Weekly Newsletter
May 30, 2005

So you want to retire to Panama.
Newsletter #10 Volume #1
ATM machines, Seguro Social Changes and Rioting 101

ATM Machines

The many ATM machines found all over the capital city have made Panama living much more convenient for folks like me who prefer to have their retirement checks go to a US bank. Where it used to take a minimum of three weeks (15 working days, and Saturdays don't count) to clear a check on a US bank deposited into a local account, it now takes only the number of days you need to draw the amount needed in chunks of $500.00. It's absolutely wonderful, most of the time.

I seem to have a talent for discovering the gnats swimming in the soup, though, and found one on April 29, when an ATM stuttered, hemmed, hawed, and coughed after dispensing $300.00 of the $500.00 I requested. The receipt (Always get a receipt!) showed that my account in the States had been debited $500.00. We drove straight from there to the nearest branch of the bank which owned the machine and filed a claim. Now understand that when this happens, that wonderful compuertized system that talked directly with my bank in the US and knew to the penny how much money I had in my account suddenly resembles the famous three monkeys, and nothing can be done until someone physically checks the machine, counts the money, and compares the balance with the record. In our case, it took numerous telephone calls and 10 days before the bank would admit that their machine short changed us, and another 9 days before the money got returned to my account in the US.

Now that you know it can happen, remember these tips in case it happens to you.

1. ALWAYS get a receipt.

2. If you didn't get a receipt, write down the location and number of the machine, the bank it belongs to, and the date, time, and amount you got shorted.

3. Get to that bank at the earliest possible time, immediately if possible, and file a claim.

4. Notify your bank, with the same details, as soon as possible.

5. Be patient and polite, but persistent.

Finally, I know it's a pain, but you may want to consider withdrawing your money in smaller amounts or a couple of days ahead of anticipated need.

Seguro Social Changes

So how will the proposed Seguro Social Law affect us expats with our foreign source retirement checks? Aside from the obvious, that we must be very careful about complying with the law when we hire folks to work for us, it should be taken very seriously as an object lesson.

How many of you still believe that those incentives you get for retiring here are safe? How many want to make any bets on whether or not your tax exempt status will continue forever? As our numbers increase and the apparent wealth of the average foreign retiree appears greater, the day will almost surely come when the government will simply be unable to suppress the temptation to dig deep into your foreign pockets. Folks who spent their life savings on an overpriced piece of land in 'Paradise Beach Mountain Lake Valley' may well find themselves unable to do anything but pay up. And if you think they won't do it to you, well, just take a look at what they are doing to their own.

We old timers are neither surprised nor shocked at the violent protests nor the draconian changes that incited it. We've seen it all before and will doubtless see it all again. At least this time it's the criminals smashing windows and destroying private property, so there is some hope they will be punished.

In the meantime, be very sure that Panama is worth it to you. As for me, I'm staying. I survived Noriega. It's not likely to get worse than that.

Rioting 101

I've seen pots banged, white cloths waved, demonstrators beaten, gassed, firehosed, and sprayed with pepper spray. I've seen caravans, road blocks, marches, and people lining both sides of the road. I've seen impromptu demonstrations and well-orchestrated marches of upwards of 100,000 people, both anti and pro government. I've seen the "Dignity Batallions" march in jeans and t-shirts with AK-47s. I've seen cops smash car windows and people's faces. I've seen demonstrators killed. I guess you could say I've seen it all, almost. The one thing I've never seen is riots or demonstrations on weekends and only once past 8:00 pm at night.

So if you find yourself in Panama during a time of civil unrest, stay home, turn on the TV, kick back with a beverage, and wait until the rioters go home for supper, or to the beach for the weekend, to go shopping.

If you find our newsletter interesting and/or helpful, please forward it to friends you think might like to receive it. If you received this from a friend and would like to subscribe, drop me a note at retire@panamaretire.net.

If you want to stop receiving this newsletter, just send an email to remove@panamaretire.net. All requests for removal will be honored as soon as I receive them.