Currencies to Secure Retirement Soverein Society

7/28/2019 Currencies to Secure Retirement Soverein Society

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by Chuck Butler and the World Currency Watch Research eam


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Currency Capitalist98 S.E. 6th Avenue, Suite 2, Delray Beach, FL 33483 USAUSA oll Free el: 800-818-6934Email: [email protected]

Web site: www.worldcurrencywatch.com

Copyright 2009 byCurrency Capitalist. All international and domestic rights reserved. No part o this publicationmay be reproduced in any orm, printed or electronic, without prior written permission rom the publisher, CurrencyCapitalist.

Notice: Tis publication is designed to provide accurate and authoritative inormation in regard to the subject mat-ter covered. It is sold and distributed with the understanding that the authors, publisher and sellers are not engaged inrendering legal, accounting or other proessional advice or service. I legal or other expert assistance is required, theservices o a competent proessional advisor should be sought.

Te inormation and recommendations contained in this brochure have been compiled rom sources considered reliable.Employees, ocers, and directors oCurrency Capitalistdo not receive ees or commissions or any recommendationso services or products in this brochure. Investment and other recommendations carry inherent risks. As no investmentrecommendation can be guaranteed, Currency Capitalisttakes no responsibility or any loss or inconvenience i onechooses to accept them.

Any inormation or statements contained in this publication are not to be considered by the reader as personalizedinvestment advice. Te authors and any agents oCurrency Capitalistare not licensed under U.S. or other securities lawsto address particular investment situations and nothing herein should be deemed as personalized investment advice.


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Currencies to SecureYour Retirement:

Simple, Sae and FDIC-Insured Deposits

You Can Add To Your IRA

I youre like most Americans, then youve probably never heard o a Foreign Currency CD.But this radical new investment vehicle is one o the best ways to shield your retirement plan, beatination and prot as the dollar alls, all at the same time.

So without urther delay, welcome to the world o Foreign Currency CDs (Certicates oDeposit), arguably one o the lowest risk-or-return investments in our turbulent economy.

In the next 15 minutes, youll nd out exactly how these long-term investments work, learn all theadvantages o diversiying your retirement plan with oreign currencies, and most importantly youll learn how you can get started investing in these CDs today.

But rst, lets explore some o the more traditional alternatives you can choose or your retirementportolio and look at how theyre currently airing in the marketplace.

No Shelter or Your So-Called Sae Investments

Lets ace acts. Its not exactly a popular year to plan your retirement. Were all a little toodistracted by the short-term misery were seeing in the markets.

Te Dow has dropped over 6,000 points (40%) since October 2007. Ination is expected to soaraster than it has in the last 17 years. And our governments bad habit o printing new dollars andslashing interest rates is having a serious impact on your long-term savings.

In the words o Bankrates Greg McBride, Savings are taking it on the chin. Te Feds rate cutsgeared to aid ailing homeowners with adjustable-rate mortgages have come at the expense o savers and

retirees dependent on fxed income.And this isnt just a short-term problem. John K. Castle, a columnist or BusinessWeekcites several

other indicators including the rapidly rising price o commodities and manuacturing as reasonsto believe that well likely be acing annual ination in the 5%-6% range or the next ew years.

Assuming your CDs, bonds and money-market accounts pay the standard 1% to 2%, this meansyoull actually be losing money over the next ten to 15 yearsmaybe even longer. Let me explain


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The Hidden Tax o Ination Plunders Your Savings

As you can see in the chart above, the average monthly return on a CD is currently at 3%, whileination is up in the 6% range. So rather than building money or your retirement, youre actuallylosing 3% o your long-term so-called sae money each year.

And o course, as ination rises, it also robs your dollar o its purchasing power. Tis means that inthe long-term, even i you nd an investment that beats ination, youre still ultimately saving less iyou actor in currency depreciation.

And dont even think about the possibility o deation. Te Federal Reserve has shown its quitewilling to throw in everything even the kitchen sink to prevent that rom happening.

Tis all begs the question: I CDs and bonds those time-honored, FDIC-insured saeinvestments cant save your retirement plan, then what can? And more importantly, how do youcope with the alling dollar, when all your retirement assets are based in dollars?

Some would say the best way to ofset losses during the dollars hasty retreat is to start trading inthe orex markets. But you cant directly invest your retirement plan in any orex trading account,like you can invest directly in a bond or CD. So this strategy is not necessarily suitable or the long-term.

Plus, even i youre not saving or the long-haul, the orex market holds other challenges.I youre not used to the currency markets, it can be dicult to know what to buy. Moreover,Forex portolios like almost every other type o investment lack the security o FDICinsurance.

Weve ound a unique alternative that brings you the best o two worlds: the Foreign CurrencyCD. It combines the insured security o the traditional dollar-based CD with the radical newprotability o the oreign exchange:.

Your Introduction to the Foreign Currency CD

Just a ew short years ago, i you wanted to invest in oreign currencies without any leverageyou had to open up a oreign bank account. It was a good option i you wanted investmentdiversication. But unortunately, your money was hal a world away. But now you can buy and holdoreign currencies right here in the good old U.S. o A. without leverage. EverBank, a U.S. basedaward-winning institution, is taking that development one step urther.


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For the last several years, it has specialized in CDs denominated in many oreign currencies. Ina moment, well reveal our o our avorite EverBank currency CDs (and why they are set to prothandsomely as the dollar continues it precipitous slide.)

Aside rom the act that they invest in stronger oreign currencies, these CDs are very similar toyour dollar-based CDs. You can invest in anything rom the euro to the New Zealand dollar to the

Brazilian real. In act, you will nd that EverBank ofers over 20 currencies to choose rom.

Foreign Currency CDs are among the easiest and most basic ways to invest in currencies. Plus, youhave the potential to make a serious prot. Its as easy as holding U.S. dollars in your bank account,except instead o those rapidly weakening bills, youll have the prot potential o currencies romaround the world.

Most Foreign Currency CDs last or about three months, so it is important to remember that youwill not be able to remove your assets until that time period has ended. Do not invest more then youcan aford to put aside or that period o time.

Best o all, you can hold them right in your IRA.

The Easiest Way to Proft in the Next Decade o Ination

Foreign Currency CDs are one o the most popular options or the beginner currency investor.Tey ofer slow and steady gains, so they are perect or buy and hold investors.

Tey also allow you the time to learn about the markets while still being involved. Or i youdrather, just sit back and wait, carrying on with your busy lie.

Once you are comortable holding one CD and you will be ater a very short period o time the best way to maximize your prot when investing in Foreign Currency CDs is through a CDportolio.

A CD portolio is a package o multiple, related CDs that the bank holds in a portolio or you.With a careully structured CD portolio, youll be sae rom the long-term risks o holding any onecurrency.

Yet again, the U.S. is behind the trend in oreign currency investing. While these trades have beengoing on or years in other countries, very ew banks in the U.S. currently ofer Foreign CurrencyCDs. But once you nd the right bank, youll also nd that investing in and managing these CDscouldnt be easier. All you need to do is:

Call the bankell them which currencies you want to put in your CD and the respective amountsApply and und your CDAnd orget about them until the CD comes to term

You can park your cash on deposit and denominate it in the currency o your choice. Or, you canpark your cash in a basket o currencies. All you need is a bank account that ofers multiple-currencydeposits. And you can rest easy at night, knowing that your investment is FDIC-insured, so eachCD in your portolio is protected up to $100,000 (or $250,000 i its in your retirement account) inthe highly unlikely event o a bank ailure.


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The Euro Rose 50% Against the Dollar

Tis chart shows the exchange rate o the euro to the dollar over the last ve years.

As you can see, the drop in value since late 2008 represents a considerable amount o the gains

that the euro has made over the dollar in the last three years but the dollars strength cant keepother currencies down orever.

For a long-term CD holder, short-term uctuations may, in most cases, be absorbed by your long-term gains rom appreciation. Te interest rate on the CD could also serve to ofset these losses sothat you can still prot.

But even when the dollars value is going down the drain, there is always a slight risk that yourtarget currency could depreciate in value and you could lose some portion o your principle.

In just a moment, Im going to show you one o the methods used by FOREX traders to minimizethis risk. But rst, since weve already talked about the potential downside, I want to tell you about

my avorite part o the Foreign Currency CD: the interest rates.

The Icing on the Cake

Best o all, several o these CDs earn twice the interest o a typical U.S. dollar-based CD.

Tats right, regardless o exchange rates you could actually stand to double your prots on interestalone. In act, one o these CDs returned 18.5% in 2007.

How many investments can boast that or the past year? Not many, thats or sure.

So i you want to proft by getting away rom the alling dollar OR you have a long-term view

on a oreign currency but dont want to trade or leverage, then Foreign Currency CDs couldbe your best investment option.

The Best way to Invest in the Top 3 Commodity

Currencies Set to Soar Against the Dollar

One o the saest and best bets you can make against the dollar today is by investing in the long-term prospects o the Brazilian Real.


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Brazil is in the throes o a sweeping industrial, agricultural and technological transormation.It is ast becoming a leader in not just energy, but in agriculture, outsourcing, inotech andtelecommunications. Annual Foreign Direct Investment is exploding. In the past decade FDI hasgone rom next to nothing to tens o billions o dollars a year

According to Goldman Sachs, its GDP is projected to soar a staggering 10-old in the next 40

years! Despite the global nancial crisis, Brazils GDP continued to expand by 5.1% in 2008. Tecountry is currently the ourth-biggest emerging mega-market on the planet.

Brazil is also:

An Emerging Energy Superpower. Te recent discoveries o the Carioca and upi oil elds ofthe coast o Brazil may soon triple the nations oil reserve to 33 billion barrels makingBrazilthe third largest oil reserve on the planet! Tese elds also support massive gas wells too! Butnot only is Brazil a leader in ossil uels it is also hands down the global leader in alternativeenergy. Around 50% o Brazils vehicles are powered by domestically-produced bioethanolmade rom sugar cane. As the world wheezes under the weight o peak oil, Brazil is set to

speed ahead.An Agricultural Superpower. About a third o Brazils economy is linked to agriculture. Itsthe worlds largest exporter o cofee, sugar, cattle, orange juice, and has just surpassed theU.S. as the biggest exporter o soybeans. Te rain orests o the Amazon River basin producetimber, rubber, and other orest products such as Brazilian nuts and pharmaceutical plants.With ood demand (and scarcity) on the rise, Brazil is set to harvest big prots in the comingrace to eed the world.

A Commodity Superpower. Brazil is also rich in other commodities whose values are set toignite as global stimulus packages kick in, including iron ore, chrome ore, copper, manganese,diamonds, gem stones, gold, nickel, tin, bauxite, uranium, platinum, and zinc.

Cash-Rich! Unlike the cash-strapped industrialized west, Brazil is swimming in surpluses.It boasts over $200 billion in cash reserves. But not only that, while mortgage markets inthe US and England reached staggering sums equivalent to as much as 65% and 73%o the countrys GDP, this countrys mortgage to GDP ratio reached only a humble 2%. In other words, the real estate boom hasnt even begun here yet. In act, due to its low creditrisk, Brazils bonds were raised to investment grade in 2008, opening the doors or hedge andmutual unds around the globe to buy Brazils bonds, which (unlike Americas) are some o themost stable in the world.

With the combination o Brazils massive commodity reserves and avorable economic conditionswe believe its currency should rise to a stunning degree against the dollar in the years to come.

In a moment well reveal one o the saest and easiest way to ride the long-term bull market in theBrazilian Real. But beore we do, there are two other commodity currencies that should ollow asimilar trajectory to the Brazilian Real.

Tey are:

Te Australian Dollar1. Australia is the worlds third largest producer o gold and one othe largest suppliers o ores, minerals and energy to Japan, China, the United States and South


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Korea. Te state o Western Australia (one o the largest gold-producing regions on Earth)recently gave each o its citizens a prosperity bonus! And while derivatives (that nancialplutonium that keeps rocking Wall St.) will take years to unwind out o the American nancialsystem, Australia has already purged its banks and markets o these nancial weapons o massdestruction.

Te New Zealand Dollar2. What Australia is to hard commodities, New Zealand is toagriculture. Tis island nation o just 4.2 million people is one o the leading producers owheat, barley, potatoes, ruits, vegetables, wool, bee, dairy products and sh in the Southernhemisphere. oday, New Zealand ranks in among the top agricultural suppliers to Australia,China, Japan, America, Germany and Singapore.

Tere are now an array o novel and ultra-sae interest-bearing oreign currency CDs that allowsyou to invest in the long-term bull markets o these sure-re currencies.

For example, theres aKiplingers and Forbesaward-winning bank that has created a whole host ointerest-bearing oreign currency CDs. Tis bank is EverBank, and its portolio o oreign currency

and non-U.S. dollar-denominated products is one o the best that youll nd on homeland soilWhats more, its currency CDs are as easy to buy as it is to buy books at Amazon.com. In act,

Forbes.com awarded EverBanks Online Financial Center the Best o the Web 5 consecutive times an honor achieved by ew other banks.

And thats just one o the reasons why were recommending that you purchase EverBanks BrazilianReal, Australian dollar and New Zealand dollar currency CDs today.

You can nd EverBank at: www.everbank.com/campaigns/portolios.

EverBanks CDs, however, do not have minimums as low as currency EFs (o which minimumscan start around $32). o open an EverBank oreign CD youll need $10,000.

But what makes these currency investments so attractive is that not only you get to directlyown these currencies, but you also have some protection. Due to legislation that was passed justrecently, these unique CDs are now FDIC insured up to $250,000 dollars until the end o 2013!FDIC insurance was supposed to drop back down to the $150,000 limit at the end o 2009 but thedeadline was recently extended.

You willNOget this type o protection rom any currency EF. Tese are just a ew o thereasons why these CDs ofer one o the saest and easiest ways to prot during the dollars last days

o nd out more about these ultra-sae CDs you can call our Currency Capitalistsupport team at1-800-818-6934 or email them at [email protected]. Likewise, you can call EverBank on

1 (800) 926-4922.

But Why Stop There?

I youre already diversiying your holdings away rom the dollar to protect yoursel rom the risko rising ination, why stop at just one new currency? Forex traders oten use multiple currencies tohedge the risk o loss, and you can too. In act, EverBank has put together a ew products specicallyor this kind o investment strategy.


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Te EverBank Asian Currency Portolio and All-Weather Portolio are both well-suited to replaceyour ailing dollar-based CDs with returns on interest and potential currency appreciation. Teyallow you to begin diversiying your holdings, along with a ew other added benets.

I you purchased all these currencies separately at EverBank, building your own Asian CurrencyPortolio would cost you $45,000. However, EverBank is ofering this portolio as a single product,

so youll be able to get started or as little as $10,000.

You can nd EverBanks Asian Currency Portolio online at:http://www.everbank.com/campaigns/portolios/AsianCurrency.htm.

Everbanks All-Weather Portolio contains some o the most stable currencies rom around theworld, including the Canadian dollar, the Euro, the Swiss ranc, Japanese yen and the Chineserenminbi. I youre interested in currency investments but araid o the depreciation scenariomentioned above, the All-Weather Portolio is probably your best bet.

You can nd EverBanks All-Weather Portolio online at:http://www.everbank.com/campaigns/portolios/AllWeather.htm.

o get in touch with EverBanks World Markets Desk and nd out what kind o ForeignCurrency CD best ts your needs, you can call them at 1-800-926-4922 or send an email over [email protected].

Be a Wise Retirement Investor

Make no mistake. Tese rough times are probably here to stay.

Benn Steil o the Wall Street Journal even goes so ar to say that the Feds actions have probablykilled the last great hope or a sound, durable global at money system ination targeting.

While that statement might be a bit o an exaggeration, one thing is or certain: Te dollars daysas the worlds monolithic reserve currency are coming to a close. In the near uture, investmentstrategies like Foreign Currency diversication will become a necessity or any investor looking orlong-term stable growth.

But ew comparable strategies exist today. And you would be hard-pressed to nd one ascompatible with your current situation as the Foreign Currency CD.

By combining the benets and security o the traditional CD with the prot potential o todaysoreign exchange, the Foreign Currency CD shields you rom the risks o ination and bank ailurewhile maintaining a serious upside.

Combine all o these benets with the ability to hold these CDs in your IRA like a traditionalCD and youve ound the kind o strategy that makes the diference between a retirement investorand a wise retirement investor.

About the author:

Chuck Butler, President o EverBank World Markets, oversees the trading desk and operations orover 50,000 individual and corporate clients, both in the United States and abroad. He is a requentcontributor to FX University Dailyand an editor oCurrency Capitalist. He is also the author


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o the widely distributed newsletter on currencies and economies,A Pfennig For Your Toughts.With over 20 years o experience Chuck is a requently quoted and respected analyst o the currencymarket. Since 2003, hes been eatured in the Wall Street Journal, U.S. News and World Report,Market Watch, USA oday, CNN, and the Chicago ribune. He has written the oreword orDemise of the Dollar.

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Currencies to Secure Retirement Soverein Society