Planning and setting up the financials for RTW trip
 

I have read numerous posts about how people get funds while travelling. At this point here is a general idea of what seems to make sense - then I'll ask about specifics.

2 bank accounts. Only one with ATM access. The idea here is that limited funds are always available at the ATM, but not ALL funds. This can be set up to enable transfer of funds from protected account to ATM account on-line.

Fake wallet - with expired credit cards and some cash and old IDs.

Hidden stash of US funds somewhere on your person and on bike.

Credit cards.

There's the structure, now to specifics. I am in Canada.

I think I have found a zero cost account at the CIBC called Simplii. Planning on opening an account there, a savings account to start dumping funds that are ONLY for travel....not bike repairs, or gear or anything else...Just travel funds.

The second account is a question mark. For a Canadian, going abroad, what is the best/lowest cost/safest and most reliable account for ATM access, or world banking. It does not have to be a Canadian bank, just one that works well.

Some people have talked about, I'm going to get the terminology wrong, but like refillable gift cards.

Any advice about getting this financial house in order would be most appreciated.

You seem to just about have it sorted, the only comments I will make are you might have no choice about having a Canadian account as it is getting difficult to open one in other countries but I am sure there is something suitable out there.
The gift card you talk about is a pre-paid card and I like and use these, they can cost a little more to use and again you might have to find a Canadian one but they are pretty safe, you can have several and keep one with a low balance in your fake wallet.
Also a few Euros might come in handy, the US Dollar is still the most useful but you can get the occasional time when Euros are more acceptable.

Interesting comments. I rarely enter a bank and have not for many years. Almost everything is done via online banking or ATMs...thus I have never had a relationship with bank manager. But your points are valid. I need to find another way to accomplish the same thing - maybe by getting a POA in place for a person to help manage my financials, specifically in terms of emergency funds and dealing with problems locally. I have a BAD opinion of banks. They are not there to help or serve, but to make $$. And in too many ways their actions prove this....Thus, I will continue seeking a reliable and inexpensive or free option....but because of your comments, THANK YOU, with eyes wider open and discussing my needs with each institution.

You’re in a closed feedback loop regarding banks. You haven’t used a brick and mortar bank in “many years,” and yet are quite certain of your “BAD opinion” of them. FWIW, I find small, local banks can give good service, including personalized attention when the going gets rough. In my experience, they’ll do this for free—without fees—if you maintain a relatively large balance, above US$10k or so. Credit unions are a pretty good bet even with lower balances.

Having said that, I’ve had miserable experiences recently with several departments of one of the major Canadian banks, and my Canadian family tells me that’s typical.

In any case, the costs involved are relatively slight compared to the trouble the wrong bank can cause you. I’d look for service first, with costs a distant second place.

You’re also describing traveling with a single debit card, linked to a single account. I may go overboard, but I carry three (3) debit cards on a long trip—plus credit cards, plus cash. I’ve had debit cards not work for no real reason, I’ve had a couple of them swallowed by ATM machines in distant countries, and there’s always the risk of theft. I’ll rely on a single debit card if I’m traveling short-term in a place where credit cards are universally accepted, but not otherwise.

Mileage varies, etc. etc. etc.

Mark

I will state again....whether you agree or not....a banks purpose is to make money, not offer service. I have never had a good experience with banks...thus not entering a physical building, and having as little to do with them as possible. I'm not going to change my mind...but I do listen....and if you read my post, I am looking at how to structure, what to bring, and how to do it. Multiple debit cards is a GREAT idea. This will be part of my structure. Read my post friend. Spare cash always on my body and some hidden on the bike, mostly US, but some Euro's as well - as per another most appreciated piece of advice.

I think you may be in the US. We don't have little corner banks here. Just 4 LARGE multinationals. And I am NOT rich. Financing this trip by selling everything including my business. Managers in these banks move constantly...

I sincerely appreciate every post. Clarity of what I need to do is exactly why I posted this....and its working....Thank you. I have a ways to go, and some research......

In a month I'm going to get paid for a large job I've been working on. This will buy my bike and open my savings account with a hefty deposit. Covid has impacted my income at the moment (aside from this one project, there is no other work) and I'm reevaluating the next year and half. Selling my business and getting a regular job for a while may happen. We;ll see how things develop. As soon a Covid hit, I started to transition my business to a streaming service, which is paying off....But in these times, being flexible is a must. Even the timing of my departure is only a goal and will be evaluated as things progress.....Most people I have talked to agree that 2022 departure is probably realistic, but we'll see.

And flexibility is everything. Even with banks. Its not that I don't understand how a good relationship with a bank would be helpful.

So - I'm not just going to put my money in a place without research, talking to the people, telling them what I'm doing, and finding the best solution. One thing I am doing, is opening a FREE savings account and stuffing money into it, that is ONLY for the voyage. It may not stay there in the end....but I'll not be paying a bank just to hold my money....and before I leave there will be a good chunk of cash- and I'll decide where it ends up.

Another thing I am doing.....health. I have to get work done on my teeth. Need new glasses. And I am working out EVERY day, changed my diet, and doing everything I can to be in the best shape possible for this. And what I love is that this trip has motivated me to really get my shit together. Even without going anywhere - I'm better off. Can hardly wait to hit the road.

All the best.

Make sure you have a VERY good sequence of backups for if this fails. How do you access your bank account - probably via multifactor authentication? What if you lose the home SIM where you receive SMS? Authenticator app - what if you are forced to factory-reset the phone and wipe the app? Some things, for security's sake, actually cannot be reset remotely. Regaining access to your Canadian account may require you to fly to Canada and show up at a bank branch.

Transferwise. About as cheap an international ATM/debit card as you can realistically hope for.

At which point you can just go to the person who would have your POA, and instead hand them five thousand dollars in cash and say "if I contact you and say the word "Farfelnügen", please Western Union this money to whatever dodgy location I ask."

That is not bad in itself. Nobody owes you a service you're not paying for.

Not overboard at all. Last big trip, I had a card for my main account, a Transferwise card, and an N26 card - and used all of them.

This is the kind of information I seek....Alternative international bank cards. Thanks. Tranfewise and N26 are bookmarked.

Are there more services of this kind worth looking into?

And what do you fine folks out there think about setting up POA?

This trip is a little different....I'm not coming back home. Its a one way venture with part of the plan to seek a relatively safe and warm climate to retire in when I either finally get tired of being on the road, or I physically can't do it anymore. Having a trusted POA in Canada may be important, but I sure would appreciate comments.

Only I'm not young....I will start collecting my pension 2 years into my trip - and you are of course correct. I can't stop someone pulling a gun, but I can be prepared. And I've been around long enough to know how to treat people. I have done this - pull into the "hotel" section of town, where there is a line of hotels for as far as your eye can see....with all my gear on I go in and ask what the rate is....and if its too high, go to the next place....be nice, ask kindly, don't make a scene, but I have always gotten a deal....and there's nothing wrong with that.

And this ain't no holiday. Its a way of life I'm choosing. As I stated in another post, this trip is one way. I'm not coming back, and staying out there till I either die or physically can't do it....

I remember a time when banks paid you interest to keep your money in their bank. Accounts were free and the banks made money by using your balance to both invest and increase their ability to loan money. Yes, there were banking hours to deal with, 10:00 AM till 3:00 PM, no ATMs and no weekends. But there were knowledgably tellers and lines went fast. In Canada the profit margins for banks are crazy, earning BILLIONS, and then they say that's a good thing, you should be happy cause this makes a bank stable. How do they earn that money? By punishing the poor. Shit interest rates or none, transaction fees for wiping your ass...now you PAY the bank for an account - and you talk to me about service. Go to a bank and be prepared to wait cause there's only 2 tellers, who are clueless and have to wait for the one experienced person to figure out what to do.

No. Modern banks suck. I HAVE to deal with them - so will continue my research into how best to do this to be safe, pay the least, and diversify.

While getting there, I am opening a FREE savings account to stuff my travel money in - and when the time comes I'll have a better idea how best to set my finances up for this venture.

I may not agree with you - but I thank you dearly for the posts....I love how you make me think differently and get a new perspective....

I am willing to change my mind.....and in the end (give me a year) I may come to the same conclusion ......we'll see.

Don't expect to never, ever return to Canada. Even with a POA they might want to see that you're actually alive to start paying out your pension, otherwise the world would be full of mysteriously long-lived but elusive retired Canadians with mysteriously rich lawyers.

You think the banks didn't make billions in profit back then?

These days, banks don't need deposits to be able to lend money. Central banks provide the liquidity at almost zero interest. In fact, if your bank has too much money on deposit and needs to put it somewhere safe, the Central Bank will actually *charge* them to put it on deposit with them - they get less money back than they put in. That's why you don't get interest on your account any more. The upside? Mortgages at rates of low single percentage points. (My last two mortgages were written before anyone thought EURIBOR could go negative, and one of them almost got to a negative *effective* rate to me!) So no, a bank is not an institution that uses your money and pays you for it - a bank is an institution that stores your money and makes it instantly available to you anywhere in the world, and you pay it for that.

No different than the massive complaints here on HUBB when Flickr or Photobucket started to charge for their services. You want a convenient service? You have to pay for it. No other way.

Of course - but it doesn't mean I have to like it - not does it not mean that the banks don't use unethical means to make obscene profits, and it doesn't mean I have to like it. I don't. I don't own a house and don't need a mortgage - and how did that work out for millions of Americans during the sub-prime fiasco?

I will do everything in my power to not deal with a large financial institution, but in the end, if I have to I have to. And I am amazed at how many people here are defending modern banking practices when they are sharks sucking the blood of the poor, while wiping the asses of the rich. And then telling me, you have to pay for service....Have you ever bounced a cheque.....the service charge is outrageous....and who does that affect mostly - the poor. And if you are able to maintain a balance of x amount, then your service charges are less....who gets the hit...the poor - and these are only 2 examples....no. **** the banks. And if I can I will.

I still have to look into my pension and may have to return...that remains to be seen. I believe that a lot of this takes place on CRA web site, but I have not tacked that yet.

I also have to work out a way to maintain a legal Canadian address, and have a few options. But still lots to learn.

No, I haven't, because instead of being angry that someone does not give me a great service for free, I maintain a reasonable level of financial literacy. Bouncing a cheque is essentially taking out a short-term loan without security and without prior approval - of course that's expensive; just don't try to spend money you don't have in your pocket (account), and you will be fine.

No one here is defending banks or banking practices. You’re setting up straw men then angrily knocking them down, which I doubt serves you well. For starters, we’ve all (or almost all) been reaping the undeniable benefits of everything you complain about—and your trip could easily be described in terms of your determination to continue doing so at the expense of those in the world not positioned to take proper advantage.

All of which might make for an interesting discussion....but it’s unlikely to help you answer the questions you began with, like how to best set up finances for your trip.

Hope that’s helpful.

Mark

Canadian banks are better than they were, which was terrible. I would open an account with an offshore bank (e.g., HSBC expat) if you can, and you will get much better service. Part of the benefit is that they will understand international travel better.

We have 4 accounts in 3 banks, use ATMs for cash, credit cards as much as possible, and carry some cash in USD. IN some parts of the world it's helpful to have local electronic payment applications - for example, M-Pesa in East Africa.

I do not expect anything for free. If such a bank exists I will use that service until it is no longer useful....then if I require services, I'm happy to pay. But I insist on ethical and reasonable charges...no hidden charges....

It must be nice to be financially stable and never bounced a cheque and its easy to say only spend what you have in your pocket. But I live on the edge, self-employed, and far from wealthy. Sometimes it takes me three months to get paid from a contract....and the in-between time can get hairy...., I like to eat food sometimes....Yes, I choose this. I love it. And my trip will be right on edge, cause that's how I live. But there are many lives....and a LOT of people live on the edge of ruin,,,,thru no fault of their own.....and your life has no more value than theirs just because you can afford to pay your bills...

I respect and honor every life. I came from being homeless and wasted to a place of daring, and the means do do so in my older age. I know what it means to struggle. And to be hungry. And that experience gives me incredible strength and compassion for others.

Namaste

Sucks when people don't value your time and effort, and don't consider the work you've done for them to be worth paying for, doesn't it?

I heartily (having seen that it's already been suggested) recommend investigating the likes of the TransferWise borderless account and card. Easy to set up, saves a packet on exchange rates, and you can create a new currency anytime you want to go to a new country.

I know they don't cover all countries but it's getting pretty extensive. I find mine indispensable.

That is true of ANY business, though.

Preparations
 

I like your way of preparing.
Health, traning....

I have the same view and is also preparing.
Regarding eyes/glasses.
I had reading glasses, driving glasses, progressive glasses.
On an off and helmet.....

I invested in an operation to place permanent, multifocus lenses in my eyes.

Best investment that I have done.

Now I do not need glasses any more.

Great advise. Thank you.

I have one ace-in-the-hole for my travels. A good friend of mine is a high level operative at Global Affairs. His advice - register with the Canadian consulate in each country I'm visiting, and if in trouble, I have his work email address where he states....."I may not be able to do anything, but it can't hurt to have a personal contact on the inside".

I will be checking out pension stuff in detail with the Government before I leave so I'll know what, and how to take care of this. During this Covid time, lots has changed in regard to using video - so I may be able to zoom in with them to confirm identity - but I'll know in advance.

I have a person I trust fully who has agreed to be POA. And things are really looking up on a bunch of fronts.

Honestly, the hardest part of all of this is getting ready to let go of everything I have built here....my business, relationships, my band, everything.....this is more painful than I expected....but I'm working hard to make my exit as painless for my clients and band members as possible. I've not announced to the general public my intent yet....as soon as I buy the motorcycle....then I go public.....and start to make KRTW exist.

I don't know how it is in Canada, but in the US, the liability of a credit card holder for fraudulent charges is limited to $50--so I exclusively use credit cards rather than debit cards while traveling.

I also highly recommend bringing more than one, ideally of different types (ie, Mastercard, Visa, Amex) in case one simply doesn't work for no apparent reason (happens fairly frequently), or some card is not accepted, or their network is down, etc. There are various ways to pay credit card bills while traveling, so that's not an issue.

Also be aware that sometimes NONE of your cards will be accepted; in France and Germany some places only accept a different kind of card (Maestro, etc) which is not compatible with Visa or Mastercard. That can be kind of a pain...

I believe that cash is still accepted all over the world. Carrying it is the issue...This is good advice, and as I get further into building my financial structure I'll be looking into this. My first almost three years will be in North and South America so I'll be focusing on that....but you never know. If things in the US continue to worsen, I may start in Europe....sincerely hope not....

Thanks for the post.

Actually, no...

These days some establishments in the US only accept credit cards, even pre-pandemic there were a few that only accepted cards. I would not be surprised if it were the same in some Scandinavian countries, although that is just a guess. I was in Norway for a full week before I spent any cash at all, and that was at a market in a town square.

Perhaps more relevant: one beautiful Sunday morning I was doodling along in the French countryside, but desperately low on fuel...I stopped at several gas stations, but none of them were manned and did not accept cash, although they accepted some kind of card that I didn't have. Finally I had to stop at one of these places and wait for someone to show up, so that I could give them cash and they could pay with their card. That kind of sucked. IIRC I've encountered the same kind of pumps in Italy, but they at least accepted cash.

Yup. I first ran into those pumps (Sundays, France, waiting around for someone to show up and agree to accept my cash to use their card) more than ten years ago. I’ve since seem them elsewhere. Around the same time I started running into difficulties buying European train tickets and such, since the machines didn’t take my cards and the staffed booths which accepted cash were often empty.

The obvious lesson, which has resonated throughout this thread: Be extremely wary of your assumptions.

Oops, I just saw this part. I guess you're right, that it can't hurt, but I wouldn't rely to much on consular officers. You're gonna need to be highly, if not entirely, self-reliant.

Maybe Canadian consular officers are different, but if you read any of the threads here from this year about moto travelers being stuck in Morocco and elsewhere and having to rely on consular officers to find out how to get home, etc., you'll be struck by what appears to be the gross incompetence or complete indifference of consular officials of most or all of the countries involved. And that was a crisis involving thousands of citizens in a real fix. I guess if you get in a real jam (arrested, etc.) you can try your luck, but I would manage your expectations.

Of course. I simply stated that as a third or fourth emergency method, that is not available to most people. As stated, it can't HURT to have somebody on the inside.

For both people who mentioned these gas pumps....Thank you. But in the end, cash got you gas....cash will always be "part" of the solution. Did either of you find out what kind of card the pumps took, and how to get one?

There is no way to be prepared for every eventuality....flexibility, ingenuity, and as stated in the hitch hikers guide to the galaxy "DON'T PANIC". I work in the entertainment field, a lot of festivals, doing sound, lights, video, staging...etc...we in this craft have to develop the skills to think outside the box and quickly....troubleshoot fast and efficiently cause the show must go on, and we get thrown weird and strange requests....and we have to figure it out. These skills are PART of the larger picture, part of the solution....and why I'm doing as much as I can in advance, being as prepared as possible....and also ready to jam.

Didn't find out, because I was in France for a few days and hardly worth the effort. But I doubt you can get one anyway, because generally it is very difficult, if not impossible, to get credit/debit cards from a country of which you are not a resident.

I had a Maestro card when I lived in Berlin, which was linked to my German bank account. Maestro cards are debit cards but have a different number of digits from VISA/Mastercard and in any event they are not compatible with Visa/Mastercard. Many places in Berlin accept only Maestro cards, presumably the fees are lower, dunno. Maybe some Canadian banks issue Maestro cards, but I seriously doubt it unless they are actually used there.

Your trip will probably cost twice what you expect....

Sir - that's why I am planning as much as possible, for as many eventualities as possible. At this time, money is not my biggest worry. What a post Covid world will look like is. Is the USA going to devolve into chaos? Will borders re-open? Will a vaccine be effective and will it be distributed equitably? What will less prosperous countries look like? And will there be a massive economic fallout that will make travel even more dangerous than it may be pre-covid....These are worth considering.

Money is not my biggest worry.

Part of considering finances....How much does your standard of living cost per month....I'm leaving....no rent/bills/phone/internet/house taxes/ etc...

Obviously there are fixed travel costs....but no stationary home costs that I'm paying for. I'm not keeping a place to return to that I have to pay for.

Health insurance is a BIG question. I have read hours of posts from others on this forum and on other forums...It will be VERY expensive for full health coverage and some have suggested that instead, keep 20K for medical - and don't get insurance. If something happens, there's enough there to pay most everything....(not in the US) but I'll not be long in the US and can get fairly cheap coverage as a Canadian.

Thank for the post....

Back in the day French gas stations only accepted the "Carte Bleu" which was the standard for French debit cards. Vitrually every gas station in the country now accepts Maestro and Visa/Mastercard though.


As for cash: in most of Europe shops and other establishments are required by law to accept cash payments. It's not because hardly anyone still uses cash in these countries that you're no longer allowed to. The main exceptions to this are: unmanned gas stations and large sums (usually above a few k€) to battle tax evasion.

If the current incumbent decides to ignore the outcome of an unfavourable election result, by casting doubting on the voting process, then you might find avoiding the US altogether is the best tactic as it will be chaos!

My point exactly....The best attitude to employ during this time is one of flexibility. Patience and flexibility. Maybe I ship my bike to Central America or start in Europe....we'll see when the time comes closer.....and I'm planning on May 22 2022 - but it may end up being May 23 2023....I hope not.

The only thing for sure, is that I'm going.....

There are still people travelling now.

Sure, things are more complicated. But if you have the time and you have the money then you will find a way. And it will probably be fairly interesting.

The world is not any more chaotic than it's ever been. Chaos just changes it's uniform.

A guy on a bike doesn't stir up much interest. Apart from the occasional cop wanting a bribe. Go where you're allowed to.

The further you get away from the media and rat race, the less it becomes relevant.

I doubt the straw hut hostels on the side of lake Malawi are practicing social distancing checking your covid certificate.

I personally wouldn't travel in the west right now because we're hysterical. Glued to our goggleboxes waiting for the end of the world. But we always are. If its not disease, its war. If it's not war, it's terrorism. If it's not terrorism it's an economic crash. And on and on and on.

There are a million and one reasons to delay and cancel. And there always will be.

I for one have cancelled far too many trips for the sake of bullshit excuses. Although the global pandemic is quite a good one.


As for insurance. You'd have to be a complete moron to travel without it. It may not cover you for Covid. But so what. Insurance won't save you if you're one off the 0.01% who are destined to die of it. I for one, like those odds.

I'd definitely concur about the need for medical insurance. Motorcycle touring comes with its own risks, there's no need to compound them. Doesn't matter how much money you've got tucked away, in many parts of the world they will check for insurance before they check your bank balance, and the bills can easily be well above $20k.

As for covid, no, insurance may not help you, but unless you're a teenager the mortality rate isn't 0.1%, try 10 times that, and probably 5 times higher again if you're older, overweight or with other health problems. I for one wouldn't find getting covid out on the road an acceptable price for a jolly ride. You're offered a bowl of 100 M&Ms, five will make you badly ill and one will kill you, how many will you eat?

Things will get back to normal, my guess is not before 2022 though and maybe even later for more remote poorer areas. I've written off this year, I'll be looking at something European next year probably, with the big one the year after (fingers crossed).

Well, there are different types of insurance.....The bike will always be insured. But health insurance is complicated....and maybe so expensive as to be a deal breaker depending on where I am. Being older, it gets more and more difficult to get ANY insurance, let alone for a motorcycle trip, where I'll not be on the beaten track. I don't have an answer....but I'll not let this stop me either.

Some people may still be travelling now. But too many have been held up not able to cross borders...gave up after waiting for 6 months in isolation and finally went home....Covid is not an excuse - its a reason.

PS - I finally stopped listening or checking out the news. Had enough. Can't do anything about it, and too much is slanted and I don't even trust what I'm hearing....I got a mission....and I'm working HARD at it.

And I will tell everybody.....I'm not just going for a trip - I'm taking on a new way of life, and the most difficult part is letting go.....I'm letting go of EVERYTHING. Clothes, business, band, relationships, selling everything....and the hardest part is letting go....I'm not coming back here ever. But letting go is still the hardest part.....but I'm getting there.

Great post.....thanks.

I think you have this back to front, presuming you are riding a Canadian registered bike you will usually get insurance at the border when you enter a country but there are a few places that it is not available and you just have to be very careful and outside of North America you will only get the most basic third party insurance.
I am not sure what is availble to Canadians but there are enough out there travelling that there must be a long term travel as in medical insurance policy available with world wide cover, you just need to read the small print and make sure it covers motorcycle touring.

No, I understand clearly what's going on.....and medical insurance for older folk, on a bike, on the back roads is either REALLY expensive...or not available...read the fine print....

There are tons of posts on this on the HUBB....and I read for hours on this topic....It ain't gonna be easy....and yes, I know about bike insurance in the various countries.