The weak $$$

[nun]

Recently I've seen items on TV and in magazines praising the merits of ERing to places like
Mexico, Nicaragua and Panama. They describe the low standard of living, good facilities and weather.
They left me thinking that there are plenty of places in the US where you can get those things. But more than that ERing to a foreign country leaves you open to the dangers of the long slow decline in the value of the dollar.

 

[brewer12345]

Easily solved problem. There are lots of low cost investment vehicles that own assets denominated in just about every conceivable currency. Maltese Lira, anyone?

 

[nun]

Easily solved problem. There are lots of low cost investment vehicles that own assets denominated in just about every conceivable currency. Maltese Lira, anyone?

So you can buy Nicaraguan denominated invetsment vehicles in the US? Is there a Nicaraguan/Central American EFT?

 

[brewer12345]

So you can buy Nicaraguan denominated invetsment vehicles in the US? Is there a Nicaraguan/Central American EFT?

I wouldn't be surprised. If not, Everbank offers foreign currencies in an array of currencies and currency baskets. There are also foreign bond funds that are devoted to developed currencies, developing, or both. GIM (one such fund) has been making up for a lot of the beating I'd otherwise be taking.

 

[nun]

I wouldn't be surprised. If not, Everbank offers foreign currencies in an array of currencies and currency baskets. There are also foreign bond funds that are devoted to developed currencies, developing, or both. GIM (one such fund) has been making up for a lot of the beating I'd otherwise be taking.

I like the Everbank foreign denominated CDs. I also see that Fidelity has a range of international
sector funds. If you're in Latin America I suppose a hedge against currency fluctuation would be to invest in Fidelity Latin America Fund FLATX

 

[perinova]

If you think that $ will keep going down further then the sooner you will move your assets the better. As far as keeping assets in S&P etc and living abroad it seems less and less interesting financially. Specially in the cities, the cost of living is not necessarily lower outside US.

I assume you meant low COST of living but HIGH standard of living.

Let me share with you some studies comparing COL in several world cities.
(hope the attachment works )

 

[perinova]

FYI www.mercerHR.com also has a top-50 QOL compariosn of world cities (pdf file too big to post here).

 

[REWahoo]

The dollar might be weak, but not pennies and nickels.

"For the first time in U.S. history, the cost of manufacturing both a penny and a nickel is more than the 1-cent and 5-cent values of the coins themselves."

 

[nun]

If you think that $ will keep going down further then the sooner you will move your assets the better. As far as keeping assets in S&P etc and living abroad it seems less and less interesting financially. Specially in the cities, the cost of living is not necessarily lower outside US.

I assume you meant low COST of living but HIGH standard of living.

Let me share with you some studies comparing COL in several world cities.
(hope the attachment works )

Its not easy for a US citizen to invest money offshore, I rasied this in a previous post. Those foreign denominated CDs are looking better and better

 

[gtmeouttahere]

Recently I've seen items on TV and in magazines praising the merits of ERing to places like
Mexico, Nicaragua and Panama. They describe the low standard of living, good facilities and weather.
They left me thinking that there are plenty of places in the US where you can get those things. But more than that ERing to a foreign country leaves you open to the dangers of the long slow decline in the value of the dollar.

I don't understand what you just said.  If you ER to a foriegn country with a low cost of living vice living in the US where no matter where you lived, it would cost you way more to live.  Wouldn't you be better off to be where it is cheaper? 

To me, if it costs you $20,000-40,000 LESS to live in another country a year than it does in the US, how much more money are you able to save and invest?

Having said that, I feel you will leave yourself MORE open to the long slow decline of the dollar by staying in the US where it is more expensive and more readily impacted by the weak dollar.   

 

[nun]

I don't understand what you just said. If you ER to a foriegn country with a low cost of living vice living in the US where no matter where you lived, it would cost you way more to live. Wouldn't you be better off to be where it is cheaper?

Having to pay for stuff in a foreign currency just leaves yoou open to another fluctuation. With the deficit going the way it is I really worry about the dollar. I just sent some money home to my niece in the UK and had to pay $1.90 per pound, a month ago the rate was $1.77. I think its a good idea to have at least some of your 5 year fixed income part of the portfoli in the local currency to smooth out fluctuations. This thing is I see the $ just going down rather than fluctuation like the stock market on a generally upward trend.

 

[Nords]

Having to pay for stuff in a foreign currency just leaves yoou open to another fluctuation. With the deficit going the way it is I really worry about the dollar. I just sent some money home to my niece in the UK and had to pay $1.90 per pound, a month ago the rate was $1.77. I think its a good idea to have at least some of your 5 year fixed income part of the portfoli in the local currency to smooth out fluctuations. This thing is I see the $ just going down rather than fluctuation like the stock market on a generally upward trend.

It just depends on your frame of reference.

Between 1984-86, when I was spending a considerable portion of my time in Scotland, the pound went from about $1.60 to $1.85. We thought the end of the world was at hand.

 

[nun]

It just depends on your frame of reference.

Between 1984-86, when I was spending a considerable portion of my time in Scotland, the pound went from about $1.60 to $1.85. We thought the end of the world was at hand.

Very true just after WW2 there were $4 to 1GBP and around 1985 there was almost parity between the dollar and the pound. But I think the trend will be downwards for the dollar against most currencies, its just something that is never mentioned in all the hype for foreign retirement "havens"

 

[Maximillion]

The next Current Account Defecit will show the impact of the 11% rise in Oil Costs, it should result in an extremely high number, may really affect the dollar.

Foreigners will start bailing, I am looking to put a substantial amount into a US Dividend ETF but I am holding back, we are all waiting for the bottom.

Cross Border shopping is back, the Border Malls should be seeing a lot more traffic.

 

[Maximillion]

Canada manafactures its cent for 1/8 of a cent, it makes coins for many other countries.

Time to start collecting silver coins again.?

 

[greg]

http://www.kitco.com/ind/VanEeden/may082006.html