Doctor P
<font color=navy><font color=navy>Chocolate covere
- Joined
- Jan 24, 2000
Sitting here trying to take my mind of the tragic events of today, I was thinking about something that interests me: investing, making money, and DVC. I came up with a new investment device: the 2042 DVC Certificate of Deposit. As the name implies, the certificate will mature on January 31, 2042 to coincide with the end of DVC.
The certificate will pay an annual rate equal to the annual per points dues rate on the DVC property you own (you must tie your investment to a single DVC property). The rate is adjusted once each year to account for changes in the annual dues rate, as well as at any time that there is an increase in the point rate for direct from Disney sales.
Thus, today's rate would be approximately 3.12% for OKW. If the price of points went from $75 to $80 per point, then the rate would increase by .5% (1/10% for each $ increase in price). The certificate will pass with the contract (imagine the complications in calculating a price for a resale involving such a certificate!!), and any withdrawals will be subject to a penalty in the amount of 11 months compounded interest (got to tie this to a time frame familiar to all DVCer's). Thus, existing DVCer's would see the value of their investment increase with both point prices and annual dues costs!!! If the price per point were to go to $100, the OKW certificate would pay 5.62% before any dues increases are considered!
Would you bite and buy a certificate like this?
The certificate will pay an annual rate equal to the annual per points dues rate on the DVC property you own (you must tie your investment to a single DVC property). The rate is adjusted once each year to account for changes in the annual dues rate, as well as at any time that there is an increase in the point rate for direct from Disney sales.
Thus, today's rate would be approximately 3.12% for OKW. If the price of points went from $75 to $80 per point, then the rate would increase by .5% (1/10% for each $ increase in price). The certificate will pass with the contract (imagine the complications in calculating a price for a resale involving such a certificate!!), and any withdrawals will be subject to a penalty in the amount of 11 months compounded interest (got to tie this to a time frame familiar to all DVCer's). Thus, existing DVCer's would see the value of their investment increase with both point prices and annual dues costs!!! If the price per point were to go to $100, the OKW certificate would pay 5.62% before any dues increases are considered!
Would you bite and buy a certificate like this?
