Move out of sterling?

phoebe03cat

With sterling on the wobble I would appreciate any comments as to the advisability of moving out of stirling into the euro please. We have about 50k at present in reasonable accounts - shortly coming to an abrupt end. We don't need to live off our interest but are looking to reinvest to draw on in about 10 years time. Our gut feeling is that the euro has more stability than stirling. If we were to set up a european account, how does the tax situation work assuming we wanted to change back to stirling in 10 years time?

tradetime

Our gut feeling is that the euro has more stability than stirling.

The first thing to address before worrying too much about the tax situation is just how reliable your gut is.
Secondly are you planning on living in Europe in about 10 years time? Since you would be taxed all the way along the tax situation in 10 years would not be that relevant, assuming the "european account" you are talking about setting upis a bank account.

Dagobert

phoebe03cat wrote: »

I would appreciate any comments as to the advisability of moving out of stirling

Why don't you move to Falkirk?

Cook_County

tradetime wrote: »

The first thing to address before worrying too much about the tax situation is just how reliable your gut is.
Secondly are you planning on living in Europe in about 10 years time? Since you would be taxed all the way along the tax situation in 10 years would not be that relevant, assuming the "european account" you are talking about setting upis a bank account.

In addition if the OP is right there could be a large CGT bill in 10 years time...

tradetime

Cook_County wrote: »

In addition if the OP is right there could be a large CGT bill in 10 years time...

If she is in a normal bank account as opposed to some sort of investment then she will be taxed each year, so there would be no capital gains.

existentialist

Dagobert wrote: »

Why don't you move to Falkirk?

Oh lol!

To the original poster, do you know something we don't about ten years hence?

Doubtful.
The problems money brings..... :rotfl:

nrsql

In the current situation I would go for diversification - that includes location and currency.
But you don't want to miss out on any recovery so I would keep something in sterling and UK.

Anywhere and anything could take a big dive so I think of it as reducing losses or preserving funds.

PolishBigSpender

The more money there is, the easier it is to buy it. Printing money will always lead to devaluation, so moving money into the Euro right now seems to be a sound bet.

gozomark

phoebe03cat wrote: »

Our gut feeling is that the euro has more stability than stirling.

my gut feeling is the opposite. Eurozone problems are just starting.

1. One-size-fits-all exchange rate and interest rate no longer fits most countries
2. Eastern Europe
3. ECB has been too slow in recognising the problems

tradetime

PolishBigSpender wrote: »

The more money there is, the easier it is to buy it. Printing money will always lead to devaluation, so moving money into the Euro right now seems to be a sound bet.

That's true, to a greater or lesser degree, but alongside that, a bunch of countries with very diverse economic and fiscal needs and attitudes cobbled together under one currency with one central bank trying to meet all those needs is a punch up waiting to happen. Alongside that, the Eurozone has a no bailout policy as part of their mandate, but very soon it is likely they will have to break that to bail out either Ireland, Greece, Italy, Austria, or any combination of those, so it's a bet, I'll grant you that, but far from a "sound" one imho

withnell

Are you planning to remain living in Britain? If Sterling devalues, inflation will increase, but so will savings rates - so you'll still be in the same position as you started!