LAKESIDE LIVING

 


INTRODUCTION

    If you are thinking about living at Lakeside or you have recently arrived and are still settling in, there are some basic facts you should know, particularly about health, the law, your personal safety, and finances. Once you have these taken care of, you can concentrate on what brought you here: enjoying yourself.

      The following paragraphs cover the basics. The observations of a chartered financial planner from California are given at the end of this section. The Legal section of this web site provides more information on Mexican law, courtesy of Ajijic Legal Services.

   Since so many retirees from Canada and the US live here, there is an infrastructure catering to their needs. You can buy almost anything here that you want, many shops and restaurants have English-speaking employees, and there is a wide variety of clubs and organizations for expatriates. However, there are a number of factors that you should be aware of in order to make your stay as trouble free and enjoyable as possible. Detailed information is available at the Information Desk at LCS, from 10 am to 2 pm Monday through Saturday. A Mexican lawyer answers legal questions on the Patio at LCS from 10:30 am to 11:30 am on Mondays, Tuesdays and Thursdays. 

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BE LEGAL

      The following are summaries of more detailed info found in Legal Matters.

  • There are four immigration status options, FMT, FM-3, FM-2 and Inmigrado.

  • FMT is a temporary tourist visa, good for from three to six months. Renewing it requires a trip to the border. It is recommended only for initial trips to Mexico to determine if you might want to settle here.

  • FM-3 is good for five years, renewable yearly. It allows you to bring in one motor vehicle and one shipment of household goods. The FM-3 has a minimum income requirement of $1000 dollars per month for an individual and $500 dollars per month for a dependent. These income requirements are cut in half for those who own their home in Mexico. There is no limitation on how much time can be spent outside Mexico, as with the FM-2. FM-3 holders may drive foreign-plated cars. If the FM-3 is obtained outside Mexico it MUST be activated upon arrival.

  • FM-2  is good for five years, renewable yearly. It allows importation of one motor vehicle and a household goods shipment. It is intended for those who are considering permanent residence in Mexico. Minimum monthly income is 1300 US dollars or equivalent, and 650 dollars per dependent. These are cut in half for those owning their own home in Mexico.  Holders of an FM-2 cannot leave Mexico for more than three months a year. Holders of an FM-2 may legally drive foreign-plated cars. After holding FM-2 status for five years, you may apply for Inmigrado status.

  • Inmigrado gives all the privileges of a Mexican citizen except voting or holding political office. For example, an Inmigrado may hold a job without getting permission from the Mexican government as is required for FM-2 and FM-3. Inmigrado status may be applied for after having FM-2 status for five years. Inmigrados may not legally drive foreign-plated cars. No fees are required after initial granting of Inmigrado since there is no renewal.

  • You may import one car duty-free and drive it in Mexico as long as your FM-2 or FM-3 is valid. A Mexican or someone in Inmigrado status may not drive a foreign-plated car.

  • Mexican wills are good in the US or Canada, and American/Canadian wills are good in Mexico, but only after being probated in the country of origin. This can result in a considerable delay in disposing of property. If you have significant property in Mexico, including household goods, you should have a Mexican will made. Disposition of your house depends on how it is held, by direct ownership or by a trust (fideicomiso). Generally, houses held by direct deed go first to the surviving spouse or if no surviving spouse it is evenly divided among the children. A trust allows more flexible disposition but involves a substantial yearly payment to the holder of the trust. Check with your realtor and/or lawyer for the details.

  • Buying a house usually means paying for it in full at closing. There are almost no mortgages in Mexico; however, there is the possibility of financing under very limited circumstances.

  • Employees often come with the house, if you are buying one that has been lived in. The new owner incurs legal obligations if he/she keeps the existing maid or gardener. The result may be a substantial payment, according to Mexican law, if later on you want to let the employee go.

  • Post Life Planning is a program available at LCS to assist you to legally specify how you want your remains disposed of e.g., by cremation or burial. Having this specified in writing can make things much easier for your survivors.

 

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 SETTLING IN

  • Tips

  • Get maps of the area. These are available at the bookstore in Bugambilias Plaza (where Torito´s grocery store is located). You can also get maps at the LCS Information Desk. 

  • Get phone cards. The pay phones in Mexico do not take coins. Phone cards are available at the shops on the Ajijic Plaza.

  • Carry copies of your FM-3 or FM-2 and your drivers license in your car if foreign-plated.

  • Join the Lake Chapala Society and take advantage of the services and activities and local discounts.

  • Use cleaning solutions which contain bug repellent for mopping floors. One brand is Repelente.  Another is Ajax Expel.

  • Keep copies of Emergency Numbers by all your phones

  • Some approximations of metric to British measurements:

  • A meter is slightly more than a yard

  • A kilometer is six-tenths of a mile

  • A kilogram is slightly over two pounds. If you want about a pound of something ask for “Un medio kilo,” which is 1.1 pounds.

  • To convert Celsius to Fahrenheit approximately, multiply by two and add thirty. E.g., 20 Celsius is about 70 Fahrenheit (precisely, it is 68 F)

  • A hectare is two and a half acres

  • A square meter is about 11 square feet

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Paying Bills

 

  • The major bills are property tax, water, electric and telephone. You may also need to pay for your Internet service and for cable or satellite TV service.

  • Property tax is paid at the Chapala City Hall, at Madero #202. This bill is much lower than property taxes in the US or Canada, typically running from 300 to 1500 pesos (equivalent to 30 to 150 US dollars). There is a discount for paying early, in January or February. It must be paid yearly. 

  • The water bill is paid yearly.   The bill is due in January, with a discount for paying early. The yearly bill is calculated based on size of property, number of bathrooms, whether there is a pool or not, and other factors. It is not based on metered usage. Typical bills run from 1000 to 3000 pesos per year. If you are renting be sure you know whether water cost is included in the rent.

  • Electric bills may be paid on-line if you have an account with Banamex, Bancomer, Banorte, Santander, Serfin or Inbursa: go to http://www.cfe.gob.mx. Click on English in the upper right-hand corner, then follow the directions.
    Lloyd Investment Funds can be set up to pay your electric for you automatically, from money in your Lloyd account(s). If there are not sufficient funds to cover the bill, Lloyd will not pay and may not notify you, resulting in an unexpected cut off of electricity.
    In Ajijic, an automated kiosk downstairs in Bugambilias Plaza accepts your bill and payment. An additional location in Ajijic is at Pinturas Prisa (Prisa Paints), Carretera Pte #17, Interior 1. An attendant accepts bills for payment during mid-day hours.
    In Chapala, bills may be paid at Privada Zaragoza #3 (hard right at the Pemex station). The hours are M-F 8-2; other business until 3:30.
    In Jocotepec, electric bill payment location is at the corner of Hidalgo Sur and Vicente Guerrero at the traffic light.
    Some cities and associations have other payment locations, so be certain to check for your payment center.  The electric bill is issued every other month, and runs about 500 to 1500 pesos. Sometimes the bill is delivered to your residence, but even if it is not, you must pay on time or your electricity will be turned off. If your bill is due and you haven’t received it, go to the office with an old bill and they will look up what you owe on the computer. Electricity is metered, but the meter reader occasionally makes mistakes, so if your bill seems too high, check your meter yourself. There is a place on the back of the bill to fill in the correct reading.

  • The telephone bill is paid at the Telmex office on the Carretera #113 in Ajijic. The total cost is based on a set monthly fee, local calls over 100, long-distance within Mexico, and international long distance calls. 

 

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  Shopping

 

  • There are three supermarkets frequented by expatriates: El Torito in Bugambilias Plaza in Ajijic, Superlake in San Antonio (south side of the carretera just east of the Chapala bypass intersection), and Soriana in Chapala just north of the Pemex Station. Superlake carries an extensive selection of the brand names expatriates are used to, including Oriental foods. El Torito is less well stocked but less expensive. Soriana's selection is quite extensive. For staples, El Surtidor, (south side of the carretera west of the Colon signal in Ajijic, has good prices.

  • The most popular butcher shop is Tony’s, next to Superlake. La Despensa on the carretera in Ajijic has good beef cuts. Puritan Poultry at Hidalgo #101 in Riberas del Pilar has high quality chicken. El Torito has a meat section in the store.

  • Outdoor markets called tianguis are colorful, have a wide range of products, and can offer good prices. The Ajijic tianguis is held on Wednesday beside Bugambilias Plaza. The Chapala tianguis is the largest in the area and is held on Monday, on Madero across from the Pemex station (north end of town) and has better prices than the Ajijic tianguis. The Jocotepec tianguis is held on Thursday and has excellent produce. To reach it, continue through Jocotepec after arriving on the carretera, after turning left at the Plaza take the first right on Ramon Corona, and you will come to the tianguis in a few blocks.

  • Many residents make a trip to Sam’s, Wal*Mart or Costco in Guadalajara for nonperishable items, and stock up on basics like paper towels, toilet paper, canned and packaged goods, etc.

  • Eggs are cheaper by the kilo than by the dozen. For example, a kilo of brown eggs (red eggs or huevos rojos in Spanish) is 12 pesos per kilo, and gives you about 15 eggs.  A dozen eggs are 14 pesos, but come in fancy packaging.

  • Liquor is about the same price at the local liquor stores at Lakeside as it is in the megamarts in Guadalajara.  But look for specials in both places.  Some brand name wines, beers, and liquors cannot be obtained in Mexico or require costly special-ordering.

 

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 Getting Information

  • We are fortunate in having many English-language sources of information. This section summarizes some of the major sources, but there are numerous others, particularly clubs and organizations with focused interests such as bird watching and fishing.

  • The Lake Chapala Society Directory is given free to members upon publication each spring. It contains members’ names, addresses, phone numbers and e-mail addresses, as well as business ads and yellow pages, emergency numbers, addresses and phone numbers of consulates in Guadalajara, and more. The LCS also publishes a monthly Newsletter containing a summary of upcoming LCS activities and events, as well as medical news. The LCS Newsletter is available at LCS, on-line on this website, as well as in the free El Ojo del Lago magazine.

  • There are two English-language newspapers available locally: The Guadalajara Colony Reporter comes out weekly, Friday afternoons, and has comprehensive coverage of what is happening at Lakeside. The Miami Herald is more nationally and internationally oriented and comes out daily. The Reporter costs eleven pesos, and the Herald thirteen pesos at stores here. The Herald offers home delivery in much of Lakeside. Both publications are available at supermarkets, bookstores and magazine shops.

  • There are two free English-language monthly magazines: El Ojo del Lago and the Lake Chapala Review. Both contain articles on Mexican culture and history, local activities, etc. The Ojo appears on the first of the month, and contains a complete publication of the LCS Newsletter; the Review appears on the fifteenth, and contains a column featuring LCS news.

  • There are limited local sources for books. The bookstore in Bugambilias Plaza has a good selection of travel books and some of general interest. Sanborns, one block south of the Cathedral in Central Guadalajara, has a moderately extensive selection of books in English. Sandis on Tepeyac # 71B in the Colonia Chapalita area of Guadalajara has a good selection and will order books for you.  Their phone is (333) 121-0863 and e-mail address is sandibooks@sandibooks.com. You can order books over the Internet and have them delivered here. A popular site is Amazon.com, but there are many others; including Powells.com; try bookspot.com for more info. Shipping cost is about 9 dollars for one book, 11 dollars for two.

  • Some web sites are:

  • Chapala.com  is maintained by El Ojo del Lago magazine and Chapala Realty. It has numerous articles from the magazine and provides detailed maps of Lakeside towns

  • Magnificent Mexico is an interesting site maintained by Mildred Boyd. It outlines the history and anthropological side of Mexico.

  • Mexconnect.com gives a good overview of Mexico, in a monthly e-zine. Subscription is $30 USD per year, home page and some info has free access

  • Mexico-insights.com provides insights into living at Lakeside, monthly, written by two knowledgeable residents. Cost is $39.95 USD per year. You can view a complimentary copy before buying.

  • Go2mexico.com is a travel site for major tourist destinations in Mexico. Good info on golf courses.

  • Good books on Mexico and the Chapala area are.

  • Mexico´s Lake Chapala and Ajijic, Second Edition, by Teresa A. Kendrick. This book is for sale at LCS on the patio.

  • The Peoples Guide to Mexico by Carl Franz. A comprehensive guide to customs, courtesy, food, health and more from a somewhat roughing-it-at-minimum-cost perspective

  • Western Mexico – A Travelers Treasury, by Tony Burton

  • Bulletin boards can be the best source for home sales and rentals, miscellaneous items for sale, upcoming events, yard sales, etc. They can be found at the Lake Chapala Society, local supermarkets and post offices.

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Communicating

  • Telephone is a Telmex monopoly in this area. It is usually reliable but expensive for long-distance international calls. 

  • Consider getting a callback service or using voice-over-internet. You can get information on callback services by calling Roland at 766-0149, Nancy at 766-3040, or Vivianne at 766-0054. Callback charges are in the 20 cents per minute range, from Mexico to the US or Canada. 

  • You can also call from your computer to phones in other countries. Information on voice over the Internet is available at iConnectHere.com, dialpad.com and at Net2phone. Some people find voice over the Internet difficult to understand but it certainly saves money, running from 4 to 8 cents a minute.

  • Mail: There are four choices: the Mexican mail system; the LCS courier service; first-class mail via a mail service; and mail forwarding services, which provide a mail drop in the US by which you can receive mail here. 

  • Mexican mail is rather slow and can be unreliable. Typically mail sent through the Mexican postal service arrives at a US or Canadian address in two weeks to one month, but there are numerous horror stories of four to six month delays. 

  • The Lake Chapala Society offers free courier services for members only, in which volunteers heading north take a bag of regular-size letters with postage affixed and drop them in a mailbox after crossing the border. There are usually one or two volunteers per week. 

  • The two commercial mail services, Mailboxes Etc. and the Packing and Shipping Center, will courier mail from here to the US for 25 to 30 pesos per letter, and usually have one trip per week. For getting mail from the US or Canada, both Mailboxes and the Packing and Shipping service will provide a US address to which you can have mail sent, and then they ship it here to your private box at their facilities. This costs about 25 US dollars per month, or less for multi-month sign-ups. To get more info call Mailboxes Etc. at 766-0647 or Packing and Shipping Services at 766-0013.

  • Internet: There are two Internet service providers, Laguna and Prodigy. For more information call Laguna at 766-0297 or call Telmex at 01-800-123-2222, or go to Telmex in person.   Prodigy offers dial-up and DSL high-speed (in limited areas).  Laguna offers dial-up and high-speed wireless (in limited areas).  If you want to use the Internet only occasionally for e-mail there are numerous internet cafes in the area. Most will help you set up an e-mail address and give you some tutoring on its use.

 

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  Learning Spanish

  • Lessons, from Beginner to Advanced, are available at the LCS. Learn about the next session of classes, offered several times a year. There are also a number of instructors in the area, some of whom advertise in the Ojo del Lago, Lake Chapala Review or the Guadalajara Reporter. You can also teach yourself from a self-learning book. Madrigal is a popular book and available at the bookstore in Bugambilias plaza.

 


 

 Staying mentally active

  • Numerous studies have shown that exercising our minds prevents loss of mental alertness, as we grow older. A good way is to participate in the activities at LCS. These consist of lecture series, seminars, group discussions, and periodic Neill James Lectures. There are also Great Books Clubs and regular scrabble and chess sessions. For time and place, please check the Events Schedule on this web site.

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FROM A RECENTLY ARRIVED CHARTERED FINANCIAL CONSULTANT

 Some financial considerations for the Lakeside resident or future resident: 

  1. Before committing to a long term stay, ask yourself

1.      Do I really want to live in a “different” country?

2.      Am I willing to accept “guest” status no matter how long I may stay in the area?

3.      Am I willing to meet locals half way or more?

4.      Am I moving to Lakeside merely because I read someplace that people live like kings on social security or government pension?

5.      Have I visited often enough to know something about living on Lakeside’s terms so that I am not offended if this community turns out not to be San Diego or Toronto, only on a smaller scale?

6.      Do I know how much it will cost, realistically, to live in the manner to which I have become accustomed back home?

7.      Do I have enough fixed income to meet my lifestyle expectations?

8.      Will it be necessary to work for income once I settle here?  Am I aware that certain occupations are either formally or informally “off limits” to non-Mexican citizens?

9.      Will my investment portfolio cover any short fall I may have in fixed income so that I can continue living my accustomed lifestyle?

10.  Should I rent or purchase a home?

 

  1. Once you have decided to move down for a serious stay, determine

 

1.      How much stuff should I bring along?  Generally speaking, as little as you possibly can.  Remember that even purchased homes may come partially or fully furnished.  If you have trouble deciding how much to bring, consider cost. From California, it costs about $1.00 US per pound to ship things.  How many items are really worth all the trouble and expense?  Of course, if you keep a residence back home, you can keep all the stuff you want back there!  Just don’t bring much along.

 

A helpful exercise in cutting down on unnecessary moving inventory is to ask yourself if you can imagine using the object in question in Ajijic.  Furthermore, have you used the item during the past year back home?  Remember, too, that dress codes are pretty casual here.  Wool suits don’t get used very often, for example.

 

 

2.      If you decide you need to hire a moving company, be sure to get a qualified firm with international experience.  Get several quotes—you will be amazed at the price range you will get.  Be sure you understand exactly what is included in each quote.  Sometimes a higher cost quote includes EVERYTHING needed, including the required inventory of goods in Spanish.  Sometimes the lower bid does not.  Remember the old truism that if the price sounds too good to be true, it probably is. 

 

3.      Get proper documentation:  If you don’t mind going back home every six months you can get by on a tourist visa.  If you want to stay indefinitely, consider an FM-3 visa.  Check with your local Mexican consulate back home for the many requirements and details.  It will take several trips to the consulate in order to get things done properly. DO NOT depend upon what you have heard here or from anyone who has moved here, even quite recently, even if they have moved from your area.  Each consulate has its own requirements and these requirements are changing constantly. 

 

4.      Keep in mind that the FM-3 does not entitle you to bring in household goods duty free in and of itself.  You must also obtain an inventory visa, which when we crossed, was good for only 30 days.  It used to be 90 days, but now, if your goods cannot be shipped within the 30 day window, you may have trouble getting things through at all.  Again, be sure to check with your local consulate. 

 

5.      More on the FM-3:  If you plan to purchase your home, consider going with the FM-3.  First of all, it allows you to apply for the inventory visa, which allows you to bring in household goods duty free.  Then, should you sell your residence at a profit later on, I have been told that you can avoid Mexican taxes on the profit if you have FM-3 status and have owned the house for a minimum period of time.  Check with an experienced realtor for details, but the tax issue could be significant.

 

6.      Pets.  You can bring pets in, but they need to have shots, etc. and you must be able to prove that this has been taken care of.  Many people say they never have had questions about their pets’ health papers, but you never know.  Border officials have every right to ask for these health papers.

 

7.      Consider your own health insurance.  Are you going to shop for insurance here, or will you go home for major work?  Will you keep up insurance protection back home, or will you go with private or subsidized Mexican insurance down here?  There are a lot of plans available in Mexico and the prices range from modest to just as expensive as in the States.

 

Again, shop around.  There are many plans available and each insurance office carries a different group of plans.  Each person’s needs vary, so keep looking if you don’t at first find what you want.  One consideration to keep in mind if you plan to travel a lot outside of Mexico:  many plans pay only emergency costs if you are outside the country.  You can get an international coverage plan that pays all fees, regardless of the country you may be in.  These plans cost about double the emergency only type, but you may feel international coverage to be worth the cost.

 

8.  Dental insurance.  Individual plans are hard to come by in the States, and I don’t know of any available in Mexico.  Since dental services cost considerably less than in the States, consider setting up a self insurance fund to pay for these services.

 

 

9. Credit/debit cards.   Double check and/or apply for and have in hand your credit/debit cards before you take up an extended residence in Mexico.  Couples should find out if each person has the same account number on theVisa or Mastercard, or, whether each is separate.  American Express gives each person a separate account number.  This is important should you misplace or lose a card.  Should one person lose an American Express card, the spouse’s card remains valid and can be used because each person has a separate number.  With Mastercard and Visa, you often have one account number per couple.  Thus, if one card is lost, both cards are inactivated when you report the loss.   Finally, it is very difficult to have credit cards mailed to Mexico.  You may have to provide a physical address for the cards to be delivered to and use a service, such as Fed Ex.  If this is the process, you must be there when the cards arrive, or else they get sent back and you start all over.

 

 

  1. Once you have arrived

 

 

1.      Whether you are renting or whether you have become a homeowner,   your expenses are going to be somewhat different from expected.

 

Start keeping track of expenses as soon as possible, but keep in mind that this may not be feasible for the first month or two due to a lot of one time costs, such as getting connected to telephone lines, the internet, the utilities, etc., etc.  (Interesting point in applying for services or opening a bank account:  you will have to provide a paid utility bill, gas or electric will do, for the physical address at which you reside.  It doesn’t seem to matter if your name is on the bill or not, but you will need a copy of a recent bill for your address if you want to move forward and obtain these services.  If renting, your lease is proof of address.

 

Another wrinkle:  some expenses, such as insurances, taxes, water bills, and telephone bills could well be on a different billing cycle than you have been used to.  Some items are paid annually, others semi annually, some every two months, yet others are monthly.  You will need extra cash to pay the larger lump sum items, so be prepared.  (Some of these items will require a generous number of pesos!)

               

2.      Using checks or credit/debit cards in Mexico

 

Checks are readily acceptable, but some businesses want only pesos, while others would just as soon have US dollars.  If you use your credit or debit cards at Costco or other establishments, be prepared to pay a 2% surcharge for using the card.  It pays to pay cash in Mexico. 

 

A note about using checks in Mexico.  Make sure there are sufficient “good” funds for the check to clear.  Banamex, for example, currently charges 100 pesos for a returned check.  I am using the phrase “good funds” above quite intentionally.  “Good funds” means that the institution you are writing a check on recognizes that your funds are spendable.  Do not assume that because it has been several days since your back home financial institution was asked to send money to Banamex or whoever, that these funds have arrived, or, if they have arrived, they are now spendable.  Each institution, whether back home or in Mexico has its own rules on this.  Even in the States, the only instantaneous “good funds” are funds that have cleared the Federal Reserve System.  Know your institutions’ rules.   Suggestion for avoiding expensive and embarrassing fees:  deduct the minimum balance you want to keep from the amount you actually show in your records.  That way, as you approach zero, you will still have sufficient funds to qualify you for the free checking account or whatever.  Usually, there are benefits to keeping a minimum balance, such as 4000 or 6000 pesos.  If you sign up for such a plan, you will want to continue qualifying; otherwise take the no particular minimum balance plan and pay the extra fees or forgo the free checks or whatever benefits that are provided by the higher required balance plans.

 

 

3.      Finding good help, such as a maid and/or gardener.  Oftentimes, your residence will come with an established work force.  These people may come highly recommended and you will simply continue the relationship.  A point to keep in mind, however, is that if you want to discharge these people, be sure to do so during the appropriate transition time.  This is usually at a point just prior to your buying the property.  Up to the time of sale, the previous owner is responsible for paying severance package costs if a worker is let go.  If you agree to take on the existing staff, you could become responsible for all past and future accrued benefits.   Thus, if the maid had worked for the previous owner for 15 years and you agreed to take over her services, then fired her a year later—you would get to pay the benefits package for someone with 16 years worth of benefits.  ( A properly vetted transfer of property will avoid any liabilities for previous benefits due, but you need a good notary and a good realtor to make sure all benefits have been paid.)

 

4.      If your property does not come with help already attached, you will have to ask around for some good people.  There seems to be a good grapevine among the locals, and, if you let it be known that you are looking, people will begin showing up at your door, saying so and so sent them because they heard you needed a gardener.  You can then do your checking and decide if this person will do.  You have 30 days as a trial period to see if you are going to get along.  If it takes more than 30 days to make up your mind, you will have then acquired some obligations and you will have a severance package to deal with. 

 

5.      Christmas bonuses.  These are owed and must be paid in cash at the end of each year.  If you give your gardener your old computer, that is all very well and good, but it is a gift that DOES NOT count toward the year end bonus.   (A good place to begin your research regarding bonuses, national holidays, etc., is the LCS Directory.).

 

  1. Establishing usable cash flow while living in Mexico

 

1.      Many people retain their bank connections from back home and hit the local ATMs for immediate cash needs.  This can be expensive convenience. I have heard of people paying fees as high as $3.50 per ATM draw.  If you would like to eliminate ATM fees, you might want to check   the Amistad plan through California Bank of Commerce in L.A.  The program is designed especially for US people planning to live in, or already living in, Mexico. The account comes with ATM cards, free checks (which you can write in either pesos or dollars), and CBC is owned by Citigroup.  Citi also owns Banamex, so you can easily move funds from your bank or brokerage account to CBC to Banamex.  With a Banamex account you can write checks locally—use judiciously, however, we get only two free checks per month with our particular account—but only in pesos.

 

 

2.  California Bank of Commerce allows you to take up to $300 US per day at no cost from most any ATM.  We have used our card at several ATMs locally, and have yet to pay a fee.

 

For California Bank of Commerce info, you can call the following numbers:

 

     From USA  1-800-222-1234

 

     From Mexico  01-800-111-1234

 

To speak to a representative, say “representative” once you get into the recorded messages.  Tell them you are interested in the Amistad program.

3.  As with other financial institutions, CBC allows you to have Social Security, pension checks, or any other regular transfers sent directly each month or quarter or whatever to the CBC account .  You can go online to track when the funds have been transferred.  Then, if you have Banamex, you can e mail deposits from CBC to Banamex for local use.  Otherwise, if ATM draws are sufficient, you can simply use the ATM network for regular cash expenses.

 

4.          Investing while living in Mexico

 

Hopefully, you have a trusted financial advisor back home who will look after your interests.  Continue this relationship if possible. (This should not be a problem if you maintain an address back home.   However, if you give up your Canadian or US residence entirely, it can be difficult maintaining this relationship—or at the least it becomes more expensive and less convenient.)

 

If anyone knows of brokerage firms or credit card companies domiciled outside Mexico  that will do business conveniently for FM-3 persons without a US or Canadian residence, let us know.  Such an entity, I am finding, is hard to come by. 

 

It is possible to invest directly in Mexican securities, money market accounts, etc., but remember that this is not the US or Canada.  In the past people have enjoyed extremely high interest rates on money invested in Mexico only to have devaluations wipe out much of their capital.  I understand that in the past there have also been some “sure thing” real estate developments that are still standing empty today.  A variation on the “If it sounds to good to be true . . . “ wisdom is that  “If this offer is such a great deal, why are all these high pressure sales people spending their time promoting the investment to people like me?”  (This is especially true on offers good only for today.  Surely the savvy salesperson should be taking advantage of the remaining hours in his day lining up his own purchases!)

 

Caution is the byword with any non guaranteed investment, but one should be especially careful investing a significant percentage of one’s capital directly in Mexican securities or other assets, even if you use legitimate investment channels. 

 

If you want to invest prudently in Mexico, consider doing it through your brokerage firm back home.  You can buy specific equities, or, for greater diversification, invest in mutual funds that focus on Mexican securities.  A rule of thumb for many in the investment business in the US is that 20% of a well diversified portfolio should be invested outside the US.  If, after examining your portfolio, you have less than 20% invested globally, then you could put some money into a fund focusing on Mexican companies.  I have no knowledge of Canadian diversification models, so BE SURE to check with a trusted specialist in your country’s asset allocation models.

 

Just as you did back home, re evaluate your portfolio from time to time—certainly every couple of years.  There is overwhelming evidence that market timing does not work and that the more one trades, the less likely the chance of success; however, there are long term trends which can lead a prudent investor to rebalance his/her portfolio.  When high quality bonds, for example, pay 10%, there isn’t a compelling argument for stocks (which historically have returned about 7% plus dividends in the US), but when bonds begin losing value, as they have begun doing lately, the bond holder will have to ask just how long he/she can put up with this.  Consult your financial advisor and make sure that your portfolio reflects current economic reality and your tolerance for risk.

 

 

Investment information resources:  If you can go online, there is a plethora of information available.  It is not data which are lacking, but the knowledge and wisdom to act upon it prudently that is hard to come by. 

 

If you haven’t tried the internet for such information, some sites include:

 

Most insurance company and brokerage firms have sites which provide financial information.  Among insurance company sites, Prudential Life is especially good on high level analyses of market trends and measures of market valuations.  Look under Ed Yardini’s analyses for this kind of thing.  The site has all the usual indexes plus individual equity picks and pans.

 

My American Express site is pretty good too, and AXP has some of the lowest brokerage trading costs around  The catch is that they want a U.S. address to establish accounts and to do business.  AXP brokerage is not prepared to deal with true ex pats.  The American Express card people are very helpful and understanding, but AXP brokerage is another matter.

 

Among brokerage houses, Fidelity.com opens the door to various kinds of information and can serve as a useful balance to information gleaned at other sites.

 

MSN.com has general news as well as business news.  A useful feature located under MSN/money is a mutual fund rating service.  You have to know the ticker symbols, but you can look them up on MSN too if you don’t know them.  While it is futile to chase last years “best” funds, if your funds have been rated below average, and your fund family has no attractive alternatives to funds you are currently invested in, you might consider a change.   (Beware of short term and/or long term capital gains taxes if you sell out of non tax qualified funds, however.)  Also, if you have new assets to invest, it makes sense to buy into fund families that have, over the years—say five years or more—done as well as the overall market.  It may be hard on fund managers’ egos, (or investor’s egos for that matter) but almost all managers and funds have, over time, reverted to the norm for the type of investment they are in.  One of the few to beat his asset class averages for any length of time was Peter Lynch, and he has long since retired a wealthy man.  Warren Buffet has done pretty well, too, but have you priced Berkshire Hathaway shares lately?  If you have to ask you can’t afford them.  Thus, if you want to invest in a large company mutual fund that buys firms listed among the S & P 500, you will get, over time, that asset class’s 7% return IF YOU REMAIN INVESTED every single day over a period of years.  If you get out, even for a few days at a time, you might as well take CD rates and save the worry and expense of investing.

 

TIAA/CREF also has a good site.  Although they serve primarily educators, you won’t go wrong following their advice.  They, too, believe in low cost funds and long term investment strategies.

 

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