| Hi Folks new to here and got an seriuos question |
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Christoph76
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Cash: $ 1.35
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Joined: 16 Mar 2006
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| Hi Folks new to here and got an seriuos question |
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Hi my name is Chris and this is why I seek some advices here.
I live in Germany and own a house here with a value of between 180.000euros to 250.000euros.
I plan to sell that house in a few years because I wanna move from Germany to USA.
So my problem is I wanna live from the money that I earn from that house selling in the way of getting a "net yield" from that money.
But in Germany is the highest net yield rate that I found at 7.2% per year I think thats a little bit low because that would make in the worst case by an ammount of 180.000.-€ with 7.2% per year 12.960.-€ per year thats only 1080.-€ per month.
Is there a way to get more net yield without any risk of loosing something?
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Thu Mar 16, 2006 6:25 am |
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Christoph76
Member
Cash: $ 1.35
Posts: 11
Joined: 16 Mar 2006
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Ok thanx for this so that means there is no way to make a current income out of 150.000 to 250.000euros?
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Sun Mar 19, 2006 5:04 pm |
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Christoph76
Member
Cash: $ 1.35
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Joined: 16 Mar 2006
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ok ok so how about a little trick maybe this will work...
Putting all the mony at one time in an retierdy found than retiere hehe if you understand what I mean.
150.000 or 250.000 in an retier fond would have the same effect like pying a small ammoun into it for 20 or 40 years, or not?
As far as I think it should work or not?
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Sun Mar 19, 2006 5:49 pm |
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Christoph76
Member
Cash: $ 1.35
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Joined: 16 Mar 2006
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well ok if I would follow that plan what would you think would be the earlyst age I could retire at? 35 or 45 ?
Or if I put in retire fond all at once what would come out if I would force it after a year I'm 25y now I would like to have $1500 out per month.
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Sun Mar 19, 2006 6:12 pm |
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rockhound
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| live off the interest |
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I think Coaster is just responding to the criteria that you stated. It sounds like what you have in mind is what my dad always dreamed of: put $250,000 in the bank and "live off the interest". Coaster is just saying that of all the kinds of investments out there, those that guarantee no risk to your principal (original 200,000 Euros from sale of your house) are things like FDIC insured savings and money market accounts. At present, those accounts are not paying more than a few percent interest. That's just the way it is, blame the Federal Reserve for setting the interest rates. If you were able to live on a very restricted lifestyle, perhaps you could quit working and survive on the few percent interest that would be generated by those accounts. Do you feel you could live on 1,000 Euros? It would be tough, considering that you would have sold your house in order to get that money, so half of that would go to renting an apartment, but still, some people might manage it. If you want to live in grander style, and have "spending money", the bottom line is that your principal simply isn't enough to generate that kind of interest money in a no-risk type of investment. People who can do this are generally older, retired persons who already have their home mortgage paid off, have no other debts, and are content with a simple lifestyle. Coaster is suggesting that in order to get up into the "teens" of percentage returns, it would require some sort of investment in the stock market, or something that tracks the stock market. He's just warning you that although on average, over a time frame of a decade or more, this kind of investing yields higher rates, there are times in which you can lose money, so your principal is not guaranteed to be safe. In other words, if you buy something for $10, and then have to sell it for $5, you have lost $5 of your own money, not "nebulous on-paper" money. So at present, with the current level of your available principal, and the prevailing interest rates on no-risk investments, it would be up to you to decide if you could retire on the 1,080 Euros per month that this would yield. And as Coaster points out, even if you could survive on that now, as time goes by and inflation increases, a Euro (or dollar) next year will not be worth as much as a Euro (or dollar) is today. So, in a few years, your 1,080 Euros would no longer buy what they do today, and your lifestyle would no longer be sustainable. It's the cruelty of mathematics: either increase the principal, or increase the interest/return rate. A lot of people find out the same thing, that even if you win a million dollar lottery, that still isn't enough to quit your job at age 30 and start living the high life. $250,000 is more than probably most of us have ever seen at one time, and it seems like a lot of money (and it is!), but the Time Value of Money dictates that over a life span, it isn't as much as we think it is.
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Sun Mar 19, 2006 6:37 pm |
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Christoph76
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Cash: $ 1.35
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hmmm sounds logical, but if I should decide to take one of these risk investments, what could I win and what could I loos if soemthing wents wrong?
I dont wanna loose all....And if I take the "no risk" way I could get 14000 from 200000 at 7%.
That would be enough for me to move to USA cuz thats what I finally plan and than I would only have to work a haltime job or when I get low on cash
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Sun Mar 19, 2006 6:40 pm |
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financialpeace
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Chris,
Coaster is right, there is no 'golden egg' in America. Infact, those that come to the US from other countries and make it in the American Dream are those that come here willing to work even harder than they did at home, and save/invest even wiser. There are tons of opportunities in American, but understand that America is a highly consumerized nation and that fact alone will eat up your little nest egg in inflation and your income from it will be eaten alive in taxes. You'll likely not have much more than $800/month to live on, and I'm not too sure that's even above the poverty level here in America. I know I spend more on food and transportation than $800/month, not to mention the rest of the items that get a name on my budget, oh, like shelter...
My suggestion would be to bring your money over here, invest it wisely, not overly conservative, but not wildly either, and come here to work, save, and invest even more, and stay out of debt. With a nest egg like you have and at such a young age, you'll wake up at 45 or 50yrs old and find yourself very wealthy.
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Sun Mar 19, 2006 7:26 pm |
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Christoph76
Member
Cash: $ 1.35
Posts: 11
Joined: 16 Mar 2006
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Well that seems like that its different from state to state a friend from me who is from michigan gets along with $1600 per month he has same age like me and can even have a car and stuff from that.....
And I dont mean that I dont want to work but with 100 or whatever in the back per month life is just easyer and I wouldnt have to be worried about things.
by the way thats a list of costs he gave me what would come up to me when I would move to michigan where he is
rent- 600$ <-- starts at
gas for house heat 100$ <-- starts around if its not part of your rent for apartment
electric 40$ starts at
phone bill 25$ for cheapest
car insurance 100$ for cheapest
gas for car is 2.30$ a gallon
food 50$ depends on how much you eat a week
cigarettes are 5.25 a pack
I think I would be happy with this anyway.....
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Sun Mar 19, 2006 7:55 pm |
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Christoph76
Member
Cash: $ 1.35
Posts: 11
Joined: 16 Mar 2006
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well so it looks like I have to work on on my company that dosent realy runs.
I feel like I have once messed up with investments.
Because I ended up where I'm now, I own a few % of a factory in HongKong that makes me able to produce everything from simple tshirts to expensive leather coats but its useless anyway because i cant find anybody who wants to buy my things.
maybe its realy about the bad econemy here in europe.
For example i almost cant make a lower price, for example 100 long leather coats made of real leather no artificial crap for $7000 plus shippment plus tax and duty if its for export.
But I just cant find customers or connections where I could sell them  (
Thats why I think It way a mustake and I have messed up with that investment so thats why I dont wanna risk anything anymore....
what do you think messed up or not?
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Sun Mar 19, 2006 8:20 pm |
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rockhound
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| ...that is the question |
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quote:
Originally posted by Christoph76
hmmm sounds logical, but if I should decide to take one of these risk investments, what could I win and what could I loos if soemthing wents wrong?
I dont wanna loose all....And if I take the "no risk" way I could get 14000 from 200000 at 7%.
That would be enough for me to move to USA cuz thats what I finally plan and than I would only have to work a haltime job or when I get low on cash
Hey, Chris, that is the question that we are all asking ourselves, and there is really no simple answer. The answer is different for everyone because it depends on your own personal tolerance for risk. There are ways to manage risk, and minimize the impact of losses, but it really comes down to your personality. How much are you willing to lose? That is the question. Some people would take their last $20 to the race track and bet on a 100:1 shot; others want a guarantee that they won't lose a dime. The "rate of return" is in many senses a measure of risk. Higher returns are a reward for taking the very real chance that you might lose your money.
I pretty much agree with the statement that you just don't have enough to retire on at age 25. MAYBE if you bought a used mobile home, and set it up on a couple acres of land in a rural area, and chopped your own wood for heating and cooking, and rode a bicycle to town to go shopping.... I'm assuming that you must have inherited this house that you plan to sell. As someone else suggested, and if you watch BBC World News, etc., you would find that the Social Welfare system in this country is comparatively draconian to that found in Europe. It is sort of one of our cornerstones that it's the responsibility of the individual to take care of himself. If you get behind on your budget, and think somebody is going to help you with hundreds of thousands of dollars in the bank, a nasty surprise awaits you because nobody, including the government, will care. In fact, the government will be taxing your interest income, so there is another hit on your budget. Looking at your budget, there are lots of holes. Where is this car going to come from on which you're paying insurance and buying gas for? That will wipe out several months to several years of your planned monthly interest income. $50/week for food is college student subsistence living, and you will soon tire of it. You'll find that with a couple hundred thousand dollars burning a hole in your pocket, you won't be content for long with subsistence living. Hanging out, drinkin' beer, gettin' a pack of smokes....that's no kind of life, anyway. I won't be as harsh as some of the other comments (I'm afraid the guys are becoming exasperated with a young kid who thinks he will never have to work after being handed a gift on a silver platter), but I would say "Give it up, and resign yourself to working if you move here." I know Germany's unemployment rate is at all-time highs, but at least you have a place to live. The money won't go as far as you think it will. It never does. Seriously, if you're looking for a country to retire to on a couple hundred thousand dollars, try Guatemala or Bolivia. They both have low costs of living and are beautiful places.
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Sun Mar 19, 2006 9:17 pm |
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Christoph76
Member
Cash: $ 1.35
Posts: 11
Joined: 16 Mar 2006
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I'm not realy sure what this forumwas made for but if its not only about so about business too...
Than I think it could be possible to find some traders dealers or what ever here, andybody who is relatet to my brange or not?
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Mon Mar 20, 2006 6:15 am |
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lobsterlord
New Member
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Location: Malaysia
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| RFP |
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Hey chris with the model u got i may just have the right investment for u. It is low risk and can earn about 20% permonth if u do it full time. Contact me via [removed] if u wanna know more. It is about sport arbitrate trading. Click my signature to know more.
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Mon Mar 20, 2006 10:21 am |
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Andrew
Admin
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Location: Texas
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lobsterlord,
Would appreciate it if you stop spamming your email and your sports betting thing. Self-promotions have a designated place, and this is not it.
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Mon Mar 20, 2006 2:27 pm |
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