Other than the USD or Ecuador or the Banks collapsing, its very safe and I've been happy. It used to be much more volatile before Ecuador took on the USD. The next big opportunity will be when Argentina adopts the USD (which is being planned). My favorite part is that 1-year Bank CDs in Ecuador are Tax Free 🙂
What investment is making you 10%+ yearly?
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Don't forget, everything is negotiable in Ecuador 😉
Ecuador guarantees up to 64k (32k bank, 32k cooperativa) ... LOL ... but the banks I use are the best in the country and will be the last to fail. I sacrifice a tiny bit of interest for more peace of mind.
Ecuador guarantees up to 64k (32k bank, 32k cooperativa) ... LOL ... but the banks I use are the best in the country and will be the last to fail. I sacrifice a tiny bit of interest for more peace of mind.
Guys what do you recommend do buy being resident in Europe? Here it's not easy to trade in the USA stock exchange 🙁
For example on IBK I can't buy stock on USA stock exchange...
Currently I'm just holding some ETFs like MSCI World, SP500 and similars.
How would you set your portfolio for live only through money from stocks/bonds being resident in EU?
The bonds that I found they give you only 3-4% and you have anyway to differentiate your investments so it's better to buy ETFs instead of single stock/bonds.
For example on IBK I can't buy stock on USA stock exchange...
Currently I'm just holding some ETFs like MSCI World, SP500 and similars.
How would you set your portfolio for live only through money from stocks/bonds being resident in EU?
The bonds that I found they give you only 3-4% and you have anyway to differentiate your investments so it's better to buy ETFs instead of single stock/bonds.
With 1y US Treasury at ~5%, just be aware that the 5% premium you get means a lot of risk (country + bank). Each to their own but this is anything but a risk-free investment.
(for context: Ecuador has defaulted 10 times in modern history)
(for context: Ecuador has defaulted 10 times in modern history)
I wouldn't sleep well at night having my savings in Ecuador.
10 times it has defaulted, Oops!
With IBKR you can ask them to remove the restrictions on U.S. ETFs if you fullfil the requirements, it's not difficult. Or open an account in a U.S. broker using an LLC, that will get rid of the restrictions.
Personally I would leave Europe, and forget about the restrictions and the taxes.
To generate enough passive income to live off of, just create a portfolio of Covered call ETF, many retirees are doing that.
10 times it has defaulted, Oops!
With IBKR you can ask them to remove the restrictions on U.S. ETFs if you fullfil the requirements, it's not difficult. Or open an account in a U.S. broker using an LLC, that will get rid of the restrictions.
Personally I would leave Europe, and forget about the restrictions and the taxes.
To generate enough passive income to live off of, just create a portfolio of Covered call ETF, many retirees are doing that.
You can easily find them on IBKR. We are talking of JEPI, SVOL etc
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My selling options on BTC strategy is making me 9% a month for the past 2 months.
That's an APY >100%, so it should double in 12 months, equivalent to BTC reaching 120K.
That's an APY >100%, so it should double in 12 months, equivalent to BTC reaching 120K.
You can use any Broker, Charles Schwab or Interaction Broker.
I'm using Charles Schwab.
Do a search on the requirements to have a Pro account with IBKR (you have to check 2 of the 3 requirements), it's not difficult. Once you have a Pro account you can trade U.S. ETFs from Europe.
Or you can form an LLC in the U.S. and with that you open an account with a U.S. Broker, and that's it.
When it comes to Covered call ETFs is better that you learn from a proper YouTube channel. But in a few words, covered call ETFs sell options on a portion of the fund, and collect a premium.
But it's better to check all the videos in the following YouTube channel, and you'll be an expert:
"Passive Income Investing."
*When you invest in the U.S. if you generate dividends, you'll be subject to a withholding rate. Most countries have a double tax treaty with the U.S. and with that the withholding rate goes down from 30% to 15%. Some countries have it lower than 15%, like Mexico with a 10% withholding rate.
At some point I would relocate to a friendlier country where you can keep all the money that you make on your U.S investments, Europe is a tax inferno.
I'm using Charles Schwab.
Do a search on the requirements to have a Pro account with IBKR (you have to check 2 of the 3 requirements), it's not difficult. Once you have a Pro account you can trade U.S. ETFs from Europe.
Or you can form an LLC in the U.S. and with that you open an account with a U.S. Broker, and that's it.
When it comes to Covered call ETFs is better that you learn from a proper YouTube channel. But in a few words, covered call ETFs sell options on a portion of the fund, and collect a premium.
But it's better to check all the videos in the following YouTube channel, and you'll be an expert:
"Passive Income Investing."
*When you invest in the U.S. if you generate dividends, you'll be subject to a withholding rate. Most countries have a double tax treaty with the U.S. and with that the withholding rate goes down from 30% to 15%. Some countries have it lower than 15%, like Mexico with a 10% withholding rate.
At some point I would relocate to a friendlier country where you can keep all the money that you make on your U.S investments, Europe is a tax inferno.
This thread is a blessing!
A lot of things I thought I knew, but when actually doing the "dive," I landed a few times on my belly 😛
Came back, reread, and realized what I missed stupi#21
Thank you all for sharing such valuable hands-on knowledge!ange¤%&
A lot of things I thought I knew, but when actually doing the "dive," I landed a few times on my belly 😛
Came back, reread, and realized what I missed stupi#21
Thank you all for sharing such valuable hands-on knowledge!ange¤%&
As said previously, a covered call is selling options on the underlying while holding it (the underlying can be anything: equity, fixed income, commodities, etc.).
By doing so, you sell the volatility implied in the price of the option and hope that the realised volatility will not be higher. Most of the time this is true: implied vol > realised vol. This is why "selling volatility" is a popular trading strategy.
However, when you have very sharp price movements, it will be painful.
Technically when you sell an option (naked = without holding the underlying), your losses are unlimited (a quant would even add that markets being nonergodic, selling can only lead to misery)
Currently, for most markets, the volatilility is very low, meaning you sell low implied vol vs (even lower) realised vol.
If you think the macro conditions (excess liquidity, low vol due to concentration on few(er) assets, etc...) that explain why vol is so low will continue, you should continue selling options (or buy your Covered call ETF that does exactly the same thing for retail investors).
If not (i.e. you assume realised vol will at some point increase or mean-revert, you believe there might be some hidden cracks in the financial system...), this strategy is not for you.
In a covered call strategy you also own the underlying. so this limits the downside risk.
Whatever your own risk tolerance, market outlook and investment goals, just make sure you understand the basic idea that there is an asymmetrical risk profile between selling and buying options.
By doing so, you sell the volatility implied in the price of the option and hope that the realised volatility will not be higher. Most of the time this is true: implied vol > realised vol. This is why "selling volatility" is a popular trading strategy.
However, when you have very sharp price movements, it will be painful.
Technically when you sell an option (naked = without holding the underlying), your losses are unlimited (a quant would even add that markets being nonergodic, selling can only lead to misery)
Currently, for most markets, the volatilility is very low, meaning you sell low implied vol vs (even lower) realised vol.
If you think the macro conditions (excess liquidity, low vol due to concentration on few(er) assets, etc...) that explain why vol is so low will continue, you should continue selling options (or buy your Covered call ETF that does exactly the same thing for retail investors).
If not (i.e. you assume realised vol will at some point increase or mean-revert, you believe there might be some hidden cracks in the financial system...), this strategy is not for you.
In a covered call strategy you also own the underlying. so this limits the downside risk.
Whatever your own risk tolerance, market outlook and investment goals, just make sure you understand the basic idea that there is an asymmetrical risk profile between selling and buying options.
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