The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Olive Branch on November 13, 2020, 10:32:52 AM

Title: Brazilian art sale and investing the money from it in Brazil.
Post by: Olive Branch on November 13, 2020, 10:32:52 AM

Hello everyone,

I am writing this on behalf of a wealthy family member of mine who lives in Brazil. He knows that I am a passive investor and a Mustachian, and reached out to me with this question and request for advice.

He is expecting to sell a work of art and earn RS$800,000 from it, a little over $145,000 in American dollars. He is wondering how to begin investing in Brazil, but all my knowledge is US and Canadian-centric. There are plenty of brokerages in Brazil from a cursory Google search, but do Brazilian investors have the choice to invest in ETFs and mutual funds that are low-cost (or at least as low-cost as Brazilian funds can be) from Vanguard or some similar fund company?

I can provide more information if necessary, after relaying the questions back to him.

Title: Re: Brazilian art sale and investing the money from it in Brazil.
Post by: FIRE Artist on November 17, 2020, 10:10:35 AM

To be honest, I think this site is under represented by members from South America, there are some expats around, but not any nationals that I have noticed.  The expats would usually invest in home country accounts so their experience would not be of use. 

Title: Re: Brazilian art sale and investing the money from it in Brazil.
Post by: jinga nation on November 18, 2020, 11:40:33 AM

this might be an unpopular answer, but I think you should go to bogleheads.org and search their forums.
they have had expats/diplomats and citizens of South American countries ask investing questions.

Title: Re: Brazilian art sale and investing the money from it in Brazil.
Post by: Fuzz on November 18, 2020, 10:37:22 PM

Holy smokes the real has gone down. I remember when it was about 1.7 to the dollar (late 2000s) and now it's over 5. Wow.

Anyway, you're asking a complicated question. It would make sense to keep some money in Brazil and move some money out of the country to diversify. Brazil had relatively high interest rates (like 8 percent) in recent memory. There are tax consequences. He may have limits on opening US accounts. He could buy slightly complicated foreign exchange options to protect himself from currency risk.

If he is eligible for Portuguese citizenship and lots of Brazilians are, then he may have interesting options in the EU too. No idea how you find a mustachian Brazilian financial advisor, but Bogleheads is a great place to start.  His best investment is probably to keep making art :)

Title: Re: Brazilian art sale and investing the money from it in Brazil.
Post by: Olive Branch on November 23, 2020, 03:16:05 PM

Thanks for the advice, everyone. I'll go see what the Bogleheads have to say!