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Ok, as promised, here is what would have happened with your $10,000 Is Your House Unemplyed? investment when converted back to today's USD during the same time as my previous post's housing comparison. 

For a quick overview, this chart is based on you simply converting $10,000 USD to another currency and switching it back to USD today.  There are numerous ways to add additional rates of return (safely) in those other currencies and you would be even further ahead.  It is also not adjusted for inflation.

Currency Used Worth Today (USD) Rate of Return (annualized)
Euro $15,732.74 8.59%
Aussie Dollar $15,353.15 8.11%
Japanese Yen $11,394.45 2.40%
New Zealand Dollar $15,609.41 8.43%
Norwegian Kroner $14,397.16 6.85%
South African Rand $14,157.64 6.53%
Swiss Franc $14,030.85 6.35%
British Pound $14,159.87 6.53%
Canadian Dollar $15,365.33 8.12%
Russian Ruble $12,882.26 4.71%

As you can see, a fairly good hedge against the devaluing of the USD, and your home is by investing overseas (or even next door).  Wouldn't you like to have investment rates like those all the time, except for the Japanese Yen, of course.

I did this particular post for two reasons.  The first is that you must include international investments as part of your investing.  That should be crystal clear.

The other reason is that, with an open mind, it is easy to achieve far greater rates of return than your mortgage costs, so stop "focusing" on paying off your mortgage and get onto investing.  Delaying will only cost you more money.

Don't have the money to invest?  Your mortgage may actually be able to help you by putting that idle equity to much better use.  Don't rush out and do it though.  There are a lot of variables that play into a mortgage and investment plan and you need to find the right team of experts to make it work.

That being said, if you are thinking about how to "employ your house", then feel free to contact me (link in upper middle column).  I will help the best I can and, of course, if you are in Florida, I can work you through the entire process.

 

6 Comments on Really Simple Currency Investing Creates More US Money

NOV
29
2007
227,409 Points Outside Blog
great information.  thanks for sharing
11:22am • #1
27 Featured Posts

You're welcome. 

I like to play with numbers and this shows the ease of making money if you keep an open mind and look for opportunities (not to mention keep enough cash on hand to take advantage of them).  Money can be made in a lot of places, fairly easily. 

It cannot be "made" however, by sticking it into your home.

11:30am • #2
733,769 Points 231 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Robert... another great way of using the equity out of your property or the extra money that you were going to pay your house off with. ....  some good examples.

jeff belonger
11:39am • #3
121,054 Points 12 Featured Posts Outside Blog

Robert, very interesting. Do you use option contracts or just direct purchase?

Bill Roberts

11:45am • #4
27 Featured Posts

Jeff...Thanks for the compliment.

Bill...There are a wide variety of ways to invest internationally.  They can range from mutual funds to world currency CDs and beyond.  This example is as if you basically went to Thomas Cook (or another exchange) and traded currency 6/10/02, did nothing with it, and changed it back 11/28/07.  That simple and that is how much your USD would have grown by the devaluing of the dollar compared to other currencies.

12:16pm • #5
DEC
02
2007
4 Featured Posts
Robert ~  What great statistics and facts!  Thank you for sharing them with us, and I have a few investors who would jump on the idea!  Thanks again, and no worries, we will have no hard feelings that you are busy and distracted!  :)  Take good care...
4:28pm • #6

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Robert D. Ashby

Miramar, FL

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Address: 11758 SW 26th CT, Miramar, FL, 33025

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Florida Mortgage Specialist provides "thought provoking" topics and strategies for proper mortgage planning. MEDS™ is a unique mortgage process that properly integrates your mortgage into your financial plan.

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