Interest on Ecuadorean Bank Accounts

finster wrote:

Is it true that certain government insured banks and coops offer around a 10% yield? I've heard that JEP Coop does and is insured up to $31000. I have a decent amount of money ($100k) tied up in a Roth IRA  (and about $100k projected from the sale of my house) here in the states and am thinking that I could possibly make my move to Ecuador now and transfer at least some of the money to a few different Ecuadorean accounts and the interest alone would just about provide my annual expenditures, at least until my pension payments start in 4 yrs.  I Can start taking out of my Traditional IRA without tax penalties. Any thoughts?

(I really can't take many more days at work like today's!)

Your logic appears sound on the surface, Finster.

Here are some considerations before you pull the trigger on this plan....

Are you gambling that Ecuador won't have a money crisis as it did about 15 years ago when bank and co-op depositors were sweating bullets?

Are you aware you could lose five percent of the money if you eventually decide to transfer it out of Ecuador?

Are you certain of this co-op's trustworthiness?  Did you know that the managers of a co-op in Cuenca committed massive fraud several years ago, causing big losses to Expat depositors?  The co-ops are not necessarily covered by the same comprehensive protections as the banks.

You have enough money at stake that this situation screams out for you to get assistance with the answers from an experienced, highly-recommended immigration attorney based in Ecuador before making any big moves.  Don't settle for advice from us 'laypersons.'

cccmedia in Quito

Thanks ccc. I was told when over in Quito that the KEP Coop was guaranteed up to $31k in deposits. I am aware of the 5% penalty for taking money out as well. Still 5 % isn't bad considering what the rates are here. Anyway, it is just something I wanted to throw out there before I make my 2nd exploratory trip in Sept. Maybe I can get in touch with you at that time to discuss some of my other concerns. Thanks again for your excellent redponse

finster wrote:

I make my 2nd exploratory trip in Sept. Maybe I can get in touch with you at that time to discuss some of my other concerns.

En absoluto.

I'm sending you a PM with the email address of a top-flight attorney in Quito, so you can ask preliminary questions.

See you in September.

cccmedia in Quito