Comments by "looseycanon" (@looseycanon) on "Nomad Capitalist"
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Here is an idea, why I'd argue, you should evade dividend yielding shares. I firmly believe, that a company in current age can find a problem to solve and sell the solution to a buyer or turn it into a franchising opportunity. We live in an era of overabundance of problems to solve, which is further bloated by perception of how pressing some of the problems are. In such a climate, I read a company paying out dividend as a sign, that the company doesn't want to grow and diversify it's revenue sources, making it less stable. As an investor, I understand the necessity of cashflow from investments, but I also believe, that if ones income is sufficient to satisfy immediate needs and there is sufficient cash in reserve, longer term things should be the focus of investing, which brings to the question, what the company you invest in does. Since dividend payouts harm company's ability to grow, I would not want that kind of money in dividend stocks.
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Accountant here. You cannot end up with no tax residency! Even if you were to time your stay to the second into say 5 jurisdictions (cause then you'd stay for 73 days in each, save for leap years), you'd end up paying taxes to the one, which you have the strongest ties to. Furthermore, certain taxes don't apply to you as a person! You always pay taxes such as VAT (you pay it, the vendor just collect's it from you and forwards it to the state, as far as your interaction with them is concerned), car tax (typically follows where the car is registered), or Property tax (follows where the property is built) are all typically paid irrespective of your tax residency!
Typically for income tax (except for US) your nationality is the last factor! If you stay fewer than 183 days in one country, it goes to your primary residence, where you have majority of your interests (family, primary source of income, etc.), where you typically stay, and only last one is citizenship. Furthermore, some nations can have it differently on peer-to-peer basis! Different tests and different order of tests taken to determine residency!
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Man, if you're running the problem, of not being covered by the usual insurance policy, your problem is not the banks. Your problem is overexposure to a single market. Holding that much money "cash", unless you actually need that for cash flow is bad business. You need to be in productive assets with that money and that means companies, houses (to rent out), metals... just not cash, because, contrary to mainstream economy, money is NOT a store of value. It's strictly facilitator of trade and therefore you treat it as supply, not an asset.
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Duuude, you do not close bank accounts unless regulatorly have to! Take your business elsewhere, by all means, move your assets as you see fit, but do keep those cards and accounts open! Buy some kind of online accessible service from that country, that you'd actually use (like a newspaper subsciption or two. It's allways good to be kept informed about what's going on in the country, even if it's propaganda, so long that you know what it is), set up fixed transfers from a distribution account in that country with a bank, you actually trust and you're golden! Sure, it can be overwheling to keep tabs on what you buy and from where you pay it (I keep an Excel spreadsheet for this and I have banks in a single country), but there are benefits to this.
One, you can access services and benefits of multiple banks, which can complement each other. For instance, my primary bank offer's the best travel insurance with their credit card in the country, but their non-SEPA international transfers are paid... My secondary bank allow's me a single such transfer free as a part of subscription, that costs one fourth of the minimum transfer fee. Another bank provide's me with rebate on my phone bill, which is substantial, given my backup Internet connection is on the same contract, best thing? This account is completely free for domestic use and I just need to run some money through it. So I put utilities on the account and it's automatic now. Don't even need to touch it beyond the couple of card payments I need to put on the debit card. I could even run the money through that account from one of my accounts with a second bank to another account with a third bank. Particularly if you're on the poorer side, things can get interesting, when dealing with multiple banks. And then there are the different investment products the banks offer, which are easier to get to throught that bank or even exclusive.
Two, you never know, when your primary bank in a particular country goes bad. Hence, why it is good to have multiple banks set up in a "maintenance" mode. It eases transition.
Three, there is deposit insurance to consider, depending on how much money you keep in a particular country.
Four, if you have multiple streams of income, it helps keeping track of who paid you and who owes you money, as well as keeping track of expenses related to those earnings. Say you work for a company, but also rent out flats and land (very common where I live) and have a business in your name of some kind (say you spend your leasure time making and selling wine). In such a case, having three, maybe even four banks would be beneficial. You just use the bank, that receives your wage as your primary, pay your everyday expenses from there. Set up wire transfers for whatever expenses are to be paid in regards to your side hustles (utilities for rented out properties, taxes, whatever's needed for wine making), set up a recurring monthly wire for about half of net income on that account in a month to forward the money into the main, set up a maintainence order into a savings account with the other banks and once a year, you'll do reallocation of funds.
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