Swiss bank accounts 101, or something different?
First of all, I’m not an expert on the financial issues around US citizens living abroad. I do know that the taxes involved can be very complicated, so make sure you talk to a tax expert who knows the details of your specific situation. I realize that selling securities/investments/etc. that are part of the portfolios these assets consist of (some of the liquid assets and some of the IRA) will lock in my losses now; however, I’m also concerned that, even if the value recovers over time, the long-term depreciation of the dollar and the effect of inflation may negate any rebound. Especially in accounts like IRAs where you are not taxed for gains, there is absolutely no such thing as “locking in” your losses. The value has already been lost, selling shares is just trading your assets for the equivalent amount of money. Also, the depreciation of the dollar and inflation do not directly affect investments like stocks. If you buy a barrel of oil and the dollar depreciates, your oil is just w
I’m not a financial adviser and this isn’t financial advice. Here’s a couple of thoughts. First, contrary to what you say in your question, the dollar has been doing very well recently. It’s risen from about £1 = $2 to about £1 = $1.75. It’s also improved similarly against the euro. If you’d checked out of the dollar a couple of monhs ago you’d have lost a significant sum by now. If anyone knew which way currencies would move, and when, they’d make an easy fortune. Fact is, no-one knows. So talk about the “safest” currency is guesswork, no matter how well informed. If you do want to buy a property in Europe, and insure yourself against a future decline of the dollar against the euro, and not risk losing your money in a bank crash, you might like to investigate euro-denominated European government bonds, for example German bunds. These are issued in denominations of €100 and backed by the German government. You can buy them through a stockbroker, or maybe even yourself online, and sell
1) Talk to a financial advisor before you get the money; planning appropriately before you get the $$ will help minimize taxes. 2) Don’t make unqualified financial decisions based on your readings of the state of the economy (“I’m scared of the US economy so I’m investing in Mackerel”)- there are lots of ways to stash money that are protected and that will provide you with longer-term upside. The key word here is diversification. The whole world is having issues now, which- paradoxically- may make it a better time to buy in the US, if buy and hold is a viable strategy. Do see a professional financial planner as soon as you can- and express your concerns. If they can’t answer them, find one who can.
Bonds, treasury bonds. This is not going to be a good longe term solution, but it’s a safe port in a storm. Otheriwse an intrest bearing US dollar account in an FDIC insured bank is another low yeild safe harbor right now. We all know about the US economy. It’s not the US economy that is in crisis, it is the world’s economy. unless you can open an account in China. Not exactly a good idea. These banks are not insured and the Chinese are tied to the US economy for at least $1 trillion, not to mention the US is their biggest customer. Lose the US market and you lose everything. I sure do wish I had bought a big ole sack of Yuan about a year ago though. Incidentally to open a true Chinese account you have to have an excuse, such as a job in China and a Chinese co-signator, otherwise these are “international” accounts and they aren’t treated in the same way (tarriffs and fees apply that don’t to Chinese accounts, the values may be pegged in dollar
Different question, same answer: an Irish bank in Jersey. Jersey banks deal almost exclusively in offshore accounts, the money will be in euros, they can do transfers to you in Oman without issue (assuming there are no issues receiving foreign funds in Oman, which I have no idea about), and the full value of your deposit is guaranteed by the Irish government. I am not a financial planner and I’m more or less making this up, but it certainly is sound and quite workable.
