Which Makes More Sense/ What Will You Choose?

[Ceviche]

Amount - 20,000 usd to spare

Choice 1 -

Hold it as 20,000 usd abroad

Con 1- No appreciation/ No money flow

Con 2 - Anyway, money has to be regularly bought inside to change to blue for monthly expenses

===

Choice 2 -

20,000 x 12.3 = 246,000 $ ( step1 - Convert to Pesos)
step 2 - Put it in a secure fixed deposit for a year and receive 12000 $ pesos a month.

Cons - Whats the value of 246,000 pesos in terms of usd after 12 months?

pros - the 12000$ to be used for my monthly expenses.

===

What makes better sense?

Your views? Your choice?

 

[RodalfoWalsh]

Are you currently paying bienes personales? If you're not I wouldn't be chomping at the bit to get on that train.

Even if you are, you're better off keeping it abroad. I don't understand why it's invested here but couldn't be invested abroad. Buy a mutual fund, earn something at least.

 

[Rich One]

Amount - 20,000 usd to spare

Choice 1 -

Hold it as 20,000 usd abroad

Cons- No appreciation/ No money flow

===

Choice 2 -

20,000 x 12.3 = 246,000 $ ( step1 - Convert to Pesos)
step 2 - Put it in a secure fixed deposit for a year and receive 12000 $ pesos a month.

Cons - Whats the value of 246,000 pesos in terms of usd after 12 months?

===

What makes better sense?

Your views? Your choice?

Cevi out of curiosity what institution pays 4,8 % per month aprox... I want to invest!

 

[Ceviche]

Cevi out of curiosity what institution pays 4,8 % per month aprox... I want to invest!

Curiosity killed the cat!

Not promoting any business idea/organisation here.

 

[Matiasba]

are you sure you re going to recieve 12,000 pesos/month? cause that does not sound reasonable to me. I mean, its suspiciously good! If it is an hipoteca DO NOT PUT YOUR MONEY THERE, theres no legal security in this country and I know tons of cases that lost their money in hipotecas. Its a huge scam, they were very common in the 90s, lots of cases of rips off, my mother included. They pay you the first month and then au revoir.

 

[scotttswan]

are you sure you re going to recieve 12,000 pesos/month? cause that does not sound reasonable to me. I mean, its suspiciously good! If it is an hipoteca DO NOT PUT YOUR MONEY THERE, theres no legal security in this country and I know tons of cases that lost their money in hipotecas. Its a huge scam, they were very common in the 90s, lots of cases of rips off, my mother included. They pay you the first month and then au revoir.

are Pyramid schemes illegal here?

 

[wongjoh]

It depends on the riskiness of the monthly $12K pesos and of getting your principal back after 12 months.


With #1, you can probably get 5% appreciation with a mutual fund. So principal is $20K USD and interest $1K USD with high probability

With #2, there is a high chance of ARS devaluation over the next 12 months (by April next year) with some talks of removing the "cepo". Current bets peg ~12.5 pesos / official USD, which is the current blue => you could convert your $246K pesos back to ~$20K USD. If you are 100% you can get your principal back ==> you are awash with #1 with some risk (in case the devaluation happens at a higher rate). However, the interest is very appealing at 5% monthly. If you are 100% sure you will get this interest, then it sounds like a good trade-off between risk (principal risk on devaluation > 12.5) and reward (the monthly 5% collection).

 

[Ceviche]

It depends on the riskiness of the monthly $12K pesos and of getting your principal back after 12 months.


With #1, you can probably get 5% appreciation with a mutual fund. So principal is $20K USD and interest $1K USD with high probability

With #2, there is a high chance of ARS devaluation over the next 12 months (by April next year) with some talks of removing the "cepo". Current bets peg ~12.5 pesos / official USD, which is the current blue => you could convert your $246K pesos back to ~$20K USD. If you are 100% you can get your principal back ==> you are awash with #1 with some risk (in case the devaluation happens at a higher rate). However, the interest is very appealing at 5% monthly. If you are 100% sure you will get this interest, then it sounds like a good trade-off between risk (principal risk on devaluation > 12.5) and reward (the monthly 5% collection).

Thanks Wongjoh! Your reply much appreciated. You sound my kind of person. Sensible and devoid of unnecessary sarcasm and mocking/jeering.

 

[estebandepraga]

money abroad! rien ne va plus!

 

[Davidglen77]

You do not pay bienes personales on cash deposits in pesos in a savings account, nor are you levied taxes on interest income from CDs, (plazo fijo) in pesos. These items are excluded from paying any taxes, believe it or not. It was proposed that earnings from interest income (renta financiera) were proposed at one time, but the fear was that even fewer people would use CDs and savings accounts, so it never was voted in.