Read The Forum Rules: We have a clear set of rules to keep the forum running smoothly. Click here to review them.

Post Reply 
Making Money Would you quit your job if you had 200k savings in 2020?
Author Message
KYT88 Offline
Robin
*

Posts: 145
Joined: Apr 2015
Reputation: 7
Post: #51
RE: Would you quit your job if you had 200k savings in 2020?
I have experience in hiring unskilled workers in Indo and it can be very challenging if you are not on site or have some one trusted to manage the site. If you are paying the workers a daily rate with a commission to find stones be aware that they will often be poached and they won’t have any loyalty to one location. Also in a few months it is Ramadan and they expect double pay that month
02-09-2020 05:03 AM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes KYT88's post:
kel
myrica Offline
Pigeon

Posts: 18
Joined: Nov 2019
Reputation: 0
Post: #52
RE: Would you quit your job if you had 200k savings in 2020?
(02-09-2020 05:03 AM)KYT88 Wrote:  I have experience in hiring unskilled workers in Indo and it can be very challenging if you are not on site or have some one trusted to manage the site. If you are paying the workers a daily rate with a commission to find stones be aware that they will often be poached and they won’t have any loyalty to one location. Also in a few months it is Ramadan and they expect double pay that month

thanks for the insight. Very appreciated.

Our agreement(anything that comes out from the mine and sold) is %40 me, %40 workers, %20 landlord. A guy that i did some trade(local) suggested that he wants to do the daily operations of the mine.

Any way to ensure smooth operation?
02-09-2020 09:32 AM
Find all posts by this user Like Post Quote this message in a reply
KYT88 Offline
Robin
*

Posts: 145
Joined: Apr 2015
Reputation: 7
Post: #53
RE: Would you quit your job if you had 200k savings in 2020?
I would be hesitant if it was me personally and I couldn’t be onsite to manage the operations.

If you look back at the Kimberly mines that CR opened up and the ingenious ways the miners were secreting out the rocks and they had overseers and inspectors to check them coming in and out, internal searches etc.

If you are remote managing the operation you will have none of the capabilities to monitor the workers let alone the overseers in charge of looking after the site.

I guess your landlord would be BDI, do they force you to use a particular channel when selling your diamonds? Are you able to hold or do you have to sell immediately?
(This post was last modified: 02-10-2020 01:10 AM by KYT88.)
02-10-2020 01:09 AM
Find all posts by this user Like Post Quote this message in a reply
myrica Offline
Pigeon

Posts: 18
Joined: Nov 2019
Reputation: 0
Post: #54
RE: Would you quit your job if you had 200k savings in 2020?
first of all, what is CR?
and BDI?

Our agreement is based on sales. Whichever channel is used to sell diamonds is irrelevant.

When anything bigger than 5ct is found,i would prefer to take it out and sell it in antwerp/nyc which will fetch better price.
02-10-2020 04:27 AM
Find all posts by this user Like Post Quote this message in a reply
KYT88 Offline
Robin
*

Posts: 145
Joined: Apr 2015
Reputation: 7
Post: #55
RE: Would you quit your job if you had 200k savings in 2020?
Cecil Rhodes
BDI mining Corp, owner of Cempaka Mine.

If you can’t be on the ground I think it will be hard to get an accurate account of productivity and ultimately yield. But best of luck.
02-10-2020 05:22 AM
Find all posts by this user Like Post Quote this message in a reply
myrica Offline
Pigeon

Posts: 18
Joined: Nov 2019
Reputation: 0
Post: #56
RE: Would you quit your job if you had 200k savings in 2020?
i actually doubt BDI will be the landlord.
When i met traders there, it looked to me that they have their own land and own mines(i visited few, small though) and they are very organised. Most of the buyers are indian with few aussies/jews.
apart from cempaka mine which is now a tourist attraction, i've seen independent places too.
02-10-2020 07:10 AM
Find all posts by this user Like Post Quote this message in a reply
worldtraveler3 Offline
Kingfisher
***

Posts: 643
Joined: May 2014
Reputation: 6
Post: #57
RE: Would you quit your job if you had 200k savings in 2020?
Why u don’t buy the mine
02-10-2020 02:45 PM
Find all posts by this user Like Post Quote this message in a reply
myrica Offline
Pigeon

Posts: 18
Joined: Nov 2019
Reputation: 0
Post: #58
RE: Would you quit your job if you had 200k savings in 2020?
(02-10-2020 02:45 PM)worldtraveler3 Wrote:  Why u don’t buy the mine

foreigners arent allowed to own land in asia.
02-10-2020 03:18 PM
Find all posts by this user Like Post Quote this message in a reply
KYT88 Offline
Robin
*

Posts: 145
Joined: Apr 2015
Reputation: 7
Post: #59
RE: Would you quit your job if you had 200k savings in 2020?
You can own land in Jeju Island(South Korea), Batam(Indonesia) both Freeport status along with a few other places with various levels of restrictions.

The easiest way of ownership is to lease the land, when I acquired a farm in Bali the “purchase” was a 25 year lease with option to extend at the end of the period. It was very straightforward but if you looking to extract resources below ground I think there are other ways it can be done without having to own the land either
02-10-2020 08:29 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes KYT88's post:
Going strong
myrica Offline
Pigeon

Posts: 18
Joined: Nov 2019
Reputation: 0
Post: #60
RE: Would you quit your job if you had 200k savings in 2020?
(02-10-2020 08:29 PM)KYT88 Wrote:  You can own land in Jeju Island(South Korea), Batam(Indonesia) both Freeport status along with a few other places with various levels of restrictions.

The easiest way of ownership is to lease the land, when I acquired a farm in Bali the “purchase” was a 25 year lease with option to extend at the end of the period. It was very straightforward but if you looking to extract resources below ground I think there are other ways it can be done without having to own the land either

i wouldnt do it until i learn the intricacies of owning a land in indonesia. Im quite sure they wont allow me to do it in kalimantan anyway.

everyone is financing, also in africa.
02-12-2020 04:38 PM
Find all posts by this user Like Post Quote this message in a reply
Zenta Offline
Woodpecker
**
Gold Member

Posts: 279
Joined: Mar 2019
Reputation: 3
Post: #61
RE: Would you quit your job if you had 200k savings in 2020?
(02-10-2020 08:29 PM)KYT88 Wrote:  You can own land in Jeju Island(South Korea), Batam(Indonesia) both Freeport status along with a few other places with various levels of restrictions.

The easiest way of ownership is to lease the land, when I acquired a farm in Bali the “purchase” was a 25 year lease with option to extend at the end of the period. It was very straightforward but if you looking to extract resources below ground I think there are other ways it can be done without having to own the land either

Interesting. So you lease the land for 25 years, what happens at the end of the lease if you desire to continue "owning" the land. Do they renew at a much higher because they can(say an older person leased it to you then passed, and now the kids own it)? Its an interesting concept and one I haven't thought about to get around that restriction. Thanks for bringing it up.
02-14-2020 12:33 AM
Find all posts by this user Like Post Quote this message in a reply
KYT88 Offline
Robin
*

Posts: 145
Joined: Apr 2015
Reputation: 7
Post: #62
RE: Would you quit your job if you had 200k savings in 2020?
The lease is normally extendable twice and the cost to extend is mostly based on the market value of the land. As a safeguard it would be sensible to dictate how the market value is determined as otherwise you could end up in a tough negotiation.
02-14-2020 03:26 AM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes KYT88's post:
Zenta
Seadog Offline
Woodpecker
**

Posts: 490
Joined: Dec 2012
Reputation: 26
Post: #63
RE: Would you quit your job if you had 200k savings in 2020?
(02-07-2020 05:35 AM)pitbullowner Wrote:  with my plan to settle down in the next couple of years, I'll need exponentially more than that to have 3 kids and a wife that i'd prefer to only work a part time job vs being a career woman. 200k would be a drop in the bucket. Back when i owned a trucking business (small 2 truck power only capacity) I could blow through 200k like it was nothing.

New Engine ? Used cheapest Caterpillar engine that i wanted was 12k...

200k would go quick especially if you have a family. Bump the number to.....700k and i think i could maybe make it work for about 10 years

You're thinking about it wrong. Ideally you don't touch that 200k, or 700k, or whatever. The point of that hoard is not to spend, but rather to generate more money, and the tried and true number is around 4% a year, with variability in the base amount of like +/- 30%.

To that end, 200k is no where near enough to last forever. You can confidently pull 8k/yr, forever, with something like a <5% chance of ever going bust. But 8k/yr is basically a poverty level of existence. But, one big emergency and you could be screwed.

Secondly, it will be very, very difficult to conduct business as a foreigner in Indonesia. Having worked for 2.5 years in the back lands, and travelled there extensively, the prevailing attitude of westerners setting up shop there is "how much can we bilk the rich foreigner for?".

There is paperwork and "fees" for everything, a lot of which I simply wasn't allowed to be around, since as soon as someone saw foreigners, be it police, gov't, whoever, the "fee" would triple. Now, that isn't to say it's vastly different than the west, there are fees here for everything as well, it just so happens that here the fees are fixed, predictable, and won't change on the whim of who ever for completely unrelated reasons like they had a shipment of weed seized and there are pissed off people
who need cash. Laws are wholly flexible, and to be competitive, you need to know which laws are real, which ones are not, and which ones are up for discussion.

You'd need an Indonesian fixer to handle all the local stuff, and that will cut into your profits making you less competative, and there's always a risk that the partner might take the business from under your nose, or another friend had their B & B burned down because locals felt that they were a little too successful, and started questioning why they should prosper while locals did not beyond a few jobs at $10 a day.

There is money to be made, but it's the quintessential high risk investment. Case in point. The Gili islands off Bali is a place I've frequented for diving like a dozen times. There's been a law on the books since forever that the beaches belong to the ppl, and you can't build on it. But people did anyways. If you didn't, you'd be obeying the letter of the law, but would be less competitive since no one else did. But then about 4 years ago, they out of no where decided to enforce it. So anyone with buildings on the beach had them bulldozed at their own expense. Whether you succeeded or failed, depended entirely on when you built, and whether or not you were able to skirt the law long enough to cover the costs later on. If you're comfortable with that sort of unpredictability, then have at it.
02-15-2020 09:36 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes Seadog's post:
Zenta
KYT88 Offline
Robin
*

Posts: 145
Joined: Apr 2015
Reputation: 7
Post: #64
RE: Would you quit your job if you had 200k savings in 2020?
Staff can be problematic too, often a high turnover and just last week had one abscond with the takings on a Sunday.
02-16-2020 05:58 AM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes KYT88's post:
Zenta
myrica Offline
Pigeon

Posts: 18
Joined: Nov 2019
Reputation: 0
Post: #65
RE: Would you quit your job if you had 200k savings in 2020?
(02-15-2020 09:36 PM)Seadog Wrote:  
(02-07-2020 05:35 AM)pitbullowner Wrote:  with my plan to settle down in the next couple of years, I'll need exponentially more than that to have 3 kids and a wife that i'd prefer to only work a part time job vs being a career woman. 200k would be a drop in the bucket. Back when i owned a trucking business (small 2 truck power only capacity) I could blow through 200k like it was nothing.

New Engine ? Used cheapest Caterpillar engine that i wanted was 12k...

200k would go quick especially if you have a family. Bump the number to.....700k and i think i could maybe make it work for about 10 years

You're thinking about it wrong. Ideally you don't touch that 200k, or 700k, or whatever. The point of that hoard is not to spend, but rather to generate more money, and the tried and true number is around 4% a year, with variability in the base amount of like +/- 30%.

To that end, 200k is no where near enough to last forever. You can confidently pull 8k/yr, forever, with something like a <5% chance of ever going bust. But 8k/yr is basically a poverty level of existence. But, one big emergency and you could be screwed.

Secondly, it will be very, very difficult to conduct business as a foreigner in Indonesia. Having worked for 2.5 years in the back lands, and travelled there extensively, the prevailing attitude of westerners setting up shop there is "how much can we bilk the rich foreigner for?".

There is paperwork and "fees" for everything, a lot of which I simply wasn't allowed to be around, since as soon as someone saw foreigners, be it police, gov't, whoever, the "fee" would triple. Now, that isn't to say it's vastly different than the west, there are fees here for everything as well, it just so happens that here the fees are fixed, predictable, and won't change on the whim of who ever for completely unrelated reasons like they had a shipment of weed seized and there are pissed off people
who need cash. Laws are wholly flexible, and to be competitive, you need to know which laws are real, which ones are not, and which ones are up for discussion.

You'd need an Indonesian fixer to handle all the local stuff, and that will cut into your profits making you less competative, and there's always a risk that the partner might take the business from under your nose, or another friend had their B & B burned down because locals felt that they were a little too successful, and started questioning why they should prosper while locals did not beyond a few jobs at $10 a day.

There is money to be made, but it's the quintessential high risk investment. Case in point. The Gili islands off Bali is a place I've frequented for diving like a dozen times. There's been a law on the books since forever that the beaches belong to the ppl, and you can't build on it. But people did anyways. If you didn't, you'd be obeying the letter of the law, but would be less competitive since no one else did. But then about 4 years ago, they out of no where decided to enforce it. So anyone with buildings on the beach had them bulldozed at their own expense. Whether you succeeded or failed, depended entirely on when you built, and whether or not you were able to skirt the law long enough to cover the costs later on. If you're comfortable with that sort of unpredictability, then have at it.

i do agree that its always hard to make business in any 3rd world country where everything is corrupt.
I do find similarities with africa when i read about your reply lol. Difference is, indonesia is safer.
02-17-2020 02:55 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes myrica's post:
Zenta
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)

Contact Us | RooshV.com | Return to Top | Return to Content | Mobile Version | RSS Syndication