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Help me with Asset Allocation.

Discussion in 'BlackHat Lounge' started by secretboy08, Jan 4, 2010.

  1. secretboy08

    secretboy08 Jr. VIP Jr. VIP

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    Guys what do you think of gold at current prices?(3 year horizon)
    Also,most of my investment is in real estate which I have done after the downturn,so i got it cheap.
    I do not like equity much. is it ok to rely so much on real estate?
    One more question,I wanna buy a car of around $20k full on cash,no loans or anything. ideally what should my networth be to safely assume that i can afford this car?
    i mean is it ok if i trap around 8% of my money in that car?
     
    Last edited: Jan 4, 2010
  2. Flinx

    Flinx Newbie

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    Being that your net cash is $190K, thats vey good. However you own real estate, which will continue to decrease. If the real estate is investment property (you dont live in it) I would suggest selling it asap.

    Your main exposure is that your assets are in the dollar, which is a destroyed currency (US liabilities being around 165 trillion dollars) This debt can never be repayed. Bankruptcy and currency devaluation is their only option.

    I would suggest to diversify into al least 3 countries (Austria, Switzerland, Singapore, or Australia) and three currencies (Swiss Franc, Australian Dollar, Singapore Dollar).

    In addition you should start working on your 2nd Passport. The Netherlands has a program for Americans that want to start a business there (like a software consulting business). If you can prove you have an income of $25K a year, you can get a special visa to live there. Stay for only 5 years and you get your EU Passport. Then you have it made. The website doingbusiness.org has good info. But if you don't want the problems, just get a business visa for Austria. Stay there for 5 years and apply for their passport. With your money, you can move most anywhere except Switzerland and start working on a 2nd passport.

    See if you can join the vault (thevault.bz) and read the info on offshore living.

    Do not buy any depreciating assets (such as an expensive car) Remember the true cost is :

    1. The cost of the car
    2. The cost of the insurance
    3. The taxes you have to pay on the money you pay for the car
    4. The loss of interest / gain on the money you pay
    5. The depreciation of the car

    Remember that fancy cars are for poor people to feel good so they don't think how they are being ripped off.

    Hope this helps

    Flinx
     
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  3. sebamann1

    sebamann1 Junior Member

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    which is why you put the money in an (offshore) company in Switzerland (even though 190k isn't enough), Cyprus, Malta, Austria or Montenegro (they have the euro too, in case you didn't know, despite not being an EU member).

    add the Chinese yuan. It's massively undervalued and doomed to jump up as soon as it is let free to real market conditions (which will happen anytime).

    very valuable post indeed, but why do you assume he'd have to move into Europe and obtain a European passport, if I may ask? You can offshore things without foreign passports too!

    very, very true. what's a car really worth?
     
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