Best Return For A Years Investment

[junkofdavid2]

Nine, really nice. but once you invest, better get the equation rigth. this example miss some basic thing.

the first is this thai maid, who in most cases makes less then 200 baht a day, hardly get employed till age 60...I wouldnt think she would get to save that much. but love the maid idea. just cant see that happen often.

the second is even as the numbers sound so good for first look, you only compound interest, and never count inflation. unfortunate to us, there is. Right now, they talk around 2% here...that is, the official numbers. however, when u buy the bus ticket which 2 years ago was 5 baht to 8, buy the gasoline 30 insteed 30, even a fried rice for 30, up from 25....that is inflation right now much above your 6% return.

so, the real value in 39 years might be far from the current 4.4 million...

You are correct and extremely intelligent.

At 3% inflation (higher than the official 2%), the 6% interest translates to a Net of only 3%.

Therefore, after 39 years (age 21 to 60), our maid will only retire with a measly 2.1 Million Baht in today's money. Surely, that's too little for a maid.

*Btw, my maid gets 300 per half day; she also does another house after ours. I get kinda pissed actually, she started leaving earlier than in the past after she got the 2nd job. I know everyone needs to make more money, but I didn't like the leaving earlier part considering that 300 isn't low. I almost fired her for that.

Edited November 18, 2007 by junkofdavid2

[kiakaha]

The NZ rate is not available if you live in NZ. Essentially it is to bring in foreign $$. I goofed though, have only been with them since 2002, at that time the exchange rate to US$ was .4644 today it is .7559. So my gain on the exchange rate has been nice.

The 2% is not tax. It is an "approved issuer levy" (AIL).

Furthermore it can be available to you if you live in NZL, in the NZL banking world its called transparent foreign trusting, but you have to jump through a hoop or two.

[tingtong]

well said david.

my conclusions:

1. your maid is very well paid. if your place isnt far from as, my wife willing to take this part time job if has opening. she is looking this kind a part time job, 'cos get a bit bored when i work abroad.

2. whereever in LOS you live, i wish i would have that 3% inlation in the last 2-3 years. what I see my gasoline doubled, my milk cost much more, and my favourite restaurant just raised the prices 20 percent last week...and the list goes.

3. might or might not be intelligent. sure we dont have a maid, so, i might made a mistake somewhere. still, happy with my family, so, again, might be right in something.

4. i read D.Bach's book, so, to say, the theory far not new. why not say 12% a year, as he prefers that. lets impress with numbers.

5. as the forum open, i write what i think. you like, or dont. what i wrote is my opinion. in some point we agree, that saving is good. i believe investing is better.

[bmanly]

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

Hi David, if I was you yes for a short term secure investment I would put it in a UK bank for 6.5% interest. You can work out later when you are ready as to what you want to do with it. It is not real good as a long term option though.

By the way some people mention AUD interest bearing accounts. Whilst the Australian economy is good right now our currency is at all time highs. I have seen the Aussie dollar drop 5c against the USD in less than a week, that is a 7% loss, too much of a risk I think, It's up and down like a yo yo.

I am invested in the AUD because it is my home currency and I can manage my tax and investments very well with home based products.

Right now you can get 7.25% at call in a AAA rated bank in OZ. CLICK HERE FOR THE LINK, cheers and good luck.