How Do You Protect Yourself From Currency Flucuations?

[Jumper0155]

To me, the only sure way to deal with currency fluctuations is to ensure that you have a guaranteed income stream that is substantial enough that you could comfortably survive even swings of 25%, while also taking into consideration the rate of inflation that will likely occur as we move on in our retirement years. 

[fred]

 

By earning Pesos!

 

LOL Fred, that is exactly the point!

 

 

Exchange rates and the high inflation levels here had always been a worry for me whilst planning our move back here.

Not being able to rely on a pension for at least 20 years ,our long term plan was always to find a way to make a living earning Pesos without having to rely on exchange rates. 

Thats what we did and for us it was a good move!

[jon1]

This is why I bought my rental property, to get locally generated income in Pesos. That way no exchange rate worries and it helps to keep up with local inflation (the rent will go up as the market does).

 

I also exchange my USD for Pesos when it hits higher peaks (usually enough to last me for 3-4 months).

[BrettGC]

Jon is it safe to assume you just transfer money into a PH bank account?

[davewe]

Financially smarter folks than I say the best strategy is diversification. So when I retire I will have my fixed Social Security, a fixed and very tiny pension, and whatever I decide to withdraw monthly from my retirement savings, which are invested in that Ponzi scheme called the stock market. While diversification sounds great - it also means I have that many more things to worry about - the exchange rate, the economy and stock market (I got killed this week). OTOH, when I retire I will be drinking San Mig and chasing my wife around the house, so hopefully I won't worry too much :)

[Jake]

Financially smarter folks than I say the best strategy is diversification. So when I retire I will have my fixed Social Security, a fixed and very tiny pension, and whatever I decide to withdraw monthly from my retirement savings, which are invested in that Ponzi scheme called the stock market. While diversification sounds great - it also means I have that many more things to worry about - the exchange rate, the economy and stock market (I got killed this week). OTOH, when I retire I will be drinking San Mig and chasing my wife around the house, so hopefully I won't worry too much :)

How Do You Protect Yourself From Currency Fluctuations?

 

After reading all the hits and misses, using upside down trading charts and dart boards.....here is what I learned so far:

 

Oh, fluck the whole situation.......I'm also gonna chase my wife around the house -- more riskier but more bang for the

buck.....he, he.

[fred]

 

Financially smarter folks than I say the best strategy is diversification. So when I retire I will have my fixed Social Security, a fixed and very tiny pension, and whatever I decide to withdraw monthly from my retirement savings, which are invested in that Ponzi scheme called the stock market. While diversification sounds great - it also means I have that many more things to worry about - the exchange rate, the economy and stock market (I got killed this week). OTOH, when I retire I will be drinking San Mig and chasing my wife around the house, so hopefully I won't worry too much :)

How Do You Protect Yourself From Currency Fluctuations?

 

After reading all the hits and misses, using upside down trading charts and dart boards.....here is what I learned so far:

 

Oh, fluck the whole situation.......I'm also gonna chase my wife around the house -- more riskier but more bang for the

buck.....he, he.

 

 

 

Yep..Its a brave strategy ,but one that could end up screwing you entirely!

[jon1]

Jon is it safe to assume you just transfer money into a PH bank account?

I deposit money via check in my PH USD account. I also do the same in my wife's account if I need more than $10,000 (so I do not have to deal with FATCA).

[JJReyes]

Ask yourself a simple question, "In what currency will I spend my money?"  If your plan is to remain in the Philippines, you need pesos. Other currencies are useless because you can't use it for daily expenditure. Forex will constantly gyrate, but if you do a ten year averaging with local inflation as a factor, it won't be as large as you might thing. My advise is to keep most of your money in pesos because that's what you will need.

 

Still concerned? An American should consider retiring in Ecuador or Panama since the local currency is United States dollars.  No problems with currency fluctuation. 

[BrettGC]

Still concerned? An American should consider retiring in Ecuador or Panama since the local currency is United States dollars.  No problems with currency fluctuation. 

 

Even though they have their own currency, Cambodia, on a street level at least, deals mainly in USD too.