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Subject:  Re: Euro savings? Date:  12/9/2004  9:55 AM
Author:  activeREinvestor Number:  11381 of 36733

Thanks for the clarification. It definitely helps.

It also takes it beyond what I feel able to really advise on. The complexity of what you are suggesting leaves me wondering.

Here are some questions that come up in my mind.

1. You want to speculate on the FX rate. Buying Euro at what is closer to the top then 4 years ago is a risk.

2. Your options are somewhat limited unless you can open a brokerage account or similar in another country. Hence the returns for the products that are easy to invest in at a distance will be lower then you might like.

3. You may find that if you stick with USD and are expecting to retire to USD the gains you could make on USD investments will be just fine. You do not need the currency exposure to get much of the diversification that comes from holding non-US assets. ADRs is one example or a fund that invests in mostly non-US shares is another example.

4. If you really want to put cash overseas have you considered buying property? Maybe a holiday home or a small apartment in Paris? If you want to discuss this sort of strategy I can provide a perspective as I own property in more then one country (and have looked at even more countries then I have invested in).

To me it feels like an interest that sounds sexy but which will not work that well given the objective. If you are committed to investing cross boarder and want to set up the accounts (and file the extra paperwork with the IRS) then all the power to you. I am in that boat but I spend time outside the US for other reasons.

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