Investing in $ forex????

[Hárbarðr]

Would you consider investing in USD/ forex? Long term or even short term?

Why or why not????

This is something I am considering.

Thank you again for all the help so far...

[TokyoWart]

Never. It's an extremely liquid market for professional traders who have resources far beyond what we bring to those transactions and the possible gains are minimal unless you employ leverage. In my opinion forex is an example of speculation but not of investing. As with so many speculations, your long-term returns are more likely to be zero or negative while your short-term returns are basically random.

[Hárbarðr]

Thank you so much.
The reason I asked is actually because few years back I ended up enrolling in such an investment with MetLife.
I didn’t know about investment at all at the time and what the guy told us (my wife and I) seemed like a good deal.

I’m buying about 40000yens worth of USD a month, until I’m 60.

And if I want to cancel the investment plan now I’ll lose half my investments. But if I keep it for at least 15 more years I’li can take it out and not lose that much.

If I keep it until I’m60 and beyond I’ll get a better payout...

I think it is maybe not such a good investment......

[TokyoWart]

The reason I asked is actually because few years back I ended up enrolling in such an investment with MetLife.
I didn’t know about investment at all at the time and what the guy told us (my wife and I) seemed like a good deal.

A good rule of thumb is to never, ever invest through an insurance company or bank. Their fees are high, they don't provide very good investment products (insurance companies especially skew investment products toward the risk-free rate of return which is at historic lows everywhere right now) and in many cases the people selling you the products do not actually understand them very well.

I’m buying about 40000yens worth of USD a month, until I’m 60.

There are probably more details than this to your account but on the face if it that makes no sense at all. We both know you wouldn't buy US dollars to put them in a pillowcase. Over the long term currencies lose value because governments naturally want to inflate away their debt. You are likely being put in US dollars from a currency which has lower interest rates for safe short-term corporate or longer-term government debt. None of those returns are attractive right now and you are taking on currency risk. What you should actually invest in depends on your investment plan but this almost certainly isn't helping you.

[Hárbarðr]

Thank you very much.

After reading and understanding a bit more about what I was actually investing in, it turned out it was not FOREX but that I was actually buying MET stocks every month. Hence the price in Dollar. I will need to further research with the company I am using for that investment about their fees and such.

It might be such a long term plan METLIFE Inc have for retirement, cause after reading well about MetLife, that is exactly what they specialise in.

No point for me to look at the market in its current state, cause that might freak me out (well I did look at it, and MET is falling like everyone else, but has an overall very good score and is a safe company to invest in, whatever SAFE means in the Finance market).

I will try to move those stocks to soon created Rakuten Securities account, and also open an iDeco account.

thank you greatly again.

[N00bster]

The reason I asked is actually because few years back I ended up enrolling in such an investment with MetLife.
I didn’t know about investment at all at the time and what the guy told us (my wife and I) seemed like a good deal.

I’m buying about 40000yens worth of USD a month, until I’m 60.

And if I want to cancel the investment plan now I’ll lose half my investments. But if I keep it for at least 15 more years I’li can take it out and not lose that much.

If I keep it until I’m60 and beyond I’ll get a better payout...

This looks like a terrible plan and such schemes should simply be illegal.

If you are already a few years in it may not be worth cancelling, but you can maybe reduce your contributions to a minimum (or nothing). It should be possible as long as it is not an offshore plan (offshore = lax legislation).

If not, try to do the math and see if it's worth biting the bullet and putting your contributions into your Rakuten Securities account. See how much you would lose, and how well you can hope to make with your remaining contributions over 15 years. Try to remain rational and stick to the numbers (I know it's easier said than done). Having left such a bad plan myself a few years ago, I found it liberating (and my better investment decisions since then compensated for my loss faster than I thought).

[Hárbarðr]

Thank you for your message

After more research and discussing with the agent, it seems that this is no investments in the USD or Forex, but an long term Insurance fund with MetLife. It is a low risk long term investment, and it seem very safe and secure.

To be more profitable, I shouldnt touch the fund until i reach the age of 60. And if I don't take anything out at 60, the fund will just keep increasing, slowly but with a bigger impact.

So I will keep that fund, and start and iDeco and maybe even invest just by myself too.

thanks to everyone....

[RetireJapan]

After more research and discussing with the agent, it seems that this is no investments in the USD or Forex, but an long term Insurance fund with MetLife. It is a low risk long term investment, and it seem very safe and secure.

Ideally, in order to make a decision, you would know what the fund is investing in and what kind of fees you are paying on it.

Treating it as a sunk cost and finding other investments to complement it also works though

[TokyoWart]

Sounds like a cash value life insurance policy or other insurance “investment” product. These are awful investments especially in an era of low interest rates.

[Hárbarðr]

thank you again for the comment.

I am not sure if I understand why it is a bad investment?
Honestly I dont understand why my money will increase over a long period of time either...

what should I ask the agent? I am planing to meet with him next week....

I will loose some money if I up out of the plan now....