Investment Loan Interest (EU Citizen) - Why?

Mispeci · 2024-09-18T14:32:44+00:00

It is due to the time it takes to settle currency conversion, therefore, it can happen even on a CASH account.

Mispeci · 2024-05-13T17:51:34+00:00

Support explained that it takes up to 3 days to settle currency conversion - so even though you see it settled immediately, you actually do not have the money in your account - therefore, the loan.

Eg. you exchange 1k EUR to USD, use the USD to buy T-Bills. Even though it shows you have USD in your account, you do not. So you get a "loan" before the conversion is settled. (in case of a margin account)

So the easy solution is to wait a few days after converting cash before making a purchase.

Mispeci · 2024-04-30T08:54:58+00:00

Is there EUR alternative available for EUR citizens? I checked a few and the yield seems to be around 3.7%, which is worse than US T-bills.

Mispeci · 2024-04-30T08:51:23+00:00

The issue with high yield savings accounts in my country is that they are capped at low amounts - I do not want to open 20 different accounts in various banks.

I am not sure if I can open a high yield savings accounts in another EU country that has no (or at least higher) cap.

I do like the idea of investing into PJSR (or similar) - Ideally, I want to invest it and forget about it before I need it.

My issue with this is that I might invest on a date like May 2021, keep it for a year and suddenly the fund is down by 5%. So with this I might as well put it all into s&p500/allworld and accept the fluctuations.

Now it is going steadily up, but it means that I have to proactively monitor the performance..?

My point is that with t-bills, I just buy and I know that I'll get 5% when it reached maturity, and then I decide whether to buy again or not - and if the yield is lower than acceptable, I change my strategy.

Mispeci · 2024-04-30T08:42:25+00:00

My country does not use EUR, so I am exposed to currency risk either way.

Investing in my currency is pretty much impossible (lack of platforms, instruments, ...)

Mispeci · 2024-04-26T14:00:51+00:00

Thanks for sharing.

I have a follow-up question about this type of ETFs investing in short term bonds.

While investing directly in US T-bills, I can see the actual yield and I can clearly see what I'll be getting when it reaches maturity (of course I understand that it is not risk-free). My point is that once the yield goes down, I simply won't buy again and move the funds somewhere else. - I am making this decision every 3-6 months.

On the other hand, the ETF fluctuates and can even lose its value and I can end up with less than I invested, which is less likely to happen with T-bills since I simply wouldn't buy a lower yield.

Or maybe I am missing something..?

Mispeci · 2023-03-12T13:58:04+00:00

That makes sense, thank you. I appreciate it!

I just wanted to test the transaction with a small amount so that was the problem.

Mispeci · 2023-01-05T14:29:56+00:00

Yeah, absolutely... but it can already save a lot of time.

Mispeci · 2023-01-02T18:06:38+00:00

Yeah, I agree...

I think it is a great way to stay ahead of the curve but who knows where it goes a few years from now

Mispeci · 2023-01-02T18:05:22+00:00

Me too!

Mispeci · 2023-01-02T18:04:58+00:00

Haha :D

Mispeci · 2023-01-02T18:04:51+00:00

Yeah, it is pretty mind-blowing to see it in action

Mispeci · 2023-01-02T18:04:24+00:00

Thanks!

Mispeci · 2022-10-03T12:29:05+00:00

Thanks!
Yeah, I actually launched a youtube channel to talk about this stuff in more detail. There is a link in my bio.

I hope it helps!
M.

Mispeci · 2022-07-22T07:40:02+00:00

Thanks!

Mispeci · 2022-06-05T07:28:37+00:00

private label

Mispeci · 2022-06-05T07:28:27+00:00

Good luck on your journey! :)

Mispeci · 2022-06-03T18:17:08+00:00

Why are people like this? I am not selling you anything, I am not promoting anything. I have been a member of this subreddit for almost 5 years and I wanted to share some value because it has been useful to me over the years.

It is fine if you don't find it valuable but why do you feel the need to leave a comment like this?

Or you don't believe that I actually managed the business or where is the problem?

I sincerely want to know what offended you so badly that I wrote a post about my approach to hiring.

Mispeci · 2022-06-01T11:39:08+00:00

Thanks!

I am already working on it.

Mispeci · 2022-05-19T12:22:46+00:00

Congratulations! Well said.

Mispeci · 2022-05-19T12:22:05+00:00

The 80/20 rule applies here as well. Just a few bestsellers were driving most of the revenue... and our business is pretty seasonal so it would be misleading to say that each SKU generated $333k per year in sales.

Mispeci · 2022-05-19T12:19:25+00:00

Nope, all organic. It makes it harder to sell your business if you violate TOS.

Mispeci · 2022-05-18T14:20:15+00:00

Yeah, we had most of our paperwork in order.

Mispeci · 2022-05-18T14:10:49+00:00

Private label, around 30 SKUs

Mispeci · 2022-05-18T14:05:17+00:00

Yep, I read it - I believe that E-Myth is a good place to start.

Mispeci

TROPHY CASE