How to Invest a IQD Currency Investment Wind Fall once it Revalue’s !!

Thanks to the millions of starry-eyed Iraq Dinar dreamers, There are plenty of scams out there who will be ready to take your money.

So be aware of the  Bernard Madoff or Allen Stanford types out there..

So, what are you going to do with your new Found wealth from your IQD Investment once it Revalue’s?

It is fun to think about.

It also makes for a great discussion about how you would begin to invest such an enormous sum.

But here’s the thing. Whether you have 5 Million or  $1oo Million, your thinking is basically the same.

In this case, it is just a matter of scale. It may sound odd but it’s true. Let me explain.

Lets say it Revalues at the higher amount that has been most speculated at, say at IQD=3 to 1USD… here’s how you might want to handle your New Found Wealth.

And beware of the people that suddenly show up in your life.

As a lottery winner in the Currency Revalue, you will besieged by offers from hedge funds, private equity funds and other mysterious investments, suggesting that you can increase your returns by investing in their funds.

Don’t be tempted. At the best, you will only get returns similar to the stock market, but will pay much higher fees to get them, giving away 20% of the profits to get them.

The next thing to be clear about is that you shouldn’t invest all your Money in one place at once!!

 Here’s why.

You don’t know whether the stock market is close to a high, in which case your precious winnings will be sadly diminished by a downturn.

Instead, you should invest only 20% of the money in the stock market, split between U.S. stocks and international stocks. An additional 5% should be invested in gold or an equivalent.

If you are confident, select the stocks yourself, for at least part of the money.

If not, invest in mutual funds offered by major mutual fund management companies with low fees attached. There are several of these, but as a first pick you can’t go far wrong with Vanguard funds. ( there are some great ETF’s and small to lower mid cap funds here with Vanguard that are worth a second look too).

Diversify between funds and investment types though – you’ve got the money to do so.

In any case, at least a substantial part of the stocks or funds you buy should pay substantial dividends.

The remaining 75% of your money should be invested in short-term bonds, ideally in a spread of currencies including Canadian dollars, Australian dollars, yen and euros.

Of course, in euros you should only buy the bonds of prime credits, which today means Germany, the Netherlands and Sweden.

Then each year you should invest a further 25% of your portfolio in stocks and gold, in the same way as you did initially, selling bonds to do so.

By doing this, you will have invested your money over a period of three years, which should lessen the risk of having all your money invested at the top of the market.

Three years later, you will end up with a portfolio of 40% domestic stocks, 40% international stocks and 20% gold, with your stocks overall paying dividends of at least 2-3% of their value.
(At present, dividends pay only 15% tax, so are more attractive than bond interest.)

In the long term, you may want to own some bonds, and to sell some of the gold. But you should only do so when top quality bonds yield substantially more than the inflation rate.

At present, even long-term Treasury bonds yield less than inflation, while short-term bonds yield less still.

So the bond markets should be avoided except as a place to park your money for the short-term

You need to be careful not to buy large items that incur running costs.

By all means buy a really nice sailboat, but a $100 million yacht or a house that requires a full staff of servants are likely to drain your resources in years to come, and could lead you eventually to ruin.

To avoid that it probably makes sense to devise a budget for how much you can spend

But with the strategy outlined above, you’ll minimize the risk of buying at the top of the market – and avoid crooks and high fees – the two biggest risks for the newly rich.

you’re better off setting an asset mix that makes sense given your investing time horizon and sticking to low-cost index funds which limit the drag of fees and pay a nice Dividend on your Investment..

Warning here: Be very careful of Penny Stocks..yes you can hit a home run here and there..But you can lose it all in a blink of an Eye..I have lost plenty fooling around with the Penny’s and Margins..They are fun and can be additive to play, but extremely risky to say the least !! Fine tune your picks here and stay away from Penny site clubs that tout stocks for you to invest in..They are not giving what you think they are..see my Penny Stock warnings in my Investment folder at the top..

Investment Clubs are fun and can work well too..sharing research and having someone of equal minded will keep you on your toes.But beware of a club member who panic’s/gets to emotional/or makes rash decisions… My advice here with them is to polity dismiss them from your Cub..Panic and rash moves in the Investment Market Place can spread like a wild fire and can cause you to lose out on a good Investment..

Lets not forget about the Real Estate section you may be Investing as well..Look through my Investment 101 series in the Investment folders at the top of my Blogs to get some good idea’s there as well..

Best wishes and keep your money safe..and have some fun in Life !! You deserve it…jp

Note: Hire a very good Tax and Investment Professional to help you make the right decisions..but do your due diligence prior to meeting with them so you will be able to understand somewhat of what they will be talking about and be able to ask all the right questions..jp


Nature’s Healing Matrix
Source: Money Morning
How to Invest a IQD Currency Investment Wind Fall once it Revalue’s !!
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