My new idea to earn money without paying tax

[Stocks_go_Up]

Using OzForex to convert money for 'investing' purposes...

If anyone reads this thread this is a good example of how not to trade forex. Hopefully OP learnt a few things.

 

[YippeeYiYeo]

bit disturbing seeing how much joy people are getting from reading about someone else losing money.

 

[doppleganger]

Today's movements made me think of this thread.

Coming up to two years since the OP, when spruiked about getting in at 0.70 because mainstream press was spruiking the dollar would drop to 0.60 cents.

Turns out the OP basically jumped in at the bottom of the market, and now almost back to .80 as the end of the two year horizon approaches.

Ouch

 

[Scotland]

AUD1.00 to US0.70 isn't really that low. If I was going to play the exchange rate game I'd be buying when it's sitting somewhere between 80c and $1 then waiting for it fall to around 70c.

 

[Long Live HFC]

Today's movements made me think of this thread.

haha yep. whenever i see a significant move i think of this thread.

 

[Scotland]

Currently sitting at 0.79c. I might get in soon.

 

[Jimmy_the_Gent]

I don't think today's inflation data is helping if you want it to get to 80c or more.

 

[Jimmy_the_Gent]

I don't think today's inflation data is helping if you want it to get to 80c or more.

Or not.

 

[Power Raid]

Alright guys, this is something that I am actually doing and making money on. So, this is no fluke.

I want to share it with other people, as people can benefit from it.

Will say, that like any other saving idea - it's always better to check with a financial advisor. I am not one, and this is purely something I am doing, and may or may not be right for everyone.


So, I had some money saved up and set against my home loan in an offset account. Think $20k AUD. So, I am essentially saving 4-5 % per annum on interest costs.

Then I thought about investing and having listened to forex dude (I know, some people are wary of forex - so am I), I thought, why not convert my money into USD. Right now, 1AUD buys $0.70 USD (at the time).

So, I did the following:-

1. Opened up an international foreign currency account at CBA. You can do it online if you have a CBA account.

2. Most importantly, I did not do a direct transfer into the CBA international USD account. I used Ozforex.com.au to transfer funds from my CBA AUD account to then pay into my CBA USD account.

3. Now, the account has the USD amounts transferred in from Ozforex. Bear in mind that CBA charged fees as well as there are some interbank fees that I am investigating.


If we read the news, AUD is likely to crash to $0.60 in 2016 at some point.

So, assuming in 1 year, it gets to 1AUD= $0.60 USD, I would earn (0.7/0.6) -1 = 16.67% over the transferred value. Obviously, I am forgoing the 5% interest rate on savings.

Also, there are some tax implications, but there are ways to avoid it. I avoided it by making a tax declaration.

Obviously, there are fees involved with Foreign currency denominated accounts, transfers in & out. But it was working out for me OK. I think each person will need to look at their circumstances individually.

Obviously, foreign currency is the hardest to predict, but I am relying on published news that $0.60 is possible in 2016.

Caveat Emptor


https://www.ato.gov.au/Business/For...hange-(forex)--the-$250,000-balance-election/

well done and congratulations of thinking about ways of building wealth

those who really lose are those that never try

 

[Long Live HFC]

well done and congratulations of thinking about ways of building wealth

those who really lose are those that never try

what a load of s**t. yeah, someone should be congratulated for coming up with a stupid idea, ignoring everyone who tried to help them, and then losing thousands of dollars. belief absent of evidence is a real virtue.

 

[Power Raid]

what a load of s**t. yeah, someone should be congratulated for coming up with a stupid idea, ignoring everyone who tried to help them, and then losing thousands of dollars. belief absent of evidence is a real virtue.

If ever person behind every great achievement listened to the naysayer, then nothing would ever be achieved.

Sure his idea wasn't easy money as it wasn't an arbitrage. nor was it going to be tax free.

It was a small punt in the scheme of life and no doubt provide a great lesson.

 

[Long Live HFC]

If ever person behind every great achievement listened to the naysayer, then nothing would ever be achieved.

yawn, irrelevant twaddle.

 

[Maurice Mitchell]

I guess everyone got tired of laying the boots in - bit surprising, you all seemed to be loving it.

 

[checkraiseulite]

any more tips op?

 

[Oraaaaazio]

I guess everyone got tired of laying the boots in - bit surprising, you all seemed to be loving it.

View attachment 854008

His idea is still crap unless he has info that the rest of the market doesn't have that says there is value in a trade. Judging from posts, it was just speculation & he didn't have any edge vs rest of the market. He was just guessing & I'd be very confident he's not still holding & lost on this a while back now.

Also, his idea that it is tax free is false.. gains on foreign currency exchange are taxable in Australia. There is no form of asset trading in Aus that is tax free.
Gambling/sports trading is different.

 

[ThePezDispenser]

I guess everyone got tired of laying the boots in - bit surprising, you all seemed to be loving it.

View attachment 854008

Are you legit?

It took 4 years to get there from 70c.

Annualised return is less than bank interest lol

 

[Power Raid]

Are you legit?

It took 4 years to get there from 70c.

Annualised return is less than bank interest lol

It might not have been the best investment but think of failed investments like the price of university. It costs something to learn something.

What is important is what people do with that learning. Currency in my opinion is gambling as it is not only driven by market forces (which can be somewhat forecast) but government policy. How can one predict the policy decisions of a government that is not even elected yet? Further given FX requires two currencies or more, how can you predict policies of other nations current and future governments?