the tools necessary to protect themselves in the global English speaking marketplace. Speaking English gives them entre to the world of technology, a wave that Mexico is riding into the 21st century and beyond. Speaking English also allows them to defend themselves in difficult situations when they are in an English speaking area, such as the United States. It is a happy accident that the Mexicans’ ability to speak and write in English is translating into providing Americans and Canadians with the same protective tools necessary to protect themselves when they come to invest in real estate in Mexico.
There is a flip side to the news that the Mexican people in several states are now speaking English, or are moving rapidly in the direction of speaking English in their business environments. That is the risk that potential American and Canadian real estate investors may end up trusting anyone who can speak English, over someone who might be both honest and ethical, but only speaks Spanish. Gringo on gringo fraud and deception has long been a problem in all forms of business in Mexico, and none more so than in real estate. Therefore, it is still strongly advised that every potential investor in Mexican real estate who only speaks English checks with local expat communities and/or local consulate offices for a list of Mexican attorneys who not only speak English, but whom they can trust to always have their best interests at heart
Tuesday, August 4, 2009
You Can Receive Your Social Security Benefits Outside The United States
You Can Receive Your Social Security Benefits Outside The United States
Yes, you can receive your social security benefits outside the United States. If fact, you can have them deposited into your foreign bank account. So, fear of not receiving your social security benefit checks should not deter you from your expatriate living dreams and life abroad.
This concern about not receiving your social security check abroad can be alleviated it you are aware of certain stipulations. This discussion is primarily for U.S. citizens living abroad, since there are specific regulations that relate to citizens of other countries which are eligible for social security benefits because of their work history in the U.S. Three important questions for you to consider carefully before making the move follow:
1. When are you outside the United States? The Social Security Administration says you are considered outside the U.S. if you are not in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands or American Samoa. Once you have been out of the U.S. for at least 30 days in a row, you are considered to be outside the country until you return and stay in the U.S. for at least 30 days in a row. If you are not a U.S. citizen, you also may have to prove that you were lawfully present in the U.S. for that 30-day period.
2. How and where can I receive my Social Security benefit checks? The easiest solution is to have your benefit checks deposited into a U.S. bank and use your ATM or debit card to access your money. If you wish to have the money deposited abroad there are other considerations. Presently Social Security lists 44 countries in which you can have your benefits directly deposited to a bank in those countries. There are likewise certain countries to which by law social security benefit checks may not be sent. These can change but as of the time of my writing this, the U.S. Treasury Department forbids sending social security benefits to Cuba and North Korea. In addition, Social Security restrictions prohibit sending payments to individuals in Cambodia, Vietnam or areas that were in the former Soviet Union (other than Armenia, Estonia, Latvia, Lithuania and Russia).
3. Can I lose my benefits by living abroad? Yes, but only if you do not abide by the governmental stipulations that govern your benefits. In that sense, it is no different living abroad than living in the United States. Additionally, you may periodically be sent a questionnaire from Social Security asking for update information. If you fail to send this back in a timely fashion it could result in stoppage of your benefit payments. For the most part, retention of your benefits is no different when living abroad than when living in the U.S.
Detailed information on all regulations for both the U.S. citizen and citizens of other countries who are living abroad can be found on the Social Security Online site. Educating yourself on the complete regulations relating to receiving your Social Security benefits abroad can make your expatriate living much smoother.
Yes, you can receive your social security benefits outside the United States. If fact, you can have them deposited into your foreign bank account. So, fear of not receiving your social security benefit checks should not deter you from your expatriate living dreams and life abroad.
This concern about not receiving your social security check abroad can be alleviated it you are aware of certain stipulations. This discussion is primarily for U.S. citizens living abroad, since there are specific regulations that relate to citizens of other countries which are eligible for social security benefits because of their work history in the U.S. Three important questions for you to consider carefully before making the move follow:
1. When are you outside the United States? The Social Security Administration says you are considered outside the U.S. if you are not in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands or American Samoa. Once you have been out of the U.S. for at least 30 days in a row, you are considered to be outside the country until you return and stay in the U.S. for at least 30 days in a row. If you are not a U.S. citizen, you also may have to prove that you were lawfully present in the U.S. for that 30-day period.
2. How and where can I receive my Social Security benefit checks? The easiest solution is to have your benefit checks deposited into a U.S. bank and use your ATM or debit card to access your money. If you wish to have the money deposited abroad there are other considerations. Presently Social Security lists 44 countries in which you can have your benefits directly deposited to a bank in those countries. There are likewise certain countries to which by law social security benefit checks may not be sent. These can change but as of the time of my writing this, the U.S. Treasury Department forbids sending social security benefits to Cuba and North Korea. In addition, Social Security restrictions prohibit sending payments to individuals in Cambodia, Vietnam or areas that were in the former Soviet Union (other than Armenia, Estonia, Latvia, Lithuania and Russia).
3. Can I lose my benefits by living abroad? Yes, but only if you do not abide by the governmental stipulations that govern your benefits. In that sense, it is no different living abroad than living in the United States. Additionally, you may periodically be sent a questionnaire from Social Security asking for update information. If you fail to send this back in a timely fashion it could result in stoppage of your benefit payments. For the most part, retention of your benefits is no different when living abroad than when living in the U.S.
Detailed information on all regulations for both the U.S. citizen and citizens of other countries who are living abroad can be found on the Social Security Online site. Educating yourself on the complete regulations relating to receiving your Social Security benefits abroad can make your expatriate living much smoother.
Sunday, August 2, 2009
Playa del Carmen Real Estate Booming
Playa del Carmen Real Estate Booming
The Playa del Carmen real estate is one of the highest of demand here in the country of Mexico. Many economical factors and general trends over the past two years throughout the North American and European economies are working to place the Mexico real estate market as one of the most attractive for investors throughout the world. Near forty percent 40% of the Riviera Maya Properties are being purchased by Mexican Foreigners with the Americans and Canadians leading the countries with the highest amount of such international real estate investors.
A very popular investment option has been the Mexico condo options. In this real estate opportunity, buyers are able to reserve a condo unit before the construction has been realized. On some occasions, the developer may offer Mexican investment construction options “off the plan” before a parcel of land has even been purchased. The risks are compensated with large discounted prices on the condo units which many international buyers have found extremely attractive given international averages on Ocean Front Condo prices. The procedure normally requires a reservation quantity to be paid ranging from $5,000 up to $10,000 usd. This money is refundable upon request and may reserve a unit for an average of 20 days, enough time for the investor and his legal counsel to study and analyze the promissory contract on the Playa del Carmen Real Estate. If the buyer, upon review of the contract, decides to proceed on the investment opportunity, he will then be required to sign a promissory contract and forward another payment quantity. This hard contract deposit may range from 20% up to 90% depending on the developer or the negotiation of the particular operation. Other payments and payment plans may include monthly transfers or transfers based on construction milestones. Once the property is completed, the developer can proceed on obtaining a Mexico Condominium Regimen, which will then allow for delivery of the physical property as well as transferring the legal rights to the Mexico property.
International buyers are playing a significant role in the demands for Playa del Carmen real estate. With the tourism and occupancy rates higher than years before, and projections stronger than any historical figures on record, the appreciation on Riviera Maya Real Estate continues to grow despite slowdowns in the United States market. As more tourists come to the area, more fall in love with the local Caribbean Beaches, Mexican history, and the warm Spanish hospitality
The Playa del Carmen real estate is one of the highest of demand here in the country of Mexico. Many economical factors and general trends over the past two years throughout the North American and European economies are working to place the Mexico real estate market as one of the most attractive for investors throughout the world. Near forty percent 40% of the Riviera Maya Properties are being purchased by Mexican Foreigners with the Americans and Canadians leading the countries with the highest amount of such international real estate investors.
A very popular investment option has been the Mexico condo options. In this real estate opportunity, buyers are able to reserve a condo unit before the construction has been realized. On some occasions, the developer may offer Mexican investment construction options “off the plan” before a parcel of land has even been purchased. The risks are compensated with large discounted prices on the condo units which many international buyers have found extremely attractive given international averages on Ocean Front Condo prices. The procedure normally requires a reservation quantity to be paid ranging from $5,000 up to $10,000 usd. This money is refundable upon request and may reserve a unit for an average of 20 days, enough time for the investor and his legal counsel to study and analyze the promissory contract on the Playa del Carmen Real Estate. If the buyer, upon review of the contract, decides to proceed on the investment opportunity, he will then be required to sign a promissory contract and forward another payment quantity. This hard contract deposit may range from 20% up to 90% depending on the developer or the negotiation of the particular operation. Other payments and payment plans may include monthly transfers or transfers based on construction milestones. Once the property is completed, the developer can proceed on obtaining a Mexico Condominium Regimen, which will then allow for delivery of the physical property as well as transferring the legal rights to the Mexico property.
International buyers are playing a significant role in the demands for Playa del Carmen real estate. With the tourism and occupancy rates higher than years before, and projections stronger than any historical figures on record, the appreciation on Riviera Maya Real Estate continues to grow despite slowdowns in the United States market. As more tourists come to the area, more fall in love with the local Caribbean Beaches, Mexican history, and the warm Spanish hospitality
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