Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-10-2017, 07:52 PM   #41
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 177
Quote:
Originally Posted by Bryan Barnfellow View Post
I think you are misunderstanding this. You said in your response that rates go up and down, implying there was no need to be concerned. I showed you a chart which, over 40 years, shows short term ups and downs along a decidedly long term down trend; i.e., 4.38 CHF per 1 USD in 1970 vs. .97 CHF 40 years later. The chart illustrated that simple reality. I picked the first chart I found to illustrate my point about short vs. long term trends.

In any case, the last 5-6 years are immaterial...short term noise. The exchange rate (USD:CHF) was 1:.97 on January 3, 2011. It went up and down over the intervening years (as low as .84 if I remember correctly and up above parity at times) and is now 1:.98, virtually the same as where it was in 2011. The trend from 4.38 to .98 has not been broken, do you see? My last two years of experience in retirement aren't as important as my next 30. In this case the old adage, "the trend is your friend," doesn't apply to me!

Hope this makes it clearer. Thanks.

-BB
I'm not misunderstanding any thing, for 7 years you have a trend of higher highs and lows, all which started about the time the US and Swiss started serious talks about their banks. I'm not going to say much about the Swiss but they have dark history and its not pretty like their landscape.
__________________

__________________
alaska55 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-10-2017, 08:38 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,499
Invest in more foreign investments? Something like Vanguard VXUS. Should give you a nice hedge against USD growing weaker long term.
__________________

__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 10-10-2017, 11:14 PM   #43
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 4,333
Quote:
Originally Posted by Bryan Barnfellow View Post
We rent...we could never ever afford to buy our place, even if it were for sale. This is true for something like 60% of the Swiss...all renters. ......

BTW, landlords cannot raise rents unless there is serious inflation/interest rate rises or they do some renovation in your flat or house. So, our rent hasn't changed in almost 8 years. Our next door neighbor said hers hasn't been raised in over 20 years (!). And if interest rates go down significantly the renter has the right to request a decrease in rent.

Another problem: the longest fixed mortgage is only 10 years, then you have to renegotiate new terms at the current interest rates. So, there is some risk there.......

We have considered buying some real estate here and renting it -- like a studio apartment (only about 400K-500K CHF gulp); but it is complicated, even with permanent residence permits, which we now have. And, we don't want to get new jobs as landlords!
-BB
I view it's bad for landlords that they cannot raise the rent, as even 1.5% inflation per year over 20 years is well over 30%.
So it would be bad for you to become a landlord as landlords must have a tough time there.
__________________
Sunset is offline   Reply With Quote
Old 10-11-2017, 01:48 AM   #44
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 20,724
Quote:
Originally Posted by haha View Post
First, I am not critical of what you said. I just could not parse the sentence structure.

What is the difference between a share fund and a stock fund and a share fund fund?

Ha
My bad, sorry about that, the common terminology here is “stocks and shares” ISA’s and I didn’t even get that wording right. An ISA is the UK equivalent of a Roth but the IRS does not recognize the pension wrapper and taxes the gains as they are produced. (I have a cash ISA and as interest accumulates free of UK tax I still pay US tax on it)

10 steps to finding the best stocks and shares Isa - Which?

I am also a regular user of Transferwise to transfer funds which matches those who want to sell with those who want to buy to give very low forex transfer fees. I have an HSBC account in both countries and transfer money either way in minutes at good rates but still prefer to wait a few days for Transferwise to do its thing.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 10-11-2017, 10:33 AM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,335
Quote:
Originally Posted by Alan View Post
My bad, sorry about that, the common terminology here is “stocks and shares” ISA’s and I didn’t even get that wording right. An ISA is the UK equivalent of a Roth but the IRS does not recognize the pension wrapper and taxes the gains as they are produced. (I have a cash ISA and as interest accumulates free of UK tax I still pay US tax on it)



10 steps to finding the best stocks and shares Isa - Which?



I am also a regular user of Transferwise to transfer funds which matches those who want to sell with those who want to buy to give very low forex transfer fees. I have an HSBC account in both countries and transfer money either way in minutes at good rates but still prefer to wait a few days for Transferwise to do its thing.


Thank you Alan. I thought it must be some U.K. structure but did not know what.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-13-2017, 11:08 AM   #46
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 2,192
Bryan,

The exchange rate fluctuation is also my concern since I have 90% of my assets in USD, and I live in Canada. The exchange rate has been in my favor for the last couple of years ($1 USD worth about $1.20-$1.35 CAD), but CAD has been slowly rising. Only a few years ago, $1 USD was worth $0.98 CAD, so we'll never know how far CAD may rise.

I don't have a good solution to this dilemma. I initially moved about 10% of my asset to CAD and invested, but I don't want to move much more due to tax implications. I will move some more USD to CAD when my US CD's mature (if the rate is still favorable.)

All I am doing right now is to make sure my spending budget is low enough that I can weather the storm when and if it comes.
__________________

__________________
tmm99 is offline   Reply With Quote
Reply

Tags
currency exchange, swiss franc, us dollar


Currently Active Users Viewing This Thread: 2 (0 members and 2 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Cognitive decline and finances - how to trust an outside person? Deej Health and Early Retirement 15 06-20-2017 01:12 PM
Long term loss combined with long term gain dmpi FIRE and Money 9 12-21-2012 03:27 PM
dollar decline and financial system/MBS woes ladelfina FIRE and Money 12 04-18-2008 12:46 PM
The Decline of the U.S. Dollar? thefed FIRE and Money 8 05-01-2007 04:51 AM
Volcker Sees More Decline in Dollar Ahead Hyperborea FIRE and Money 11 12-06-2004 03:58 PM

 

 
All times are GMT -6. The time now is 03:11 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.