The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Fastlane via currency 'leverage'?

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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!
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Kevin88660

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
681
617
261
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?
 
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
681
617
261
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.
 
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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:
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
681
617
261
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?
 
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
681
617
261
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.
 
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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?
 

Mr992

Contributor
Nov 29, 2016
63
80
120
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).
 
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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:

Kevin88660

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
681
617
261
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.
 
OP
OP
S

sarahfisher

New Contributor
Oct 21, 2019
16
10
14
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%.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
New Course! Upwork Client Psychology I #UdemyApproved! Upwork Client Psychology I is...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Welcome to 2020, I wanted to add in a quick note about gratitude for the new year...


Don't like ads? Remove them while supporting the forum. Subscribe to become an INSIDER.

The 2020 Fastlane Summit

This event SOLD OUT in October. For authorized resale tickets, please check ticket resales or contact the forum directly.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom