All I'm asking is 6%. Not 15%, not 12%. Just give me 6%

[s_sherrell]

Just a note that there are other secured debts you can loan on as well. Several years ago I did similar method with mobile homes. I know it not the most glamorous, but it was great money and a very good learning experience. I did not have the money to do regualr homes and it was the same concept. There were lots of mobiles for sale, but no bank would lend on them. I contacted the sellers, took an option to sell the place for them ($20). Then I would advertise in Penny Saver to own for $200/month. So I would get buyers who would pay me $500 down and $200/mo for 3-5 years. I usually could by these for about $2k. My very first deal I pulled in over $5000 from my initial $1200 buy in about three years. People would stay for a year or so and then move on. Note, because I was 'selling' they usually fixed the places up themsleves. I would never rent. I was lien holder on the loans and that was all. It was then I learned it is nicer to have people going to work because they owe you money!
Just encouraging anyone who likes this model to think outside the box a bit. It can be done.

 

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[GlobalWealth]

On the original topic, there are very safe and secure ways to get 6%. I have a connection with a Panama credit union that pays 8% on 12 month CD's.

 

[OliverR]

After reading The Millionaire Fastlane I have understood the importance of financial markets and started to learn what I can about it. To all of you who are asking about books to read or where to find information. By far the most useful guide into the world of finance I have found to be on iTunes U. There is just something cool about learning from the top professors in the world about the subject. I am currently watching the courses of Financial Markets and Financial Theory from Yale University. Definitely a must for all beginners. Both courses have about 26 1h lectures with video from the classroom and a link on the side for all the study material, problem sets etc.

Hope this will help some of you guys to the right path and information.

Oliver

 

[davidil]

WOW

This is great stuff, and I just found out that you can listen to these two courses for free online, no iTunes or anything.

Courses — Open Yale Courses

There are actually other courses there I'm going to listen to.

Update about my original post:

So I now have an investment banker who I work with, it's a small firm that manages my account. This is a 100% tailor made service, I'm spending on the phone about 2-3 hours with this guy EACH WEEK, talking strategy and what he will be buying for me. We decided to go into the market in small chunks of $150k a month over the next year or two, to average the purchasing prices and stay on top of the changes in the market. You need a minimum of $0.5m to work with these guys and they are based in Berlin so it's all regulated by German law.

What I'm invested in are structured products that give 8%-10%, from many different issuers, the only risk is a bank default and these papers are first in the line of creditors. They are high yield because they are for 10-15 years and you can only buy them in large chunks. There is also a "risk" of an early call, which to me isn't a risk at all. Then I'm invested in hybrid bonds from banks and insurance companies (read about them online) which give 5%-7% due to their attractive prices at the moment. Then some REITs and finally safer bonds of large multinational corporations. I get leverage from the bank up to $2 for every $1 that I have for a very low rate, less than 2%, because interest rates are so low, so when you factor this in, the total yield is more than 10% a year. The portfolio is diversified with different issuers, geographical locations and currencies. I'm going to put 60% of my savings in the portfolio and 40% in real estate, investing at the developer level.

Any question - let me know.

 

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[davidil]

I'm not sure I'd put my money in a bank in Panama... but maybe. I know there are some Russian banks that do this too... But are you talking USD or local currency? who knows, maybe Russian banks are actually safer than American banks at the moment. You say there are "many" ways, would you like to share some more?

On the original topic, there are very safe and secure ways to get 6%. I have a connection with a Panama credit union that pays 8% on 12 month CD's.

 

[GlobalWealth]

I'm not sure I'd put my money in a bank in Panama... but maybe.

Panamanian credit union actually and there has never been a failure. Deposits are in USD.

I know there are some Russian banks that do this too

Even big banks in Russia like Unicredit pay around 6% in RUB.

You say there are "many" ways, would you like to share some more?

Large Euro banks in Bulgaria pay 7-9%. Certain carry trades can earn big yields. Some private investment partnerships. It really just depends on your expertise and 'who you know'.

 

[V8Bill]

I should have bought Apple shares when I had a chance... idiot.... now it's too late!"

When you said that Apple shares were $384. Today they are selling at $502. That's a profit of $118 per share ($502 - $384). $118/$384 = .307 x 100 = 30.7% which averages out to 6.14% per month or 73% annualised. You could set a trailing 10% stop loss at this point (because this new uptrend has been going quite strong since then) and take a fantastic (unbelievable to most) return.

Stock:Apple (AAPL)/WikiChart

Just saying...

 

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[CommonCents]

This is an interesting area to look at for a biz op. Perhaps an online FX exchange, something like "Second Market" to bring more efficiency to FX spreads to consumers.

Forex is liquid too but banks charge around a 2.5% spread per trade you put on.

So if you want to convert between US$ and EUR$ they'll take 2.5% of the transaction, giving you a shitty exchange rate -- consumers should be LIVID. I'm talking about banks -- not forex trading firms that offer some of the most competitive prices out there.

When I converted ~ $500,000 worth of currency, I lost a real $12,500 to a major who took a virtually "risk-free" margin on the bid/ask spread.

1.5%-1% regardless of the number of trades?

Also, is the earnings from the spread between the short term and long term bonds compounded daily, monthly, or annually? Are your expenses compounded daily, monthly, or annually?

 

[davidil]

Update - my portfolio did 40% in two years.

 

[Oitio]

Thanks for bumping this thread, read trough it and googled alot of stuff in here and took up notes (even learning all the terms, EFT/Hedgefunds etc since I have no former experience or understanding of them). Still most of the stuff is way beyond my head but Im definetly learning!

 

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[andviv]

Update - my portfolio did 40% in two years.

Congrats on that... so what did you end up doing?