The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Fastlane via currency 'leverage'?

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
I ‘m 32y, no kids/dependents, debt-free living in Vancouver, Canada at the moment, working as pleno accountant where I’m able to save 20K- 25K yearly after-tax from my work.

In my savings account, I have 90K which I’ve managed to save until now.

Originally, I’m from South America and got a permanent residency in Canada via skills (Education & Experience) that gives me the freedom to leave/enter the country whenever I want.

The scenario back home is like that…

A 2-bedroom apartment costs around 35K (Canadian currency) in a middle-class suburb

Blue-chip companies pay an average of 10%-13% dividend-yield

Government bonds pay an average of 5%-7% dividend-yield

300K invested in dividend stocks, bonds would generate enough income to live comfortably

Being in the slow lane, I have been wondering if using the currency ‘leverage’ will be enough to become wealth back home or am I being unrealistic?

Any thoughts are appreciated!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Kevin88660

Platinum Contributor
FASTLANE INSIDER
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
118%
Feb 8, 2019
3,456
4,078
Singapore
By “currency leverage” you mean a favorable exchange rate as you are making money in Canadian dollar but planning to return to your home country one day?

In term of purchasing power difference, maybe you can share with us how much it takes in your home country to have a equivalent of 2k worth of purchasing power in Canadian dollar?
 

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
Yes, the idea is to save as much as possible in Canadian dollar, return back home and live comfortably.

In terms of purchasing power, the average worker would need to work 3 months and a half to have 2K of Canadian dollar.
 

Kevin88660

Platinum Contributor
FASTLANE INSIDER
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
118%
Feb 8, 2019
3,456
4,078
Singapore
Yes, the idea is to save as much as possible in Canadian dollar, return back home and live comfortably.

In terms of purchasing power, the average worker would need to work 3 months and a half to have 2K of Canadian dollar.
How much it takes to buy things there? I assume things are three times cheaper?

It is definitely a good time to invest in blue chips that have a ten percent dividend yield.

I do have a small stake of ARGT, an Argentinian etf, in my portfolio. If you have direct assess to Stocks in the broker at your home country it would be good.

I cannot find an exposure to Venezuela in U.S. exchanges.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
That's right, average 2.5 - 3 times cheaper, but being a 3rd world economy the currency varies a lot.

Take the iPhone 11, for example using the Purchasing Power Parity index in US dollars...

It costs $779.55 in Canada

Argentina - $2008.19

Brazil - $1264.96
 
Last edited:

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
I have a small amount invested directed in banks, oil, and telco stocks which have been paying around 10-12% dividend-yield in the last 3 years.

The inflation at the moment is around 4.5 -5% so the net return is 5-7%.

As of today, 300K Canadian dollars invested in dividend-stocks, government-bonds would generate an income of 8K -9.5K monthly.

Since 85% of the population earns 1.5 - 2K monthly, that income (8K -9.5K ) is considered upper-middle-class back home.

Both books from MJ don't mention that particular scenario, earning 3 times more than the currency back home so I'm wondering if I'm falling into the compound-interest scam?
 
Last edited:

Kevin88660

Platinum Contributor
FASTLANE INSIDER
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
118%
Feb 8, 2019
3,456
4,078
Singapore
I have a small amount invested directed in banks, oil, and telco stocks which have been paying around 10-12% dividend-yield in the last 3 years.

The inflation at the moment is around 4.5 -5% so the net return is 5-7%.

As of today, 300K Canadian dollars invested in dividend-stocks, government-bonds would generate an income of 8K -9.5K monthly.

Since 85% of the population earns 1.5 - 2K monthly, that income (8K -9.5K ) is considered upper-middle-class back home.

Both books from MJ don't mention that particular scenario, earning 3 times more than the currency back home so I'm wondering if I'm falling into the compound-interest scam?
300k capital at ten percent yield would be 30k annually. I am not sure what do you mean by 8-9k monthly income maybe you are referring to a different currency?

Can you share the exact stock names you are holding now? Where are they listed?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
Saving 300K Canadian dollars plus 3 times the currency value back home = 900K.

Stock names: ITSA4 (bank), VIVT4(telco), BRDT3(Oil), TAEE11(Utility)

They have paid 10-13% dividend-yield in the last 3 years.
 

Kevin88660

Platinum Contributor
FASTLANE INSIDER
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
118%
Feb 8, 2019
3,456
4,078
Singapore
Saving 300K Canadian dollars plus 3 times the currency value back home = 900K.

Stock names: ITSA4 (bank), VIVT4(telco), BRDT3(Oil), TAEE11(Utility)

They have paid 10-13% dividend-yield in the last 3 years.
Thanks for sharing. I get what you mean.

You get a purchasing power that is 90k per year back home a year with 300k. investment.

You could start now using the 90k you have. As you make more you can save and invest more.
 

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
Well, I've saved 90k Canadian dollars and the plan is to keep working and saving.

My point is if the compound-interest scam mentioned by MJ applies to that scenario?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

SkyLake

Bronze Contributor
Speedway Pass
User Power
Value/Post Ratio
134%
Nov 29, 2016
107
143
That doesn't sound Fastlane at all. What value are you providing?

Smells like slowlane. Work x years, save x. And on top of that, you have to leave a 1st class country to move to a 3rd world economy (your words).
 

Kevin88660

Platinum Contributor
FASTLANE INSIDER
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
118%
Feb 8, 2019
3,456
4,078
Singapore

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
What value are you providing?

The concept of living in 1st or 3rd world economy is dubious, have you heard about the dual economy study?

You may be living in 1st class country but having a 3rd class country qualify of life or vice-versa.

Value? Using the currency 'leverage' I would be able to save quickly(not 50 years) and enough to live from passive income - stocks, bonds, real estate and be close to my family and friends.

Also, Canada can be my gateway holiday destination, since I'm able to leave/enter the country anytime.

MJ mentions the trinity of wealth is freedom, health, and relationship and I'd have it applying this plan.
 
Last edited:

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
Last edited:

Kevin88660

Platinum Contributor
FASTLANE INSIDER
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
118%
Feb 8, 2019
3,456
4,078
Singapore
Have you seen lately how many Australians over the age of 60 are living in Indonesia and Thailand because they cannot afford to retire 'back home'?

Have you wondered why?...Link below

View: https://www.youtube.com/watch?v=-shPBWbMZWc
Yes. I know it.

Bali is not far from Singapore, where I live. Lots of Aussies there. In Phuket Island too.

Singapore here we have old people retiring in Malaysia. Three times purchasing power difference to arbitrage.
 

sarahfisher

New Contributor
User Power
Value/Post Ratio
63%
Oct 21, 2019
16
10
26 percent annual rental yield?

Sorry, wrong figures...I have rechecked and below is a more accurate rent-yield breakdown for a $35K CAD condo;

Rent: 550 monthly (goes to the property's owner)

Condo fee: $200 monthly (goes to Strata management for daily maintenance of condo's facilities - cleaning, maintenance, security 24/7 etc )

Total cost to the tenant: $750

Property owner's ROI: $550 X 12 months = $6,600 per year / $105K = 6.3% rent-yield ($35K CAD converted to local currency - 3 times)

That $6,600 is pre-tax and has to deduct the real estate maintenance fee.

I'd say the net rent-yield would be around 5%.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top