Why Rich People Should Live in Cheap Countries

Summary

The video discusses why financially successful people and investors should consider getting a foothold in emerging markets that offer growth potential. It argues emerging markets can provide diversification, hedge against instability in developed countries, and take advantage of changing momentum. Examples given include Mexico, parts of Latin America, and Eastern European countries. The strategy is not necessarily to live full-time in these places but to have backup citizenship options in faster growing and more affordable markets should economic or political situations shift.

Takeaways

• 😀 Successful people want access to emerging markets before prices rise
• 😯 Mexico could overtake the US economically in the long run
• 💰 Latin America offers cheap, productive farmland for wealthy investors
• 😎 Having options in politically neutral countries provides safety
• 👨‍👩‍👧‍👦 Gaining second citizenships opens opportunities for your children
• 🌎 Wealthy people want residences and citizenships across the globe
• 📈 Emerging market returns and investments can greatly outpace developed countries
• ⚖️ Developed countries are moving in the wrong direction politically
• ✈️ Having multi-country access provides protection in case of unrest
• 🏡 Residences abroad can lead to future citizenship if desired

Q & A

Why would a wealthy investor or entrepreneur want to consider emerging markets for investment or residence?

Wealthy investors and entrepreneurs may want to invest in or establish residence in emerging markets to get in early before prices and barriers to entry rise, as well as to diversify their assets and have options in more locations around the world in case issues arise in their home countries.

What does the 'global citizen sandwich' refer to in the context of the nomad capitalist lifestyle?

The 'global citizen sandwich' refers to having banking set up in established hubs like Singapore or Switzerland, obtaining EU citizenship through ancestry or investment if possible, and also obtaining residence or citizenship options in emerging markets for asset diversification and future opportunity.

Why does the speaker recommend considering Mexico for residence or having a child there versus the United States?

The speaker believes Mexico's economy and passport strength will improve in the long term compared to the United States. He thinks it presents better opportunity 18 years from now for someone starting out in life compared to the issues he sees unfolding in the US.

What are some examples of niche opportunities the speaker sees individual countries competing on?

The speaker cites niche opportunities like being the most crypto, Bitcoin or blockchain friendly country as areas where individual countries are trying to establish themselves as leaders to attract investment and talent.

What does the speaker see as the potential opportunity in agricultural land investment in Latin America?

He believes Latin America presents some of the cheapest agricultural land in the world accessible to foreign buyers. This could be worthwhile for asset diversification and establishing a productive safe haven for someone with even $50 million in net worth.

Why does the speaker keep comparing emerging markets to Singapore and its development?

Singapore represents an example of a country that grew quickly in economic importance and livability, but became very expensive with high barriers to entry. The speaker believes identifying and investing in the next Singapore while still early presents huge upside.

How can passports like Georgia be valuable to a global citizen portfolio?

The speaker sees neutral and geopolitically diversified passports like Georgia as providing options without as many barriers compared to Western countries, which could prove valuable if circumstances change.

Why host an event showcasing the nomad capitalist lifestyle in Kuala Lumpur?

Kuala Lumpur offers a high quality of living for a very reasonable cost. Hosting their event there allows attendees to experience an appealing emerging market opportunity firsthand.

How can having residences and passports in emerging markets benefit wealthy people?

It allows them to diversify their assets globally, take advantage of growth opportunities, and have additional options if issues arise down the road - all without necessarily changing their day to day lifestyle if not desired.

What role does momentum play in the speaker's perspective?

Places with upward momentum offer the most wealth creation potential in the speaker's view. He sees many emerging markets on an upward swing, compared to declining momentum in many Western nations.