schildi
Well-Known Member
3718 and no text
Joined: Jan 14, 2011 1:38:58 GMT -5
Posts: 1,799
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Post by schildi on Apr 15, 2011 10:19:21 GMT -5
Hi all! Need some advise: we are in Europe right now visiting family, and have been gifted some money (a few thousand Euro's). What would you do with that money? A few options that come to my mind are: - open an account here. Tax consequences would be fuzzy ... - exchange it into $$, the rate is pretty good right now (> 1.4) here or in the U.S. - keep the Euro's (cash) in our bank's safe deposit box for the next visit
Anything I am missing? We do not need the cash, it would be saved / invested either way. What would you do?
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tskeeter
Junior Associate
Joined: Mar 20, 2011 19:37:45 GMT -5
Posts: 6,831
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Post by tskeeter on Apr 15, 2011 10:53:39 GMT -5
I'd probably convert it to $, then invest it. I think the value of the dollar will increase relative to the euro over the next several years, so by converting now, you can take advantage of the exchange rate shift. If you hold the money in a bank in Europe, you pass up this opportunity and may create tax complications. If you just put a bunch or euros in a dresser drawer until your next trip, the value of the euros could be reduced by a change in exchange rates as well as a decline in their purchasing power due to the increasing inflation that I expect we will see over the next few years. If you invest the gift, you should be able to get a return that exceeds inflation, as well as take advantage of any favorable exchange rate shift.
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skubikky
Senior Member
Joined: Dec 20, 2010 7:37:12 GMT -5
Posts: 3,044
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Post by skubikky on Apr 15, 2011 12:10:10 GMT -5
Give 10% to charity and enjoy the rest.
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qofcc
Well-Known Member
Joined: Dec 20, 2010 13:30:58 GMT -5
Posts: 1,869
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Post by qofcc on Apr 15, 2011 12:17:32 GMT -5
Exchange it into dollars. It's a small enough amount that I don't see how it would be worth it to deal with a foreign bank account or worse yet money physically stored in a foreign country.
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princessleia
Established Member
Joined: Jan 23, 2011 21:13:41 GMT -5
Posts: 266
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Post by princessleia on Apr 15, 2011 20:16:42 GMT -5
You are allowed to have a foreign bank a/c up to US$10K wihtout having to declare it to the IRS. Use that to your advantage. Also, don't have everything in US$. Euros may be a hedge...when the US$ falls, Euros may (probably will be) up.
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