September 4, Mass Wisdom Q & A

by | Sep 4, 2010 | Archives

To share the inner intelligence that we all have… we have made  Saturday our Question, Answer and Comment day.


Frigate at Palmazul on Ecuador’s Pacific.

Every single one of us can add to…


the wisdom of the masses.  Frigates at Palmazul on Ecuador’s Pacific.

Please send your questions, opinions  or comments.

Question About Debt:

I wish I had sufficient cash flow to finance my life without debt but alas that is not the case.  Can debt be beneficial sometimes?  I have a lot of real estate debt but I always make sure that I keep it in control.  In my financial statement I have a line item for my overall debt ratio.  37.8% at the moment.  I also make sure that my debt is for things that pay me.  Cash flowing real estate.  I insist on a minimum 20% cash on cash return, and usually make much more.

But here is my question.  The US government has a real debt problem which they will need to “solve”.  Probably with higher inflation.  So isn’t it beneficial for me to have the same “problem” so they can inflate away my debt too?  Note that I have no car or credit card  debt.

Another Question About Debt:

Good Morning, Gary:

This morning’s article on the 99’ers was revealing and chilling. I am especially blessed because I was career military under the “old plan”: 50%
of base pay at the highest rank I held. That and early collection of Social Security for my wife and I keeps us relatively comfortable–for the
present. Frankly, I have an ominous feeling that these benefits may be cut or lost at some point. That is a major reason why your information on
international living alternatives, is of great interest to me.

Here’s my question. I have some debt from a surgery a few years ago and some failed business attempts–less than $10k US. Of course, there’s the
note on the car. Do you have to be debt-free to make the move to Ecuador, Mexico or wherever? Would it make sense to pay off the debt faster by
taking advantage of the lower living expenses overseas.

Answer: Yes and no.  Yes, borrowing to invest offers many opportunities in borrow low deposit high investing and in real estate. See more on Borrow Low tactics here.

No. you do not need to be debt free to move to Ecuador.

wisdom of the masses

Use the wisdom of the masses to get ahead of the crowd.


OK, Gary, since you, and many of your subscribers, are also familiar with Agora publishing, a question to put to the “mass wisdom” test:  What do “we” know about this program, and is it too good to be true?  In appreciation of all you do,


I have no idea what the ad about pensions is getting at.  This is also a huge file that would take an hour to read and I am not sure from my skim I would still understand.  So I only looked at one thing which is do they give a full money back guarantee which they do.

I do know that Agora are strong marketers… so like all ads… one expects their promises to be bold.  Really only after reading can you know if what’s in it is for you.

I do not always understand their products but what I do know is they are serious about making refunds when asked. So the most sensible thing is if the offer appears to make sense for you try it. If it is too good to be true for you, get your money back.

Question… Actually Comment.

Gary –  Re “The Wisdom of Crowds” – As with other pop-psych and pop-economics books, I had a lot of problems with this book (not least because it conflates a “crowd” with a “flock”.  Also, the “wisdom” contradicts many of the points in your own living and investment strategies.

That said, I agree that a blog with the experiences – bad as well as good – of expats is a great idea. Don’t know if you follow Gringo Tree, but the reports of expats lasting 6 months or less before giving up and going home are tragic. Advice when you’re making a major move – even within the US – is give it at least 2 years. No matter where you go, things are really different from what you are used to. In my own case, when I moved from NYC to Seattle, I did give it 2 years at the end of which I realized I would never fit into the Pacific NW and came back to NY.

Although there is no way to prepare for the huge changes of a major move, people need to realize that things will be different, that not all the differences will be wonderful, and it’s they who will have to adapt not the place to which they are going.

Reply: Most popular books simplify complex subjects.  That is why they are popular.  The actions of bird flocks seems quite similar to herd movements to me.

Re expats in Ecuador…. we always discourage people from moving somewhere they have never been and continually recommend using a 1-2-3 approach.

#1: Do your research.

#2: If still interested after research… visit… the longer and wider the visit the better.

#3: If still interested after the visit… make the move… but rent before you buy.


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