What to do with savings? (emigrating - exchange rate)

tatusmaru

Hi there,

We've been saving for our long planned emigration in January, and I'm wondering what we should do with our savings with the pound being in the state it is?

We're emigrating to Japan, and currently the pound is 146 yen. I've been hoping for the rate to get to about 180 yen per £ before I change any currency, but it doesn't look like it's going to happen any time soon. Our savings will be about £20k by the time we leave, so I'm wondering what options we have to keep the money until the rate is more favourable, or to get a better return on it?

The options I'm considering right now are:

• Keep the majority in my British bank account (though if anything goes wrong, it may mean travelling back to the UK to visit the branch).
• Wait and hope the currency changes to a more favourable amount.
• Open a multi-currency Japanese account.
• Just take the sting, and change it to Yen.
• Bring as much as I can in cash to Japan.

We've been saving stringently for years now, and every penny is going to count on the big move.

Any other options?

bigadaj

You could get soem quotes for forward pricing, however these are unlikely to be any more favourable.

If your main need for the money in the future is in Japan then probably just easier to change now or when you need it, the rate could fall further rather than recover.

A very basic hedging strategy is to change half and leave half, that way 50% will at least do better than the rest.

bostonerimus

How long will you be in Japan.........?

tatusmaru

bostonerimus wrote: »

How long will you be in Japan.........?

bigadaj wrote:

If your main need for the money in the future is in Japan then probably just easier to change now or when you need it, the rate could fall further rather than recover.

It's intended as a permanent move, though we can't rule out coming back in the future if things don't work out!

I had hoped to keep as much of the savings as possible for a potential future home in Japan.

Edit: I intend to work primarily in a self-employed capacity too, but my income is based on the completion of medium term projects (5-12 months)

tatusmaru

If the pound was to get back to pre-brexit numbers of 160 yen, it would mean we'd have an extra £2.5k in savings after the conversion.

FatherAbraham

tatusmaru wrote: »

If the pound was to get back to pre-brexit numbers of 160 yen, it would mean we'd have an extra £2.5k in savings after the conversion.

If wishes were horses...

The current spot price is as much as anyone can know.

You seem to be considering waiting for a better rate, but not imagining that waiting could get you a worse one.

If now is the time to permanently to Japan, then commit fully by changing all the savings intended for this into yen. That way you can stop worrying about currency rates, and devote your full attention to making the new life successful.

Warmest regards,
FA