GJ's formal introduction

[GJ_01]

Introduction

I’d guess it’s time for a proper introduction. Let me preface this post by thanking each member of the forum. You guys have helped me acquire great financial knowledge and become just a little less ignorant.

Big up to @Julianek for Fool to Wise and the post If I was an index investor; if you haven’t checked them out, I encourage you to do so. I also really appreciate @cubanpete_the_swiss “contrarian” apports to this forum, he came challenging the status quo with his Mechanical investment strategies which I greatly appreciate.

Early Life

Born in the Dominican Republic, I came to Switzerland at 14. My Stepdad actually FIRE’d at 58. He sold his Swiss business, moved to the DR for the sun, and lived a life I’m now trying to “version 2.0.” I don’t want to just leave Switzerland; I want to use it as a high-income base to afford going to the DR and Japan for months at a time.

The “Wage Slave” Epiphany

On my first introduction on the forum I talked about having time for my kids. Over the last 6 years this has evolved into just not selling my time and buying back my freedom.

Last year, I took a new and very stressing job with no extra pay. The façade of “flexibility” crumbled when I asked for a month off and was laughed at. It was a blunt reminder: I am a wage slave. I’m trading my life for someone else’s 9-to-5 dream.

Methodology & Risk

I follow my IPS to the T. I don’t rebalance by selling; I rebalance with new monthly cash. I’ve read Lifecycle Investing, but since my RE horizon is <20 years, I find the 2:1 leverage they suggest too risky for the Sequence of Returns Risk (SRR) I’ll face early on. I stick to a 1.2x leverage ratio. Which I deem enough to boost returns, not enough to get a margin call during a volatile event.

Net Worth, Salary Progression

You can check my Networth & Salary progression on the respective posts.

Asset Allocation Highlights

• Japan Trade: After following the Japanese market for a few years now, I decided to take a margin loan and buy up the companies you see with CHF5.5K in collateral. I did it this way since I’m also betting on the JPY devaluing a little more, I got the loan at CHFJPY 195.752. The rules are as follows regarding this trade:

  • If JPY margin rate goes to 3%, the loan is paid with the CHF collateral
  • If CHFJPY goes to 190, the loan is paid with the CHF collateral
  • If CHFJPY reaches 200 sell 1.5K to mitigate risk and take some profits
  • If CHFJPY reaches 205.53 sell 4.1K
  • The remainder will be paid for by the dividends

• International Real Estate: Co-owner of a Bamboo Forest house in Hayama. Currently looking to buy into another Japanese project. This year I’ll probably do an operation on the DR too.

• Global and country funds: The two funds are my 3A. CH is so big because it’s the first one I opened. I haven’t maxed my 3A in the last three years. I want liquidity.

• Alternative Investments:Gambling, with cocaine and hookers.

  • On a more serious note, I lent some money to a family member that needed it to convert a commercial property into a studio. It’s denominated in DOP at a rate of 14% annually (it might seem predatory for family, but it’s by far the best rate for them and me taking into account currency risk). He’ll finish paying in July 2026.
  • Shitcoins also fall into this category.
  • Same with Private Equity. Q3 this year, I might buy some shares in a friend’s business.

Thoughts on the current state of the FIRE movement

I have a lot of fun on r/Fire and adjacent subreddits/forums. People panic over whether $4M is enough. People have got delusional on how much money you require. Mistaking comfort and luxury for needs. But, I guess it’s just my poor and jealous mind speaking xD.

I still adhere to the FIRE principles of living below my means and reducing consumerism. Gaining true freedom, not by having a lot of money and be able to splurge in whatever luxury I want. But by living more like a Monk that may have little but doesn’t need to suck the king’s dick to afford living.

But, it’s easy to say this as a young person without kids. Either way, I’m finding that “balance” of being contempt with what I have and recognize that I’m already quite privileged.

Future Outlook

The current plan is to get to CHF100K net worth in 5 years. After that, save CHF20K and take a year off in Japan. Then, see what’s next in life.

To get there, the goal this year is to get rid of debt. Then, have CHF10K invested into VT. Continue exploring Real Estate in the DR and Japan.

Final Takeaway

My stepdad retired, moved to the DR, and had 15 of the best years of his life before cancer brought him back to CH. If he had stayed here “working one more year” for safety, he would have been sick and miserable. The subject that I really want to put forward by saying this, is wanting to encourage people to perhaps take a little more risk. Don’t sacrifice your short life for one more year of “safety” you might not even live to use.

I know you guys have everything calculated and can afford to perhaps take a little more risk and stop the analysis paralysis. Take that sabbatical or trip with your family and live your life. I really miss my stepdad, and it would have been a blast to plan my FIRE journey with him and all his knowledge.

P.S: Thanks for your time.

[rho4]

Thank you! I love reading testimonials. Very moving and motivating!

[agentsmith]

Thank you from my side as well. It was great to read and a very good reminder why I want out of this rat race.

[gaijin]

Thank you for this post. Being a big Japan fanatic myself (went there on high school exchange, keeping in contact and regular visits) I love the combination of DR and Japan. 30 years ago, DR and Japan were on such different levels, I don’t think anyone would have named them in the same sentence. Now, makes full sense.

[conquestador]

@GJ_01

Continue exploring Real Estate in the DR and Japan

@GJ_01: Are there any regulations around buying RE in Japan? Gemini says no but first hand experience is always better. And is there any way of getting a residence if you don’t work for a JP company (maybe similar to Singapore where you can create your own company and get a visa that way)? Would be a very interesting thought to have another RE outside of CH/EU and in my case also LATAM.

By the way, very interesting read indeed!!!

[GJ_01]

As a foreigner, you can hold Real Estate in Japan. There are zones in which you only rent the land, like in other Asian countries, but those are special cases.

If you have the money, you can buy a house with the land and have the same rights as a Japanese citizen. My current Real Estate exposure is through crowdfunding with a startup. Generally speaking, house prices devalue in Japan. The only valuable thing is land.

The issue is mainly the visa, as a tourist, you can stay 3 months in a single stay every year. Some people take a trip outside the country and return to do another 3 months and effectively get 6 months in a single year. I do not know if this flies when doing it multiple years in a row.

A few countries have an accord with Japan and dispose of a visa called “Working Holiday” which lets you work or just stay in Japan for a year if you’re under 30. Extensible up to one year. Switzerland, unfortunately, does not dispose of such an accord.

So, your options for a long term visa are as follows :

• Student visa
  • 1 to 2 years for a Language school. More if doing Uni/Research there.
• Work for a Japanese company or make your current one transfer you there.
  • Either with a Highly skilled professional visa (allows permanent residency in only 3 - 5 years) or normal Engineer/Specialist in humanities visa.
• Move with the Startup visa present in certain cities to acquire Business Manager Visa
• Start a business and do the Business Manager Visa
  • The problem with this approach is that the requirements just changed since there was some abuse by a certain demographic.
  • The new requirements are as follows:
    • Must hire at least one full time employee that is a Japanese national or permanent resident.
    • Investment of 30M JPY (~150K CHF)
    • B2 Japanese proficiency
    • Academic or professional background related to the field or business management in general
    • A dedicated business office
• Marry a Japanese national

These are the main and most common methods for long-term visa. You can explore all the options here: https://www.mofa.go.jp/j_info/visit/visa/long/index.html

There’s one that is quite niche, called “Designated Activities”, which, as the name suggests lets you access Japan to do certain activities that do not fall under the standard visa categories mentioned above.

The key, with this visa, is that Long-stay tourism could be a designated activity. This means, if you have the pockets, you can get a 1-year Japanese visa to do tourism. This visa gives you a residency card, so you can navigate the country easier than when being a short-term tourist.

From what I’ve gathered, you need 30M JPY (~150K CHF) in your account to access this visa, so, it’s basically rich people visa. Regarding renewals, from what I’ve seen, you need to leave the country when it expires and apply again from abroad.