What to do with $50K

smash

I have $50,000 US in a Citibank account which was from selling some shares last year. I was doing a monthly bond, but since the base rate has dropped so significantly it's paying peanuts.

So I was wondering whether to take the hit on the exchange rate (after all, it's not likely to get much better any time soon), and save it in a UK account instead.

I don't really need to money for anything immediate, I am debt/mortgage free and have topped up ISA and Premium Bonds.

Any other suggestions?

swlondon_3

With oil trading at $120 a barrel and some predicting $200 round the corner it may be a good time to invest in Oil. Depending on your risk assessment, you can either purchase Exchange Traded Funds (ETFs) in oil funds like 'OIL' or 'USO'. If you like some risk then you can invest directly in oil exploration companies. There's many US gulf coast oil and gas companies that explore areas that become more and more productive as oil prices move upwards. Do a lot of research and limit your investment if you decide the second route. I've seen some companies move 30% daily so its not for everyone.
Good luck, but only invest what you can afford to lose!

Aegis

I think suggesting someone go for a very high risk option is probably a little too much for them! Personally I'd favour more of a balanced spread of investments.


Smash, where are you going to want to spend this money? If it's in the UK, it might be worth using a Forex broker to bring the money back to sterling so that you're at least minimising the currency risk associated with the cash. Yes, you might end up losing out if the dollar recovers, but you might also gain if the dollar falls further.

If you've got a reason to keep it in the US, then that might be your best bet. Without knowing your full circumstances it's impossible to tell, and even then it would involve some degree of chance!

smash

Thanks for the advice. The money was paid to me in Dollars, though I have no real reason to keep it in USD as I am a UK resident. I'd prefer a safer bet, so maybe a bond of some kind, get good interest for a year or so. Currency fluctuations are always an issue, and I suppose there is no good time to do it as the market is up/down.

A good forex broker would be a good idea to get me the best rate assuming Citibank so not offer a good rate on the transfer. I don't really need the cash for anything, but if it stays where it is, I get <2% interest, so I'm keen to make it work harder.

Scr00ge

I'm in a similar situation, although I am still currently working in the US and so I'm resident there for tax purposes. You should be able to get 3% if you put it in the US INGdirect, which is where I have the majority of mine.

However, I am also interested in the most efficient way to move US money back into the UK as I will need to do the same thing within the next year to 18 months. Are there any recommendations for this?

Jonbvn

Scr00ge wrote: »

However, I am also interested in the most efficient way to move US money back into the UK as I will need to do the same thing within the next year to 18 months. Are there any recommendations for this?

You need a forex broker. There is an article on the main site about this, with links to numerous different brokers.