Inflation Is “Only” 3.4%. Here’s Where Your Money Goes Farther.

The two most recent inflation reports both showed the same thing: prices in the US are 3.4% higher than they were a year ago.

And the politicians could hardly contain themselves.

After the first report, the White House’s top economic adviser, Kevin Hassett, declared that inflation is “clearly decelerating.” After the second, Jason Smith, the chairman of the House Ways and Means Committee, announced that “more relief may be just around the corner.”

I’m not sure that anyone views price hikes at any level being good news. Normal people don’t want prices to rise more slowly; they want prices to stop rising, or better yet, to come back down.

But that’s never going to happen; even the Federal Reserve’s own goal is for prices to keep rising 2% a year.

Bear in mind that prices are ALREADY almost 30% higher than they were before the pandemic.

Now, there are solutions to this. In fact we often write about how real assets— gold, energy, productive technology, and the metals that build everything— are safe havens from inflation.

A government can print money by the trillion, but it can’t print an ounce of gold or a barrel of oil.

But there’s another way to beat inflation that most people never consider: go where your money goes farther.

America has become one of the most expensive countries in the world.

The typical American rental now lists for nearly $2,000 a month, and in larger metropolitan areas, rent is much higher. The median home price is now over $400,000 in the US, and with mortgage rates over 7%, not to mention a hefty down payment, affordability is difficult.

Housing costs may not be your biggest bill; it might be healthcare, child care, or several things at once. Priorities differ, but everyone knows what they spend their money on.

And whatever that is for you, there are places around the world where it costs a lot less.

In Cebu, a coastal city in the Philippines, a two-bedroom condo rents for $450 to $700 a month. A private doctor visit costs $10 to $25.

You could live the way you do now and keep the difference… or you could pay a little less than you do now and get a LOT more: a modern condo with a pool, a housekeeper, dinners out several times a week.

And you don’t have to pack up and move to give yourself that option. You don’t even have to buy property.

All you need is a legal residency, i.e. the right to live in another country whenever you choose.

It’s a smart idea to set one up now, while countries still make it easy. If you decide later that you do want to go, you already have it.

But the rules don’t stay easy. Residency programs change constantly; thresholds rise, rules tighten, and some get eliminated entirely.

Panama used to have all sorts of easy ways to get residency; there was even a visa for investing in reforestation.

The most accessible route has long been the Friendly Nations visa, which applies to citizens of countries with economic or diplomatic ties to Panama, including the US. In 2019, all it required was registering a company in Panama and depositing as little as $5,000 in a local bank account.

Since 2021 it has required a $200,000 investment in Panamanian real estate, the same amount in a Panamanian bank, or a local employment contract.

I still think Panama is one of the best options out there.

Home prices have definitely gone up since we held an event there in 2023; we heard as much at our conference in Panama City last month. But they’re still quite modest compared to the US.

Retirees who become residents also get a permanent discount card for the rest of their lives— meaningful cuts on everything from flights and restaurants to medical care and entertainment.

Mexico isn’t the bargain it once was. The peso has strengthened, and a dollar buys more than 10% fewer pesos than it did at the start of last year.

But Mexico is still right next door, residency is easy to get, and the cost of living is low by any developed-world standard.

In Europe, Greece is the most accessible entry point for anyone wanting residency, and the cost of living there is well below American levels.

And in the Philippines, where that Cebu condo is, roughly $3,000 a month buys a life that looks upper-class back home: a full-time housekeeper who cooks, regular dinners out, private doctors, and a secure building with a gym and a pool.

A residency in one of those places, set up before you need it, is a great cost of living focused Plan B. And it works like insurance.

You don’t call an insurance company while the roof is on fire; you shop around for quotes, figure out the best mix of price and value, and make the decision in a calm and peaceful setting.

The low costs and the easy rules aren’t likely to stay this way, so it’s better to think about doing this now.

Inflation isn’t going away, no matter how many victory laps the politicians take. But a residency in a country where your money goes farther gives you the right to go live there whenever you choose.

It’s a unique way to beat inflation.

P.S. The right residency depends on your age, your income, and how much time you actually want to spend there.

Our flagship service, Plan B Confidential, covers the programs I mentioned here and many others— what each one costs, how to qualify, and what it takes to keep it— along with on-the-ground reports on living costs, healthcare, and real estate in places like Mexico and the Philippines. Members also get our Rolodex of trusted service providers.

Click here to learn more about Plan B Confidential.

Source

Simon Black is an international investor, entrepreneur and permanent traveler. His daily letter is both educational and entertaining, and we suggest that those who want unbiased, actionable information about global opportunities sign up for Sovereign Man’s free, actionable newsletter at http://www.SovereignMan.com.

From Simon Black of SovereignMan.com

Source: https://www.schiffsovereign.com/trends/inflation-is-only-3-4-heres-where-your-money-goes-farther-156071/