relocation

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The Benefits & Challenges Of Maintaining A Retreat Property

Be smart when making the decision to purchase one
Friday, April 14, 2017, 6:18 PM

Executive Summary

  • The matrix of factors to consider in a Plan B residence
  • What to know abot eacf of the five key factors
  • Not all second homes are fully functional
  • The challenges & benefits of maintaining two separate fully functional residences

If you have not yet read Part 1: Does Your Plan B Include a Second Place to Live if Plan A Doesn’t Work Out? available free to all readers, please click here to read it first.

In Part 1 we reviewed the three basic categories of Plan B Residences: temporary (to ride out an emergency); semi-permanent (to weather a recession/loss of income) and permanent (replacing Plan A residence with Plan B residence).

In Part 2, we’ll consider a Matrix of Factors that will help us choose the inevitable trade-offs of costs and benefits, and add a category—permanent maintenance of two fully functional residences.

The Matrix of Factors

While there are many factors in any Plan B, I’ve pared the key factors in Plan B residences down to five: cost, control, security, depth of resources and functions enabled. Each is on a sliding scale from low to high. There are costs and benefits to each being low, medium or high.

Let’s go over each factor.

Cost:

While cost measured by price is self-explanatory, this also includes opportunity costs (what else could have been accomplished with the money?), time (the hassle factor of how long it will take to get something done) and labor—how much labor must be invested to accomplish a goal.

There is even a stress cost: how much will this goal/project add to my stress load? Even if the money needed is on hand, the overall cost can be high in terms of time, hassle, stress and opportunity cost.

Control:

By this I mean ownership (of the land, the house, etc.), contractual control (of jointly owned assets, of any hired labor, etc.) and functional control, i.e. residency.  As many have discovered to their regret, it’s possible to have legal ownership/control but end up with effectively zero functional control, as your house might be occupied by squatters or family members who morphed from allies to enemies.

Control is important because... » Read more

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snowbrains.com

Does Your Plan B Include a Second Place to Live If Plan A Doesn’t Work Out?

More on retreats
Friday, April 14, 2017, 6:18 PM

Maintaining a functional separate retreat residence is a responsibility that comes with real costs and complexities. But if done right, it can yield great returns during both good times and bad. » Read more

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TrueActivist.com

Having A 'Retreat' Property Comes With Real Challenges

About that bug-out plan...
Friday, March 31, 2017, 1:07 PM

A flurry of recent headlines has highlighted the financial elites’ interest in secure retreats (a.k.a. bug-out locations) should the trucks stop rolling. 

The intuitive solution to many, from the super-wealthy on down, is some version of a hideaway in the woods: a remote locale known only to the owner, where the owner can burrow safely away until the storm passes.

It turns out security and independence are tricky qualities, and surprising reversals are not just possible but likely: what appears to be secure at first glance might be highly insecure, and independence turns out to be highly relative. » Read more

Step 7: Cultural Capital

The guidance provided in this section presumes you have already read the chapter on Cultural Capital in our book, Prosper!: How to Prepare for the Future and Create a World Worth Inheriting. If you have not, we strongly recommend doing so first.

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Jingran Hu | Dreamstime.com

Rising Resource Costs Escalate Odds of Global Unrest

The critical 40% income-to-food threshold
Tuesday, May 13, 2014, 10:34 PM

As we observe the growing unrest in Ukraine, there is the usual rush to ascribe a cause. Was it meddling by the West? Russia? Was it corruption by prior leaders? Simmering resentments that stretch back centuries that finally erupted?

The answers apply to Ukraine as well as to many other countries. Which is why having an accurate framework, a clear 'lens' for seeing what is actually transpiring, will prove far more useful to you than 99% of what you will hear on the ni » Read more

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Keremgo | Dreamstime.com

What To Avoid When Relocating

Whether in or outside of your home country
Tuesday, May 13, 2014, 10:34 PM

Executive Summary

  • The math explaining why Ukraine was a predictable flashpoint
  • Why the IMF's "help" is about to make the Ukranian situation a lot worse
  • Implications for those considering relocating inside or outside of the US
  • Chris' "must have" ingredients that make a potential relocation destination worth considering

If you have not yet read Rising Resource Costs Escalate Odds of Global Unrest, available free to all readers, please click here to read it first.

Ukraine

Now back to Dave’s original series of questions. I think that Ukraine was primed and ready for a shove into instability.

There’s a well known psychology experiment where two male rats can be placed in a cage where they will live somewhat happily as long as they have sufficient food. However, if painful electric shocks are applied to the floor of the cage in such a way that the rats cannot escape, the two males will begin fighting.

Keep up the shocks long enough and the fighting will be severe, even to the death.

What’s happening? The rats lack the context to know that the shocks are coming from outside somewhere. The only thing they can project their discomfort onto is the only other living thing in their sight – the other rat.

So they fight.

Similarly, the people of Ukraine lack the context to know just who is to blame for the unpleasant conditions in which they live and seemingly cannot escape. So they blame each other and fight each other. They blame the President and so he’s gone. But the next one, and the ones following, will be just as bad; and eventually they will each be in turn ousted, too.

The problem is the shocks are not being caused by players they can see and blame. We’ll get to more on that in a minute.

By the numbers, the ...: » Read more

Featured Discussion

Northwest US Relocation Tour

Northwest US Relocation Tour

A reader prepares for a relocation roadtrip and asks for ideas on good places to visit

Featured Discussion

Best US places to relocate

Best US places to relocate

Revisting the ever-popular question: where to relocate in the US?

What Should I Do?

Photo: Amanda Witman

Moving to Town

One family’s journey toward greater resilience
Tuesday, October 30, 2012, 2:54 PM

Last year I was living with my children in a worn 1969 split-level ranch-style house on an acre, ten rural miles from the nearest town hub (technically a city, with a population of 12,000.)  This year we moved to a 1920s two-story Victorian on a tenth of an acre, right in the heart of that city.  I’d like to share how we made that decision and increased our resilience in the process. » Read more

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A Primer for Those Considering Expatriation

Thursday, March 22, 2012, 9:32 AM

A growing number of Americans are frustrated with the way in which their economy has been managed and are becoming increasingly concerned about future measures the governement may take to keep its coffers full.

A question that is arising with increasing frequency is: does expatraition offer a viable protection to those concerned about a more financially-intrusive US system?

The answer is 'yes', it does offer a completely legal solution for ending your obligation to pay US income, captial gains, and gift taxes on your worldwide income. But it is certainly not for everyone and should only be pursued after lengthy and diligent consideration.

And before you begin dreaming of a tax-free future, you should realize that the United States imposes taxes on a broader basis than any other country. The United States is one of two countries, and is the only major country, that imposes significant income, capital gains, gift, and estate taxes on its non-resident citizens.

In virtually all other countries, individuals end their liability to pay income tax after a sustained period of non-residence, generally one year or longer. But to legally and permanently end U.S. tax liability on their worldwide income, U.S. citizens must also give up their U.S. citizenship and passport. This process is called "expatriation." » Read more