How to invest RD$4000/month in DR?

lhtown

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Jan 8, 2002
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If you were a middle class Dominican, with RD$4,000 per month to invest for the future, where would would you invest it and why?
 

Adrian Bye

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Jul 7, 2002
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In USD in a US bank account. Or euros, in a european bank account. I'd move the money to a CD, then smile as the DR exchange rate continued to worsen.

If I couldn't open a foreign bank account, I'd change the money to USD each month and keep it in a secure deposit box in a local bank - NOT a local bank account.

Its not very aggressive for growth.. but thats not what I'd be looking for in the DR right now.
 

Larry

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Mar 22, 2002
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Do what adrian said and then after a year, take the balance saved and open a mutual fund in an account in the US (Vanguard 500 or one of the other ones geared towards growth). Continue doing what adrian said and then once per year, take the balance in the bank and dollar cost average it into the mutual fund. Over the course of time it should appreciate nicely. I know this is not answering your question as you stated you want to invest IN the DR but you should do very well using this method.

Larry
 

BushBaby

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Jan 1, 2002
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Ihtown,
I presume you are NOT a Dominican?? The premise that a Dominican would "think for the future" & "save" is alien to the Dominican culture!!! That is NOT being rude, it is being honest.

However, IF I was a middle class Dominican, I would be grateful that I still had a job!! IF I was able to save RD $4,000 per month, I would give praises to the Lord for making me one in a million!!!

I would then go out & spend it all on something BIG, LOUD & possibly fairly garish!! Tomorrow is unimportant, TODAY is all that matters & my friends might need a bit of cheering up due to the present administration!! - Grahame
 

Adrian Bye

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Jul 7, 2002
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Jan,

In Argentina when they had their big crisis a couple of years ago, the exchange rate was around 3 pesos to 1 USD. When everything totally fell apart, the government forcibly converted everyones USD savings to pesos at a rate of 1:1.

That would be like having your USD savings in a Dominican bank converted to pesos at 15:1. Then try changing that back to USD at 40:1 and see how much is left.

The only ones who were ok in Argentina were those who had USD outside the country, and those with USD cash in local safety deposit boxes. The rest of the middle class joined the poor class. Its a mess.

This probably won't happen here. But its not outside the realm of possibility.
 

miguel

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Jul 2, 2003
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BushBaby said:
Ihtown,
I presume you are NOT a Dominican?? The premise that a Dominican would "think for the future" & "save" is alien to the Dominican culture!!! That is NOT being rude, it is being honest.

However, IF I was a middle class Dominican, I would be grateful that I still had a job!! IF I was able to save RD $4,000 per month, I would give praises to the Lord for making me one in a million!!!

I would then go out & spend it all on something BIG, LOUD & possibly fairly garish!! Tomorrow is unimportant, TODAY is all that matters & my friends might need a bit of cheering up due to the present administration!! - Grahame
You say that the premise that a dominican would "think for the future" & "save"is alien to the dominican culture, was not only rude but also very stupid. Do you know every dominican on the island. Do you know my family that have had businesses and have saved since the beginning of the century?. And I am talking about thousands of family members. You should keep your opinion and just talk about the dominicans that you know that don't save. I hope that you are not one of those that go to the DR once in a while and hang around the barrios and have friends that don't have money to save, if you are one of them, them you know very little of the country. Maybe the people that you hang with don't save, but the people that I know, they do save, and they save alot. Speak for who you know and not for the entire country.
 
T

TiberiusMineola

Guest
to Miguel: the Truth Hurts ! ! !

"You say that the premise that a dominican would "think for the future" & "save"is alien to the dominican culture, was not only rude but also very stupid. Do you know every dominican on the island. Do you know my family that have had businesses and have saved since the beginning of the century?. And I am talking about thousands of family members. You should keep your opinion and just talk about the dominicans that you know that don't save. I hope that you are not one of those that go to the DR once in a while and hang around the barrios and have friends that don't have money to save, if you are one of them, them you know very little of the country. Maybe the people that you hang with don't save, but the people that I know, they do save, and they save alot. Speak for who you know and not for the entire country." [from Miguel's post].

Dear Miguel,
BushBaby spoke the truth, fairly charitably. I've been living here in your country for 7 years; BushBaby's words apply to 95% of the Dominican people. Dominicans have many charming & endearing qualities; thinking of the future & plannning for the future are simply not among them. I live here because I chose to. Life here is fascinating.
 

lhtown

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Let's get back to the question

OK guys, so I am NOT Dominican (American for your information). I just happen to be in the "business" of helping Dominican people. It is true that, in general, Dominicans have not been good savers or wise spenders. Of course, as a people, we Americans have no room to talk, we just tend to have a greater cash flow to manipulate and more financial options than the average Dominican.

Shame on all of us (speaking in a corporate, national sense) for the way we waste our money.

I live in a middle class area and work with middle class Dominican people. Part of what I am trying to do is help families improve their relationships and have a better life. From time to time, in our church I will be speaking on finances and, of course, there are the finances of the church to consider. Frankly, it is a bit tough to encourage people to save when there seem to be no reasonably secure options.

Back to the question. What type of mid to long range investment would be suitable for a middle class Dominican in this economic climate? For most, opening foreign accounts would be difficult and maybe even impossible. If anyone can advise me on the practicalities of making foreing investments for Dominican citizens, I am all ears.
 

miguel

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Jul 2, 2003
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Re: to Miguel: the Truth Hurts ! ! !

TiberiusMineola said:
"You say that the premise that a dominican would "think for the future" & "save"is alien to the dominican culture, was not only rude but also very stupid. Do you know every dominican on the island. Do you know my family that have had businesses and have saved since the beginning of the century?. And I am talking about thousands of family members. You should keep your opinion and just talk about the dominicans that you know that don't save. I hope that you are not one of those that go to the DR once in a while and hang around the barrios and have friends that don't have money to save, if you are one of them, them you know very little of the country. Maybe the people that you hang with don't save, but the people that I know, they do save, and they save alot. Speak for who you know and not for the entire country." [from Miguel's post].

Dear Miguel,
BushBaby spoke the truth, fairly charitably. I've been living here in your country for 7 years; BushBaby's words apply to 95% of the Dominican people. Dominicans have many charming & endearing qualities; thinking of the future & plannning for the future are simply not among them. I live here because I chose to. Life here is fascinating.
It hurt so much that I will kill myself right now. I could not care less of what she said. I am fully aware that we are talking about a third world country and that most people are poor and they can not save. What I have is a curiosity about the fact that she says that "the presmise of a dominican to think of the future and save was alien". She or he, whatever it is, is talking about all dominicans people. Also when she or he said that 'If a middle class dominican could save 4,000 a month, that person should praise the Lord because that maked them 1 in a million". See maybe the people that you know are the ones that can not save at all. 95% of the people that I associate myself with save. I guess that I will need to go and hang out with you people and see how you live so I can understand your point of view. I DO know that, maybe because I am not an expert, of dominicans do not save, but to say that none do, that it's not true. Maybe who you know, but not who I know (just a few can't). But you know they saying : "dime con quien andas y te dire quien eres". Again, i know that the country is very poor and that people can not save. JUst show me the statistic that says that the WHOLE country does not save.
 
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miguel

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Escott said:
Maybe he should confine his thoughts to ALL Dominicans not in the TOP 5% of the socioeconomic structure to make Miguel happy?

After all 95% of the Country is NOT quite accurate:)
You want to make me happy?, show me proof that 95% of dominicans can not save and I will show you a family of thousands that have saved all their lives.
 

lhtown

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Jan 8, 2002
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Miguel,

Thanks for your insight and point of view. How about sharing with us some of the better investment ideas you might have that might be applicable to today's middle class Dominican?

Equally profitable, might be to share some investment blunders you have observed that should be avoided.
 

Larry

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Mar 22, 2002
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It hurt so much that I will kill myself right now--Miguel


Miguel,
There you go again making statements that worry me. I suggest again that you see a psychiatrist. I know you made this statement sarcastically but people dont make statements such as this unless suicide actually has been pondered at some point. In another thread, you told us of your elation with your pending move to the DR but then went into a rant about how your father neglected you. Your posts continue to worry me. Please seek professional help and clear up these issues. Have a good New Year.
Larry
 

BushBaby

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Miguel,
"she" IS a 'He' & 'He' has a name (posted at the end of all my posts) . My details are also available on the user information section.

You are ABSOLUTELY right, stating that the Dominicans are not capable of saving would have encumpassed ALL Dominicans into that category, but if you read my post correctly you will note I said that 'Thinking for the future' & 'saving' were alien to the Dominican culture! That does NOT intonate that ALL Dominicans do not save or even plan for the future - it simply states the fact that saving & planning are NOT Dominican strong points!! Most of my Dominican businessman friends, Financieras included among them, totally agree with my views on Dominican culture which I have been able to observe over the years of LIVING here. I have lived in this woderful country for 11 years now & would not DREAM of returning to Europe. I find the friendship, honesty (generally), happiness & general demeanor of the Dominican people, FAR outweigh that shown in Europe.

Like Larry, I was fasinated by your other post & the apparent need to tell us all your life story. Seemed most strange to me - but then I have a contented life living in the DR!! - Grahame.
 

miguel

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Jul 2, 2003
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Larry (ILoveDR) said:
It hurt so much that I will kill myself right now--Miguel


Miguel,
There you go again making statements that worry me. I suggest again that you see a psychiatrist. I know you made this statement sarcastically but people dont make statements such as this unless suicide actually has been pondered at some point. In another thread, you told us of your elation with your pending move to the DR but then went into a rant about how your father neglected you. Your posts continue to worry me. Please seek professional help and clear up these issues. Have a good New Year.
Larry
Larry, just admit that you are in love with me. hehe. I don't go that way or your way( not that there is anything wrong with that).hehe. laterz
 

Chris

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Oct 21, 2002
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This is an interesting concept. I never thought of such a simple thing. If I was an average, every day middle-class Dominican person, with a few pesos to save per month, where would I save? The banks are not a good option (at least to my reckoning). It is easy to say that Dominicans generally do not save. But what are the alternatives for a Dominican family/person who wants to save a specific amount every month? assuming the US is not an option.
 

jsizemore

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Aug 6, 2003
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They buy gold. A poor dominican from what I have seen so far will buy gold if they decide to save rather than party. They can always pawn off gold if the want something.
john