Tiger Moth Posted June 27, 2002 Report Share Posted June 27, 2002 I read spirit_of_town_hall's post about the Dollar and felt that my interest in this subject would be best presented in a separate post. Since I am hoping to retire to LOS next year, I am concerned about the Dollar degrading in relation to the baht. So, I was thinking that perhaps I should put some of my current funds into baht as a hedge against my retirement income which will be in $. On another hand, the yen has been moving positively versus the baht. So, what should someone, like me, concerned about the ability to survive on US Dollars in LOS do? Transfer $ to baht? Transfer $ to yen? Stick with $? As spirit_of_town_hall said if the $:baht rate is in the mid-30's then LOS isn't so cheap!!! Link to comment Share on other sites More sharing options...
Guest Posted June 27, 2002 Report Share Posted June 27, 2002 [Removed to prevent possible flamewar - KS] Link to comment Share on other sites More sharing options...
Guest Posted June 27, 2002 Report Share Posted June 27, 2002 ... you really calling for a shitstorm aren't you. I'll just leave it at that and hope you delete your "genius" statement. Link to comment Share on other sites More sharing options...
Tycona Posted June 27, 2002 Report Share Posted June 27, 2002 The dollar will probably fall a bit more, but I think the worst is over now. If you want to invest in another currency I can recommend the norwegian kroner. It must have been one of the strongest currencies world wide this year. 3 Jan 2002: EUR/NOK: 8.00737 1 April 2002: EUR/NOK: 7.70084 26 June 2002: EUR/NOK: 7.38546 The Kroner has gained 7.75% against the Euro this year. In another post I wrote that the Euro gained about 13% against the Dollar in the last 4 months... Need to know more? Norway has a solid economy with loads of natural gas and oil resources. Only negative might be that the revenues of oil and gas sales are in US Dollars... Link to comment Share on other sites More sharing options...
Guest Posted June 27, 2002 Report Share Posted June 27, 2002 Post deleted by bahnawk Link to comment Share on other sites More sharing options...
khunsanuk Posted June 27, 2002 Report Share Posted June 27, 2002 Hi, Guys, politics (and certainly foreign politics) do NOT belong on this board, so please keep them off. Sanuk! Link to comment Share on other sites More sharing options...
JJsushi Posted June 27, 2002 Report Share Posted June 27, 2002 Well what percentage of your current retirement money is in a lump sum? I wouldn't bother with trying to hedge yoour currency risk especially if it is not a substantial amount of money. I am talking bank type money. Currency hedging really applies more to future cash flows risk than current capital. I doubt if anyone can really tell you how to inexpensively protect your future $ income. You could gamble on futures contracts but more than likely you will get your ass handed to you. I would suggest that you may want to buy non-$ corporate a sovreign bonds in Thailand. That way you guarantee that your income will be in baht. Do keep in mind that there may be tax considerations with these that may make your investment less profitable. You could invest in he Thai stock market, but let's be honest how well do you understand Thai businesses? You could stick some money in Thai savings account but I am sure the paltry interest is enough to deter most people. Remember that as a US citizen you have to report any income you earn overseas, the IRS always wants their cut. The last thing I think you would want is some sort of audit during your retirement. With all of the "terrorism" fear going on and the US scrutinizing financial transactins, maybe keeping your money in $ is the best bet. I think your best hedge is to open up, invest in, or work for a cash transactional business in Thailand that can at least cover your monthly nut in expenses. After that it is all gravy. Whatever you do I still think you have it made because if your current money will be worth less in the future in Thailand think about how much less it will be if you lived in The States? Health care alone is going to put most retirees in the poor house. Link to comment Share on other sites More sharing options...
Guest Posted June 27, 2002 Report Share Posted June 27, 2002 Link to comment Share on other sites More sharing options...
gummigut Posted June 29, 2002 Report Share Posted June 29, 2002 Gee, things have been going fast and furious on this board, lol. Tiger Moth: Truthfully, no one can really intelligently tell you what to do. A true investment advisor would need your age, your current net worth and expect worth at retirement. Your minimum returns over time. Your risk outlook and your risk tolerance. Having said all that crap.... You should keep your money in US$. Especially if things go to crap the place you will likely end up most is the US, then that's where you should keep your $'s. If you do have substantial amount of cash on hand than you might want to think of AA or better credit rating Yen denominated securities or bonds. I suggest Yen because the baht tracks it closely and would be a better hedge and give you a better return than Baht stuff. The AA credit rating is just extra protection to preserve the principle amount of investment and avoid risk in a relative transparent market. Once you are over here and if you follow Thai business and economy for awhile and you become comfortable with the Thai stockmarket then make the switch with a % of your portfolio and see how you do investing locally. As for worrying about future exchange rates... Your time would probably be better spent worrying about what are the best ways to spend your future leisure time <<burp>> Link to comment Share on other sites More sharing options...
Guest Posted June 29, 2002 Report Share Posted June 29, 2002 G, An erudite and inteligent post. Go to the top of the class Link to comment Share on other sites More sharing options...
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