Your Pension Overseas - how much is it really worth?

Smart_FX

Purch,

I am not talking about speculations on the FX market but physical delivery of the funds.

ManAtHome

If you don't want to play at currency speculation, get the pension paid into the Nationwide then withdraw from any ATM in the EU with no surcharge...

Smart_FX

ManAtHome wrote: »

If you don't want to play at currency speculation, get the pension paid into the Nationwide then withdraw from any ATM in the EU with no surcharge...

Good one!

Nationwide are good with their card and withdrawing abroad. I have my own little account for travels there

purch

I am not talking about speculations on the FX market but physical delivery of the funds

Who is talking about speculating

I am talking about hedging exchange rate risk.

The scenario you are talking about is of a British pensioner living overseas, who receives a pension in sterling, but has expenditure in a different currency.

It is perfectly possible, cheap and easy to hedge that exchange rate risk for any period up to 5 years, and quite possibly out to 10 years.

You are coming on to this forum claiming to be an expert in this, yet you clearly don't have the foggiest idea.

I own 5 vacation rental properties in Florida, and in 2001 I hedged all my Income from them into GBP for 10 years (until 2011) from a Spot of 1.4180, so it is very easily and cheaply done.

You'd be better trying to learn and understand the FX Markets and how they work before you come onto a Forum such as this giving bogus information.

If you don't want to play at currency speculation, get the pension paid into the Nationwide then withdraw from any ATM in the EU with no surcharge...

Sorry mate but that is probably the most extreme form of currency speculation a pensioner could possibly enter into.

Having an ongoing income in GBP, and outgoings in EUR with nothing to hedge or protect you from exchange rate movements.

Cook_County

My observations are that you seem to have ignored tax entirely - why?

purch is of course filing both US & UK tax returns reporting US rental income. He is also paying UK tax on currency gains made through his hedging transactions.

With your theoretical pensioner retired in another country - please tell me how your game plan works in tax terms?

purch

tax

:eek:

A good CPA is worth her weight in Martinis !!!