•The Concept: Earn in Dollars (strong), Spend in Local Currency (weak).
•The Math: $2,500/month dividend income is poverty in San Francisco. It is Upper Middle Class in Thailand, Portugal, or Mexico.
•The Portfolio: A 'Passport Portfolio' needs to be tax-efficient (to avoid double taxation) and reliable (no yield traps while abroad).
•Part 1 Focus: The Strategy and Top 3 Regions.
Income is Relative
We obsess over increasing the numerator (Income). But decreasing the denominator (Expenses) is often easier.
If you retire in the US with a $500k portfolio yielding 8% ($40k/yr), you are struggling. Take that same $40k to Chiang Mai, Thailand? You have a villa, a maid, and eat out every meal.
The Top 3 Dividend Havens
Portugal
Europe, Safety, Wine
$2,200/mo
Thailand
Food, Culture, Heat
$1,500/mo
Mexico
Close to US, Timezone
$1,800/mo
The Portfolio Adjustments
When living abroad, you cannot afford "Yield Traps." If your income drops, you might lose your visa. Stick to the Core Fortress (SPYI/JEPI/SCHD). Stability is worth more than an extra 1% yield when you are 5,000 miles from home.