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For those who like keeping their 'savings' in Western banks

Discuss issues related to business, finance, taxes, investments, cost of living in different countries, etc.

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Winston
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Re: For those who like keeping their 'savings' in Western ba

Post by Winston » January 2nd, 2015, 9:20 pm

Rock wrote:
Winston wrote:Rock is putting all his money in Asia. He has bank accounts in China, Philippines, Taiwan and maybe Thailand too. Rock, is there a reason you're doing this? Can you elaborate? Should we do the same?

Newlifeinthephilippines, so you're giving up your $25,000 a month online income for your religion? Yeah right. lol
Bank accounts are for practical convenience since I have assets or business in those countries and use the accounts for rent payments, capital transfers in and out, etc. I also have accounts in USA. But I don't keep much money in bank account (cash) of any currency with former exception of Chinese Yuan (that's over tho). Cus cash is a wasting asset. Fiat money trends down in real value. It's better to find something that grows or at least has a high yield.

If you park your money in bank accounts, they will yield very little (interest rates remain at all time lows going back over one hundred years) but loose around 20-60% of purchasing power every decade.
You mean you have most of your assets in property or capital? You have to have a lot of money to invest in real estate right?

What's the best way to invest your money then if not put it in a bank? Which of the following do you recommend:

- Stocks, bonds and mutual funds
- Bank CD's
- Real estate
- Capital
- Loaning it out
- Investment schemes
- Gold and silver

Btw I was also wondering, what's the difference between a stock broker and an investment banker? And how is the NYSE different from Charles Schwab, Merrill Lynch or Fidelity? I mean if someone wanted to buy stock, how do they know who to call? A broker on the NYSE, or one of those companies?
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Taco
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Re: For those who like keeping their 'savings' in Western ba

Post by Taco » January 2nd, 2015, 10:28 pm

Winston wrote:
Rock wrote:
Winston wrote:Rock is putting all his money in Asia. He has bank accounts in China, Philippines, Taiwan and maybe Thailand too. Rock, is there a reason you're doing this? Can you elaborate? Should we do the same?

Newlifeinthephilippines, so you're giving up your $25,000 a month online income for your religion? Yeah right. lol
Bank accounts are for practical convenience since I have assets or business in those countries and use the accounts for rent payments, capital transfers in and out, etc. I also have accounts in USA. But I don't keep much money in bank account (cash) of any currency with former exception of Chinese Yuan (that's over tho). Cus cash is a wasting asset. Fiat money trends down in real value. It's better to find something that grows or at least has a high yield.

If you park your money in bank accounts, they will yield very little (interest rates remain at all time lows going back over one hundred years) but loose around 20-60% of purchasing power every decade.
You mean you have most of your assets in property or capital? You have to have a lot of money to invest in real estate right?

What's the best way to invest your money then if not put it in a bank? Which of the following do you recommend:

- Stocks, bonds and mutual funds
- Bank CD's
- Real estate
- Capital
- Loaning it out
- Investment schemes
- Gold and silver
At this point, I recommend you buy food, water and ammo if your staying or a one way plane ticket if your leaving the USSA.
“Every time a President leaves the White House after two terms, there is a recession within the next year"

Rock
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Joined: April 21st, 2010, 5:16 pm

Re: For those who like keeping their 'savings' in Western ba

Post by Rock » January 3rd, 2015, 8:27 am

Winston wrote:
Rock wrote:
Winston wrote:Rock is putting all his money in Asia. He has bank accounts in China, Philippines, Taiwan and maybe Thailand too. Rock, is there a reason you're doing this? Can you elaborate? Should we do the same?

Newlifeinthephilippines, so you're giving up your $25,000 a month online income for your religion? Yeah right. lol
Bank accounts are for practical convenience since I have assets or business in those countries and use the accounts for rent payments, capital transfers in and out, etc. I also have accounts in USA. But I don't keep much money in bank account (cash) of any currency with former exception of Chinese Yuan (that's over tho). Cus cash is a wasting asset. Fiat money trends down in real value. It's better to find something that grows or at least has a high yield.

If you park your money in bank accounts, they will yield very little (interest rates remain at all time lows going back over one hundred years) but loose around 20-60% of purchasing power every decade.
You mean you have most of your assets in property or capital? You have to have a lot of money to invest in real estate right?

What's the best way to invest your money then if not put it in a bank? Which of the following do you recommend:

- Stocks, bonds and mutual funds
- Bank CD's
- Real estate
- Capital
- Loaning it out
- Investment schemes
- Gold and silver

Btw I was also wondering, what's the difference between a stock broker and an investment banker? And how is the NYSE different from Charles Schwab, Merrill Lynch or Fidelity? I mean if someone wanted to buy stock, how do they know who to call? A broker on the NYSE, or one of those companies?
1. Capital is money you use to invest in an asset. You don't invest in capital. You use capital to invest. If you have $20,000 and buy a car with it, that is normally considered consumption cus most cars loose virtually all of their value within a decade. So you've spent that money and it's gone. But if instead you use it to buy shares of a listed company on the stock market or maybe set-up a bubble tea business lol, then you have invested that $20,000 and it is considered your investment capital. A firm is normally started up with two kinds of money - debt and equity. Those who invest start-up capital are given a share of the equity (shares of the firm) in return.

2. Real estate, stocks, bonds, bank CDs, gold/silver, private loans, etc. are just asset classes. With mutual funds are groups of these assets and have a middle man (fund manager) who decides what and when to buy and sell. Of course he charges a hefty fee for that service so he better be good (most are garbage as far as long term performance goes). Index funds are like mutual funds except they have no middle man but rather just represent a combination of various assets (either from same class or mixed classes). Is it good to buy real estate? It depends on WHAT real estate at what price and what your goals are. Is your goal long term strong rental yields or do you wanna buy and sell (flip)? Personally, I've always gone for yield. I look for low priced high yielding condos which i believe will remain viable for a long time, buy them, rent them out, and normally hold them for good.

Should you buy stocks? Depends on which stock at what price? Also, are you looking for yield (high dividends expected to continue in long term) or for stocks that will go up quickly so that you can sell them. Personally I have not invested much in stock market in last few years because I haven't spent time searching for under priced bargain companies I was interested in. But I wish I had bought Apple when you started this site lol.

My general rule is to invest in what you have personal interest and knowledge about. I've always liked real estate so I spend more time in that space. Going through income statements, balance sheets, shareholder changes, and the latest corporate gossip is not my thing so I tend to gravitate away from equity (stock) investing.

I also have had access in past to special structured products such as forex arbitrage funds which pay a very stable high yield and have also bought into high yield bond funds which invest in riskier fixed income around the world. I still invest in the former but latter has a pretty low yield now in spite of it's risk so I took profits 2 years ago. It was really cheap in 2009 on back of crisis. The forex arbitrate product is kind of risky but I've followed it for more than 12 years so I have some idea about it now. It's been a great stable yielder for me for over 5 years.

2009 taught us to mostly avoid hedge funds!

3. NYSE is a market maker I believe. It's profits are derived from bid/ask spreads. If you wanna sell shares of ACME, you might get paid say 10 dollars a share but when someone else buys those shares, they might pay say 10.1 dollars. That 0.1 dollar difference between the buy and sell price is the spread and goes to NYSE. Imagine you set-up a fruit market on street for apples, oranges, and bananas (stocks). Say for apples, you buy each apple at 20 cents and sell them at 22 cents. Your spread on each apple is 2 cents or 10%. Get it?

4. Firms like Charles Schwab are brokers. They provide investors with a platform to buy and sell stocks, bonds, etc. and make money by charging a commission on each transaction. That commission is a separate charge from what is embedded in the bid/ask of NYSE or other stock exchanges.

5. Investment banking is helping firms raise capital in IPOs or transacting and executing mergers and acquisitions, etc. When firms issue additional shares, they also hire syndicates of investment banking firms to plan and execute these deals. Bulge bracket firms such as Merrill Lynch do it all - investment banking, stock broking, fund management, proprietary trading, private banking, and serve both retail and institutional clients. They are in bed with those who run governments and benefit from engaging in moral hazard type investments ala bailouts of 2009.

Rock
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Re: For those who like keeping their 'savings' in Western ba

Post by Rock » January 3rd, 2015, 8:39 am

Taco wrote:
Winston wrote:
Rock wrote:
Winston wrote:Rock is putting all his money in Asia. He has bank accounts in China, Philippines, Taiwan and maybe Thailand too. Rock, is there a reason you're doing this? Can you elaborate? Should we do the same?

Newlifeinthephilippines, so you're giving up your $25,000 a month online income for your religion? Yeah right. lol
Bank accounts are for practical convenience since I have assets or business in those countries and use the accounts for rent payments, capital transfers in and out, etc. I also have accounts in USA. But I don't keep much money in bank account (cash) of any currency with former exception of Chinese Yuan (that's over tho). Cus cash is a wasting asset. Fiat money trends down in real value. It's better to find something that grows or at least has a high yield.

If you park your money in bank accounts, they will yield very little (interest rates remain at all time lows going back over one hundred years) but loose around 20-60% of purchasing power every decade.
You mean you have most of your assets in property or capital? You have to have a lot of money to invest in real estate right?

What's the best way to invest your money then if not put it in a bank? Which of the following do you recommend:

- Stocks, bonds and mutual funds
- Bank CD's
- Real estate
- Capital
- Loaning it out
- Investment schemes
- Gold and silver
At this point, I recommend you buy food, water and ammo if your staying or a one way plane ticket if your leaving the USSA.
Taco are you joking or serious?

If it's the latter, its rather ironic coming from someone like you who couldn't even hack it in third world for more than 2 years and had to return to the comfort of your Anglo first world home. If the S is about to HTF in Anglo/first world, why is it that you park your ass there? Actions speak. You choose to live in a country closely tied and exposed to USA yet you post prediction after prediction of USA/Anglo world demise right around corner. What gives. Why don't you heed your own advice? Have you filled your home up with water, rice, and guns??? For real now. Do you take your own posts seriously?

OutWest
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Re: For those who like keeping their 'savings' in Western ba

Post by OutWest » January 3rd, 2015, 7:04 pm

Rock wrote:
Taco wrote:
Winston wrote:
Rock wrote:
Winston wrote:Rock is putting all his money in Asia. He has bank accounts in China, Philippines, Taiwan and maybe Thailand too. Rock, is there a reason you're doing this? Can you elaborate? Should we do the same?

Newlifeinthephilippines, so you're giving up your $25,000 a month online income for your religion? Yeah right. lol
Bank accounts are for practical convenience since I have assets or business in those countries and use the accounts for rent payments, capital transfers in and out, etc. I also have accounts in USA. But I don't keep much money in bank account (cash) of any currency with former exception of Chinese Yuan (that's over tho). Cus cash is a wasting asset. Fiat money trends down in real value. It's better to find something that grows or at least has a high yield.

If you park your money in bank accounts, they will yield very little (interest rates remain at all time lows going back over one hundred years) but loose around 20-60% of purchasing power every decade.
You mean you have most of your assets in property or capital? You have to have a lot of money to invest in real estate right?

What's the best way to invest your money then if not put it in a bank? Which of the following do you recommend:

- Stocks, bonds and mutual funds
- Bank CD's
- Real estate
- Capital
- Loaning it out
- Investment schemes
- Gold and silver
At this point, I recommend you buy food, water and ammo if your staying or a one way plane ticket if your leaving the USSA.
Taco are you joking or serious?

If it's the latter, its rather ironic coming from someone like you who couldn't even hack it in third world for more than 2 years and had to return to the comfort of your Anglo first world home. If the S is about to HTF in Anglo/first world, why is it that you park your a** there? Actions speak. You choose to live in a country closely tied and exposed to USA yet you post prediction after prediction of USA/Anglo world demise right around corner. What gives. Why don't you heed your own advice? Have you filled your home up with water, rice, and guns??? For real now. Do you take your own posts seriously?
+1. I have heard this stuff for years. To be prepared for anything is wise, but the conspiracy nuts/ tin foil hatters
That I know are typically among the LEAST prepared. They are too caught up in endless theories and paranoia to actually participate in the economy on the meantime.

To the original post. I agree that a bank is a very poor place to keep assets for any length of time. I like productive real estate- modest rentals with no mortgage, farm land, and deals on "gold in the ground" - proven gold sources that have not yet been developed.

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publicduende
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Re: For those who like keeping their 'savings' in Western ba

Post by publicduende » January 3rd, 2015, 7:42 pm

OutWest wrote:To the original post. I agree that a bank is a very poor place to keep assets for any length of time. I like productive real estate- modest rentals with no mortgage, farm land, and deals on "gold in the ground" - proven gold sources that have not yet been developed.
I have been spending quite a few days with my family (southern Italian town) and something that is embarrassingly evident finally struck me: "hard", productive assets and investments are typically the thing of the baby boomer, the thing of a generation past.

It's my grand-grandfather who was a local construction tycoon and owned swathes of prime residential property, whether buildable land, or built condos or houses, and made a small fortune. A smaller fraction of that legacy went on to my granpa, who was also a master builder (though not an engineer) and carried on with the family business for as long as he could, albeit with a more perfectionist and less business-savvy approach. His legacy was then split acrooss his children - my mom, uncles and aunties - who all got to own multiple properties, which they could rent or live in paying no rent or mortgage, and were lifted to upper middle class status despite having pretty standard jobs.

Paying attention to my extended family, the families of those who married into my family, or my friends, the patterns is always the same. Even the most modest middle class family here owns at least one extra property or land, or business, on top of the place where they reside, and sit comfortably in their middle class (or above) lifestyle wiithout having to work particularly hard. That doesn't mean they were a**holes who showed off and squandered their fortunes, but their relative weight was and is visible the moment they have been helping my generation - passing over their assets to their sons and daughters, thus lifting them comfortably above mediocrity in most cases.

Which kind of brings me to my generation. We are the ones who get to work for their bills, or to chase the carrot-and-stick dream of getting rich via the usual plethora of financial or speculative assets. Or, much much more often, get a perception, a whiff of prosperity by buying exciting stuff that we don't really need and bears no future value, just a feeble, hedonic present value.

Our parents are teachers and public officers, small-time business owners and yet own houses and lands, as well as a good stash of cash in their accounts. We use their money on a hard (and - at least in the US - extremely overpriced) education system so we are allowed to work even harder in order to get iStuff, plasma TV screen and have a stab at a 30-year mortgage in a house that is perhaps a third of our family home.

Then, heaven forbids, as late as possible, our parents will pass away and we will get to inherit more assets, productive, real-value assets, of the class and value that we could never even dream to get in our lifetime.

Which does bring me to the final conclusion, which is yet another proof of what I have always suspected: inflation is not just a measure conjured up in the monetary policy circles. It's a built-in aspect of our generation, a generation which, blessed though it may be by the chance of a valuable legacy (the baby boomer legacy), is plagued by an increasingly uphill struggle for ever-diminishing returns.

This is where I can see that, sadly, the game is rigged, or was rigged and the push to the top looks more of a task for Sisyphus (http://en.m.wikipedia.org/wiki/Sisyphus) than one for Atlas.

As a marginal corollary, the dating scene bears the same degree of inflation. Less good girls with less marriage-like values and more men who need to work harder to even be able to find the, let alone woo them and marry them.

Don't remember who first said that, but it really make me grin when I think about it: the future just ain't what it used to be.

OutWest
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Re: For those who like keeping their 'savings' in Western ba

Post by OutWest » January 3rd, 2015, 8:02 pm

I see those same aspects clearly. At the same time, I look to my own actions and specifically what good they will do over the long term. If I and my children must be outliers to achieve it, so be it. I see around me extraordinary opportunities. Most are to busy listening to someone else to really think for themselves.

As you noted, the actions of your great grandfather and grandfather are passed down to this day.
I have to be that man now for my kids and future grandchildren.

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Re: For those who like keeping their 'savings' in Western ba

Post by publicduende » January 3rd, 2015, 8:31 pm

OutWest wrote:I see those same aspects clearly. At the same time, I look to my own actions and specifically what good they will do over the long term. If I and my children must be outliers to achieve it, so be it. I see around me extraordinary opportunities. Most are to busy listening to someone else to really think for themselves.

As you noted, the actions of your great grandfather and grandfather are passed down to this day.
I have to be that man now for my kids and future grandchildren.
You forget one thing, my dear friend. You're a baby boomer, a Bearer of Legacy, probably more of an outlier than your dad, but so much less than me and the younger generations. Good for you and your kids.

Sometimes I wonder if even optimism and passion (for finding new opportunities, meaningful networking, a young attractive wife even!) are a prerogative of your generation, and are present in ever-shrinking doses in younger individuals.

OutWest
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Re: For those who like keeping their 'savings' in Western ba

Post by OutWest » January 3rd, 2015, 9:16 pm

I am amused. I do not live in some kind of isolation.
I do not gather relevance from my own experience, as my own life is not relevant to ANY generation.
I very rarely meet anyone of any generation who has a life as disconnected from the experience of their own generation and all others, as my own. I do mentor a number of young men, the youngest of which is 25.
They are succeeding and their view of the world is rapidly changing. Opportunities have always changed with the generations and awareness is a rare thing always.

OutWest
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Re: For those who like keeping their 'savings' in Western ba

Post by OutWest » January 3rd, 2015, 11:12 pm

I tend to focus on three area-
1- Most of what you have learned about economics is BS.

2- You must always live beneath your means. Fake status means NOTHING. Live on 2/3 of your income. Invest the remaining 1/3.

3- Live beneath your means...then...how to expand your means.

This has been good economic sense in any generation, and the majority ignore it.

Taco
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Re: For those who like keeping their 'savings' in Western ba

Post by Taco » January 4th, 2015, 1:28 am

Rock wrote:
Taco wrote:
Winston wrote:
Rock wrote:
Winston wrote:Rock is putting all his money in Asia. He has bank accounts in China, Philippines, Taiwan and maybe Thailand too. Rock, is there a reason you're doing this? Can you elaborate? Should we do the same?

Newlifeinthephilippines, so you're giving up your $25,000 a month online income for your religion? Yeah right. lol
Bank accounts are for practical convenience since I have assets or business in those countries and use the accounts for rent payments, capital transfers in and out, etc. I also have accounts in USA. But I don't keep much money in bank account (cash) of any currency with former exception of Chinese Yuan (that's over tho). Cus cash is a wasting asset. Fiat money trends down in real value. It's better to find something that grows or at least has a high yield.

If you park your money in bank accounts, they will yield very little (interest rates remain at all time lows going back over one hundred years) but loose around 20-60% of purchasing power every decade.
You mean you have most of your assets in property or capital? You have to have a lot of money to invest in real estate right?

What's the best way to invest your money then if not put it in a bank? Which of the following do you recommend:

- Stocks, bonds and mutual funds
- Bank CD's
- Real estate
- Capital
- Loaning it out
- Investment schemes
- Gold and silver
At this point, I recommend you buy food, water and ammo if your staying or a one way plane ticket if your leaving the USSA.
Taco are you joking or serious?

If it's the latter, its rather ironic coming from someone like you who couldn't even hack it in third world for more than 2 years and had to return to the comfort of your Anglo first world home. If the S is about to HTF in Anglo/first world, why is it that you park your a** there? Actions speak. You choose to live in a country closely tied and exposed to USA yet you post prediction after prediction of USA/Anglo world demise right around corner. What gives. Why don't you heed your own advice? Have you filled your home up with water, rice, and guns??? For real now. Do you take your own posts seriously?
Image

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“Every time a President leaves the White House after two terms, there is a recession within the next year"

Taco
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Posts: 4624
Joined: July 9th, 2011, 5:30 pm

Re: For those who like keeping their 'savings' in Western ba

Post by Taco » January 14th, 2015, 6:53 pm

Here's another article on Worldwide Bail-ins.

It’s Official: The Worldwide Bail-ins Are Coming
http://www.nestmann.com/its-official-th ... LarB2d0yM8
“Every time a President leaves the White House after two terms, there is a recession within the next year"

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