In this introduction, Andrew dives deep into the trouble with banking in the world today. Things are becoming harder. Much, much harder. You need to be prepared to get asked questions for doing trivial things. You need to be prepared that your bank will contact you and you need to be prepared to have the right documents proving your funds. Andrew focuses on the huge issues his clients are facing with Hong Kong banks, more specifically HSBC, but banking is going to become more difficult all over the world; not just in specific parts of Asia. Andrew emphasizes the importance of choosing your banks wisely, as it can really bite you in the future if you go for a bank in a questionable jurisdiction.
Key Takeaways:
Andrew's Editorial:
[1:00] Banks! It's getting so much harder to bank.
[2:05] Before there was FACTA, now there's global information sharing on its way.
[3:00] People who live in Hong Kong can't get bank accounts, even if they know the Vice President of the bank branch!
[3:40] Andrew was waiting at an HSBC bank on a Wednesday, for six hour, in Hong Kong.
[4:45] Nobody knows why their accounts are being blocked or rejected.
[6:00] Keep your profits in the company, reinvest it in the company, and buy assets through the company.
[8:35] You're not a big fish. Unless you're running a business that's turning over $3-5 million dollars or more, banks don't want to deal with you.
[10:25] If you're small, you're going to need more help.
[13:00] The customers are no longer the prize, the bank is the prize. You're lucky to get a bank account with them.
[15:35] Don't hide your money. Follow the law and do the right thing.
[19:55] Andrew tried to open a U.S. account and it was tough.
[24:00] Are you banking at HSBC? Stop what you're doing. Just stop.
[24:05] Are you banking in questionable jurisdictions? Stop.
[24:10] Are you banking in a tiny Caribbean country? Stop.
[24:15] Are you banking in a country with a bad reputation? Stop.
[24:35] Be prepared to get an email or a phone call from your bank.
Interview:
[26:55] Why did Kay become an entrepreneur?
[27:40] Kay is passionate about cave diving and wanted to explore.
[29:35] Kay loves to discover. She is curious, so transitioning from a 'real job' to entrepreneurship wasn't a problem for her.
[31:35] Kay's first job in Mexico paid $400 a month.
[32:00] What made Kay stay in Mexico?
[35:40] Key recommends living in Mexico for a year and see if the lifestyle is right for you.
[36:35] Is it too late to live in the Riviera Maya?
[39:30] Kay first went to Mexico thinking she'd stay for only 6 months. It's been 20 years now.
[41:00] Why did Kay choose Mexico?
[46:55] Getting office space in Mexico is not cheap.
[47:50] You can't assume that you'll always have electricity or water.
[48:10] Kay talks about her family.
[49:30] Despite loving Mexico, Kay does not want to be a Mexican citizen.
The Lightning Round:
[50:25] One business - A website, listing local services.
[51:05] One country - Panama.
[51:25] One book - Simple Numbers, Straight Talk, Big Profits by Gregory Crabtree
[52:10] One tool - Canva.
Listener Question:
[55:25] How easy is it to get Paraguay citizenship?
[1:00:15] Stop focusing on what's so easy and what's so cheap.
[1:01:25] Bureaucrats are afraid of letting people from anything other than western countries into their country.
[1:07:55] If your offshore strategy isn't perfected, then don't do things that can hurt your asset protection strategy. Do what needs to be done to protect yourself first.
[1:09:25] Nothing is a guarantee.
Mentioned in This Episode:
