Tag Archive | "Gary Join Merri"

Success Guidelines


A few success guidelines can help you always find light at the end of a tunnel.

Our emailed course “The Tangled Webs we Weave… How to Have an Web Based Business” helps readers learn how to live wherever they choose… in ways the desire… and to be free.

A good course on how to earn via the internet must flow. The internet is still a new media, continually changing.

This means that we are continually monitoring new programs… trying new ideas and testing results.  Then we share the results in our Tangled course which is continually updated.

One new test we are trying is the rebuilding of one of our old sites, successguidelines.com.

See that site at Successguidelines

Included at this site is some great data on International Marketing Sales Strategies

See the first three lessons in this course at:

International Marketing Sales Strategies Lesson One

International Marketing Sales Strategies Lesson Two

International Marketing Sales Strategies Lesson Three

Gary

Learn more about our emailed Tangled Web Internet Course here.

Join us…Merri, Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199

Changes Affecting Retirement in Ecuador or Anywhere


Retirement in Ecuador… or retirement anywhere is changing.

retirement-in-ecuador

Manta is Ecuador’s largest ocean port.  See about shipping and retirement in Ecuador plus a trick to help you retire in Ecuador or anywhere below.

Those who embrace faster change can make their golden years glitter even more.

Those who use old thought in a new world may suffer.

There is a trick to gaining from change which I’ll explain in a moment.

First, an excerpt from the July 30 USA Today article “Older white males hurt more by this recession” by Dennis Cauchon, shows one example about change affecting retirement.  This change is causing more people to retire in Ecuador but affects everyone… even those who are not ready to retire.

The article says:

Dean Canaris, 56, a quality engineer for a Honda automotive supplier, was laid off in April and out the door in 30 minutes with no severance.

Harry Jackson, 55, an airline pilot and supervisor, lost his job in 2007 and, to his surprise, has found it nearly impossible to get another job.

Mark Montgomery, 53, was let go from an Owens Corning insulation factory in April and can’t afford his $575 monthly mortgage payment.

These men from the Columbus, Ohio, area are the unusual new faces of joblessness in this groundbreaking recession: older men cut loose from employment at the peak of their earning power and work experience.

In previous recessions, veteran workers were largely spared the pain of widespread job cutbacks, according to Bureau of Labor Statistics data. Layoffs tended to be concentrated among younger workers: The younger you were, the more likely you were to get fired. Traditional, bread-winning older males — especially white men — were the least vulnerable.

Not so today. Aging Baby Boomers are suffering a harsh employment bust.

Jobless rates for men and women older than 55 are at their highest level since the Great Depression, government data show. White men over 55 had a record 6.5% unemployment rate in the second quarter, far above the previous post-Depression high of 5.4% in 1983.

Those above 55 also are spending more time than ever between jobs. Older workers spend an average 27 weeks between jobs, about five weeks longer than younger workers.

“When you lose your job after many years, you’re not only looking for a job. You find the nature of employment has changed,” says Deborah Russell, director of workforce issues at AARP, the lobbying group representing people 50 and older.

“People losing jobs are increasingly male and increasingly older.”

The loss of a job for an older worker can erase the dominant income of a middle-class family, wipe out savings as retirement nears and deny aging people health insurance when it’s needed most.

“So many of these men were coasting to retirement, working at good jobs and earning good pay.

“Then, suddenly, it was gone,” says Susan Birie, who runs the government’s Delaware Area Career Center in Delaware, Ohio.

Areas of employment that used to be considered safe are gone or going… never to return.

Our recent International Business & Investing Seminar (IBEZ) in North Carolina explained why this is so.

The industrialization of mankind has moved through five eras each with a new form of power.

Era #1: Water-sail-textiles.
Era #2: Steam-railroad-telegraph.
Era #3: Internal Combustion Engine – Car – Production Line – Petroleum.
Era #4: Jet Engine – Phone – TV – Plastics – Chemicals- Fertilizers.
Era #5: PC – Internet –WWWeb.

In the first stage of each era… markets and the economy boom. New jobs are created. Later in the era, the markets crash… the economy slows and the new wave  in the new era wipes out good jobs from the era past.

The railroad wiped out many safe shipping jobs.

The auto industry wiped out many railroad jobs.

Jet travel eliminated many opportunities originally created by cars.

The internet wipes out many jobs in travel.

These changes bring enormous opportunity for those who adapt. One must invest differently and globally.  This is why half of our IBEZ seminars are about global and why we have a strategic alliance with Jyske Bank to offer a multi currency course.

This is why we also focus half of our IBEZ seminar on how to have a global internet business.

Our goal is to help delegates use the trick so they’ll gain from change.

The trick is what we call JDI… a phrase you have all heard…. Just Do It.

We give our delegates at the course enough basics so they can start a part time internet business.  Then we followed up to get the delegates to get started.

The first week after the course, our delegates received this note from our webmaster, David Cross.

Welcome home.  I hope you had a safe trip back from our North Carolina seminar. It was a pleasure to meet you and share your ideas. We’re going to help you give it wings if you desire using the internet in business.

Let’s get started…

You’ve now got an idea – or an idea of your idea. If you want to bounce your idea of me, please do so.

Let’s begin.

Here’s what to do today – yes, right now!

=====
Step 1: Register your domain name.

http://www.godaddy.com/ is about $10 a year for a .com domain name

Done!

(You can ignore all the additional offers GoDaddy will flood you with.  Just grab your domain).

Look out for another update from me this week. Good business, David

This trick in time of such rapid change is to get started with something small.  Then  learn and evolve.

Our delegates have fun with this as well. Here is one reply David received.

Way ahead of you, David !!!  LOL   But will enjoy receiving your updates ….  My sites have been obtained and are our 2 new ventures. I’ll be focusing on one site first with the import/export of cigars. I already have a name for our newsletter so I can work on getting recognition and good Search Engine hits. I will hopefully be adding other products, such as wine, coffee, chocolate and other “vices” in the near future. Gary, I’m hoping to focus on these additional products coming from Ecuador so any leads would be great.

I was reminded of the importance of taking action by a note sent by a kind reader in Canada that said:

Hi Gary, I’ve been reading Henry Ford’s “My Life and Work,” and this short segment mirrors exactly what you have been saying for years! This might come in handy for one of your daily postings. Cheers!

This segment says:

014
—of—
102
My Life and Work
by Henry Ford

CHAPTER II: WHAT I LEARNED ABOUT BUSINESS (CONT’D)

The automobile business was not on what I would call an honest basis, to say nothing of being, from a manufacturing standpoint, on a scientific basis, but it was no worse than business in general. That was the period, it may be remembered, in which many corporations were being floated and financed.

The bankers, who before then had confined themselves to the railroads, got into industry. My idea was then and still is that if a man did his work well, the price he would get for that work, the profits and all financial matters, would care for themselves and that a business ought to start small and build itself up and out of its earnings.

If there are no earnings then that is a signal to the owner that he is wasting his time and does not belong in that business. I have never found it necessary to change those ideas, but I discovered that this simple formula of doing good work and getting paid for it was supposed to be slow for modern business.

The plan at that time most in favor was to start off with the largest possible capitalization and then sell all the stock and all the bonds that could be sold.

Whatever money happened to be left over after all the stock and bond-selling expenses and promoters, charges and all that, went grudgingly into the foundation of the business.

A good business was not one that did good work and earned a fair profit. A good business was one that would give the opportunity for the floating of a large amount of stocks and bonds at high prices. It was the stocks and bonds, not the work, that mattered. I could not see how a new business or an old business could be expected to be able to charge into its product a great big bond interest and then sell the product at a fair price.

I have never been able to see that.

I have never been able to understand on what theory the original investment of money can be charged against a business. Those men in business who call themselves financiers say that money is “worth” 6 per cent, or 5 per cent, or some other per cent, and that if a business has one hundred thousand dollars invested in it, the man who made the investment is entitled to charge an interest payment on the money, because, if instead of putting that money into the business he had put it into a savings bank or into certain securities, he could have a certain fixed return. Therefore they say that a proper charge against the operating expenses of a business is the interest on this money.  This idea is at the root of many business failures and most service failures.  Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools.

Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will earn 5 per cent, or 6 per cent, he ought to place it where he can get that return, but money placed in a business is not a charge on the business–or, rather, should not be.

It ceases to be money and becomes, or should become, an engine of production, and it is therefore worth what it produces–and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.

This reminded me that the best investment… especially in this era where smaller is better… is in our own small business.  We are our greatest asset… but we will earn nothing if we do not act.

Here is what another delegate from our July North Carolina seminar shared.

Gary and Merri…  We truly enjoyed your seminar !!!  Thanks so much for allowing us to come. My brain is still spinning from all of the information and I hope that someday, we will be in the red enough to invest our wealth at Jyske Bank as well. Words cannot express how impressed we both were with the entire presentation. And thank you for sharing your farm with us and the wonderful lunch !!!

This may or may not be your “cup of tea”, but I would love to learn more about how to think BIG, which could maybe be a topic of one of your newsletters. I would value the information and expertise coming from you because you have been so successful. On the way home from your seminar, I thought a lot about how I need to change my thought patterns. I was a single mother of 2 for many years and during those years, I was in survival mode … how to make enough money to raise my kids well and still have enough time to be close to them.

I stumbled into timeshare at the end of the 90’s and was able to fix up my home and become credit card free. But after 5 years and moving up to Director of one of the resorts in Orlando, I left the rat-race of that industry and got back into general Real Estate and built up my print broker business. During  the housing boom, I sold my house and moved to the mountains of NC and continued servicing my printing accounts. That’s when my husband and I opened up his Cigar Shop and my New Age Shop. The Florida housing market crashed and so did my Florida printing clientele. Within the last 2 years, our savings went and up went our debts, like so many of us. Now we’re starting from scratch again !!!

The point: I have always done just enough to “get by” …. I have a difficult time visualizing a bigger picture … a bigger income … bigger wealth … bigger savings … bigger vacations … bigger anything !!!  We are very hard-working but don’t seem to get ahead …. bigger !!!

So if you decide to do a newsletter series on the topic of “thinking BIG”, I think there are a lot of us out there who could use your insight …. hey, this could even make a good “course” subject.  In any case, thanks again, Gary, Merri, David, Thomas and Haskell for your knowledge and inspiration  and I look forward to our continued contact and friendship.  Namaste,

So now we have the answer from one of the biggest thinkers of all Henry Ford.  Become an engine of production and then grow.  Little wonder that ford is the last viable US car maker.

One way to adapt to change is to move to a place where costs are lower…  but living and facilities are good… like Ecuador.

Learn more about our emailed course on how to have an internet business.

We get requests from many planning to retire in Ecuador for information about Ecuador shipping.

Merri and I have never shipped to Ecuador and almost all our readers have found it far less expensive to buy most goods in Ecuador than to ship.

ecuador-banks

For example Ecuador shipping may not make sense for tables.  This hand made dining room set built for us from solid (old) coffee wood ran $420…with 6 chairs.  You cannot beat that with shipping!

I have only had one couple tell me they shipped their goods to Ecuador.  They experienced a lot of problems. The problem was not in Ecuador shipping or Ecuador.  They shipped an entire container and stated they had the DEA in New York tear their stuff apart… break items and leave a big mess.  This is beyond the control of the Ecuador shipper.

ecuador-banks

Appliances are a bit more in Ecuador than in the US… but not enough to warrant Ecuador shipping. A gas stove like this runs between $250 and $380.

Even if we had more Ecuador shipping stories, it would be difficult to give Ecuador shipping recommendations unless we had many shipping referrals because your shipping begins where you are… so much of what you need will be local.

ecuador-banks

A couch set like this can be hand built or purchased “as is” for about $750 for two.

ecuador-banks

Read more about Ecuador shipping here.

So whether you adapt to change in a small or big way… at home in Ecuador or elsewhere abroad… get started. Take baby steps as you think big.

Gary

Join Merri me and Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199

Read the entire USA Today article “Older white males hurt more by this recession

Ecuador Car Prices & Perception


Here is a lesson about Ecuador car prices and how we can gain or lose from perception.

First, you may be surprised to find that the cost of an Ecuador car overall may be less expensive than in Canada, Europe or the US.

In a moment you’ll see some new and used Ecuador car prices.  Then some broader thinking about Ecuador car prices.

First, let me share a true story (as far as I can tell) that helps illustrate a point that reflects in Ecuador car prices but goes way beyond Ecuador car prices.

You may have seen this story passed on over the internet about a musician at a Washington DC Metro Station on a cold January morning in 2007.

He played six Bach pieces for about 45 minutes. During that time approx 2 thousand people went through the station, most of them on their way to work.

After 3 min. a middle aged man noticed there was a musician playing. He slowed his pace and stopped for a few seconds and then hurried to meet his schedule.

4 min. later: The violinist received his first dollar: a woman threw the money in the till and, without stopping, continued to walk.

6 minutes: A young man leaned against the wall to listen to him, then looked at his watch and started to walk again.

Over the 45 minutes the the musician played, only 6 people stopped and stayed for a while. About 20 gave him money but continued to walk their normal pace.
He collected $32.

No one knew that the violinist was Joshua Bell, one of the best musicians in the world. He played one of the most intricate pieces ever written, with a violin worth $3.5 million dollars. Two days before he had sold out a theater in Boston where the seats averaged $100.

This is a real story.  Joshua Bell played incognito in the metro station in a test organized by the Washington Post as part of a social experiment about perception, taste and people’s priorities. The questions raised were: in a common place environment at an inappropriate hour, do we perceive beauty? Do we stop to appreciate it? Do we recognize talent in an unexpected context?

One possible conclusion reached from this experiment could be:  If we do not have a moment to stop and listen to one of the best musicians in the world playing some of the finest music ever written, with one of the most beautiful instruments ever made …..  How many other things are we missing?

So too with cars in Ecuador.  So many people from North America have a perception that they must have a car… that they never stop, even for a moment and ask about others modes of transport.

How much are we missing when we fail to enter new opportunities with an open mind?  What do we lose when we automatically try to impose old habits on new situations without first looking, experiencing and thinking.

This is how it is with so many North Americans who have not experienced Ecuador.  They impose two misconceptions about Ecuador cars.

First, they feel they must have a car without asking why.

Second, they think that Ecuador cars cost more without checking first.

So let’s look at the facts about Ecuador car prices.

Some Ecuador car prices are high… but Ecuador car prices are very misunderstood.

Some Ecuador car prices are actually lower than in the US and Europe and the cost of having a car can almost certainly be less.

Take for example a brand new Peugeot 206 that sells in Ecuador for $16,190.

I am not sure this model is still sold in Western Europe but a used 2006 model Peugeot 206  with 36,000 miles and a 1600 cc engine is advertised for sale in England at almost $17,000.

Comparing cars in different countries is difficult, but this example shows that Ecuador car prices are not anywhere as bad as some people assume.

The higher the price of a car, the greater the difference in cost.  This is in part because the percentage of Ecuador’s duty rises with price. In other words, a Mercedes may have 100% duty and a subcompact almost none.

Some cars are also partially assembled in Ecuador or other countries with trade pacts and the duty on these is reduced.

A brand new Ford Explorer XLT is advertised at $39,950 in Ecuador.  A quick check in the US shows the price in the $29,000 price range.

ecuador-car-prices

Yet a new Ford Fiesta is offered at $13,990 compared to the $12,000 to $16,000 price that is expected when the Fiesta arrives in the USA next year. Fiestas in the UK run over $17,000.

ecuador-car-prices

Ford Fiesta

Some cars seem really expensive to me.  The price shown for a Honda Odyssey minivan like Merri and I drive in the US appears to be double what we would pay in the US.  New Volkswagon Golf (called Rabbits in the US) GTIs seem astronomical as well.

Yet the asking price for a brand new Hyundai Atos Prime is only $10,290.

So depending on what you want, the price of an Ecuador car can be higher than in the US and Europe… or less.

Ecuador used car prices are not out of line either.

This 2000 Chevrolet Cheyenne pickup with 78,000 miles has an asking price of $11,000.

ecuador-car-prices

2005 Toyota Corolla, 54,000 miles, $14,700.

ecuador-car-prices

Previous articles at our site have mentioned that Merri and I do not have a car in Ecuador nor do we drive in Ecuador.  Most of our readers do not have Ecuador cars. See why at Ecuador Car Rental Review.

Though we prefer to hire drivers with cars, you can see from the prices above and below that those who want an Ecuador car will find them easily affordable.

If one takes into account the much lower cost of gas, insurance, parking and maintenance, Ecuador cars probably cost less to run than in the US, Canada and certainly are lower than in Europe.

Every country has a system and Ecuador’s is one that encourages drivers to use smaller, fuel efficient cars that have been assembled with lower cost, local labor.

I am not sure this is what was on the politicians minds when they developed the system but with high duty on big cars and low gas prices, a larger portion of the population can have their own ride if they wish… without creating such a bad a carbon footprint.

Those who want to drive a big fuel guzzler, the polluters  pay in advance.

Plus you cannot import old cars into Ecuador… only new more efficient, less polluting vehicles are allowed in.

I wonder if this is a better system than cash for clunkers where the tax payer, rather than drivers of large and old fuel consumers, pay to achieve better fuel economy?

See more used Ecuador car prices and how to obtain new Ecuador car prices for 239 different models, 220 used cars and  a list of Ecuador car dealers here.

Getting new cars in the US is one of my least favorite activities and one delight for me in Ecuador is avoiding this task.

If you feel you must have or at least know about Ecuador cars… I hope this helps.

Gary

Join Merri me and Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $299.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Ecuador Car Rental Review


See below why our recent article about Ecuador car rentals aroused more than just comments about cars. That message evoked a strong reaction to change… a change that must take place…  a change where resistance is futile and in many places a gesture that degrades our chances for happiness, health and a life of ease.  See why below.

We Americans do love our cars.

I know.

I have kept my little Suzuki Samari going for 22 years now… and hopefully will be driving it for another 22 years…. or more.

 

Four wheel drive from flowers. What fun!

I was not surprised that my suggestion in the Ecuador car rental article “get a driver rather than rent a car  in Ecuador” caused some panic.

You can read that article at car rentals in Ecuador

Beware those who try to separate Americans from their cars!  This caused one reader to worry so about the cost of cars that he wrote:

Hi Gary,  what about importing your own car, or buying one there?
From what you are writing, the living seems to be very inexpensive, that is until you want to travel on your own. Try that on $1000 month or a fixed income.
All that shines is not gold. Reading between your lines these past 3 months I have come to conclude that there are lots of “hidden” costs in living in this 3rd world country.

I have lived for decades in many similar countries, and even worse, however never have I encountered such car costs as you describe. These are by far the most expensive car rentals I have heard of.  Doesn’t make sense living there unless one wants to walk or take taxis everywhere. An independent person would be doomed to frustration.  No, thanks…this was the article that opened my eyes.

This reader jumped to some incorrect conclusions. The gist of the article was that people who visit Ecuador should hire a car and driver.

The car rental situation is quite different for a tourist than for someone who has moved to Ecuador, learned the system… knows the roads and is not trying to see the country in a limited  time period.

Many people who live in Ecuador have cars.  Cars are not that expensive…. especially new ones partly assembled in Ecuador.

Gas is really cheap ($1.50 a gallon) and mechanics very inexpensive.

We recently looked at buying a four wheel drive Land Rover Challenger in good shape for our hotel.  The asking price was $15,000.  But we wouldn’t drive it.

GoEcuador says: It is now possible to obtain a used car in good condition beginning at $4000.

I just posted an entire report about prices of used cars for our Ecuador Living subscribers. If you do not subscribe to Ecuador Living and want that report on Ecuador car prices, learn how to get that report here.

Plus that reader says he is independent because he has a car?

He forgets the fact that this means he is very dependent on cheap gas… something he may not have for long.

In Ecuador, the cost of hiring a driver can be less then renting a car and may even less than owning your own car. The availability of drivers with cars can eliminate the idea that we become dependent on others if we do not have a car.

One small piece of technology altered the automobile driver equation… the cell phone. In Ecuador most people have cell phones.   A number of drivers we and many others rely on have cell phones.  A car is always just minutes away from a call… no parking… no insurance… no maintenance… no getting gas.

Another reader wrote:

Thank you!  We would purchase a locally manufactured ‘middle of the road’ (pun) vehicle.  But I’m worried about drivers, accidents, tickets, gringo-problems with the locals and the police as well as the various other road condition, speeders, etcetera other issues.  (We have both driven over 45 years in various countries with no tickets – I’m not worried about our driving.)  We plan to relocate to Ecuador – probably suburban/rural area (but near enough to a city with a bilingual school) so will need a car daily for commuting our daughter to school, shopping, and more.  How can it be affordable to take taxis all the time instead of owning a vehicle ourselves?  Please let me know how others do it.   Do you and Merri drive in Ecuador? Thanks.

These notes conjure several important points about change from living in Ecuador or anywhere abroad…  points that go way beyond cars.

These readers, like so many readers who contact me, projected the old American commuter ideal onto an imagined lifestyle into Ecuador.

Why?

This mental error is understandable.   We Americans are car junkies.

I am living proof.

Like many Americans I obtained my driving license on my 16th birthday.  Shortly after I found a job and bought my own car… a 58 Chevy Bel Air just like this.

ecuador-car-rentals

That was a great car and I just about lived in it.  We boomers in high school were judged by our cars!

I initially carried the burden of the car mentality with me when I left the USA.  I have driven in some crazy places during my time… jungles… war zones… deserts… swamps.  We’ve had our car robbed in Nice … had fender benders in Djakarta and on roundabouts in London and Rome.  Merri had her car bombed in the parking lot of the Picasso Museum in Barcelona…along with everyone else’s car there. (Long live the Basques!) Plus I have had a couple of cars stolen and some serious smashes in the US.  I live with the effects of a broken back, whiplashed neck and busted knee from driving an Austin Healey Frogeye (see below) into an 18 wheeler truck .

So I have experienced the good and the bad of cars.

When Merri and I bought our first hacienda in Ecuador, the seller threw in a really great, old Land Rover… gray… perfect leather seats but so old it had only three switches… one for the lights, one for the windshield wipers and one that apparently did nothing.   You could (and we did) start that vehicle with a hand crank.  The heating and air conditioning system was a flap in front that you could either open or shut.

We loved that car and I drove it exactly once… from our hacienda to Calacali… about a hour ride with only 15 minutes on a paved road.

The rest of the time we had our driver drive us.  This provided one more job in a country that needs employment plus gave Merri and me time to talk… look at the scenery and not worry about parking and all the rest of the hassle that comes with driving.

That is the only one time I have driven in Ecuador in all these decades.

Now let me add… I have always been a driver.

When I lived in Hong Kong I had a car… a great little Sprite Frogeye. Like this…

I loved that car in Hong Kong but hardly ever drove it.  I took the peak tram, the Star Ferry, taxis… the trolley and even jumped on the bus from time to time.

Why?

Have you ever tried to park in Hong Kong?

Ditto for London. I had a number of cars… first a little MG Midget like this.

In 1970, I drove that MG from London to Rome with my wife and two children… one still in diapers… a mistake… having not learned about the luxuries of Eurorail.

Then I had an Audi… a Peugeot… a BMW… and a Triumph Spitfire.

Yet I rode my bicycle many miles through London traffic from my home is Chiswick to my office on Artillery Row near Buckingham Palace.  I was often stopped by the police and even ticketed for riding my bike on a short cut through Kensington Gardens.   I also regularly used the Tube.

Why?

Have you ever tried to drive in London?

Plus riding the bike every day eliminated having to drive the car to a gym… a double savings.

Here is a point about change that goes beyond cars.

Americans are car addicted because of the nature of America.

Americans need and are highly dependent on cars because everything is spread out,  gas has been cheap, there is little public transportation and labor is expensive.

This set of conditions does not apply in all countries.  Cars are an asset in the USA but they can be liabilities elsewhere.

Why in a time when the environment is at risk through pollution… energy prices are rising… and roads are becoming more and more congested… would one want to stick to a lifestyle that revolves around one car per person if that is not the most effective lifestyle?

The one car per person mentality is old thought.

We really need to move onto the new.

Due to high labor costs, Americans have become hooked on DYI.   Yet when we move to a country with great, low cost labor… it makes sense to take advantage of these conditions.  Everyone gains.

When we can do good, why not create a bit of employment and save time, energy and money… why not sit back and enjoy the ride?

Hundreds of my readers have moved to Ecuador.  Almost none have chosen to buy a car because they really are not needed in many places there.

In Cotacachi we walk. Our friends who have moved to Cotacachi report  losing weight, feeling better and having more energy… in part because they walk more instead of driving.

Taxis are very inexpensive.  Most trips around town are a dollar and they come quickly to a cell phone call.  Though Merri and I do not use the buses, many of our friends do. The system works well.  If we need to take a trip away from the village, we have a number of drivers who have excellent vans and cars who charge between $55 and $70 to take us wherever we want to go.  A ride is  available at any time night or day… with one cell phone call.  Usually on a long furniture shopping trip to many places nearby, we might spend $10-$15….plus we have the advantage of the driver’s help, no problems parking, etc.

We have eliminated the cost of the car… gas… maintenance…. insurance…. parking… security.

Many US and Canadian readers write to us asking about cars…. big refrigerators… washing machines and dish washers.  These are all products that have evolved from North America’s spread out, low energy, high labor cost, nationally distributed, highly preserved food lifestyle.

In many countries you do not need these expenses and burdens.  You can walk daily to the market and get great fresh food.  This is fun!

Why have a huge fridge?  Merri and I love visiting the market. We searched for the tiniest fridge we could find.  We live just like we lived in London for all those years.  Every morning out on the streets looking for THE perfect vegetables, fruits, etc. and then enjoying a morning coffee and back home with everything for lunch!  What fun!

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Here’s the kitchen of one of our condo rentals.  Do you see a fridge?  It is tiny and hidden away. We amble to the food markets instead. Cotacachi market is just three blocks away and we enjoy buying our food fresh from our neighbors.

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Ecuador Visit

The market provides these bicycle carts. For 50 cents or a dollar a happy man will ride all your groceries home for you….and put them away if you like!

The food market is fun and we love having a hot fig and cheese sandwich for breakfast. Not a combination most would ever dream of. They are delicious but missed if you are driving your car though miles of traffic to get to the American style super market!

Why pay a premium for imported dishwashers and washing machines when you can have cheerful, happy people do your cleaning and ironing for you?  You save time, energy and create employment to help the poor.

Which makes more sense?  Spend extra money for a very expensive  imported washing machine that takes up space in your home… and requires effort on your part or spend a LOT LESS money letting these two cheerful mothers, Rosita and…

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and Rosita Elena…

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do your laundry and deliver your sparkling, ironed clothes to you?  I love all natural clothes but they do require startch and ironing…and here’s our delightful answer.

You save space, money and help the Rositas support their families.

There is another important point here.

You help the environment. One washing machine that serves 20 families is better on the environment than 20 machines serving families.

Ditto for cars. Even in the USA, car sharing is growing as explained in the Washington Post in an article entitled “Car-Sharing Merges Into the Mainstream
Not Just for Tree-Huggers: Businesses and Universities Help Drive Growth of Flexcar, Zipcar.”

You can see how Car sharing is growing in Germany and car sharing is growing in Japan.

Car sharing is growing in these industrialized countries because labor is still dear.  In Ecuador you can car share with a driver!

Plus one more really important point.   With rising energy costs, why would any of us think that on a limited budget we can continue to have this wasteful high energy lifestyle?  Why would we even want our old wasteful high energy lifestyle?  Americans have been warned.  Four dollars a gallon gasoline can return.

In fact four bucks a gallon may be low.  In Europe gas can cost seven dollars a gallon.

This note is not about cars.

It is about change.

We’ll be seeing more and more change in our lifetimes… coming faster.

We can profit if we adapt to the change and take advantage of new circumstances by living in new ways based on the local conditions that surround us.

Those who try and stick to old ways in a new environment will lose opportunity and ease in life at best. They may even suffer… sometimes a lot.

Change means we may life differently than before.  Change means we may even choose to live in a country where we were not raised and born.  This change can enhance our lifestyle… improve our health…. relieve our stress… if we adapt and embrace that country for what it is and enjoy its unique attributes.

If we choose to leave one country… why try to reproduce what we decided we no longer enjoy? If you want a mini USA or another Canada in Ecuador… but on the cheap… I expect you’ll be very disappointed coming to Ecuador.

Ecuador is a great place to be… but it is Ecuador… not Canada… not the USA.

Think about the quote by Anatole France about change: All changes, even the most longed for, have their melancholy; for what we leave behind us is a part of ourselves; we must die to one life before we can enter another.

Through change we may lose the one car per person lifestyle… but gain stronger legs… healthier lungs and cleaner air.  We may not be able to jump in the Chevy, go to the levy and drop off the laundry, do the banking  and get a Big Mac on the way… but in the change we can eliminate our fear of the meter maid.

Plus that ride can still be provided by a wonderful knowing person… just one cell phone call and minutes away.

Do not get me wrong. I still have cars… three right now in fact… all in the US, a Honda minvan for long drives and our old Suzuki and a conservative Dodge pickup for use on the farm.  Conditions warrant each.

Yet I am thinking about creating bio diesel from the farm when change brings the day that gas is not so available or cheap.

We have no car in Ecuador and have never missed one for a second.

If change is bringing a time when the daily one person per car commute must pass… Ecuador is a great place to get started.  For car sharing with drivers, taxis, buses and yes walking… Ecuador is a good place to be. 

Gary

Join Merri me and Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

See why we love Cotacachi Market here.

Ecuador visit

 

Ecuador Tickets


See how to save up to $658 on Ecuador tickets to the Galapagos Island tours plus one of the most important international investing thoughts you may see this year.

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First, here is an international investing thought we reviewed at our  recent International Investment and Business Course. Then we’ll look more at Ecuador tickets and how to get Galapagos cruise savings.

Yesterday’s message International Investment Gains looked at the fact that the Dow has moved in 15 to 17 year up and down cycles.  We saw that the Dow is into the twelfth year of a down cycle that started in 1998.  When we compared the Dow’s movements for the last two years to the equivalent time in the previous (1968 to 1982) down cycle, we saw that these two years had an amazing 93% correlation.

This led us to the question…What is next?  See below in blue what the Dow did between 1980 and 1982.

The chart below from Moore Research compares the Dow from 1978 through 1980 to the Dow of the last 18 months. The Blue line is what happened in the equivalent period in the 1970s for the next two years.  Ignore the black line (this is how the Dow has just moved). There should not be and is little correlation.

What is important is understanding the blue line. This what the Dow did during in the equivalent period (1978 to 1980) in the 1968 to 1982 downturn. The black line represent the Dow’s recent activity and should not matter.

This is a really important international investment thought. If history repeats,  if the Dow’s movement from now to mid 2011 has as strong a correlation as 2007 to 2009 had to 1978 to 1980, then the current uptick in the US market is simply bait leading most investors to slaughter!

This chart suggests that soon we will see a sharp correction in the market followed by a period of  very volatile sideways movement.

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Jyske Global Asset Management is suspicious of markets as as well.  Thomas Fischer, Senior VP JGAM, spoke at our July 2009 International Investment Course about the fact that the current upwards trend in the market is not supported by economic fundamentals.

He reconfirmed this when he shared market comments yesterday that said:

Another week with positive trends in global markets. The MSCI World Index is up 1.37% this week but uncertainty about the direction of the market is beginning to show. On Tuesday the Chinese stocks plunged 5% as investors became nervous about the fast share price gains in the Shanghai Composite Index of almost 80% in 2009. The banking industry has seen some very good second quarter reports, but many banks have dramatically increased their provisions against bad loans due to continued pressure on the credit environment. On Tuesday the share price for Deutsche Bank tumbled 11% even though it reported a net income of USD $1.4 billion in the second quarter as bad loan provisions of USD $1.4 billion spooked investors. Consumers are still “maxed out” and with rising unemployment and none existing wage pressures. It will probably take some time before consumers return to the shopping malls in droves as indicated in the consumer confidence number for July showing a fall from 49.3 to 46.6. The big $64,000 question is whether we will have inflation or deflation and at the moment it certainly does not look like inflation. The Fed’s latest survey (Beige Book) shows an economy that is still very weak and the so called  “green shoots” will take a long time to grow.

Jyske Bank and JGAM are one of the few truly international banks that still provides a service for Americans. Learn more about JGAM from Thomas Fischer at fischer@jgam.com

In other words… be very cautious about speculating in the equity market.

See an entire report on this as a Multi Currency Portfolios Course subscriber.

Or join us to update what is happening at at our October 9, 10,  11 IBEZ North Carolina Seminar

Here is what a delegate shared about our July seminar:

Merri, My wife and I would like to thank you and Gary for a wonderful course. We thoroughly enjoyed all the information presented by Gary, Thomas and David. And we thank you for your hospitality with having us to your lovely “piece of paradise” in Lansing. The lunch was delicious and your presentation of import/export items was quite interesting.  We look forward to visiting Ecuador in September of 2010. And we look forward to visiting and staying at your hotel in Cotocatchi. Thank you again for a truly life changing and life enhancing weekend. Best regards,

Now let’s look at how a  $119 Ecuador Living subscription can help you save up to $658 on Ecuador Galapagos tickets on one of the most luxurious Galapagos cruises on this catamaran the M/S Nina with this excerpt from the Ecuador Living article Ecuador Galapagos Tickets.

Our friend Kjetil Haugan, the largest Galapagos Ecuador cruise operator just sent us this note.

Dear Friends!  Greetings from Haugan Cruises!

I would like to remind you of the promotions on our fleet for July until December 2009. Please find our special deals below.

The M/C Nina.

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The Nina is also a 16 passenger luxury catamaran, with four main deck double or twin cabins, two single cabins and four upper deck  double cabins, with a king size bed.

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Nina King

All the cabins have a private balcony and the windows can be opened, except for the single cabins that have sealed windows, but still have a little balcony.

The Nina offers eight day cruises only and the normal cruise fee is $4,390 per person in a double cabin.

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Nina Deck

We are offering 2 x 1 deals August 25 – September 1 and Nov 24th to Dec 1st.

We are offering a $1,000 discount  + a flight ticket (Quito to the Galapagos) for August 18 – 25th and September  8 – 15th September 15th – 22nd, Oct 13th – 20th, Oct 20th – 27th and Oct 27th – Nov 03.

For additional information and added discounts see Ecuador Galapagos Tickets.

This is the ticket to the Galapagos, Ecuador!

Haugan tours pays tour operators commissions on these tours but as publishers we do not accept commissions so pass this on to our subscribers in the form of savings that amount to as much as $658.

If you are an Ecuador Living subscriber, contact us to calculate your 15% discount for your Ecuador Galapagos tour.

If you are not an Ecuador Living subscriber and want to go to the Galapagos, you can save money AND have your subscription free!  Learn how to subscribe here.

Gary

Join Merri me and Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

See other Ecuador tickets to Galapagos cruises here.

International Investment Gains


Our latest International Investment & Business Seminar here in Ashe County,  North Carolina  looked at International Investment gains that were up 14% in the first six months of this year.

When these seminars begin… there is always a hint of excitement.   Thomas Fisher has flown in from Denmark. Our webmaster, David Cross, has arrived from Oregon and delegates have come from all over the world.

We’ll look at some of the international investments we view (including Ecuador opportunity) but let’s also allow some of the delegates to tell you how they felt about this seminar.

One delegate wrote:

Hi Gary, Merri and David,  Thanks for a great weekend.  As a new club member, I’m looking forward to the next time that we can spend some time together and to reading “Ecuador Living”.  Sincerely,

When our North Carolina international investing and business seminars begin, I rise at dawn on the farm and then…

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we drive into West Jefferson where we conduct the seminar.

We are casual at our international investment seminars but serious.

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Many delegates make international investing and business… even lifestyle decisions based on the economic updates we share, so I and our other speakers, Thomas Fischer of Jyske Global Asset Management, our webmaster David Cross and Merri have spent enormous time getting prepared.

This year our July North Carolina course was conducted at at the Ashe County Arts Center in West Jefferson.

The Arts Center is housed in a historic WPA building featuring a gallery so we share our information amidst local art and crafts, statuary and exhibits from over four-dozen artists.  Here is some of the art we saw.

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The seminar began with a historical review that led us to three places to invest now.

#1: Multi Currency Sandwich in value markets, emerging markets and wellness.

#2: The environment.

#3: Real Estate in the US and Ecuador.

Plus we saw why many of us would need our own business.

The first historical fundamental we covered was a way to predict where markets might go next.  We saw for example that the Dow has moved in approximate 15-17 year up and down cycles for over 100 years.

We viewed how the Dow appears to be in the 10th year of a 15 to 17 year down cycle that began in 1999.  We compared the last two years of this cycle, with the equivalent period in the 1968 to 1982 bear cycle.

We saw an amazing 93% correlation between then and now.

The chart below from Moore Research compares the Dow from 1976 through 1978 to the Dow of the last 18 months. The Blue line is what happened in the equivalent period in the 1970s to now.

global-trends

Here is what another delegate wrote about this seminar:

Hello Merri & Gary,  Now that I am back home and settled into the normal routine, it’s time to drop you a line to say how much my brother Rick and I enjoyed attending the conference last weekend.   Experiencing the beauty of Ashe County and the pleasant disposition of the people who live there contributed to the picture of the place that you paint via the letters and photos sent out to your readers.  Not only was the information presented there of great value, but Rick and I found that all of the other participants we met are great people indeed, just as you’ve mentioned.  Your ability to attract like-minded souls is a service in itself, and one that provides lessons we can all strive to emulate going forward.

Thank you again for providing the opportunity of meeting you both in person; I will begin to make use of the information to enhance my own life and look forward to seeing you both again some day.  Best wishes.

Then we looked at the multi currency sandwich and how you can currently borrow US dollars at 3% to invest the loan in higher yielding shares and bonds.  Pound loans are 4%.

We also saw how the British pound was a potentially undervalued currency versus the US dollar.

We looked at how Jyske Global Asset management’s Low Risk Portfolio with a 100% loan rose 11.4% since 2009 or at 23% per annum pace.

Then we reviewed an 18% six month profit with 4.75% ISS Capital 2010 bond (or growth at 36% per annum pace).

We reviewed a  7.25% Bombardier 2016 bond. that offered a longer duration and higher spread of 3.5%.

This led us to a multi currency sandwich with $100,000 invested and $50,000 US$ loan at 3% and $50,000 loan in British pounds at 4%.

The $200,000 was invested $100,000 in US the 7.5% dollar bond above.  $50,000 was invested in a Pound denominated bond issued by Hungary due 2016 and yielding 10%.  $50,000 was invested in British shares because Britain is one of the best valued major markets at this time.

Here is what another delegate shared about the seminar:

Merri, My wife  and I would like to thank you and Gary for a wonderful course. We thoroughly enjoyed all the information presented by Gary, Thomas and David. And we thank you for your hospitality with having us to your lovely “piece of paradise” in Lansing. The lunch was delicious and your presentation of import/export items was quite interesting.  We look forward to visiting Ecuador in September of 2010. And we look forward to visiting and staying at your hotel in Cotacatchi.

We then reveiwed the best and worst value equity markets around the world and saw that the best valued major markets are now Austria, France, Germany, Italy, Singapore and the UK.

Here is what another delegate had to say about this seminar.

Hi Gary & Merri,  I thoroughly enjoyed the time you so graciously allowed me to attend at your seminar and am not surprised, in the least, that you are getting rave reviews.  You and Merri make such a wonderful team offering these seminars with professionalism and charm, and here in Ashe County, with a unique local flavor.  We all thoroughly enjoyed meeting and getting acquainted with many of your delegates.  As it was last year as well, many of the people you attract with your seminars are well traveled, interesting and very personable.  Thank you for your friendship and generosity,

In another session we looked at the importance of investing in the environment. We saw three ways to gain from sustainability changes ahead.

#1: Adaptation.  Investing in solutions to health problems is an example. Poor food produced in our central food system creates blood sugar problems, so Novo Norsk a Danish company that is the largest producer of insulin makes sense.

#2: Mitigation.  Cleaning up the mess humanity offers profit especially with water. Hyflux, a Singapore company, and Kurita Water, a Japanese firm, both have potential in this field.

#3: Structural Change.   Vestas Wind Turbines is a Danish company and is the largest maker of wind turbines to produce energy.

Here is what anther delegates sent to Merri and me about this seminar:

As a retiree who saw her retirement sustain considerable loss due to the economy, I found the information you presented during the three days to be extremely helpful and showed a plausible way for me to have some recovery.  Besides all of the relevant information, your emphasis on honesty and the importance of not to be deceptive was reassuring.  The bottom line is, that what gave real value to the information we were receiving and what made us feel comfortable was, that we felt you, Thomas and David were all people of good character.  Something that is very important to us.  Thank you, Gary and Merri, for providing a wonderful Seminar. Sincere regards.

On Saturday evening we drove to Lansing and looked at how small businesses can grow as we visited the New River Winery for a wine tasting. The winery is housed in another old WPA building which originally was the Lansing school.

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Here is Haskell McGuire one of New River founders showing us the winery.

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New River’s flagship wines are Bohemia Red and Bohemia White. These were followed by the introduction of signature wines, Back Porch Blueberry.  New River now has several new wines in production including:  Pinot Blanc, Viogner, Hellbender Red, Lansing School White, Big Laurel Blush, and Seyval.

The winery started small and is growing by leaps and bounds. Vineyards and wineries are one of the fastest growing business sectors in North Carolina.

Here is an unedited quite from another delegate:

Dear Gary and Merri:  We so enjoyed attending the IBEZ Seminar this past weekend in Jefferson, NC.  We loved the high country area, the nice people we met and particularly enjoyed the visit and tour of the New River Winery.  We were lucky to sit at a table with four utterly charming southern women, one of whom was Haskell’s wife.  We had a long drive home on Sunday and were sad that we had to leave and not be able to join you and our group for lunch at your farm and sad that we missed Merri’s cooking.  We hope someday in the future we may have the opportunity to visit your property as we heard it is quite beautiful.

Then we began the international business sessions of the course and David began teaching how to use the internet in business.

We started by looking at a Time Magazine quote which said:

Throw away your briefcase: you’re not going to office. You can kiss benefits goodbye. Your new boss won’t look much like your old one. There’s no longer a ladder, and you may never get to retire, but there’s a world of opportunity if you figure out a new path.

On Sunday we continued the course at our farm. Everyone was invited up to the house for lunch.

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We did a review of Ecuador export products.

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Like this leather coat and these baby alpaca sweaters.

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Another delegate wrote:

Hi Gary, Just a quick note to tell you again how much I enjoyed the seminar and seeing your lovely farm.  I spoke to you briefly about deciding that I wanted the web course instead of mult-currency.  Thank you for sending me that instead of the multi-currency.  It may be two weeks, but I am starting to work on that site.  I know from life experience that it is always better to focus on what you want to create instead of what you don’t want. So thank you for the buzz of creativity that you, David, and others from the  group inspired.  I am also interested in featuring the dulcamaras product on my site, along with testimonials.  You mentioned a contact for that product.  I would appreciate that information also. Smiles.

Here is some Ecuador art that evolved from drum making.

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Delegates came up with many marketing and…

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Business ideas.

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plus we had fun.

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Next time this course will be in October.  This view…

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will look like…

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this!

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As the guests leave… in the dusk… there is always a moment of sadness.  New friends made.  Interesting ideas shared and now we are moving apart.

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Yet we’ll be back together again next seminar.

This delegate expressed it well when she wrote:

Thank you again for a truly life changing and life enhancing weekend. And we also wish your loved ones a speedy recovery and good health. Best regards.

We hope you will join us for our International Investing and Business Course in North Carolina this October or in Ecuador in November like this delegate who wrote:

Hi Gary,  It was wonderful to meet you and Merri at the IBEZ Conference this past weekend!  You both are so warm and caring and have a genuine desire to help the people of Ecuador and others to build a successful business.

The classes were very insightful and jam packed with information and suggestions on how to start your very own web based business. You and David, your webmaster, presented the information in an easy to understand format that even computer dummies like me could understand.

The multi currency investing portion of the class presented by you and Thomas Fischer from Jyske Global Asset Management were very interesting and educational.  It opened our eyes to new avenues of investing that we didn’t have a clue about before.

We also very much enjoyed the Import and Export portion of the class.  The items from Ecuador that you and Merri shared with us were very beautiful.  I especially loved the bird art and would be very interested in importing some of these to sell.  I am also interested in jewelry, leather goods, and the shawls like Fran was wearing in class (they were enhanced with the leather collar and leather applique).  I think that custom made leather goods that are stamped, as you and Merri suggested, have good income potentials. We would like to thank you and Merri for opening up your beautiful home to the class on Sunday afternoon and feeding us such a delicious lunch.  This was the perfect ending to three days of fun and sharing of ideals and suggestions on how to make money from investing in property and multi currency to building a successful web site business and Importing/Exporting from Ecuador for profit.  Thank you and Merri so much for everything.  We look forward to attending additional conferences.  Take care and hope to see you again soon.

Gary

Join Merri me and Thomas Fischer of JGAM and our webmaster David Cross in North Carolina this October and enroll in our emailed course on how to have a web business free. Save $299.

Learn more about global investing, how to have an international business and early retirement in Ecuador at the course.

Oct. 9-11 IBEZ North Carolina

Or join us in Ecuador and learn more about living and retiring in Ecuador.

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Another delegate wrote:

Hi Gary, Just looked at your website for the first time and couldn’t hardly stop reading all the fantastic topics and the wealth of information you provide.  One of the best website’s I’ve experienced.  Don’t know why I haven’t looked at it sooner but am very happy I finally got to it.  I read as many articles as I could in one sitting with limited time this morning and am anxious to get back to read more.  Your life experiences and expertise is fascinating.  It’s amazing how close your philosophy about life, work, investing, family, etc. parallels my own.  I suppose international living, broad experiences with other cultures, diverse business experiences, etc., culminate in a certain way we view the world.  Anyway, thanks for sharing so much excellent philosophy and expertise.

Ecuador Income Potential


One of the most common queries sent to me is about Ecuador income potential. Readers want to know how they can earn income in Ecuador.

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A job as an Ecuadorian policeman looks good… but not the pay.

One wonderful  part of living in Ecuador is the low cost of living.   However, this also means that Ecuador wage levels are low.   Most Americans and Canadians I know, who have moved to Ecuador, have a higher standard of living than most Ecuadorians.

In short… most North Americans probably will not want to be an employee in Ecuador…also the government tends to like Ecuadorians rather than other nationalities to be employed.

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Ecuador is a land of small businesses.

This is especially true of those collecting Social Security. Employment abroad can reduce the income a US recipient is entitled to.  If you plan to work or have a business abroad… consult with a tax US attorney. See more about this at Ecuador & Social Security.

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You do not want to depend on Ecuador Social Security.

This leaves North Americans with three ways to expand income potential in Ecuador… or actually anywhere they live.

The first way to have more income in Ecuador or anywhere is to earn more from your investments.

The world is currently in the grasp of a major global bear stock market.

During bull markets and recoveries, stock markets almost everywhere can provide incredible returns. For example I work with Denmark ’s second largest bank. They are global equity experts and one of the portfolios (the Green Environment Portfolio) we created together rose 266.3% in one year. Another (The Emerging Market Portfolio) rose 114.2% in 2006 and 122.6% in 2007.

Yet in each case these portfolios also encountered gut wretching drops during the 2008 bear market. That Green Portfolio for example dropped 103.22% in one month.

Markets everywhere are depressed and are likely to see another big and sudden drop in the next few months.  Since March, stock markets have been rising without reason.

This is good to know because if a recovery comes, history suggests it will be sudden and dramatic and strong.

The next stock market dive will create opportunity for  some investors to make fortunes.

Here is a simple idea that can help you become a good global investor, a whiz at international investing. The idea is that these three simple facts can help you spot distortions in equity markets.

The first fact was confirmed by Alan Greenspan in his excellent book, “Age of Turbulence”.

“A major aspect of human nature-the level of human intelligence-has a great deal to do with how successful we are in gaining the sustenance for survival. As I point out at the end of this book, in economies with cutting-edge technologies, people, on average, seem unable to increase their output per hour at better than 3% percent a year over a protracted period. That is apparently the maximum rate at which human innovation can move standards of living forward. We are apparently not smarter to do better.”

That’s a huge fact. Overall we should expect the global economy to grow at about 3%.

This gives us a baseline for how much an investment should grow.

If an economy rises faster than 3%, it is distorted. During early stages of excessive growth, investors will be attracted. Shares will rise faster.

If the economy remains robust, shares become overbought. Then watch out! A correction will come.

This leads us to the next fact which is “all investments have risk”.

Rather than wasting time trying to avoid risk…which cannot be done, investors should look at three risk elements instead.

#1: How much risk is there in any particular investment?

#2: What perceptions doe the market have of the risk?

#3: What risk premium is due?

Bank accounts and government bonds, for example, are perceived as the safest investments (especially if government guaranteed). A look at their long term history shows that they pay about 3%. So if a bank account or government bond pays less…in the long term it’s bad. If it pays more…that’s better. Yet the idea is that bank accounts will not really make money. They will just keep up with growth…at 3%.

To get real growth requires taking risk. If an investment appears to be less safe it will pay more than 3%. This is called a risk premium.

Bonds pay more than bank accounts because they are perceived to be less safe. Stocks pay more than bonds because they are perceived even riskier. Emerging market stocks pay more than major market stocks. Emerging market bonds pay more than major markets bonds.

Over the long run, bonds issued in countries and currencies perceived to be stable pay 5% to 7%.

Stocks in major countries should pay 7% to 10% annual return in the stock market as a function of global growth, long term earnings growth plus risk premium (above bank accounts and bonds).

To attain higher growth than 7 to 10% investors must either increase risk, trust luck or spot distortions.

This is good because the market is almost always wrong. Most investors always try to avoid risk. Most investors dump their wealth into investments that are perceived to be safe. This creates excessive demand and lowers value and actually makes the perception wrong.

Knowing this helps wise investors spot trends created by distortions.

Finally we come to the third fact. Periods of high performance are followed by times of poor performance… and vice versa.

In times of global panic as we have recently seen, all markets tend to drop.

Understanding these three facts leads us to know that a portfolio of global shares.

Understanding the 3% solution and what markets have done shows a distortion. Blue chips may be a good way to invest now for higher than normal returns… in the long term.

Global investing has proven itself to be more profitable. Why not? Modern communications and transport coupled with a vast pool of low cost labor almost guarantees this fact. Knowing three more facts based on the 3% solution can give you an edge when it comes to taking advantage of the ups and downs in this global trend.

Equities now provide potential for decent prospective returns from current
levels over the next 5 or 10 years.

Many investors are now putting risk back on the table.

In the US Money Market Funds now have more cash than all the equities in equity funds.  This is something that markets  have never seen before!

The current bear market bull was created when billions of dollars of this liquidity began flowing back into stock markets.

The pent-up liquidity is earning really low returns and as inflation increases its bite, this cash has to go somewhere.   Equities are one of the logical choices.

For protection against future inflation, real estate and shares are the norm, plus
index-linked and gold royalty investments make sense.

Franco Nevada for example has 1% dividend yield plus growth from the reinvestment of the cash flows. FrancoNevada Corporation (TSX:FNV) is a gold focused royalty company with additional interests in platinum metals, oil & gas and other assets.

My portfolio adviser recently sent me this note:

Gary,  I have been keen on thematic investing globally.

The sectors/themes that I favor for the continued recovery in markets
are Food, Telecoms, Power Generation, New Energy, Healthcare, Gold &
Silver, Water and Infrastructure.  A sample of some of the
companies/Funds that might be used to put into place such a strategy
are:-

Unilever
Cadbury
Vodafone
Nokia
Iberdrola
AstraZeneca
Novo Nordisk
India Pharma Fund
Franco Nevada
GoldCorp
Centamin Egypt
Yamana
Silver Wheaton
First Solar
Vestas Wind
Kurita Water
Water ETF
Black Rock New Energy Trust
Geiger Counter Fund
Kotak Indian Infrastructure Fund

Building this type of global, diversified portfolio makes sense when the market stumbles again… as it is likely to do soon.

Buying into this proposition increases risk… that history suggests will be well rewarded.

We’ll share the next two ways to increase income potential in Ecuador or anywhere in our next two messages.

ecuador-earning-potential

One way to earn in Ecuador is to export its…

Ecuador-earning-potential

many colorful crafts, textiles and products.

Gary

Join Merri, me, Thomas Fischer of Jyske Global Asset Management and our webmaster for our July 24 to 26, North Carolina International Business & Investing Made Easy seminar.   Save up to $299 by enrolling now.

Half the curse looks at global investing and half how to have an international  internet business.

Enroll in the July seminar now and get one of our two internet courses on how to invest globally or have an international internet business. Save up to $299.

See more details on the North Carolina seminar here.