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NEW Bank CD question..
Another way to go for a partial investment is an international emerging market bond fund denominated in US dollars. Here the investment is spread over many countries and of recent annualized yeilds have been in the order of 20%. Interest is paid on some semi-annually.
The risk of a single country is avoided. Also the risk of an individual currency. Bonds can appreciate in value or decline but unless a country defaults sometime the underlying bonds are paid back in full.
pi2
So he gets 3600 twich a year on his 50000 . Ok it can pay for his kid ! And he still has his orignal 50000 7 years lader .
That is assuming the RD Peso remains @ 39 and change!
Keep in mind just a 1 RD Peso depreciation from 39>40 is a 2.5% devaluation.
Then again, who is counting principle if you are collecting 16% interest/year?
I would be very careful with this statement. You would be surprised at how "far reaching" the IRS can be. They have access to all sorts of data bases, with all sorts of cross referencing software that would blow your mind.
Combined with the latest technology, "THE PATRIOT ACT" after 2001, and their insatiable appetite TO COLLECT MONEY, and all the sneaky S--T they do, I would tread lightly.
You really should be asking yourself, "What is a tolerable level of risk I am willing to accept for peace of mind"....TRANSLATION...Should I report this money, so I can sleep at night?
You really don't need any future surprises, when trying to re-enter the USA for a vacation, or visiting loved ones, for acts of PAST GREED, it just isn't worth it.
You can only roll the dice for so long and WIN, before eventually crapping out.
Besides, there are better ways to hide your money, but that's a whole new thread........
Hi Everyone,
Okay now let me propose a devil's advocate position.
Assuming those of you that are American intend on acting fully legally and filing your taxes, before pursing this transaction to yield close to "15% in pesos", consider the following list of dividend yielding stocks:
High-Dividend Stock List
The above stocks provide a dividend in US Dollars, and their financial performance has a transparent history, and you can pick and choose a 'basket' and reallocate your 'basket' from time to time to kick out the dogs and reward the stars.
Assuming you do this properly, you can most likely generate close to 10% per year pre tax.
But let's be pessimistic, let's just say you put your money instead into Verizon, and got the going 5% dividend yield.
That's 5% in USD in a highly liquid stock that you can get out of at any time you want, without 'locking your money down'.
Now compare that to 15% in RD Pesos.
If the currency goes from 37-> 50, like it did the last time hipolito was in power, you're not earning 15%, you're actually LOSING 10%! and your money isn't liquid and you can't pull it out so easily, not as easily as selling a stock with good liquidity on the NYSE.
You may argue - well i have costs in pesos, so it's okay, I don't need to change my money back to dollars, but so many things here are imported, that either way you've got a cost base in US Dollars.
Bottom line: be VERY careful chasing yield % points, it can be ruinous.
now if only i'd take my own advice - i'm trying to buy a house in santo domingo, so i guess i'm 'long' RD Pesos!
Good luck everyone!
Okay now let me propose a devil's advocate position.
Assuming those of you that are American intend on acting fully legally and filing your taxes, before pursing this transaction to yield close to "15% in pesos", consider the following list of dividend yielding stocks:
High-Dividend Stock List
The above stocks provide a dividend in US Dollars, and their financial performance has a transparent history, and you can pick and choose a 'basket' and reallocate your 'basket' from time to time to kick out the dogs and reward the stars.
Assuming you do this properly, you can most likely generate close to 10% per year pre tax.
But let's be pessimistic, let's just say you put your money instead into Verizon, and got the going 5% dividend yield.
That's 5% in USD in a highly liquid stock that you can get out of at any time you want, without 'locking your money down'.
Now compare that to 15% in RD Pesos.
If the currency goes from 37-> 50, like it did the last time hipolito was in power, you're not earning 15%, you're actually LOSING 10%! and your money isn't liquid and you can't pull it out so easily, not as easily as selling a stock with good liquidity on the NYSE.
You may argue - well i have costs in pesos, so it's okay, I don't need to change my money back to dollars, but so many things here are imported, that either way you've got a cost base in US Dollars.
Bottom line: be VERY careful chasing yield % points, it can be ruinous.
now if only i'd take my own advice - i'm trying to buy a house in santo domingo, so i guess i'm 'long' RD Pesos!
Good luck everyone!
can you tell me where this Valores office is located and what documents i need to bring please???
Their main office is in Santo Domingo on Abraham Lincoln Ave. but you can do everything through a local BHD bank. Not sure if you can do it with a passport, you may need a cedula.
My question would be...how much of the $250k US be insured by a particular DR Bank. I believe BHD only covers up to 250k pesos. Someone can correct me if I am wrong. However, I would work on leveraging the risk to a comfortable level before talking about investing more than $50k US in the DR.
hi there which Scotiabank did you go? can you please share the Bank CD REp name and phone number. We are
very new and need help, we are in Bavaro,Punta cana Area.
very new and need help, we are in Bavaro,Punta cana Area.
hi there will u pls send us a copy of the Banco Popular Bulletin too. we are new and interested to obtain the highest CD
in order to leave in DR
in order to leave in DR
hi there if u do to 15.50% via BHD are there any guarantees when the peso devaluates. I know there is no guarantee, any comments on these issue? Thank you.
Where did you see that BHD was paying 15.5%? On what kind of cd, for how long, what kind of payment schedule--monthly, quarterly, etc.
I haven't seen those kind of rates in years.
FRank
hi there my mom would really like to open a CD as BHD but they are not offering it now as of todau 7/27/12 according to their website? can you help? is this true? who do you know at BHD Santo Domngo pls send us contact info. Thank you.