I think it would be wise to put some of the nest egg into accounts
overseas, for example Switzerland and Australia, to hedge against dollar
asset devaluation. I have never done this before and am looking for
advice on ways to do this. I know the obvious way is to travel to each
country and set up a brokerage account in each but is there any easier
Interactive Brokers gives you access to 19 countries from a single account
(including Switzerland and Australia) and the ability to use multiple
currencies. Interactive Brokers is more for traders than investors and you
will be charged $10 a month unless you pay at least $30 a month in
What do you plan on doing when the dollar appreciates?
on 8/8/10 2:23 PM HW "Skip" Weldon said the following:
One of the most important lessons I have learned is to be thankful I had
good economic teachers. 20 years of massive mismanagement of the US
dollar. I didn't think this would happen, but now I have learned
politicos in an empire are frozen by vested interests until crisis and
collapse. We don't learn in other words.
Another word for this is "cycles".
What's your take on the government's (by this I mean government at all
level - local, state, federal) attempt to spend our way out of a
recession, in lieu of the traditional "cut taxes" (and services).
Traveling to each country to set up a brokerage acct would not be the
obvious way. Usually they require a local address to set up an acct.
So I would find a brokerage that allows you to have different currency
accts. Or buy currency mutual funds or ETF's.
Do you mean opening an account overseas, or do you mean opening an
account here and using it to invest in overseas assets like foreign
stocks, currencies, etc?
The former is a much bigger pain in the butt. The latter is trivial.
It's not even necessarily as obvious as you are saying. Which countries
would you go to to open the accounts?
Are you aware that you still have to report the accounts to the IRS?
This is a good read:
If you just want to hedge the dollar, there's no need to go further than
your local discount brokerage.
This is not a trough in a regular business cycle. It a deleveraging
from a massive historical Credit Bubble. The government lies about
stats (google 'Shadow Stats') including the latest estimates of Medicare
costs. The ObamaCare is basically an expansion of Medicare.
It's Ok to disagree. My take is that this is a typical cycle and we
are in the contraction phase. I agree with you that for the most part
this phase is being driven by extraordinarily high levels of debt
accumulated during the expansion phase.
This phase will end. It will eventually wring out what caused the
contraction (excessive debt) and then we will begin the expansion
phase. I don't know when that will be and I don't know what will
cause it. I do know that it has never done anything but this...
despite all the cries that "this time is different".
But I do expect that this contraction will last longer than most
previous contractions - primarily due to the government's attempt to
eliminate the "hurt" caused by the contraction. It concerns me that
our leaders don't understand that the PURPOSE of a contraction is to
wring out excesses. By its nature that causes hurt, and until that
happens all the government spending in the world won't end the
contraction - but it definitely prolongs it.
The financial planning implications of this are to eliminate debt,
seriously cut prices of real estate if you want to sell and to raise
cash (people with lots of cash don't feel recessions).
On the other hand, my wife thinks I am a bozo and she has been married
to me for 40+ years. So what do I know.