Is there any sort of tax-deferred-foreign-currency-CD-annuity-plan offered that could maximize gains by reducing tax exposure while hedging against USD currency risk?
tripleB said: Is there any sort of tax-deferred-foreign-currency-CD-annuity-plan offered that could maximize gains by reducing tax exposure while hedging against USD currency risk?you should leverage international paradigms by outsourcing your posts to mumbia. short yourself to protect against downside risk, preferably with high voltage electrical lines to -minimize--dashes- when you type
Nummerkins
Senior Member
posted: Jul. 24, 2009 @ 1:05p
I bought one of those Icelandic CDs from Everbank when they were paying 11% interest. Of course, a week later their economy imploded and I lost $2,500 of the $10,000. I knew it was risky, but didn't expect that. So, I'd stay away.
Xnarg
Senior Member - 5K
posted: Jul. 24, 2009 @ 1:50p
People seem to forget that if they own stocks or bonds in major US companies, then they do indeed have foreign exposure already, as most US companies derive a healthy portion of their revenue from foreign sources.
KeeHaskins
New Member
posted: Jul. 25, 2009 @ 12:08p
Remember the Stanford scam. That was all dealing with international CDs. He's in jail.
I don't know what you are trying to achieve or what your current portfolio looks like, so it is impossible for me to make a suggestion concerning an investment that might be appropriate for you, but if you are looking for a fixed income vehicle that pays a good yield, try looking at ishares fixed income ETFs. Of course there are many different companies that offer ETFs and many of them are great companies. But the reason that I prefer ishares or Powershares is because they have great liquidity. You can cash them in any time you like without penalty. Two to look at are ticker symbols PFF and HYG. Both have yields that are over 10% and should be less risky than international CDs.
PFF is a Preferred stock ETF, and HYG is "High Yield" Bond ETF. As you may know some people call "High Yield" bonds, Junk bonds. But I have used them sucessfully in the past in given situations.
A less risky alternative is symbol LQD and TIP. Both have yields between 5 - 7%. LQD is an investment grade bond ETF and TIP is the ishares Lehman TIPs Bond ETF.
Kee Haskins
bigmig
New Member
posted: Jul. 28, 2009 @ 10:11a
Bryan2010,
Investing in foreign stocks seems more risky than a CD based on inflation. Being one of the typical "home" based investors, I don't have the time or resources to research foreign stocks, learn foreign languages, investigate foreign politics and microregion affects, and wake up at 2 am to speak on the phone with another country.
All of these factors affect foreign stocks, thus leaving a person like myself with two choices: 1) have a big black box of unknown between my investment and its goal (never a good choice) or 2) hire a commision based foreign stocks firm, like Europacfic Capital etc. to handle things for me.
Personally I would rather count on the fact that 1) Ben Bernanke and the US government are printing money a mile a minute 2) other countries are not. Combined with a guaranteed starting interest rate (up to 5% on the Brazilian real), I'd say the risk is pretty low compared to your suggestion.
You don't have to research individual companies, learn their languages, or "talk to any countries" on the phone. You do the same thing you can do here, invest in a fund. As "home" based investor, I seriously doubt you do that much research for any individual picks in the US, you are just trying to make international exposure sound complicated to support your poor decision. Numerkins has show that it is quite possible to lose a significant portion of your money, even with a good interest rate. You may as well just do forex.
Aaha, a user name. Sorry. By the way, Tone down. This is not youtube. I'm on here to learn and like you and everyone else on here, am basing my decisions on the facts and information I can gather, hence the reason I started this post. Save it for another site.
No, it isn't youtube. But it is a forum where people expect you to read the thread that you start. It isn't even one page and I had to link something that was directly relevant to your question, in the same damn thread.
When the contract looks like this to you, don't do it. /assuming you don't actually speak this.
bryan2010
Member
posted: Jul. 28, 2009 @ 11:56a
I wasn't as clear as I should have been. I didn't mean to imply to go buy individual stocks or bonds. Point your browser over to vanguard.com and look at their index funds. I don't think they offer an international bond fund, or it is a recent addition.
Nummerkins said: I bought one of those Icelandic CDs from Everbank when they were paying 11% interest. Of course, a week later their economy imploded and I lost $2,500 of the $10,000. I knew it was risky, but didn't expect that. So, I'd stay away. With the current MarketSafe BRIC CD, Everbank is offering "100% principal protection".
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