How many have a retirement fund setup? How many think you need one?

[seafox]

I used to watch all the other countries. Just dont get the time now. Watch Aussie and US.
Cashed in a term dep in Aussie and brought it home at .85 cents last year. Rates were only 5% there then. Wish it was still there. Exchange is now .79cent and rates are trending up as you say.
Mad bloody world

[exfishnz]

Originally Posted by seafox

I used to watch all the other countries. Just dont get the time now.

I know what you mean, there's only so much you can do in so much time

An xls I've got states that Iceland's lowest rate in this decade was 8% in Aug 04. Inflation over there is bit crazy but there's a bit of a perceived risk (internationally) that they may be a high risk, also their population is very small to support their currency.

I certainly don't claim to be an investment pro (unlike others ) & this is only the internet - so one should always treat stuff with a "grain of salt". However, I've been reading though a bit of their tax & corporate data on their govt sites (esp in regards to foreigner's) & am wondering about maybe taking a flight up there at some point & having a friendly chat about depositing a lump sum (maybe I can (or not) negotiate a better rate & term).

[exfishnz]

Seafox, (as you may already know), just for kick's, I put 15% compounding through my xls, a deposit would double in 5yrs (gross).

[seafox]

yeah but if inflation is the same as the interest rate you would not be growing your investment. Surely the inflation rate would be reflected in the exchange rate.

Have you heard of the rule of 72?

Divide 72 by your rate of return to get the number of years an investment will take to double.

Works the same with inflation though. Divide 72 by the rate of inflation to get how long it takes for your investment's buying power to halve.

So at 15% your money would double in 4.8 years but it's buying power would halve.

[exfishnz]

Yes I'm aware of the 72 rule. The inflation part is also relative to where the purchasing is being done. Also, I did say gross (i.e. yet to minus any fee's, taxes etc)

[seafox]

If one Country has higher inflation than another it will be reflected in it's exchange rate.
Look how much has the exchange rate between AUD and Iceland changed over the past year?

In July 07 your dollar would buy 52 krona. Now selling it back you would have to spend 74 krona to buy your aussie dollar back.

This is because of the high Iceland inflation.

You would have lost 33% of your investment in a year! Not worth it for a 15% interest rate.

[exfishnz]

You're not going to make me look up XE - The World's Favorite Currency and Foreign Exchange Site now are you???

I do understand your point about the ex rate. Also, things change overtime, for example we don't know who's ex is going to be higher or lower in 5yrs etc.

Edit: to be honest, I don't know which country I'll be in 5yrs

[waterworldly]

So you put your money in the country paying 10% and live in the country with 3% inflation.

[seafox]

Originally Posted by exfishnz

Seafox, (as you may already know), just for kick's, I put 15% compounding through my xls, a deposit would double in 5yrs (gross).

dividing it into 72 would have been quicker

[exfishnz]

Originally Posted by seafox

dividing it into 72 would have been quicker

Yeah, but I wanted to see it on a year by year basis in an xls column

OK, the following is from xe.com. Note I've just used a desktop calc to the 2nd decimal only (re: percentage of change with no decimal).

1 July 2007 ISK
AUD Australia Dollars 0.0189716126 - 52.7103319467
1 July 2008 ISK
AUD Australia Dollars 0.0131932223 - 75.7964943899
(change approx -43%)

1 July 2007 ISK
USD United States Dollars 0.0161063016 - 62.0875000000
1 July 2008 ISK
USD United States Dollars 0.0125771612 - 79.5091981814
(change of approx -28%)

1 July 2007 ISK
GBP United Kingdom Pounds 0.0080282666 - 124.5598900603
1 July 2008 ISK
GBP United Kingdom Pounds 0.0063110419 - 158.4524410990
(change of approx -27%)

1 July 2007 ISK
EUR Euro 0.0119129454 - 83.9422966423
1 July 2008 ISK
EUR Euro 0.0079707569 - 125.4586001714
(change of approx -49%)

Edit: it would appear that the ISK has taken a massive hit the last year, hence the increase of rates.

[exfishnz]

The numbers don't look correct, I think I went up instead of down Let me re do 'em.

Edit: hopefully this time

ISK > AUD = -30.46%
ISK > USD = -21.92%
ISK > GBP = -21.40%
ISK > EUR = -33.09%

[Hud3]

Sean, had to delete that post. This thread is wandering badly, but that one was just too far off to stay. Sorry.

[ssullivan]

Ha ha.. I figured as much, Hud. It was kind of "stuck in there." Sorry to create extra work!

[bastonjock]

well at least i dont have to worry about medical insurance,im hoping that in 5 years time ill be sailing the dream.In the UK we have to get a E9 card when we go abroad and our National health service picks up the bill in a lot of countries,they have reciprocating agreements with other nations.

As long as the housing market picks up in a few years ill be off,my money is all tyed up in bricks

i dont need a $250k boat and ill probably do the sail 8 months and work 4 months,im a qualified electrican but these days i earn a living doing repairs to car bodies,i guess that spray painting boats cant be too difficult an earner.

i have one kid at university and one going,once the youngest is at Uni,ill start downsizing and after she has her degree,im off

[tezbery]

Change your Thought process..... DEBT FREE!! ?

Wh? buy a boat (a depreciating assett) using your own hard earned, heavily taxed cash ?,
When you can earn so much more interest on your money than you would pay to BORROW IT..... ITS CALLED LEVERAGE.
My Plan...
You Stash your Cash where the Elite rich & Banking Institutions stash their cash, (They wont tell you or I about this) You form a legal entity company in, sayPanama, which is a tax haven, Once you accumulate enough money, you use the income from that money( which is tax Free) to fund the Lifestyle you are seeking. You cover the cost of your interest out payments with your interest in payments & your Money still grows.