US$ 500,000 in the bank, should I work in DR?

S

SteveDR

Guest
Looking for advice...
What you will do in my place?, I am 45 years old wth half a milion, speak fluent spanish and plan to live in SD. Sould I look for an extra income, open a small business (what kind?) or just live off the interest/dividends.
Yes, I know,,,, my investment income is not going to be very high but i am not big spender either...

Thanks!
 

lhtown

Member
Jan 8, 2002
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I assume you mean half a million dollars. Let's see, If you get an after tax return of 8% on half a million that is US$40,000. Assuming you want to save part of that, let's leave you with US$35,000 per year of interest income. You might do a lot better or a lot worse or both.

First of all, I would be interested in knowing what interests you about the Dominican Republic.

Second of all, we have no idea what your skills set is except that you are fluent in English and Spanish and can be thrifty.

US$35,000 is enough to live on if you are reasonably thrifty. Your first year or two would ordinarly be the most expensive.

What I would NOT do is invest a large portion of my money here until you learn the ropes and understand what you are doing. If you are a fast learner and have good teachers, give yourself at least a year or so depending on the complexity of your new endeavor. Most people would be well advised to wait even longer or even to never venture out on their own.

However, that is not to say that you have to abstain from business dealings or working entirely during your time here while you are learning your way around. Whether you spend it on salary or off salary is up to you, but use it to beat around and investigate. Keep your eyes and ears opened. Learn. Observe. Look for your niche. When you find find your niche and figure out how to capitalize on it, go for it when you are ready.

US$500,00 is a lot of money. It can be hard to earn and easy to lose. Also, US$500,000 isn't much money when you have no assets and are staring retirement in the face.

Best of luck.
 

Ken

Platinum
Jan 1, 2002
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You are young so the chances are good you may find that you would like the challenge of running a business. But don't invest now. The economic situation here has never been more uncertain. Trying to open a business now involves too much risk.

Speaking fluent Spanish will be a big asset to you; make it easier for you to investigate your options. But go slow and be cautious and do not give money to someone else to run the business for you. You should also be very cautious about taking a partner. The history here of expatriates investing in someone else's business, taking a Dominican partner, or paying someone to manage your business has not been good.
 

Hillbilly

Moderator
Jan 1, 2002
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I wouldn't recommend Santo Domingo as a retirement spot.

It is too easy to become involved in a lifestyle that will eat up the half mil. Any business venture at this time must be extremely risky, no matter your language skills.

Can you live off the interest? I should think so.

HB