Top critical review
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5 Stars Great Investment Ideas, 1 Star Poor Investment Results
on November 15, 2012
This book has some good investment ideas not found in other economy "crash" books also written by authors who predicted the stock, housing, and personal credit market downturns.
But when it comes to actual investment implementation, Peter Schiff tries to sell you on his "easy to get started and into" own "Euro Pacific Capital (EPC)" foreign investment firm (for easy foreign high-dividend stocks supposedly yielding better than US high-dividend stocks, and easy foreign currency holdings yielding supposedly better than US cash holdings, etc.), but EPC takes a 4.5% upfront account opening fee which is totally outrageous, and then another yearly fee. Peter Schiff's book "Crash 2.0" reports expected 8% returns on foreign investments, but if you factor that his EPC fees take 4.5% off of the first years opening investment, your profits, if his EPC mutual funds make a profit, suddenly are not much different than US high-dividend fund yields.
This means to profit you need to make 4.5% in fees the first year, plus 3.0% inflation, or at least 7.5% on your investments the first year just to break even. So given Peter Schiff's reported expected 8% return on foreign investments, you're not doing well for growth the first year (which is his books mantra), and you're only doing well for capital preservation (stopping the capital you have from losing its value).
It makes you wonder if they're charging 4.5% for opening the account for the first year how many customers actually stick around with EPC for the second year, in so much that they have to pull 4.5% out of your investment in the first year. If they make you money year in and year out, why the upfront 4.5% fee for opening the account the first year?