9% Fixed ROI on Retirement Funds in PanamaJuly 31st, 2012 by The JetSetter Team | Comments Off on 9% Fixed ROI on Retirement Funds in Panama
scam. In this case you would be wrong. Panamanian credit unions having been paying this incredibly high compound interest rate on certain funds for going on 44 years now, and have never missed a payment.
How can a financial institution afford such a high rate and remain solvent? The answer is pretty simple. They charge borrowers 14.4% to borrow money. The gap between 9% and 14.4% leaves enough profit to keep the financiers happy. Why can’t retirees’ find that kind of deal in the United States? For comparison, the national average charged to borrowers by American banks is 14.92%, while the rate of interest paid out to depositors today is around 1% to 2%.
The difference is startling. Are US banks so incompetent and inefficient they can’t turn a profit paying anything higher than that pitiful rate of interest, or they just greedy? Who knows? It doesn’t really matter. What does matter is you can earn a superior return on investment if you don’t mind taking the road less travelled.
Keep in mind that Panama is a firmly democratic government, financially and politically stable, and boasts a high growth economy. No wonder Americans have been trickling down there for the past few decades, only now the trickle is becoming a flow. In Panama, credit unions are government regulated,
non-profit organizations, that are safer than banks – which are allowed to borrow up to ten times their amount of paid in capital. Credit unions in Panama are limited to four times paid in capital for borrowing purposes.
The bottom line is this: banks take much greater risks with their money and pay you less to deposit your money with them. Why would you want to do that? The really good news is that US citizens are welcome to do business in Panama. Opening an account only requires a passport photocopy, second ID, proof of address, and a financial account statement. You can test out the way it works with a minimum deposit as small as twenty dollars.
The Jetsetter Show Team