www.CostaRicaTicas.com

The interest rate is higher due to historically much higher inflation here than in the US. I am not sure but I think the rates vary for dollar accounts vs colones accounts. I only have a dollar account at this point.



BKTUNA
I am never going home

Here is another interesting viewpoint about the economic interdependencies of Costa Rica, Panama and the USA. At least on a macro level it helps explain the differences and similarities between these markets and its potential impact on our living down here.

http://www.thepanamanews.com/pn/v_14/is ... my_03.html

FYI...I find thepanamanews to be the most open and honest news about what is really going on in Panama. The publisher may lean on the side of negativity and a democratic/liberal agenda most of the time...but he speaks the truth when others wont. I respect that.

_________________
All that a man achieves and all that he fails to achieve is the direct result of his own thoughts...

Great! Thanks Paco!!

Appreciate the Panama posts Tman!! Headed down over Labor Day, like to fit in a week in Bocas.

BK, you might want to consider changing it all to Colones... The interest rate for Colones is usually much higher than for dollars. With the state of the dollar right now, you'd get double bang for your buck...

I've actually considered moving a lot of my $ to CR, and changing it to colones while the dollar is as high as it is...

No need to loose further dollars...

YMMV...but I wouldnt trust the Colone to be a good solid currency as a buffer to the dollar. In fact, I think it is quite pegged to the dollar...and not a free market currency at all. I would think you want to put some in other first world currencies...unless you're just really a comodities gambler ...

Good luck

_________________
All that a man achieves and all that he fails to achieve is the direct result of his own thoughts...

I agree 1000%

I just figured that since he lived there, he was already betting on the locals...

The other thing that the colon has going for it, that the 1st world currencies don't have (and although the dollar fits this, I don't know if I would still consider it a 1st world currency) is the high yield on returns...

You can get like 15% or more return on colon savings accounts... That beats the heck out of Euro banks any day...

Of course, if you're really interested in where I think the best place to put your cash is, I would HAVE to say:

In Rio, in a CD, in Reals. You can easily get close to 20%, and the Real is probably the strongest or second strongest currency in the Americas...
(Canada being the other choice)...

One thing to consider when thinking of Costa Rica in the long run...
Right now, there is a shortage of 'energy' in the form of oil/coal etc. What do you think it will be like in 10 or 20 years with the growth of China/India?
Well, once great thing about Costa Rica is their energy resources. Right now, they generate most of their electricity from water (dams). And that is rarely in short supply here like it will begin to be in a lot of other places. Look at Spain right now...
In addition, hydrothermal is a growing resource here and with all the volcanoes, it will also be readily available in coming years.
So how many other countries are there that can claim that level of energy independence not to mention the water resource?
For a long-term investment, not sure you can find a lot of places to beat it based on that.

And on the original question...don't ask me as I would NOT recommend the approach I took

_________________
The only thing that matters is happiness in all it forms...

The colone floats within a daily range set by the govt. It is slowly but surely gaining against the dollar. Without the govt constraints the colone would attain its true free market value against the dollar. The CR central bank thinks that is around 400 colones. It may get there in the years ahead.

It used to be that americans and alot of costa ricans had dollar accounts as a hedge against inflation. Not any more. There has been a massive switch to colone accounts. While colone accounts used to pay high interest rates, not anymore. I checked today and the rate is 6% on colone accounts.

A few months back when the colone gained 4% over night against the dollar , dollar accounts lost 4% of their value. So for residents now a colone account is definately the way to go.

Still dropping $60k into the bank scares me a little. I've read a lot of threads about horror bank stories.

If you're single, you might want to consider the marriage option. There are people that will set up a marriage, do all the paperwork, etc.. you never even meet the other person (that's intentional, if you never meet them, they can't easily come after you). After 1 year, you can divorce (they handle that too).

However, if you have the money, and just don't want to put it in a bank here, i'd suggest you do it that way. It's the least risky form.

Is it only 1 year, before you can get divorced , I've heard different accounts, some have said 3 or 2. One is reasonable ... I don't think I could do 3 ...

1, 2 or 3 so what is the big deal? You never met her, never lived with her, would not know her if she sat next to you on the bus. The only difference is how quickly you can get the divorce

_________________
Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

I'll tell you what the big deal is , The woman I'm living with now ... She might be able to handle it for 1 year ( after I con her) but she ain't gonna sit around for 2 or 3 ... She's Latina but not a Tica ...

So you are not talking about about a "proxy" marriage. You have changed the whole dynamic. If she is not a Tica she has to have citizenship in Costa Rica or the whole thing is moot and 1, 2, 3, or 10 years make no difference.

_________________
Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine