Part II-Jim Sellars Walking the Financial Planner's Talk

If you have not read Part 1, it may because Blogger is acting up, but there will be a link at the bottom of this post, linking to the first post.

Jim Sellar of Wealth Management Canada, in Moncton and his wife and family are living the good life in Panama this winter and send along this travelogue update of escaping -30 windchills and ice to explain how their ice is in their drinks on their patio overlooking Panama canal in Central America.

The other afternoon while resting on a shaded patio at a great little Italian restaurant, I happened to meet Roberto Duran, the hall of fame, former boxer and multiple world title holder.


He shook my hand and smiled, and we exchanged a few words. I’m a fan so you had to see the look on my face to get the value of the moment.

MODERN PANAMA VIEW FROM HE SELLARS FAMILY CONDO

Panama exudes a tone of calm determination to prosper.


Recently, in 1999, when the Americans largely withdrew, there was an economic fallout that caused some serious difficulties for the average Panamanian. They simply began showing the world that they, not their neighbors were the “real” Switzerland of the region.


Welcoming visitors and passing laws that encourage relocation. Eliminating taxes on foreign sourced income, installing world class healthcare, education and banking, and finally banning the military forever, are some of the steps that have made this little country the prize that it is.

For that past number of years, five or six for sure, International Living has found Panama to be the best place in the world to retire, for the reasons I have just explained.


What is interesting to consider is the sub-set of families looking to buy a home in my “neck of the woods” in Canada and compare that sub-set to the group of families who are looking at buying a home in Panama.


What with the “baby boomers” retiring in greater and greater numbers everyday planet wide, and the people looking for a better plan that are currently living in Columbia with all it’s problems or Venezuela more recently with it’s set of struggles, not to mention the people leaving Costa Rica in droves, things are booming in Panama.

A year ago I could have purchased a condo on the seventh floor of a ten floor building, that’s the whole floor over 2500 sq. ft. of space for $100k. Today that same sort of place is going for $130k to $140k.

This is the jazz band that plays latin dance jazz

that would rival the "Bonaventure social club"

Best trumpet player I ever heard.

Meanwhile new construction is springing up like mushrooms as the demand simply can’t be contained. I have been out looking at retirement homes and condos, and have lots to report. First let me tell you about finding a place where ocean front land on the Pacific coast of Panama can be purchased for pennies.


Last Saturday I drove about 3 hours up the Pan American highway to Santiago and then turned left down the peninsula that makes up Veraguas province. My guide Daniel de la Guardia explained that he had really never been down this road and didn’t know many people who had; perhaps you could drive right off the edge.


This is a province of Panama that is uncharacteristically arid, but prosperous as the roads were great and everywhere there were cattle in great numbers grazing on the lush pastureland. The view from the highlands was spectacular, and there was the prize, miles and miles of undeveloped beachfront.

There was no evidence of subdivisions or land development at all as we worked out way to the end of the road some 40 miles down the peninsula, just opportunity to buy undeveloped land and make a project of your own, mile after mile down this smooth winding road. It made me think of the road on the west coast of California 50 years ago or more; when the road would have been nice and the view unobstructed. It screamed for a Porsche, with the top down.

Back in the city I have been looking at buying a condo for retirement purposes and have seen a couple just the other morning that ran around 140 mt2 at around $135k. there are an abundant number of interesting possibilities in the various neighborhoods. Some of the properties are newer and some older and in need of renovations but in spectacular locations.


It is all about making up your mind that you have found something you could buy and enjoy. We made a couple of offers last year on interesting spots and missed them because although we had found a deal, we hadn’t moved quickly enough, allowing someone else to jump on it when they saw it. That says it all for me because it has happened again.


This opportunity is a 14th floor condo, three bedrooms, a balcony, 145 mt2, with a fantastic view of the old city and the entrance to the canal right in the core of the restaurant and banking district, all for $115k. Should have jumped on it, ‘cause it sold out from under us too.


I think I’m loaded for bear now though, I have made my mind up that I will not be coming home empty handed. “I comes here to see a high diving act and I’se agonna see a high diving act, if’n it kills me”.

Yah, Panama is really a great idea for the person who would like to look at making “more from their less”. The other afternoon we went to an Orthodontist, for a final consultation about braces for my 13 year old son.


The U.S. trained specialist said if it were his son he’d wait for a year, but yes we can take care of the problem and it will cost for the complete treatment over an 18 month period, $2200. I was confident that they were professional and skilled but I did have the view in the back of my mind that they would like more business if they could get it. I could hardly have been further from the truth.

My wife and I subsequently went to the “John Hopkins Medical Center”, a brand new hospital facility within walking distance of our condo, to see about a comprehensive physical exam.


We met a young internist, Dr. M. Gonzalez. He explained in perfect English, that this new hospital complex had as yet not received it’s full certification. It had to be operating for two years before it could qualify but that they had an executive program for providing service to people with insurance or the means to pay for first world care, that would be able to provide us with a thorough exam all in one day complete with lab work ups, x-rays and any other exams that are deemed necessary. What a beautiful facility and what a service.

So let’s review; the climate is wonderful, there is monetary stability in the US dollar, medical care is second to none, lifestyle costs are about 30% of Canada, and there is no tax.


Now the truth is the city is busting at the seams with all the growth in commerce and residential construction, but the restaurants are fabulous and cheap and the people are genuinely friendly and welcoming, they are aware that they have built something the world is seeking, and “They will come Jack, they most certainly will come”.


Are they ever coming!

So can the average Canadian move here and live?


Can they buy a home in this friendly modern city, for half what their home in Canada sells for, and find a pleasant way to tough it out through the winter?


Is it possible to catch the satellite TV coverage of “Hockey Night in Canada”, and make it in shorts through January, February and March?


The devil is always in the details, but be assured you won’t be the first here, if you give it a try. Happy Valentines!


We may get more from Jim Sellars on these topics as a roving correspondent on retirement planning and the ever hopeful phrase wealth management.

Ifyou missed the first volume click on Jim Sellars: Panama, Living the Good Life.

Jim Sellars: This Local Financial Planner Walks His Talk 1.

I have been plagued all my life by people who remind me of what a slothful, ill-advised and generally regretable planner I am for the eventual, inescapable, and hugely punitive ageing future that those that do not put away enough nuts in a tree stump for the winter; metaphor warning, truly are.

Patience, we are going to get to wealth management and living the good life in Panama, or skip down to the heading of the story below.

As a child, I heard the repetitive radio song about some chipmunk or squirrel with too much discipline, lord it over the other lazy wanna-be rodents who did not put away enough acorns or nuts or seeds, or whatever, and were starving the next winter, while the Duddly Do-Right Wombat sang the annoying song. This was back when CKCW was 1220 AM and broadcast music for all ages and during the 50's, chipmunks and semi human rodents singing like a church choir on dialuds was Top 10 Hits, in Moncton.

You could only hear Elvis during the afternoons on Saturday to fire up the Saturday night birth rate initiations. But back to Jim Sellars of Wealth Management Canada, as the sign on his Queen Street office building announces.

Somehow during the forgetable 50's, as I was trundling open water buckets in freezing cold, balancing them on a techerous ribbon of ice towards a distant captive barn animal with the guileless ditty richoting aruond, in what passed for my teenage brain, even then I knew I would be one of those without enough nuts in place when financial judgement day came along. That was in addition to the failings pointed out in the Baptist Sunday School, where escaping damnation was top billing and Hell never froze over.

And to think I never went to therapy that I noticed.

Well here I am, turned 58 last week, on an all expenses paid business junket to -40C. Sudbury, Ontario, and along comes devishly clever financial planner and genial black belt in some martial, if not marital arts form of persuasion, Jim Sellars, with a missive from his patio's pineapple fruit delight on a warm plaza in Panama, the country, not the hat. I got the hat and he got the country in February. So I decided to take note.

Now let this be a cautionary tale to all of you wanna be retired-at-50, twenty somethings out there that it takes memorizing the damn put your acorns away for a winter day mantra to get the benefits of the view from a warm Panamanian plaza with a gorgeous wife and dutiful children in tow for three plus months as a business expense. Children, mind you who are compelled to do their homework and clean their rooms with alacrity in the rented condo, because the alternative to smiling compliance is being sent to their rooms....in freezing Moncton.

One can assume that his wife Barb, a lifetime Monctonian and genial stylist, remains genial having escaped winter.

Ever notice the trouble you can get in as a man with a woman by not taking bad weather alternatives seriousely. Jim-Boy has got that covered too. Its part of his business plan. That's what I mean by walking his talk. Makes you want to take advice from someone that has it figured out; no harried last minute RRSP harrassment season for him.

So I asked Jim, who has been trying to be my financial saviour if not apostle of planning and captial equity perservation and tax recovery diversions-admittedly among a small army of warm blooded financial advisors, - who keep me as a client to point out to younger wanna be entrepreneurs what can happen if you don't take their sage advice; to send a field report from his angle of repose in Central America, enschonsed on the Panamian Pacfic coastline.

So here is Jim's report in two parts.

Panama Update # 1. Living the Good Life

Having breakfast the other morning at the famous Café Coca Cola, in Casco Viejo was an experience to be treasured.

Liver and Onions with eggs and a huge Cappuccino was part of the pleasure but more was the “people watching”. We, (Barb, my wife and I), were enjoying our food and conversation in this exotic little café tattered around the edges but still proud of an elegant past, when a man from a nearby table spoke to us inquiring where we were from.

Salvatore and Jacomo are Italian men, who happened to meet here in Panama from different pasts and were sharing a “rendez vous” for breakfast, they were young and not typical tourists, but rather very at home in this Latin world.

Barb Sellars Enjoying Panama- Winter 2007

They were surprised at the fact that I was eating so much for breakfast, and wanted to know if it was good. They preferred a croissant with coffee, but were intrigued just the same. Salvatore was a qualified sea captain, of about 50 years and Jacomo was a traveling painter, photographer, artist, of probably 30ish, who was in love with the architecture of the old city of Panama.

Very interesting people indeed, their opinions were fun to hear, and their life stories very exciting for sure.

Salvatore is a self professed nomad, who explained a very profound philosophy, that chance meetings were divinely inspired, “coincidence was a word not found in his dictionary.” He had traveled for the past 20 plus years around the world as an adventurer “feeding the freedom” he was still very much enjoying. He concluded after more than an hour of exciting conversation, this meeting must be to confirm the sanity and value of the adventure that I was on with my wife and kids.

That seems to be the way it works, these adventures people take. Here we are for the second year, Barbara my wife and I with our two kids, Tyler age 13, and Stephanie age 11, in a tropical city for the winter.

Panama, is a beautiful friendly city 2.5 hours out of Miami, and the point geographically where North America meets South America. It is the place where the famous Panama Canal is found, running north and south much to my personal confusion. The little country is approximately the same size as New Brunswick, our home province in Canada, only long and skinny, and running not north and south as my mind’s eye pictures it, but rather east and west.

Panama once was a part of the country of Columbia and in 1903 became an independent republic through the encouragement of the United States of America. The U.S. is the country that finished the “Moon Shot” of the times, by finishing the canal begun by a French consortium; finally in 1914.

From our living room window, we watch monster ships slowing advancing into the southern approaches to the canal, and others, from the farthest corners of the planet, sitting at anchor in the bay waiting their turn. It’s an amazing sight to witness these ships piled high with containers climbing up through the canal and passing slowing along the jungle path between the seas.

So what are we doing to fill our time, you ask?

Well, Tyler is a fanatic about soccer, “futbol” as it is called here and has been logging the hours, of instruction and game play, often two or more hours a day for the two weeks we’ve been here. We’ve been to the local “Rommel Fernandez” stadium and witnessed two Fifa sponsored games, quite a thrill for both of us to watch World Cup teams playing live. So he’s fully engaged.

Both the kids are enjoying their tutor who comes each morning to provide “home schooling”, Paola has “downloaded” the curriculum from Bessborough school in Moncton, where we live in Canada, and she teaches these subjects and adds Spanish and Panama history as a bonus.

Paola is a young lady attending Florida State University, Panama City campus, in the afternoons so is free to tutor the kids in the morning for us. Our hope is that this is a very enriching experience for them, yet we worry that the effort, and it is an effort, is lost on them somehow. They are very bright, so probably as parents we worry for nothing. That’s what worry is, isn’t it?

I am very fortunate to have some great friends here in Panama, one of whom, Gonzalo, is very well connected.

Thursday evening past we went to the Union Club, the most prestigious social club in the country for a meeting of the “Panama Cigar Aficionados Club”. A group of men meet on an open air patio overlooking the sultry Panama bay, filled with the lights of ships from around the world, a full moon overhead and share camaraderie, food, a great cigar, and an aged rum of Panama.

At this meeting I was introduced to men from Switzerland, Puerto Rico, Columbia, Turkey and there were two of us from Canada. Some around the table had terrific cigars to share, and one man brought a half dozen cigar lighters that were very special, that he offered to those around the table as a gift.

We talked late into the night about politics and world affairs, food and our wives and kids, and generally went away filled with optimism for the world.

On Saturday past we were invited to the US Ambassador’s residence for a “Picnic”. A sprawling two story white mansion, on something like 5 acres of the most valuable land in Panama, over looking the city, complete with a beautiful pool, and garden party tents, and a big circus like blow up toy for the kids to climb and play on.

There was a band playing “Jimmi Buffet” tunes, free food and drinks and a crowd of very friendly people from many national origins, all recent members of the American Association. It was a hot afternoon filled to overflowing with fun, food and conversation.

Then we came back to our perch in the sky, overlooking Punta Paitilla, a beautiful pocket of residential apartments on the waterfront of Panama City, opened the windows and allowed the tropical breeze to flutter through our drapes. It’s hard not to smile at our condition, feet up and gently sweating in this little place of pleasure we have carved our for ourselves.


Screw the RRSP season and last minute trying to save money on taxes with money we don't have today, to save money we may never have again. However that goes, I want some of what Jim Sellars is selling with his Wealth Management concepts.

Part Two is even more envious. As in poker and cards, read' em and weep.

Whoo ee Albert Co. Going Green - Wind Energy Hub

You will see the headline in tomorrow's newspapers and on the CBC TV and Live at 5 on ATV tonight, TransAlta awarded 25-year power purchase agreement with New Brunswick Power, expands renewable energy portfolio ; but the big story is that this honey of a project is going deep into Albert County.

Anyone who has ever looked out over Grindstone Island, or hung on for dear life trying to walk the Rock's on a windy day can atest to the constant breezes coming in at almost gale force strength from the Shepody Bay extension of the Bay of Fundy at the mouth of the Petitcodiac and Memramcook Rivers.

Kent Hills, Albert County is the site of this new wind farm announcement and for the less enabled of you Albert County explorers, it is the giant hill and ridgeline that you see to you right as you drive towards Albert-Riverside just after the Rocks as you travel south on Rt 114. That ridge travels along all the way to Alma as it weaves in and out from the Albert County foothills, which has for some time offered up everything from previous metals and gypsum.

100 years ago, history records that 10,000 men toiled in shipyards from Alma to Hall's Creek building sailing ships to travel the wind around the World and now another wind based business development is returning to roots in Albert County.

It is ironic that the age of sail power, which defined the early properity of Albert County, allowing it to best Westmorland in the early sledding of the 20th century and before, is once again being fueled as an economic engine in the 21 th century, by harvesting the energy in the relentless winds of that part of Albert County. Now, if we can add a tidal power project at the mouth of the highest tides in the World, well may be we can stop some of those expensive oil barrels from keeping us over a barrel in North America.

For the record, here is the press release regarding the Calgary based company that is partnering up to deliver the capital and technical expertise to bring wind based turbine power to New Brunswick. Not a decade too late, but hey whose complaining. At last we are in the green game with our game face on courtesy of NB Power.

CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2007) - TransAlta Corporation (TSX:TA) (NYSE:TAC) today announced it has been awarded a 25-year Power Purchase Agreement to provide 75-megawatts (MW) of wind power to New Brunswick Power Distribution and Customer Service Corporation. Aka NB Power, to us New Brunswickers.

Under the agreement, TransAlta will construct, own and operate a wind power facility in New Brunswick. Terms of the agreement are confidential.

The capital cost of the project is estimated to be $130 million. The project is subject to regulatory and environmental approvals and is expected to begin commercial operations by the end of 2008.

Natural Forces Technologies Inc., a local Atlantic Canada wind developer is TransAlta's co-development partner in this project.

"Wind power is an integral part of our growth plan and we are pleased to be developing this project with New Brunswick Power and expanding our renewable energy portfolio," said Steve Snyder, TransAlta's President and CEO.

"We've been building wind farms in Western Canada for 10 years and see this as an opportunity to expand our wind power expertise into a market that has expressed a desire for clean, renewable energy. We're pleased to have a long-term contract with a superb customer and energy supplier like New Brunswick Power."

The single-site, 25-turbine wind farm will be located in the Kent Hills area of New Brunswick.

TransAlta expects construction to commence by early 2008. TransAlta will work with local firms for the construction and ongoing operation of the Kent Hills wind farm providing long-term economic benefits to the region.

Once complete, the Kent Hills wind farm will provide 220,000 megawatt hours per year, enough electricity to meet the needs of approximately 13,600 homes. The facility will use 3.0 MW wind turbines purchased from Vestas-Canada Wind Technology Inc. for wind power turbines. With the addition of Kent Hills, TransAlta will operate approximately 260 MW of wind generated power in Canada.

The Canadian Wind Energy Association expects the Canadian wind power market, currently at 1,340 MW, to grow to 10,000 MW by 2015.

Since its acquisition of Vision Quest Windelectric in 2002, TransAlta has tripled its wind business.TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. We maintain a low-risk profile by operating a highly contracted portfolio of assets in Canada, the United States, Mexico and Australia.

Our focus is to efficiently operate our coal-fired, gas-fired, hydro and renewable facilities in order to provide our customers with a reliable, low-cost source of power. For nearly 100 years, we've been a responsible operator and a proud contributor to the communities where we work and live.

Everyone should take a moment and send an email of congratulations to NB Power for finanlly getting in the Green Energy Game. It is not a miracle cure by any means and it will only offset enough energy for the Village of Hillsborough on a cold January day, with maybe Shenstone and Weldon thrown in; but the iconic leadership symbol is all the message. There will be more announcements and this represents stranding alot of capital and no real job components in Albert County, but the price of progressive change and new innovation is widespread adoption.

A wind farm in Albert County on the Shepeody Bay is a real step in the right direction.

Yipee, this is one for the good guys. My distant and occassional relative MLA and former Cabinent Minister is the previous government may or may not have had a hand in it, or even known about it because this would have been conducted outside of politics, but despite the political opportunism that could have derailed this project, we got a great symbol of the changing energy world we live in established in the least productive and growth retarded County of the Province, excluding Riverview as a separate community of Greater Moncton.

This is huge. Coming next is the growing recognition that deep within my Alma Mater of Albert County where I learned to race cars on dirt roads and duck religion fundamentalists shooting their barely legal moose and deer quotas, is the emergence of singificant natural gas finds and eventually a deep trough of oil sands embeeded with oil production sludge that would make the tar sands molasses look like warm maple syrup.

We be in the energy business, again. Watch for more to come.

It's a big day in Hillsborought and Riverside-Albert as well as Shepody.

Yayadada - corporate compliance

This news release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include legislative or regulatory developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels and general economic conditions in geographic areas where TransAlta Corporation operates.Note: All financial figures are in Canadian dollars unless noted otherwise.