Randy from Sacramento, California:
Hi, Angel. I am looking to relocate to Mexico and wanted to know if you can tell me anything
about using my retirement funds to purchase either in the interior or in the restricted beach zones
(and if there are any differences in the requirements of the two areas). Gracias!
Angel:
Hi, Randy. Thank you for your question. This is a very interesting topic. There are many, many
factors to consider, so I will try to be as direct and clear as possible without knowing if you have
a 401k, a self-directed IRA, a ROTH account, etc.
Retirement and pension funds can be used for purchasing in Mexico in both the interior and the
beach areas through trusts or an LLC. The area in which we have historically encountered
problems is not on the Mexican side of the transaction but rather with the pension fund's or
retirement portfolio administrators. Often the simple solution is to ask for the ability to self-
direct your funds and receive a checkbook tied to your investment resources.
Once you have the ability to direct your own money, there are a number of potential restrictions
that each portfolio can put in place, ranging from the percentage of your portfolio that can be
used and/or the designated use of the funds. I highly recommend that you contact your portfolio
manager for more information on specific benefits/restrictions before entering into a purchase
agreement.
In the majority of these types of investments, there are substantial tax benefits to using retirement
funds for purchasing in Mexico.
Carol from Southern California:
Hi, Angel. The last time I was in the Baja I wanted to open a bank account to have in place for a
future purchase or even just to avoid ATM fees from my American cards and exchange rate
differences, etc. I tried at two different banks, and neither would allow me to open an account
even though I had my visa. Why?.
Angel:
Dear, Carol. I am sorry for your inconvenience. The “visa” is a tourist visa that allows you to
experience Mexico as a tourist while allowing you a determined amount of time in the country.
Generally, tourist activities include things like eating out, shopping, tours, etc. They also include
exchanging currency and withdrawing currency from your debit or credit cards, but don’t include
banking activities like setting up checking accounts, saving accounts, and debit/credit cards.
If you are thinking about purchasing a home in Mexico, I would recommend that you start with a
temporary resident permit, which will allow you easy access into and out of Mexico, extended
stays in Mexico, and give you the right to open a bank account, investment account, or both.
Many people find that they can have a portion of their assets working harder for them in Mexico
with zero risk and at higher returns (generally 5-8% annualized) than they can receive at home!
Best regards, Angel.
Deborah and Tony from Canada:
Dear Angel, we are Canadian citizens and would like to relocate to Mexico, but we have a major
dilemma. Under Canadian law, as non-vaccinated retirees, we are not allowed to board passenger
flights or other public transportation in Canada, so even though Mexico does not require proof of
vaccination to enter the country, airlines like Aeromexico will not even sell us tickets to fly to
Mexico.
We have considered buying a home in Mexico sight unseen and then going to the Mexican
Consulate to get our permanent residency—and then returning to claim asylum. I guess our
question is whether it’s even possible to purchase as Canadians and to purchase remotely, and
what about residency and asylum? Thank you, Angel, and God bless.
Angel:
Hello, Deborah and Tony. Yes, this is possible, and the process you spell out is the best possible
way to achieve the results you are seeking. While it is not necessary to purchase a property or
have residency to apply for asylum, let’s face it; these are mitigating factors in your favor that
would show direct ties to our Mexican community and help achieve positive results. Please feel
free to contact me directly with any questions you may have along the way. Wishing you the best
of luck in your endeavor! Please keep us posted!
Thank you all for your questions this week. For more specific information on Inmtec Legal
Services™, Inmtec Title Services™, Inmtec Insurance™, Estate Planning, Asset Protection, and
AfterLife™ Medical Advocacy by Inmtec™, please contact the author, Angel Marin Díaz,
at info@inmtec.net, 415 121 9005
Best regards, Angel!
Do you have a question?