[Replay] CFD – 488 Eliminating Risk By Being A Nomad Capitalist

June 24th, 2019

After starting and selling two successful businesses in the United States, Andrew left the country to travel the world and become a true nomad capitalist. While he always had an independent, entrepreneurial streak, he had followed the conventional wisdom of the time in a few ways that ended up costing him. He had invested a sizable portion of his money in mutual funds and real estate. When the stock market crashed in 2008, much of his savings disappeared and sensing the risks of the looming mortgage loan crisis, he managed to get out just in time and avoided losing even more money.

On top of this, he had also just taken a huge loss in taxes after selling the businesses. The feeling of losing the fruits of his labor to something out of his control was quite devastating. It was extremely depressing to realize that while crony capitalists were succeeding at manipulating government policy, job creators running small businesses like his were essentially getting the shaft.

While Andrew knew something was wrong with the system that he was willfully participating in, and he no longer wanted to play casino with his money, he still wasn’t sure of a solution. After having to call a business client while in Asia, it hit him that he no longer needed to be tied to one location to make money and that each location offers different advantages to optimizing your business and lifestyle.

Podcast Highlights

  • Who is Andrew Henderson?

Andrew’s story begins in his childhood. He learned his five magic words “Go where you’re treated best.” from his father by accident. He started thinking about this idea when he was 12 years old and has been working on that idea for the last 22 years and it’s emphasized by his company, Nomad Capitalist.

  • Nomad Capitalist Investing

We have been conditioned from childhood that the United States is the best country in the world, but it’s rarely the best in any category and that counts investing. We have a tendency to take small things in other countries and blow them up and minimize problems we see in our own country.

Everyone has the tendency to believe they live in the best place, but how can we all live in the best place?

You can live in California and invest in Georgia or anywhere else. Starting small by opening a bank account in another country is a good start. You’ll realize that there are opportunities all over the world.

Do what you need to feel comfortable with travel and the rest of the world. Start making observations about investing and business opportunities while you travel, establish your objectives for your business and start thinking about which place would serve them best.

Hire someone to work backward based on your objectives. Working with Nomad Capitalist is a great option. You can’t just want to run away from something, you should be running towards something.

It’s not a matter of knowing every option when it comes to all the countries of the world. Banking in Georgia works similarly to banking in the United States. The notion that everywhere else is different is incorrect, we are all pretty similar overall and institutions function similarly as well.

  • Real Estate Investing

Property investing in the United States can be a viable way to start a cash flow business overseas. Look for the best place to invest for you but consider diversifying your holdings into other countries as well.

It’s a lot easier to start with wealth or cash flow behind you, but it is possible to start a business with a small amount of money by living in an inexpensive country and extending your runway. Bootstrapping isn’t for everyone, but it is an option. Tax optimizing a business makes the most sense once you’ve gotten started and are generating revenue already.

Cryptocurrencies have a place in your investment portfolio just like any other diversification.

  • Internet Entrepreneurs

The current state of the economy in the US is almost forcing people into entrepreneurship. A lot more people are starting internet businesses and the world is becoming more open.

There is a wide range of people that are exploring opportunities all across the world from young internet entrepreneurs who realize that California is a terrible place to start a business and business owners that have established themselves and see the increased opportunities elsewhere.

Start with your objectives and then work backward to find out what’s needed, don’t open a foreign bank account or set up an offshore company for no reason because that is when you get into trouble.

  • Andrew’s Takeaway

You have to be fully comfortable with the process. Book a plane ticket and see the world. Where you go is not as important as the process of doing it. Go with your gut and find a place that you think you can be comfortable with. The first step is to move.

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