Post RV Checklist (it's getting to be that time!! Listen up!!)
Dos and Don'ts of Windfall Wealth:
Treat it like a PowerBall win
- Tell no one, not even family. If you must talk, do so with one who is already in the know.
- Don’t run out & buy new “stuff”. People notice.
- Get an unpublished number and give it out very sparingly.
- Get a tax accountant you can trust to make sure the IRS is satisfied (Certified Opinion is something to look into) and pursue asset protection.
- Move slowly (e.g. change of car, address, furnishings). People notice.
- If you are going to stay where you are look into fire/burglar protection. They have all sorts of extras nowadays and you do not have to advertise them or for them.
- Get identity theft protection. There are several companies out there – check them out, ask for preferences from those who have it.
- Reduce and remove debt. Stay on top of your credit report. I don’t believe in paying these outfits to check regularly. An identity theft protection company should be able to tell you if someone accesses it or affects it
– Life Lock. Remember – once out, your phone & mail will be swamped with requests for money and “offers”. Friends and relatives you never knew you had will show up at your door with a “problem”.
You will get swamped with charity “membership renewals”, calendars, cards, tokens, key rings, etc. all with donations in mind. Giving comes from the heart. Make sure taxes are paid and be aware of future tax liabilities incurred from your investments. For information on what to go with, invest with, work with, be diligent. Check it out. Ask those who also have wealth.
Never, ever make a major decision on the spot. That boat, car, house, etc. is not going to go away while you sleep on the decision.
Exchange / Banking - Consider the following:
IQD verified on the premises - verify notes while present Guarantee immediate access - No holdups
POD accounts (Payable on Death)
CDARS (Certificate of Deposit Account Registry Service) – is FDIC on very large accounts
Post RV Checklist:
1. Change your number, make sure the new number is unlisted. If you don’t, every Tom Dick and Harry will be knocking down your door when they find out about your new circumstances.
2. Contact an attorney that specializes in taxes and trust accounts.
3. Set up your family trust(s).
4. Contact your bank(s) and set up POD accounts.
5. Do not deal with banks that have derivatives and hedge funds.
6. Set up CDARS accounts.
7. Pay off ALL debt.
8. Fix everything that needs repair.
9. Upgrade your personal, home, auto and umbrella insurance.
10. (Consider ransom insurance too!) For your family/children
11. Set aside enough liquid funds for you to survive for 2-3 years. This should account for every expense you have on a monthly basis – don’t go short!
12. Invest in precious metals (like Gold & Silver or Rare Earth Metals).
13. Go to seminars to learn to make money through SMART investments.
14. PAY YOUR TAXES!
15. Pick your friends wisely.
Someone will be “watching you” so you’ll want to do the following:
1. Be very low key (non-descript).
2. Don’t flaunt your newly obtained wealth.
3. Open up a secure Email address.
4. Get a new cell phone number; cancel the old one.
5. Get a P.O. Box
6. Put a security system in your house.
7. Install high security Medco bolt locks, and a heavy duty safe.
8. Install reflective film on your home windows.
9. Consider building a safe room.
10. Get training in self-defense / firearms.
11. Use PGP (or better) encryption on your computer and Email.
12. Don’t trust anyone … keep your friends close and your enemies closer.
Questions to ask your private banker before you cash in. Also ask about Tag accounts, non interest accounts, that do not comply with the 250K maximum for FIDC accounts. No Limit.
Questions to Ask Private Bankers, Questions to Ask Financial Planer Some Overlap
1. QUESTIONS TO ASK PRIVATE BANKER -
Questions on the organization of the bank/private banker
What is the minimum amount to be invested? (This gives you a good feel whether the bank targets private banking clients that are similar to you)
What is the value of assets under your firm’s management? (The number shows if it is a big institution with international reach or a smaller boutique. Don’t forget to ask if the number has been growing or falling lately, and why)
Since when have you been in the business of private banking? (Gives you a feel about their level of experience)
Questions on the investment philosophy
Describe your investment philosophy (Should match your philosophy as closely as possible)
What are your weaknesses? (If they can’t name any, then it stinks)
What sets you apart from other wealth managers and private bankers? (Don’t be satisfied with a general answer, insist on specifics)
Are your performance figures verified by an independent third party? (Yes: good, No: bad)
What is the process you follow for making investments? (There should be a clear step-by-step process, which involves a written evaluation of your preferences and wishes)
Questions to the private banker directly -
To the adviser, directly: What qualifies you to provide wealth consultancy? (Again, you should insist on specifics like his level of experience or business degrees)
To the private banker, directly: What is the your personal remuneration based on? (Is it based on how much fees he generates from you? Or is it based on the overall performance of his clients’ portfolios. If there is no clear answer assume the former)
Questions on private banking fees
What are your fees? (Ask specifically about transaction fees, flat fees, ticket fees, government fees...there are many ways by which they plan to part you from your money)
Are there any hidden costs in the portfolio? If yes: How large are they typically? (Like fund fees, kickbacks)
These are the questions that you should definitely ask in the first round to get all the basic facts and a good first impression about the private banker. However, we highly recommend you to dig deeper before you make you final decision
This is the list Okie Dinar put in the Private FB Group recently - it has been around DU for a couple of years - Thanks everyone!!
The Exchange Rate of Foreign Currency in Economic Feasibility Studies
Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.
Estimate the shadow price of foreign currency:
1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.
The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.
* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:
Outputs marketed locally that substitute imports.
Inputs produced locally that usually go to exports.
According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.
In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).
In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.
2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.
The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:
The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.
And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.
3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.
The Republic of Iraq – Ministry of Planning
A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...
In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.
1) the SIGR report…
2) the Gold Article…
3) the IIER report…
I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.
Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.
Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.
I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…
Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??
I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the CBI.iq website for “real” info on rate change.
The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.
Referring to an Enorrste post from today onTHE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )
“…I have never found a single article from the CBI or the IMF that equates “delete the zeros” to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”…
Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??
Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s DINAR OBSERVER DAILY – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
THIS REPORT WAS SENT TO CONGRESS LAST MAY. IT PLAINLY SHOWS IN THIS REPORT THEY EXPECTED THE DINAR TO REVALUE AT AROUND A DOLLAR IN 2013.
We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 84 of the massive SIGR report.
BGG ~This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…
1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.
2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.
3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.
I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.
4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..
Metal coins from the category of 25 fils were in circulation until the nineties of the last century
Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.
She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."
He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.
The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.
The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…
…Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.
The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.
KUWAIT CITY, Kuwait — Thousands of Kuwaitis are expected to jam the country's banks today when they open for the first time since the end of the Iraqi occupation.
Customers will be allowed to withdraw funds and to swap pre-invasion money for a new currency issued to make more than $1 billion in pre-invasion dinars stolen by the Iraqis worthless.
"We expect a rush of people," said Issam Asousi, an executive with the Bank of Kuwait. He said it could be a chaotic first week because customers have a lot of questions about their accounts.
Kuwaiti banks continued operating during the seven-month Iraqi occupation under managers brought in from Iraq, but they have been closed since the U.S.-led alliance ousted the Iraqi army from Kuwait a month ago.
When the banks reopen today, customers will be able to withdraw up to 4,000 Kuwaiti dinars, equivalent to about $14,000 at pre-invasion exchange rates from their accounts, and to exchange a like amount for foreign currency.
Balances of customers' accounts will go back to what they were on Aug. 1, a day before the invasion.
Clients will not be able to exchange Iraqi currency issued during the occupation, when Baghdad pegged the rates of the strong Kuwaiti dinar to the far less valuable Iraqi dinar.
The new Kuwaiti money will be exchanged for old at a one-to-one rate.
BGG ~Thanks to wmawhite for some facts on the subject.
Just thought I would drop you an email. I listened to the call, and was interested in what was said about Kuwait, if I may - I will add my 2 cents worth.
You were spot on with what you said, I have a close friend who's father made a killing on the KWD. He bought from people who had fled the country and he paid pennies on the dollar (we are in Australia). He took the chance that Iraq would be kicked back out and he was right.
When the money was reinstated, he exchanged it for AUD at a rate in the mid 3s. The interesting thing about it is, Iraq invaded in November 1990 (I think), they were kicked back out at the end of Feb 1991, the banks reopened with a brand new KWD in late March, that's not a bad time frame to get a currency designed, printed and made ready to use, also the time that the old KWD was valid was initially only for 2 months, then extended to 6, so it was valid until Sept 1991, interesting I think.
Also the other thing that seems to be a "fact" in Dinar land is Bill Clinton used the Kuwait RV to pay off the debt. However, Clinton was not President in 91, he did not take office until 93, even I know that and I am an Aussie.
Anyway thanks for the site and enjoy listening to your calls.