How to invest with US Dollars?

S

SkippyOD

Registered User
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Hi All,
I have been working in the United States for the last 3 years and have accumulated US$55,000 and am returning to reside in Ireland. I don't want to change this to Euro's because of the current unfavourable exchange rate. I'm looking to invest this amount in either a US$ equities or a US$ savings account and then change over to Euro's when the Eur : US$ ratio is between 1.10 and 1.15. I want to do this investment in Ireland and I have the flexability of investing this amount for a time period of 2 - 7 years. Has anyone any experience of investing with foreign currency and how easy is it to manage / keep track off while at home?
Any thoughts would be appreciated.
 
My advice would be vanguard.com, they have a large selection of index funds and very low fees. There total stock market fund, VTI or VTSMX, is fairly popular.

For savings accounts try HSBC, Emigrant, ING, etc.
 
When will the exchange rate get to 1.10-1.15 ?

If you know that for a fact, you could make a killing. In my opinion we are more likely to see 1.35 long before 1.15 ! (it's only an opinion!)

Trying to forecast exchange rates is more or less impossible.
 
I guess what I was trying to say was that I don't want to trade it in now when the US dollar is so weak. Before 2006 the 20 year average of the US dollar was less than 1.2. I'm assuming it will return somewhere close to this eventually and am prepared to wait, hence 2-7 years.
I know nothing as fact and am working off a very simple ideology i.e. what goes up must come down.
 
SkippyOD said:
I guess what I was trying to say was that I don't want to trade it in now when the US dollar is so weak. Before 2006 the 20 year average of the US dollar was less than 1.2. I'm assuming it will return somewhere close to this eventually and am prepared to wait, hence 2-7 years.
I know nothing as fact and am working off a very simple ideology i.e. what goes up must come down.
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There are very solid reasons why the value of the dollar has declined, and it doesn't look like these trends are going to be reversed any time soon. China has announced that the Chinese government will be diversifying out of USD and increasing other currency reserves. Since China holds about 1 trillion dollars this will very likely be a self-fullfilling prophecy - China is worried about the long term value of the dollar, so gets rid of part of its considerable dollar reserves, flooding the currency exchange market with USD and therefore keeping its value depressed.

Also, keep in mind that the United States has for a long time, I mean decades had a trade deficit. There's discussion of the long-term prospects of the US economy over in the Great Financial Debates board, so I won't get into further detail here, but there's very little evidence to support the notion that the value of the dollar is going to be rising any time soon.
 
SkippyOD

Why cant you leave the money in the US until such time as it is required? Can you not make arrangements with the holding Bank to accomodate your predicament?
 
SHORT it if you can,
obviously not an option here.

buy into dollar commodities, propbaly the safest way at the moment...or etf gold funds.
 
Second baby_tooth's advice. Convert your US dollars to gold and wait until the gold/euro exchange rate is favourable to switch to the euro.

At least convert a portion of your dollars to gold as a hedge against future dollar depreciation.

Consider Yuan as well, as the Chinese government currently purposely keeps the currency undervalued to the dollar and this is neither sustainable nor desirable for the country in the long run.

If W2DW is around he may advise on the Canadian dollar which is possibly undervalued to the US dollar considering their oil resources.
 
Is it possible to invest in a US$ savings account in a country if you don't reside there anymore? If the dollar was earned in a country that does not a have a double taxation agreement with Ireland do you have to pay tax on interest in both countries?
If you kept it in a US$ fixed savings account what kind of interest rate would be available over 5-7years?
 
It's difficult to open a savings account in the States that gives a competitve rate if you aren't resident. I'm not sure about Certificates of Deposit or other instruments, but I suspect it's much the same. You could probably send an email out to the major US banks (Citibank, Bank of America, etc) and get a pretty quick idea of your options.

Non-residents in America who do not have a green card are not subject to any tax on interest earned on their bank accounts in America. Your bank should send you a one-page form that they submit to the US government for you which makes this exemption legal. If you have a social security number you only have to fill in the form once, if not you have to fill it in every year. I assume interest earned on bank accounts overseas is reported and taxed in Ireland along with other forms of income through the year.

I'm not sure of the tax status for other investments in the US or other country. Hope this helps!
 
Is now a good time to invest in solid US$ equities such as Microsoft etc and sell these equities when the US$ maybe appreciates against the Euro back down to between 1.10 - 1.15 possibly in 5 to 10 years. Does anyone have any recommendations on what US$ stocks might be worth investing in at the moment, and what are the best Irish Brokerage firms to deal with when investing in uS$ equities.
 
ReggaeBoy said:
Is now a good time to invest in solid US$ equities such as Microsoft etc and sell these equities when the US$ maybe appreciates against the Euro back down to between 1.10 - 1.15 possibly in 5 to 10 years. Does anyone have any recommendations on what US$ stocks might be worth investing in at the moment, and what are the best Irish Brokerage firms to deal with when investing in uS$ equities.
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its going to take a long time and couple of years of the deomcrats in charge to bring the dollar anywhere down near to this level.

At the moment, the US have a huge, an absolutely massive trade deficit and its growing in the wrong way.

The US will just have to raise interest rates well above all other economic area to do this, as well as that, alot of their manufacturing and industry jobs are leaving or left.

They need to find new industires and job breating technologies asap.

I can't see what you are suggesting as being wise or the right step, unless...perhaps if US mutlinationals start issuing euro demonimated stock, or yuan demoniated stock.
 
ReggaeBoy said:
Is now a good time to invest in solid US$ equities such as Microsoft etc and sell these equities when the US$ maybe appreciates against the Euro back down to between 1.10 - 1.15 possibly in 5 to 10 years. Does anyone have any recommendations on what US$ stocks might be worth investing in at the moment, and what are the best Irish Brokerage firms to deal with when investing in uS$ equities.
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