Anyone have a foreign bank account

[thyme4change]

I'm thinking the dollar might have some hard times over the next decade, and I was wondering about putting money into a foreign bank account and converting it to Euros, just in case. Worst case scenario, dollar is strong and that pool of money grows slower. And then I just go over to Europe and have a bitchin vacation.

It seems complicated to do. Has anyone done it?

[Bonny]

Sept 25, 2020 10:15:44 GMT -5 thyme4change said:

I'm thinking the dollar might have some hard times over the next decade, and I was wondering about putting money into a foreign bank account and converting it to Euros, just in case. Worst case scenario, dollar is strong and that pool of money grows slower. And then I just go over to Europe and have a bitchin vacation.

It seems complicated to do. Has anyone done it?

It's going to be a PITA because of money laundering rules. The foreign banks don't want U.S. citizens opening bank accts because of the U.S. reporting rules. They are also expensive to maintain. We closed our Deutsche Bank Acct after our last tax return.

If you want to invest in foreign currency there are mutual funds for that.

Personally I think we are so interdependent on trade our boats are all going rise and fall together.

[Lizard Queen]

It seems like you should be able to invest in foreign currencies through investment firms like Fidelity/Vanguard/etc.

[justme]

Technically if you have a bank account in a foreign country you have to report it on your taxes. 

I dunno about banks in Europe, but I know 2 Canadian ones also operate in the US - TD and RBC. I would think that might make it easier to get an account with foreign money? I know my parents have one, though that's because we have property in Canada. Though the address on the bank account is in the US. They opened the Canadian account in Canada though - but that was also back before you could even open an American bank account on the interwebs. 

[souldoubt]

For our company opening a new account in a foreign country with a bank we already have accounts with is a pain and the ones we deal with all have different forms and requirements.  As Bonny and Lizard Queen said there are easier ways to invest in foreign currencies or hedge against a decline in the dollar.  Also as justme said if you have direct ownership in a foreign account you need to file a FINCEN 114 form each year reporting your highest month-end balance converted using the Treasury 12/31 rates and check a box on your tax return.  

[bean29]

How different would investing in foreign currencies be form holding stocks in foreign companies.  

I own RGRGX AF Europac Growth R6 at fiedelity
and Vanguard Total International Stock Fund in my retirement savings accounts.