www.CostaRicaTicas.com

That observation was done kinda tongue in cheek, as I really didn't expect any of you guys to really totally forgo CR for 20 years, but it does make you think how much we spend on this little hobby of ours over the course of even just a few years and how much that would represent a few more years down the road if it had been invested instead. Bilko's comments brought that to mind.

I agree with Bilko, I also retired at 50 by the only formula that I know, spend less than you make. Someone should tie this in with the thread about day trading from Costa Rica. The only daytrading I endorse is "puta bellies". Now I spend half my money on hookers and beer and waste the rest.

_________________
If it floats, flies or fucks, rent it, dont buy it.

Prolijo,

You are the most well written guy here, your diligence is unmatched.

Thank you all for comments.

I guess what I was getting at is: I plan to spend about $10,000 on Iraqi Dinars. If It pays off, like I described, then I am a very happy guy.
If it turns into worthless paper, like Enron stock, then so be it.

Nothing ventured, nothing gained. I can afford to risk it. I am only 35.
Make no mistake, it is risky. It is only paper, after all.

Anyone else have fun ideas on "how to lose your ass investing" ?

I have one more that is rock solid, but will sit on it a bit longer.

KS

_________________
check yourself before you wreck yourself

I agree with Bilko. Two most important statements are "spend less than you bring in" and, to me, the second is "want what you have not what the proverbial "Jones" have. I retired in 1991 at the age of 37 and haven't worked a day since. 20 years of being in the Navy and investing and saving raises that I would receive gave me the opportunity.

Have a Great Day,

Dave

King,

Ditto that part about Prolijo. We are lucky he is here.

Too me first things first as you are 35 & that means a real pre-retirement plan. I have just seen so much & maybe we should all read rich man poor man again.

I have far too many friends that have money but few true smiles on their face. Is it better to spend your 10G on Iraqi Dinars which I bet doesn't fly or 10G on pre-retirement fun for yourself. You have to decide. If you loose that money & puts sadness & bitterness in your life don't do it.

10G in CR may make a difference in your out look on life for the rest of your life & what great memories. Yes I guarantee you will loose it all in CR but if you have a knew attitude that helps you through life it is cheep & a great investment.

I could retire now but don't want to as I love my life & work & it keeps me younger I believe(more spending money for the Chicas). I bet I have spent more money than most on this board for the hobby we have & I have no regrets at all as it has kept the balance I need to keep me on track in the US. So it has been money well spend. Look what it did for me no divorces period, no law suits from anything as I am not frustrated which is the cause of so many problems for us (precursor to depression, ass pinching, woman slapping, drinking, drugs, fighting on & on,ETC,ETC,ETC!). I am at peace with myself what’s that worth? It is so easy for me to walk away from the BS here when I know there is another way. The best pre retirement plan on earth was going to CR to cut loose! You have got to get down there!

After you get a visual on all this it may change your whole retirement out look who knows? But if you have the money do 10G in each but CR too me is the best way I know to lose 10G.

The most frustrated souls I know on this planet are the ones that became such critters of habit (super anal) & saved everything they could get their little hands on then wake-up when they are to old to enjoy what money can buy & realize oops fumble!

Just other ideas for you.

Zippy

PS You see what CR made me (don't worry be happy as I feel I have an endless line of kittens that will always be in their play pen waiting for me to return to make them purrrrrrrrrrr).

YO Whoever:

I'm reading these posts and wondering about the validity of them. NO, not that any of you are exaggerating your success but I would be curious to know have you just been very fortunate, very prudent or a genius.

Prolijo....please tell me where I can find 12% return continuous. Dave, I commend you on your service and retiring at 37 and never working a lick again....did you retire at a high pay grade? Did you happen to cash in on the internet stocks in the 90's......if so, great. I have to admit, you are the only person I know that retired at 37 and you deserve a lot of credit for that. If I could have at that age I would not have.....probably because I'm not that smart or ready to quit.

I have worked hard, played hard, make lots of dinero and damn sure spent and lost lots of dinero. GUILTY AS CHARGED. It took me 40 years of business before being sued in this great tort country we have and watching them invade my assets. Just as I'm sure a number of you have been raked accross the coals by now an ex-wife.

Fellows, there is no solid answer to this puzzle. It is the luck of the draw in the way you squirrel away dinero and assets. For every one of you that had a good retirement plan there are probably 4 or 5 that did not. If you enjoyed life traveling, phucking, drinking, and what ever vices you had when you were younger......you can look back and say it was a fun life. If you saved, led a marginable exciting life and rarely traveled but saved.....that's okay too. Unfortunately by the time you reach 65 your pecker just does not ride shotgun with you like the old days.

King Sol: I hope your investment works out. By your own admission it is a gamble and that's cool At least you are not betting the mortgage but only what you decide as risk funds. Believe me, I have planted many a seed over the last 4 score of years.....some live, some prosper, some die. Life in its self is a crap shoot. Only guarantee is you die.......but when?

_________________
Damn if I'm going to repeat this shit again. I need a drink.
I've been drinking vodka every day for 45 years and I have certainly never found it to be habit forming.

Circus,

I was an officer for the last five years but eventually retired as an E-9 which is the highest enlisted paygrade. My story is that I read a lot of real estate self-help books when I was younger and used them to purchase various properties. That made a decent amount of money but the real money came in during the 90's when I started investing in Trust Deeds like banks do. During the early 90's, it was common to be able to maintain a 20% return on investments at a minimum. It added up quickly. Even today, my trust deeds average a 15-18 % return and the collateral is the real estate itself. You would not believe the number of people who would rather use private lenders like myself instead of the banks. They pay extra but it gives them more privacy.

I believe that luck in life has a lot to do with where we end up. I got into investing in trust deeds by reading an article by an individual who eventually went to jail for real estate fraud. But, I had learned what I needed and that enabled me to keep returns of well over 15% for the last 15 years. Also, I won the lottery of famales with my wife. She served 16 years in the military before she go out. Our lifestyles stated simply while the money grew.

Some of the books say that "you make your own luck" by being prepared and able to take advantage of it when it happens.

Have a Great Day,

Dave

Guys,
I don't mean to be a kill-joy but be careful with the Iraqi Dinar...

I'm on analyst on Wall Street. Although I don't work in the currency market, I do have some knowledge of it. I also have an MBA in financial management which doesn't mean shit, but I hope I learned something. In the US, we have the belief that the markets are efficient, meaning that all information is known and incoroprated into the price. This applies to equity, debt, commodity, and also currency markets. With that said, if analysts believed that there was an arbitrage opportunty by buying Dinars, they would be buying them up which lowers supply and results in a heavy premium. I have not looked into this in detail, but if they are selling at or close to par, I'd be hesitant about.

Just giving you a heads up.

Related articles:
http://money.cnn.com/2004/08/10/pf/expert/ask_expert/
http://www.usatoday.com/money/world/200 ... nars_x.htm

-Orange

The numbers I used did not rely on any great investing wisdom like that of our esteemed Dave. Even if you just invest in a simple index fund you could theoretically manage 12%/yr. The S&P500 has averaged 10.4% from 1926 thru 2003. The Nikkei225 has managed about 11% since 1946 and that is despite being in a slump for at least the past decade. The Nasdaq has averaged nearly 13% since 1975. The DJIA has returned 11.5%/yr over the last 2 decades despite the burst of the internet bubble. I could have even used an emerging market stock index like the Hangseng as my basis, as their results over a similar time period are probably 4 times greater than any of those other indices I've mentioned, but those come with much greater volatility and risk. And as Dave has so aptly pointed out one of the best investments one can make aren't stocks at all but real estate. The basis of the return rate I used was nothing quite so calculating. It was just easier to do a BOTE (back of the envelope) calculation using 12%/yr since I could estimate a rough monthly rate of return more easily to use against the bi-monthly $1500 installments. You can quibble with the exact rate, the point of my post was to demonstrate the power of compounding which would still have been great even if I had only used 6%.

If you really want to tear apart my estimates though there are other complaints you could have lodged. Historical returns are no guarantor of future performance. We may be heading into a worldwide financial meltdown for all I know. The other usual caveat is that higher return investments are also usually subject to greater volatility. Saying that you might average 12%/yr is not the same as saying you will get 12% every year. If you are forced to sell during a down market your average rate of return could be thrown off considerably.

For those seeking to get rich quick and outperform the market indices here is a link you might find interesting http://investorsfriend.com/above_average_returns.htm it reviews various general methods and sad to say its conclusions are not too encouraging.

Well, I'm no Donald Trump, but a 10k per year travel budget seems reasonable to me. Perhaps one half on CR, the other half on other destinations would be sensible.

YO Guys:

Dave, Thanks for the heads up on your successful career and investment. You are fortunate to have had a wife retiring and adding to your family chest. I enjoy hearing about profitable ventures and give credit to investors that made right decisions.......I suppose I'm just not in the loop. Anyway, congrads.

Prolijo, you are a trip. I like you and enjoy your posts but sometimes you need to give a little slack. What you stated in past history is true. And yes, real estate is a no brainer (if you buy right of course. I lost 10G's on my last RE deal, what a dumbass I am.). Hello, I asked about 12% today that is a probable deal. I'm just a dumb SOB and my financial guy sits beside me at the local watering hold. I wish he would call you and get the low down on the magical guaranteed 12%. I will even invest dinero in your sure method. Can we say Limited Partnership. Has a ring to it. JUST having fun Bro.......As you know there is not sure thing anyway. Oh hell, nevermind. I just got a call that my Winn Dixie and Proxium stock is fixing to jump.........the question is where.

_________________
Damn if I'm going to repeat this shit again. I need a drink.
I've been drinking vodka every day for 45 years and I have certainly never found it to be habit forming.

Circus,
Actually, you asked where you could "find 12% return continuous". Short answer is: nowhere that I know of. As I said in my last post those numbers were averages over extended periods of time, not steady annual amounts. Now you're asking "about 12% today that is a probable deal", by which I assume you mean 12% return for one year. Short answer again is nowhere that I know for sure, but really depends on your definition of "probable". Maybe, you're planning to retire within the next year. If so, I hope you're already pretty close to your goal and the extra 12% doesn't matter that much. Personally, my investment horizon is a bit longer and correspondingly there is a greater "probability" of AVERAGING 12% or more per year.

If I were a betting man it wouldn't be in the already overvalued northern real estate markets but there is still considerable room for growth in the southern "retirement" states like FL or AZ and of course foreign markets like CR. Other investments that cater to aging baby boomers are another obvious choice for the long haul. And as we're currently observing oil stocks are a good bet in a world of dwindling fuel supplies and growing demand. Finally as much as I hate to admit it emerging markets like China are a force to contend with as was shown with the recent IPO of their internet search engine Baidu.com. For that matter, Google tripled in value over the last year, so the idea of finding something that will can return 12% for the next year is far from remote. But if you're asking me for specific tips, I make no claim to having a crystal ball or special knowledge over anyone else.

I knew you guys would have some good stuff!

Investing----- it's all Vegas. A total gamble... even real estate.
Don't gamble with the rent.

Saving gradually is obvious, living below our means... but it is damn slow too. That is the plan for the long term, but short term? Why not take a few shots? If it blows, no big crisis. If it pays off... risk / reward works for me. If I was making 9 bucks an hour tho, I might look at $10,000 differently.

Orange... what do you think about silver?

Real, shiny, metal, silver. Not paper silver.

You guys are great.

KS

_________________
check yourself before you wreck yourself

Hey King, I know that by giving advise on the subject of life I am opening myself up to criticism by those who dont see it the same. But my first advise is to invest in yourself and by that I mean to decide what it is that you really want to do and ask yourself how you can do it better than anyone else. This might involve formal training or possibly finding those who you most admire and having them act as mentors. Invest in yourself first. By developing skills, by growing your own businesses is a great way to be sure that you can have sufficient resources to diversify into other things. Sometimes you just have get to yourself a second job. As for investments, I would recommend those investments that you actually know a lot about or have some kind of control over. An example of this would be to buy and fix up an office or apartment building in an area that you know has a good chance of moving upscale. The opposite of this investment is the dinars investment where you have no control and you are not priveleged to the true information that will drive its value. It reminds me a bit of my first trip to Costa Rica when an American told me to put my money in a colones account because I could get such high interest. Tons of dollars flooding into Iraq from the US rebuilding effort will tend to cause inflation which will drive down the dinar not drive it up. And ultimately the US government controls the value of the dinar by its control over the monetary policy of Iraq. Its a crap shoot not an investment. There is a subtle difference between the two and it makes all the difference in the world. And now to get serious, Id rather take 5 trips a year to Costa Rica, and live out my fantasy dream life even if it meant working my whole life.

_________________
If it floats, flies or fucks, rent it, dont buy it.

This worked for me:

-Did go to college so I could make reasonable $$$$ (invest in yourself like someone on here said)
-Did buy real estate (had to hold onto it for a while)

-Didn't get married
-Didn't have K*ds
-Didn't drive anything even close to a new car
-Didn't buy expensive toys (boat, motorcycles), it is cheaper to rent them when you absolutely need them.
-Didn't buy crap I didn't need (simple TV is fine, flat plasma bull shit can go to hell). I know the difference between my needs and wants. Many people say they need a new car - I don't believe anyone NEEDS a new car. Need a plasma flat screen, yeah right!

Soon, I'm going to sell my real estate and I've been thinking about my next move.

When considering investing, I think one has to research and really embed themselves actively in the science of investing.

Maybe one of you smart guys can tell me.... I've been thinking lately about putting my $ in about 15 individual stocks then putting an order in to sell if any go below a certain amount (stop order). I figure I'll only invest in those stocks that have recently been issued a strong buy by more than 1 anaylst and then remain patient. I don't want to be in and out of a lot of stocks, however I do realize that rotating $ in and out of 15 individual stocks can be time consuming research wise. Hey, if I'm retired, I have time to research is the way I see it.

----- or ------

Should I buy into hot mutual funds and then sell when they start to fall from favor so I can then get in the newly favored funds.


To the navy guy: way to go! good for you, you have invested well and you have your gov't retirement check as well! One question, how an officer then back to enlisted? Being in the AF myself, that is confusing to me. Too bad your ex didn't do the remaining 4 to get in 20 for retirement. 37 years old... they might call you back to duty these days!

Prolijo - you so smart I'm afraid to talk to you.

Orange - you are obviously very smart as well.... I wish you had a blog so you could share some of your investment advice with us. It would be nice getting some unbaised thoughts about some stocks (do you know stocks, the financial world is broad so just wondering what your specialty is).

Dinar guy - I wouldn't do it! It is hard to tell what they'll do with the Dinar. It could be revalued overnight in a bad bad way or a good way (a real gamble). I'd be interested to hear about what you said is a solid investment - when you're ready to open up.