500 Grand$ and you are set for Life.

[mrstein 0]

How you are set for life with 500 grand.

 

 

The big dream Retirement in the land of Young girl’s great weather and anything goes.

 

However we are always thinking and wondering how one can live a live of comfort and ease with investment.

 

500,000,000 That’s 500 grand USSA $ is the Magic number you need to live the lap of luxury forever and ever until your Dick or heart goes out first.

 

 

In today’s world of investment and passive income, the key word being passive and relative safe income forever is 1st trust deeds and some funding put aside in case shit happens.

 

Any reputable 1st trust deed company in the States Esp in the west coast region such as Vegas or AZ will keep money in your pocket forever and YOU can beat inflation hands down every year on the year.

 

I know its coming OWEN HAHHHAHAHAAHAHAHA

 

Lets take a peek shall we

 

500 grand to start

 

Invest 400 grand at 12% annually that would be a pre-tax income of 48, 000, 00 per year or 4000.00 a month.

 

You have 100 grand leftover put aside for extra and or anything else that comes up.

 

Once you are set up let’s say it cost you 7500.00 to get setup Nice wither it be Thailand or the Philippines and you can after the first 3-6 months of going Ape shit with the girls you can live on 2500.00 a month.

 

Now you have an extra 1500.00 a month being put aside and over a 3 year period you have gained an extra 54 thousand dollars to add to the pot if so.

 

So every 3 years if you handle your money correctly and stay can live an awesome lifestyle YOU ARE SET FOREVER and not to mention you will beat inflation hands down till you are toes up in the box.

 

400 grand to start and every 3 years you are adding and extra 54 grand to it by year 9 you are working 512 grand at a return of 12% is 61,440.00 a year or 5,120.00 a month.

 

5120.00 * 40 baht a month is 204,800.00 baht a month or 5120.00 * 52 P=266,240.00 P a month. These numbers are rounded out as the peso is a bit more then 52 exchange rates.

 

1st trust deeds invested correctly be a reputable company are as safe as any Investment out there…..Much safer then the market.

 

Keep in mind the entire West and Southwest of the USA has and will have for at least another 30-50 years of Growth and that’s putting it lightly.

 

500 Grand and You are home free home ……………………………….

 

 

Input is welcome.

 

Mrstein

[picoman 1]

12% return on investment, huh ?

 

Let me know where we can get that kind of return in perpetuity so may retire with you.

 

[Owen` 2]

You know, we all just leap to the keyboard and start pounding out gems when we're in various moods. It's Friday friggin night in the US, a hard week of work is done and worse weeks are on my particular horizon upcoming with probably half of the nights of the next month spent in hotels in three different time zones -- and MrStein uncorks this little gem of a troll.

 

Nah, it's not a troll. It's too sophisticated. You know what it is? It's Friday friggin night wherever MrStein happens to be too and he wants out of his situation as fast as he can get out of his too, and he's looking for the way and thumbs up to that.

 

I know nothing of 1st trust deeds. I know nothing Las Vegas real estate (I was there over the 4th of July weekend; got a buddy there in the real estate business; he says flat a few years but no collapse). I don't know what the lawyers involved in trust deeds charge. I don't know where you buy them or sell them or hold them. I don't know jack about them.

 

I know something of the investment capital business. That doesn't mean I know jack about "the market" or what it's gonna do. I just know something about investment capital.

 

I gotta tell you, guy, if there existed in the world a vehicle that does 12% guaranteed every year Goldman Sachs, JP Morgan, Credit Suisse, Citibank-Saloman Smith Barney, hell, name every firm in the world -- would be in it. MrStein on a Pattaya board and typing from the US southwest is not going to know about this with the word not having reached Goldman.

 

Look, let's not talk math on Friday night. Let's just talk about the way yields are defined. Government bonds, any major government, provide a return. They are the by definition "riskless rate of return". They can't default, in the eyes of the market, because if they did the whole world would end and therefore there's no point in assigning them a premium based on risk. They have zero risk. If they defaulted and the world ended, nothing would matter anyway so the risk is zero.

 

They ain't yielding 12%. They are yielding about 5%.

 

For you to find any vehicle at all that yields more than 5%, currently, there has to be, by definition, risk.

 

And look, this isn't magic or regulatory. It's just what happens in any market. If you buy a piece of paper that says it will give you $1 per year guranteed for 30 years, what is it worth? Well, it's worth whatever price will cause that $1 to equal the current 5% return. That is, $20, if you believe the guarantee. If I don't believe it, I'll only be willing to pay maybe $18, because I'm not really sure I'm gonna get that $1/yr. That's risk premium. That $18 price and $1 return equates to 5.5%

 

Well, this is going to happen in your trust deeds, too. If they provide 12%, you think, and they are utterly guaranteed, then Goldman Sachs and those other guys are going to avalanche into that world and bid up the price on those deeds such that they yield not 12% but 5%, if that guarantee is as good as a government.

 

And here's the real kicker. If it truly was 12%/yr for utter sure for 30 years, why are you telling anyone about it? The word will get to JP Morgan and they will show up, bid up the price and reduce the 12% yield and you're screwed.

 

This is the way all markets work. Substitute rent and price of the rental property for the $1 coupon and the $20 price above and it's the same thing. If you can get higher rents from renters in a property, that property's price is going up, to keep the overall return equal to that property's category or risk.

 

blah blah blah Why am I doing this?

 

Thumbs up on the intent, guy. "Early" retirement is the only way to get extra "years on your life" so it's damn sure worth working towards.

[jacko 8,766]

12% return on investment, huh ?

 

Let me know where we can get that kind of return in perpetuity so may retire with you.

 

Never noticed any deduction for taxes....

 

This 12% figure........I wish......

[elef 0]

In Europe you just can get 2-3 % if no risk included - how much tax on the 12 % in the US?

[picoman 1]

I should add my little gem before bedtime:

 

I know a guy who bought a house near Sacramento, California 2 years ago for $800K+. He is currently going through a divorce and is struggling to sell his house now listed at $675K, he's been advised to lower the list price further...

 

I work with a guy who was speculating in Arizona, Tucson to be exact. Put down $10K, the house was about 8 months from being finished. He bragged about the $ he was going to rake in. He just lost his $10K as the current prices for the same homes are $40K less than his set price...

 

12% , huh ?

 

Edited July 15, 2006 by picoman

[picoman 1]

In Europe you just can get 2-3 % if no risk included - how much tax on the 12 % in the US?

Certificates of Deposit are about as safe as it gets. Today's rates:

 

 

TYPE TODAY LAST WEEK

6 month CD 4.61% 4.56%

1 yr CD 5.06% 5.04%

5 yr CD 5.03% 5.01%

1 yr IRA CD 4.81% 4.87%

5 yr IRA CD 4.63% 4.75%

 

I believe Owen can explain the USA tax code to you

 

[cecco 0]

one thing i did learn was that last year, i stayed out of the usa for 10 months. That means my state tax was 2/12, which was zero.

 

So, I DID save quite a lot on state taxes.

 

I am only in the USA 2-3 months these days, and so when I am here, i am depressed, and when I am not here, i am happy.

 

My biggest problem is i lose a lot weight when not here, and gain it back when in the states, so i need to go again.

 

but, before i do, i am taking an alaska cruise, which should help my weight problem a lot.

[picoman 1]

but, before i do, i am taking an alaska cruise, which should help my weight problem a lot.

You're gonna be lookin' like that penguin after the cruise, me thinks.

 

By the way, if you're looking for simpathy on your 2-3 months in country you're not gonna get it around here.

 

[ting_tong 63]

It seems the board members that use this avatar, that have screws loose.

Does that include webby?

Edited July 15, 2006 by ting_tong

[rogercw 3]

Seems to me the last year I have seen trust deeds with a huge "guarenteeded" return pumped a couple of times on the board. Same reply as everyone else. If it pays more than government bonds there is a risk. When it gets up to double digit returns the risk is huge. With any long-term fixed income investment there is also currency risk. So says a man watching his dollars fall against the baht.

[Gary 4,100]

I pay no US taxes and most of my money is still in my 401K retirement fund. That money is invested in mostly ETF closed end bond funds. 60% is in US dollars and the rest in foreign bonds. I spend my dividends every month and since they all pay monthly dividends they are easy to keep track of. My average annual return is over 9%. Since they are closed end they are not allowed to grow and must pay out everything they make. That makes them quite stable and the prices move very little. I sleep well at night.

[BigDUSA 71]

Owen,

 

Excellent post.

[ghost 4]

Gary,

Can you post some more info about the funds and how to invest. I'm very interested. How do you avoid the taxes? Thanks for the info.

-Ghost

[mrstein 0]

With all Due respect to everyone and Yes Owen You too haahahhaaha

 

First off 1st trust deeds invested correctly thru Bankers are not investing into mortgages and or single family dwellings anyone knows that, Bankers DO not take such risks.

 

It’s all in Raw land which is much less risk then anything such as homes or family residences of such.

 

at 500 grand at 12% yearly in the BIG world of investing really isn’t that much Banks have been using investment Instruments for years and years and gaining over 20-40% ROI"s,, Such as short notes Forex trading

 

You think the wealthy get wealthy on 5-7% yearly hahahahahahaha.

 

Lets talk about what Goldman sachs Does with your money ???? You think they are in business to make money just for you ????

 

In the western, southern western parts of the USA Growth is going to be at an all time High for decades to come if not infinity, Where do you think all the Illegal”s are going to live????

 

Its funny everyone thinks the USA is going to go broke YEH RIGHT ,,,I have been hearing that BS for years WE are still the wealthiest country on the face of the planet and most likely will be, far past anyone of us outliving that phase in time.

 

You think Uncle Sam is going to let US grow broke so fast don’t think CNN is telling you anything that is worth merit.

 

The upper 3-5% of the countries wealthiest IS not going to let everything go to shit esp in raw; land holding and developments.

 

What a lot of you fail to realize is that people need to live somewhere and growth is going to continue until the end of time.

 

Example

 

They are building in Israel right now all over, and there is a WAR going on that doesn’t stop anyone.

 

 

In Las Vegas alone over the last 20 years we have seen 1000% growth and land values going bonkers with nothing ending in sight. { RAW LAND }

 

 

Let’s talk about Utah AZ New Mexico and ETC these states are just in the infancy stages of growth.

 

Land real estate Growth and need for monies will be around until the day the Planet STOPS........

 

Once again with all DUE RESPECT I agree to disagree with many of you.

 

AS far as any one company going under yes it can happen however once again How was the company set up??? And who was writing the notes and how were they written and was 3rd parties involved in servicing the notes.

 

IN THE LAST 100 YEARS IN THE USA RAW LAND HAS HELD ITS VALUE AND THEN SOME.

 

That is A Fact.............................

 

Trust deeds based on RAW LAND is the only way to go ...............................If the borrower defaults FINE with me I would prefer that as now WE HAVE more equity in it and can resell 2-3 times more ESP if the original loan is half way paid down.

 

Most guys who retire in Thailand and or Philippines DO NOT buy anything to begin with 75% rent why buy?

 

TALK about taking a risk, Hmmm let me buy something in a country where the Government can change up overnight on me, Great sleep at night for me.

 

 

Once again the misconception of 1st Trust deeds this is the perfect example of why folks lose money NO Homework or Due diligence done.

 

Let’s not forget the fact that when you invest in a 1st trust deed company they have many LTV "s you can get into Never put all of your money in 1 loan.

 

Not to mention if you are privy to the Original loan and who is behind it as any Such Upfront 1st trust deed would show you Your chances of default are Limited No more then any Investment Currently going Exception Gold /Silver which will stay Hot for at least another 24-36 months.

 

USA was built on Real estate holding’s DO you think wealthy lost everything in the great depression????? Hell no they got Richer ...............

 

There are numerous companies in the USA that have been in business for 20-40 years + that have Awesome track records on trust deeds.

 

 

In closing

 

1st trust deed investing is like anything else do your homework and team up with the correct company in the correct environment and your risk to reward will be NO Different then any other type of investing if anything less.

 

Once again on the Western region of the USA you could place money forever and stay well ahead of the game.

 

Example the state of Arizona has more raw land and more growth expansions coming up over the next 20 years it’s unbelievable to say the least.Once the bridge is completed extending to Vegas to AZ by-passing Hoover dam Holy shit land will go up 5 fold within 6 months to a year alone.

 

Once again I AM Talking about 1st trust deeds based on Raw land loan to vlaue not to exceed 65%,,,35% buffer built in In Vegas the whole western corridor land has and WILL Coutinue to expand and growth will be needed and therefore money will be needed to build.

 

Many top bankers invest in 1st trust deeds based on Raw land and LTV"s

 

Call Builders cap in Las Vegas 702-932-1590,,,Ask them the Hard questions.

 

Life is about choices and Risk.

 

Either you are in the game or sitting on the porch.

 

Porch is a great place to sit on and grow old and die. I prefer the Action of life much more rewarding then reading a paper and talking about how I could of should of and would of.

 

Mrstein

[Badtz 0]

Gary I'd be intersted in hearing about those ETF's. Could you tell us some more or PM me if you are so inclined. Thanks.

[midlifecrisis 4,030]

12% return on investment, huh ?

 

Let me know where we can get that kind of return in perpetuity so may retire with you.

 

That was my first thought too.

 

[midlifecrisis 4,030]

If I make the big move I will do so with $400K + if I live to be 80 (25 years), that means without any investing at 0% inflation (I know) that gives me $16k a year or $1333 per month. That doesn't include social security when and if that kicks in.

 

Any investing I do will be more to offset inflation. If I work 5 more years I should have closer to $500K, but who knows. The wife may end up taking me to the cleaners and all bets are off.

[Gary 4,100]

Gary I'd be intersted in hearing about those ETF's. Could you tell us some more or PM me if you are so inclined. Thanks.

ETF means exchange Traded Funds. They trade like stocks so that means they are no load funds and have no stupid huge commissions for the managers. Here is a link that will tell you everything you need to know;

 

http://www.etfconnect.com/select/rank/default.asp

 

Here are the five funds that I hold;

 

PHT, PTY, PFN, IGD, EBI

 

I'm retired, live in Thailand and have no earned income so no taxes.

Edited July 16, 2006 by Gary

[Owen` 2]

If I make the big move I will do so with $400K + if I live to be 80 (25 years), that means without any investing at 0% inflation (I know) that gives me $16k a year or $1333 per month. That doesn't include social security when and if that kicks in.

 

Let's not talk about what is enough or what you plan. Let me offer a thought

that is not rocket science and well known in the literature. It's called laddering.

 

You just divided 400K by 25 and got your $1333/mo (49K baht). Clearly you can park some money in the bank for a few percent interest and improve on that, and I'm sure you know that. This is an idea that shows you how to optimize on that few percent.

 

Let's talk about CDs. For the UK guys, a CD is a certificate of deposit. It is you lending money to the bank for a specified maturity period. Dunno what you call the instruments in the UK.

 

Generally a 6 month CD will yield X%, a 1 yr CD will yield X+x%, an 18 month CD will yield X+y% etc up to maybe 5 yrs. The longer the CD the higher the interest.

 

Well the problem is you have to tie up your money a long time to get those bigger interest numbers. If you put your money in the 6 mo instrument, you only get X% and you have to do that in order to have access to a small chunk of it for living expenses. To get the X+y or X+z number, you are tied up longer.

 

Well, the trick is to do this. Divide your money evenly among maturities. Example, with your 400K.

 

Put 80K in 6 mo CD, 80K in 1 yr CD, 80K in 18 mos CD, 80K in 2 yr CD, 80K in 2.5 yr CD. That's 400K. Your overall interest rate that day is the average of all these CDs' rates. This is called laddered maturities.

 

Now the magic. When the 6 mo cd matures, you'll take out some of it for living expenses (but not all cuz you didn't spend $80K in 6 mos), put the remainder in a new 2.5 yr CD. 6 mos later that 1 yr CD will mature and you'll take some of it and spend it on living expenses -- and take the remainder and buy yet another new 2.5 yr CD.

 

Stop right here and look at what is happening. Your overall yield is going up (assuming interest rates didn't change). You have incrementally more and more money in 2.5 yr vehicles and yet are still getting access to a chunk of it every 6 mos. You just keep doing this forever and you will have access to chunks every 6 mos but will be earning 2.5 yr maturity interest rates.

 

Yes certainly you will encounter eventually a 6 month period that does not cover your living expenses. Just see that coming and hold out the remainder of the previous 6 month period so that combined you're covered. Then the next rollover goes to 2 yrs instead of 2.5 yrs. It doesn't matter what the precise details are. What matters is that we understand the concept of how laddering lets us capture the higher interest rates without tying up all our money for 2.5 yrs.

 

Yes, interest rates may change. You have no control over them. You must construct your strategy based on the things you have control over. The ability to ladder is one of them.

 

Time for bed.

[Gary 4,100]

For the past few months US Citibank has been running specials on six month CD's. They pay more than longer term and the current offer is 5.5 percent on a six month term. Last month it was 5.0 percent.

[Owen` 2]

You know what, Gary, I knew that was coming as soon as I hit the send key.

 

Inversion of the yield curve. It's not the normal state of affairs.

[The Mook 105]

so, when are you sending me my $500,000 USD?

[midlifecrisis 4,030]

Yes, interest rates may change. You have no control over them. You must construct your strategy based on the things you have control over. The ability to ladder is one of them.

Brilliant Owen and something even my pea brain can understand.

[mrstein 0]

Its a nice thought ........

 

However CD"s as safe as they are really do not pay much 5-5.5 % That isnt very much at all.

 

If trust deeds do not suit your fancy I am sure you can look into many avenues that you can at least gain 7-8% without much Risk.

 

RJO futures out of the Windy city could do at least 9-10% annually with 400k and the risk would be moderate at best.

 

Cd"s are instruments for folks who never want to get to second base, Nice idea Owen has but you will never reach any type of True money.

 

However to have a Nice life you will need a wee bit more then 5 % return.

 

Mrstein

Edited July 18, 2006 by mrstein