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Welcome to Radical Personal Finance, a show dedicated to providing you with the knowledge, 00:00:03.880 |
skills, insight and encouragement you need to live a rich and meaningful life now, while 00:00:08.160 |
building a plan for financial freedom in 10 years or less. 00:00:12.960 |
And today I want to create for you a short episode, just a simple conversation on the 00:00:19.640 |
Received a comment on the previous show where I talked about how to move to Mexico and why 00:00:24.880 |
I received a question, which I think is certainly quite widespread. 00:00:29.320 |
The commenter asked, "Well, no discussion on safety? 00:00:32.480 |
I'm interested in moving to Mexico, but my wife really doesn't like the sound of it." 00:00:36.800 |
And of course, we hear so many difficult things about Mexico. 00:00:40.560 |
And I definitely do think it deserves a conversation. 00:00:43.000 |
In fact, I've already recorded an interview, which will be released in a few days, where 00:00:46.640 |
we do, I do mention it with another guy who was living in San Miguel de Allende also. 00:00:51.680 |
But I thought this is important enough for me to just talk with you firsthand, straightforwardly 00:00:59.760 |
And I think it's definitely an important component of good financial planning. 00:01:06.720 |
The older I get, the more important safety is to me. 00:01:10.320 |
I've talked about this throughout the annals of the show. 00:01:13.000 |
I've talked about the importance of safety gear. 00:01:15.800 |
I did a show on just simply wearing the safety gear on how if you're going to be involved 00:01:20.300 |
in something and you're going to go and do something as simple, put on a helmet, right? 00:01:23.960 |
Put on a skiing helmet, put on a bicycle helmet, don't work on ladders. 00:01:29.000 |
It's silly to build wealth and then wind up hurting yourself in some simple way. 00:01:36.440 |
When I was younger, I did all kinds of, I worked on roofs, I re-roofed houses, et cetera. 00:01:40.720 |
The older I get, the more I look at it and just say, "It's just not worth it. 00:01:43.880 |
Why would it be worth it for me to go up there and expose myself to some physical danger?" 00:01:49.520 |
I've talked about how it becomes more important for you to invest in safety, things like driving 00:01:58.160 |
I think that one of the values of having money is that you can afford a safer car and it's 00:02:04.880 |
Driving is one of the most dangerous things that you and I probably do on a regular basis 00:02:09.480 |
and having a car that has active safety features, collision avoidance systems, et cetera, and 00:02:15.280 |
passive safety features, high quality airbags, high quality construction. 00:02:20.280 |
There was a time in my life where I drove a cheap car and then I realized that I didn't 00:02:26.080 |
really want to drive my cheap car because even though it gave me a great story, "Look, 00:02:33.200 |
My old Toyota Corolla that I paid $500 for," I realized that it wasn't ideal for me from 00:02:43.380 |
How should you think about safety when it comes to different places in the world that 00:02:48.380 |
My answer is I think you should think about it, but I think you should think about it 00:02:53.880 |
One big benefit of building wealth is that you can move from an unsafe place to a safe 00:03:01.040 |
And here you'll have to define what those terms mean. 00:03:04.380 |
But I do often wonder, there are many places, even in the United States, there are many 00:03:08.000 |
places where people go to bed at night wondering if a stray bullet is going to come through 00:03:14.400 |
the walls of their house and hit one of their children in the bed while they're sleeping. 00:03:18.920 |
You can hear stories of New York City back in the 1980s when people would put their children 00:03:22.720 |
to sleep in a bathtub for protection through the walls. 00:03:29.880 |
But certainly there's a sense in which it rings true. 00:03:33.500 |
You see the number of people killed every weekend in a city like Chicago and you know 00:03:39.360 |
that some of them are just simply accidental deaths. 00:03:41.920 |
And I've often wondered, why don't people move? 00:03:46.840 |
Anybody living in a bad neighborhood in Chicago can leave a bad neighborhood in Chicago and 00:03:51.920 |
go to a place in Indiana or just in a different neighborhood in Chicago. 00:03:59.880 |
But one reason people don't take action is economics. 00:04:03.680 |
And so one big benefit of building your wealth is that it opens up to you more economic possibilities. 00:04:10.880 |
You open up for yourself the ability to go from a place that is unsafe to a place that 00:04:17.360 |
I think that this can and should be part of your personal planning even in the city where 00:04:22.580 |
I keep a list of things that over the years I've changed my mind about and things that 00:04:30.080 |
I've been wrong about, things I've changed my mind about just so I can kind of have a 00:04:35.000 |
One of the things on that list, things that I have changed my mind about is the usefulness 00:04:44.080 |
Now I'm still a little bit loath to admit this one, but I certainly think a lot more 00:04:48.960 |
about it, especially as I watch what happens in my home country, the United States and 00:04:54.120 |
the increasing levels of violence, the increasing levels of tension, just the things that you 00:05:02.360 |
If you had asked me five years ago if I would ever live in a gated neighborhood, my answer 00:05:06.120 |
would have been an unequivocal absolutely not, never, because I don't want to deal with 00:05:11.880 |
the additional restrictions, the additional constraints that come with that particular 00:05:19.720 |
However, as I watch what has happened in the United States over the last few years, I don't 00:05:24.600 |
want people marching through my street right in front of my house. 00:05:27.800 |
I don't want to wake up in the morning and have my house surrounded by people yelling 00:05:31.460 |
at me and people blocking intersections and whatnot. 00:05:34.320 |
This is one reason why people move to a gated neighborhood. 00:05:38.800 |
I think there can be a substantial increase in safety by simply choosing to move to a 00:05:44.080 |
gated neighborhood, and it's worth considering. 00:05:49.280 |
Now is it necessary to do that, to be safe in a little town in the United States? 00:05:53.480 |
No, it's not, but it is the kind of thing that happens. 00:05:57.240 |
I think that that particular trend will grow significantly in the coming years. 00:06:01.980 |
If you go to a country that is generally considered to be less safe, you will find that living 00:06:10.580 |
in a gated neighborhood is basically the standard for anybody with any particular level of wealth 00:06:16.700 |
because it provides you a significant level of safety and protection at a modest cost. 00:06:22.120 |
Virtually everybody lives in a gated neighborhood where there's a guard at the front, a wall 00:06:25.200 |
around the set of properties, and then of course sometimes you have a guard on your 00:06:31.120 |
I think that trend will continue to grow in the United States for people who have wealth 00:06:34.760 |
as well as you see some of the increasing levels of violence and increasing levels of 00:06:44.560 |
I think when you get to safety of traveling, you get into a different world because there's 00:06:50.240 |
just a different perspective on what's safe and what's not. 00:06:57.860 |
Over the years, I've been on various sides of this issue. 00:07:03.720 |
I remember when I was just graduating from college and I wanted to take a trip somewhere, 00:07:11.280 |
wanted to travel abroad, didn't have very much money. 00:07:16.480 |
Spirit Airlines had a flight to Haiti that was cheap and Spirit Airlines had a flight 00:07:23.680 |
I didn't know much about both places, but of course I knew that Colombia was unsafe. 00:07:27.040 |
After all, it's a drug country and a terrible place to be, etc. 00:07:30.960 |
I knew that Haiti was a little bit questionable, so I pulled up the U.S. State Department, 00:07:33.920 |
looked at their travel advisory warnings, and they warned against traveling to Haiti. 00:07:38.120 |
I said, "Well, I'll take a risk on Colombia." 00:07:40.560 |
I bought a plane ticket to Colombia and showed up, didn't know much about it, went to a hostel 00:07:47.040 |
Had a wonderful time, didn't get robbed, everything was totally fine, and really enjoyed 00:07:52.400 |
That was one time when I started to say, "Wait a second, what's going on? 00:08:00.640 |
Why do I think that Colombia is this godforsaken hellhole, when in reality this has just been 00:08:06.360 |
an awesome trip and this is a wonderful place to be?" 00:08:11.600 |
Earlier than that, I'll tell you another example. 00:08:13.680 |
One thing I have learned throughout my life is that virtually every country that I've 00:08:17.320 |
ever been to doesn't trust its own neighbors, whether they're racist towards their neighbors, 00:08:24.280 |
or whether they just don't like them, or whether they have arguments against them. 00:08:27.840 |
Virtually every country I've been to has a hard time with their neighbors. 00:08:32.400 |
When I was in college in Costa Rica, we went to Nicaragua. 00:08:36.840 |
All the Costa Ricans start warning you about Nicaragua, about how terrible Nicaragua is, 00:08:40.560 |
how unsafe it is, be careful, it's just full of crime. 00:08:44.600 |
Costa Ricans and Nicaraguans have a very difficult relationship. 00:08:52.600 |
Well, then you go to Nicaragua and it's nothing like what the Costa Ricans warned you about, 00:08:58.080 |
I didn't get robbed in Nicaragua, I did get robbed in Costa Rica. 00:09:06.800 |
I've seen this again and again throughout my life. 00:09:10.200 |
When my wife and I were on our honeymoon, we had a honeymoon in Hispaniola. 00:09:14.400 |
It's not abnormal to go to the Dominican Republic, as we did and go to a resort. 00:09:20.800 |
I remember when we told people in the Dominican Republic, "We're going to Haiti. 00:09:29.520 |
While we did not like Haiti, which I'll talk about in a moment, I didn't find it particularly 00:09:36.400 |
I think there was more danger there, certainly, but we didn't get robbed, we didn't get hurt. 00:09:42.880 |
It's just again and again and again, almost anywhere I go, I find the same thing. 00:09:50.720 |
I've come to basically distrust most of those opinions. 00:09:55.520 |
Mexico certainly has a reputation for violence and for lack of safety. 00:10:02.000 |
I don't personally think that reputation is unwarranted. 00:10:05.480 |
I do think it's important to pay attention to. 00:10:08.280 |
I remember a number of years ago, I was listening to a presentation by a guy who was a celebrity 00:10:19.760 |
If you don't ever go to Mexico, you're going to be safe." 00:10:24.480 |
You file that stuff away in your head and you think, "Man, that sounds really bad. 00:10:30.240 |
I don't want to be locked up in prison somewhere. 00:10:35.120 |
But in reality, I've been in Mexico for some time, traveling all around. 00:10:40.960 |
I've been in Mexico City over the last week, Mexico City, Cuernavaca, San Miguel de Allende. 00:10:49.560 |
I haven't once thought about physical safety. 00:10:52.440 |
I haven't once been concerned about physical safety. 00:10:57.400 |
Let me give you my formula for how to think about physical safety. 00:11:03.960 |
The first thing is you should be aware of what the statistics indicate because data 00:11:13.020 |
But data only tells an important story if you actually understand how to read the data. 00:11:17.080 |
I'll give you an example from the United States. 00:11:19.560 |
The United States has a much higher level of violence than many places in the world, 00:11:25.760 |
a much higher level of murders, a much higher level of violence than many places in the 00:11:31.320 |
The challenge is that the vast majority of that violence takes place in just a handful 00:11:35.600 |
of cities, a handful of large liberal cities where there's the most violence. 00:11:41.680 |
Now you notice I put the political commentary, I said liberal cities. 00:11:46.800 |
You can do this because you can study this with things like gun violence. 00:11:49.240 |
If you're ever looking at gun violence in the United States, one of the first things 00:11:52.540 |
that you want to look at is say, "Where is this gun violence happening?" 00:11:55.920 |
And the gun violence in the United States happens in large democratic cities that have 00:12:00.040 |
strict gun laws, that's where all the gun violence happens. 00:12:03.320 |
And people argue and argue about this, but the reality is if you take those handful of 00:12:08.240 |
cities out of the United States, you take those handful of cities such as Chicago, New 00:12:13.560 |
York, Baltimore, Washington, D.C., you just remove those from all the statistics, the 00:12:19.080 |
United States drops to one of the safest countries in the world as long as you get rid of those 00:12:24.240 |
So let's say that somebody's planning to come to the United States. 00:12:27.140 |
You can tell them and they say, "I'm concerned about violence in the United States. 00:12:30.460 |
After all, there's tremendous levels of violence and I'm not sure, am I going to be safe?" 00:12:33.960 |
Well, a good statistical answer would be, "Yeah, you can be safe, but don't go to Chicago, 00:12:39.560 |
don't go to New York, don't go to Washington, D.C., don't go to Baltimore. 00:12:43.480 |
Stay out of the big cities and you'll be fine." 00:12:48.760 |
Statistically it's true, but you also know there's a whole other side to the story. 00:13:06.180 |
You know that it's more important to think about what parts of those cities. 00:13:12.520 |
You can go to Chicago and you can have a wonderful time and never once see any indication of 00:13:17.880 |
violence anywhere in Chicago because you simply don't go to certain neighborhoods. 00:13:24.040 |
You stay in the places where there's not trouble. 00:13:28.660 |
And so I would be happy to tell a tourist to the United States, "Yeah, go to Chicago. 00:13:35.720 |
And you know that if somebody's going to go to Chicago and they ask, "Hey, is it okay 00:13:44.400 |
Is it okay for me to go shopping in this particular district?" 00:13:50.720 |
Almost certainly it's absolutely fine and you can definitely go and shop there in that 00:13:56.540 |
So you want to pay attention to neighborhoods. 00:13:58.600 |
But what's also important in terms of safety is... 00:14:02.520 |
Well, let's go first just listen to people on the ground. 00:14:09.000 |
Is Portland, Oregon known for being a particularly dangerous city? 00:14:15.640 |
It's not known for being a particularly dangerous city. 00:14:18.520 |
But if you were to go to Portland, Oregon today, would it be wise to talk to the concierge 00:14:23.480 |
at your hotel and say, "Hey, I want to go check out the city. 00:14:28.200 |
The concierge would say, "Absolutely, you can go check out the city, but you want to 00:14:31.640 |
stay away from this particular square at this particular time of day." 00:14:37.080 |
Walk through at noon day around the federal government buildings where all the protests 00:14:42.480 |
Walk through at 11 o'clock at night, not so good. 00:14:44.640 |
And so one of the most important things is always local knowledge. 00:14:47.480 |
Virtually everywhere in the world that you go, there will be some local knowledge. 00:14:51.180 |
Some local people will understand what's happening and when and where you can be in a certain 00:14:58.080 |
A train station in Paris is going to be an extremely high crime area for petty crime, 00:15:06.760 |
But that's going to happen during midday, midday during the crowds. 00:15:12.200 |
And so you would be very well advised to carefully protect yourself, carefully protect your pockets, 00:15:18.760 |
make sure that you engage in good anti-theft measures if you're going to be going through 00:15:25.200 |
There's a different risk profile though to going through at midnight. 00:15:29.120 |
And so local intelligence is what you rely on when traveling. 00:15:32.700 |
And you rely on it in Portland, Oregon, in New York City, or in Mexico City, Mexico. 00:15:36.680 |
You just simply talk to the local people and find out what's going on. 00:15:39.620 |
Get the intelligence of what's happening in those local areas. 00:15:44.120 |
So let's expand our metaphor here for a moment. 00:15:53.120 |
But as I record this, I can't pause it at the moment. 00:15:56.900 |
Let's go back to our metaphor, back to our example. 00:15:59.120 |
Let's say that you have a British tourist who's traveling to Chicago, staying at a normal 00:16:03.120 |
hotel and talks to people and says, "Hey, is it safe for me to go and be in this certain 00:16:11.160 |
And they go, "Yeah, everything's fine, everything's fine." 00:16:12.920 |
But let's say that the British tourist now takes that information about safety and says, 00:16:19.280 |
"Okay, well I'm safe to go to this neighborhood and I'm safe to go out at this particular 00:16:24.200 |
But then they walk out of the hotel, they go to that neighborhood and they decide to 00:16:36.200 |
The vast majority of people who are killed in Mexico or in many places are involved in 00:16:42.200 |
Gang activity is often drug activity, often related to it. 00:16:45.400 |
You're going to be far less safe if you go to Cancun and you buy drugs and start doing 00:16:49.940 |
drugs with your buddies than if you just simply go to Cancun and sit on the beach and drink 00:16:59.160 |
Your activities make a big, big difference in your safety. 00:17:02.120 |
It's not that Cancun itself is safe or unsafe, it's largely a matter of what your activities 00:17:08.480 |
And so if you're going to go and you're going to engage in illegal purchases, buying drugs, 00:17:13.460 |
you're going to go and get involved in a gang, you're going to do something that's going 00:17:17.720 |
to bring attention to you, advocate for some political cause or something like that, then 00:17:25.640 |
These are the factors that are the most important. 00:17:29.560 |
I do think that there are places in the world that are genuinely unsafe, that you genuinely 00:17:36.200 |
need to need to plan with tremendous care and caution. 00:17:42.120 |
I think the handful of those places are the number of those places is extremely small. 00:17:47.720 |
I could probably only name a couple in today's world. 00:17:51.200 |
If I today, I'm not scared of going to Afghanistan. 00:17:58.000 |
I follow actually trip reports and whatnot of travelers who go do the visit those countries. 00:18:04.000 |
Places I am concerned about Venezuela, very concerned. 00:18:08.280 |
It's not impossible to travel safely in Venezuela, but it's very difficult right now. 00:18:15.280 |
I'm concerned about Somalia and just because it's difficult in some of these places, you 00:18:28.840 |
Sometimes you make sure that you get the local guy who knows what's going on. 00:18:33.200 |
But the risk is far lower than a lot of people think. 00:18:40.240 |
In my travels in Mexico, I've not really ever once thought about safety. 00:18:46.520 |
That's not to say that there may not be places in Mexico where I would not think about safety. 00:18:55.240 |
Imagine somebody coming to you and you live in Miami, Florida, and they're watching the 00:19:03.400 |
And they're saying to you, don't you feel unsafe living in the United States? 00:19:23.920 |
Well, at this point in time, I've come to see that that's basically the same about everywhere 00:19:37.940 |
Maybe they have a higher statistical crime rate. 00:19:41.140 |
But even that in and of itself doesn't make it inherently unsafe. 00:19:44.680 |
It's all a matter of where you're going, what are you doing, and can you pay attention to 00:19:51.080 |
the advice that you get, pay attention to the activities that you engage in? 00:19:55.160 |
So what I have learned in my lifetime is that most of these places are simply scary because 00:20:08.680 |
I mean, do you understand, for example, Mexico, do you understand that Mexico City is what 00:20:14.280 |
is it, something like the third or fourth largest city in the world? 00:20:20.480 |
I have to recheck the data, but it's in the top 10, certainly. 00:20:24.040 |
Something like nine million people in the city proper, something like 20 million people, 00:20:33.320 |
And it's a huge and kind of world-class city. 00:20:36.600 |
And so in the same way that you can be completely comfortable walking around downtown Manhattan, 00:20:41.880 |
you can be completely comfortable walking around downtown Mexico City. 00:20:50.800 |
Something like six or nine million people in the central area. 00:21:00.040 |
You can't let your perceptions of what a place actually is like be formed without accurate 00:21:08.120 |
And so I used to worry about traveling to Mexico. 00:21:12.880 |
With the things that I do and the places I go, I don't see any indications of safety. 00:21:16.680 |
I do know that there are areas where I am going to pay attention. 00:21:19.680 |
So if I hear of an area that's experiencing a lot of cartel violence or something like 00:21:25.160 |
But I'm not going to steer clear of the entire country because of that. 00:21:30.360 |
My final comment, so my point there is simply this. 00:21:36.800 |
And what will happen is as you check places out, you realize that your perceptions were 00:21:49.080 |
When you think about safety, recognize that you can always leave. 00:21:56.920 |
That is one of the tremendous privileges that you and I enjoy. 00:22:05.360 |
Remember, I told you my wife and I went to Hispaniola on our honeymoon. 00:22:10.560 |
And we went to the Dominican Republic, went to Haiti. 00:22:13.840 |
After a day and a half in Haiti, we were ready to leave. 00:22:18.240 |
I had a terrible time there for a variety of reasons. 00:22:22.600 |
And we were planning to be there for almost a week. 00:22:25.920 |
But after a few days, I just looked at her and said, "We got to get out of here. 00:22:37.160 |
We literally took a taxi to the airport in Port-au-Prince and tried to get out. 00:22:42.120 |
Now we were trying to get back to the Dominican Republic, so we were trying to fly back there. 00:22:46.200 |
But basically, I was showing up at the airport with a credit card and I was like, "Get me 00:22:49.920 |
And I wasn't able to get out that day back to the Dominican Republic, but I got from 00:22:54.160 |
Port-au-Prince and I bought a plane ticket on the spot to another place in Haiti, I think 00:23:02.120 |
And we flew to Cape Haitian and had a much better, had a wonderful time in Cape Haitian 00:23:05.520 |
and then took the bus back the next day back to the Dominican Republic. 00:23:09.960 |
And so if you get to a place and you don't like it, you can always leave. 00:23:15.200 |
And you can apply this at the local level, right? 00:23:16.680 |
If you're walking down the street, walking through a market and all of a sudden you get 00:23:20.800 |
that tingly feeling in the back of your head, "I'm not in the right place." 00:23:25.040 |
You stop, you call a taxi, you ask for help, you book an Uber, you do something, you call 00:23:31.600 |
the hotel and say, "Come get me," and you just simply leave and you get out. 00:23:36.400 |
If you're in a country or a city and you don't like it and something's going wrong, then 00:23:43.360 |
But that's only been, for me, necessary really only one time and that is in Haiti. 00:23:50.800 |
And I'm not scared to go back to Haiti, I just didn't have a nice time there, I didn't 00:23:55.680 |
And so I don't particularly want to go back to Haiti. 00:23:58.360 |
So that's how I would handle the question of safety is I would simply say, "Let's go 00:24:08.360 |
And if you are a person with at least some means, is it more risky for someone? 00:24:15.280 |
In some ways it's more risky for someone who's a penniless backpacker, taking a local chicken 00:24:21.880 |
But in some ways it's not because they're not necessarily a high profile. 00:24:25.280 |
But if you're kind of what I would call an average, normal, middle class person, get 00:24:30.240 |
on an airplane and you fly, you call up Enrique and you fly to San Miguel de Allende and you 00:24:36.320 |
book an Airbnb and you walk around, I mean, there's no crime. 00:24:39.960 |
I saw nothing to be concerned about in San Miguel de Allende. 00:24:43.320 |
If you go to resort town, it's just not unsafe. 00:24:55.520 |
Here's something that I always think about, something that encourages me. 00:24:58.520 |
Years ago, I was talking to a friend of mine who is a reporter and we were talking about 00:25:02.840 |
the news and I was bemoaning to him how the news was just so full of bad things, so full 00:25:10.120 |
And he said to me this, said, Joshua, you should be thankful that the news is full of 00:25:15.880 |
You should be thankful the news is full of kidnappings and rapes and violence and whatnot. 00:25:21.600 |
Because if it weren't full of those things, you would be in a worse situation than if 00:25:27.840 |
He said it's news by definition because it's abnormal. 00:25:40.720 |
And so if the news is full of killings and rapings and kidnappings, et cetera, then recognize 00:25:49.920 |
It's if that stuff is not in the news where you need to worry or you need to be concerned. 00:25:56.400 |
And so here's the basic problem with news information. 00:26:00.200 |
It is usually bad and it's sensationalistic, but it's sensationalistic and bad because 00:26:06.840 |
And the fact that it's abnormal indicates that it's not something that should be statistically 00:26:15.040 |
I'm not, even though I watch the news from Portland, Oregon, right, but I'm not unsafe 00:26:24.120 |
As long as I avoid certain times and certain situations. 00:26:27.320 |
It's just that's the news because that's different and unique. 00:26:30.440 |
And this is what makes it so hard in the modern world because we're exposed and subjected 00:26:38.800 |
It is genuinely newsworthy, but it's not going to affect your life. 00:26:45.240 |
Well, it's probably not going to affect your life to go to that place. 00:26:53.520 |
You talk to local people and find out about it. 00:26:58.800 |
I would just say that what I've done is say, what's the worst that could happen? 00:27:03.040 |
And let me just avoid that and go and check it out and trust your gut. 00:27:07.680 |
But I don't think that I am quite confident that I can travel to Mexico. 00:27:12.640 |
I'm quite confident that I can live in Mexico and be totally safe. 00:27:18.480 |
And if the situation changes, then I'm going to be ready to change myself. 00:27:26.120 |
The more time I spend traveling to different places, 00:27:29.600 |
the more accurate understanding I have of how the world works 00:27:34.960 |
and the more confidence I have in what's right for me and my family. 00:27:38.280 |
And I wish that same feeling for you and yours. 00:27:44.120 |
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