Putting money in a money market fund in Australia, New Zealand, or Canada...

C

Cabin111

I'll put this here rather than the "Chit Chat Forum".

I am thinking of putting about twenty to thirty thousand dollars in a money market fund...In one of those countries. I want to ask here, before I call Schwab or Fidelity. How can this be done? I am willing to pay $ for it to be "in" that country...Almost like a bank CD there. Will this require a separate tax form? Will it be a headache for my CPA?

What is the easiest way to do this.

I know I will probably lose money...I get it. It's more for super inflation protection.

Thoughts? Correct thoughts??
 
My 2¢:

1. Currency? Are you planning to convert your dollars to the host country’s currency? If so then you’ll probably pay a commission both to move in and out, and you’re introducing Fx risk. Another option here might be sovereign bonds; say, a Brasilian bond that’s now paying 12%.
2 If you want a foreign MM fund held in USD, maybe open an account with a foreign bank that operates in the USA and buy into their MM? Like open an account with Deutche bank and buy their MM fund.
3. If you want to hedge inflation against another currency, currency futures, forwards, or gold XD might make sense. You can even just buy exchange for the actual paper currency any hold it.
4. Honestly methinks that if you go through Fidelity or the like your $ will truly be held in the US and simply labeled as some “Foreign” thing to keep you fat dumb and happy. To find this you’ll have to get very specific and take a hard look at what you’re getting.
5. Also expect anti-terrorism scrutiny, especially for more than USD10k. Even within the US banking system anything more thsn 10k get specifically logged… taking it out of the country will set off red flags. Make sure your taxes are properly accounted for and paid in full!
 
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If you just want to hedge against the US dollar, you could consider a currency ETF.
https://etfdb.com/screener/#page=1&...AUD (Australian Dollar),CAD (Canadian Dollar)
upload_2023-10-23_14-16-27.png
 
kmiklas said:
My 2¢:

1. Currency? Are you planning to convert your dollars to the host country’s currency? If so then you’ll probably pay a commission both to move in and out, and you’re introducing Fx risk. Another option here might be sovereign bonds; say, a Brasilian bond that’s now paying 12%.
2 If you want a foreign MM fund held in USD, maybe open an account with a foreign bank that operates in the USA and buy into their MM? Like open an account with Deutche bank and buy their MM fund.
3. If you want to hedge inflation against another currency, currency futures, forwards, or gold XD might make sense.
4. Honestly my guess is that id you go through Fidelity or the like your $ will truly be held in the US and simply labeled as some “Foreign” thing. To find this you’ll have to get very specific and take a hard look at what you’re getting.
5. Also expect anti-terrorism scrutiny, especially for more than USD10k. Even within the US banking system anything more thsn 10k get specifically logged… taking it out of the country will set off red flags. Make sure your taxes are properly accounted for and paid in full!
More...

I don't mind paying the commission.

The FX risk I get it...I have the US dollars (or instruments...CDs/treasures). It would be the collapse of the other currency that would be the issue.

Also with Australia and Canada, you have so many Chinese coming into the country, they may slap restrictions on what and when things can be done.

Could this be done through Schwab or Fidelity??

WOW...I'll get on a watch list!! Cool...
 
Cabin111 said:
I don't mind paying the commission.

The FX risk I get it...I have the US dollars (or instruments...CDs/treasures). It would be the collapse of the other currency that would be the issue.

Also with Australia and Canada, you have so many Chinese coming into the country, they may slap restrictions on what and when things can be done.

Could this be done through Schwab or Fidelity??

WOW...I'll get on a watch list!! Cool...
More...
Are you planning to convert your funds to the currency of the host country, or keep it in USD in the host country? It makes a big difference.
 
ph1l said:
If you just want to hedge against the US dollar, you could consider a currency ETF.
https://etfdb.com/screener/#page=1&asset_class=currency&currency_types=AUD (Australian Dollar),CAD (Canadian Dollar)
View attachment 325893
More...


I read the prospectus on both of those (WHO READS THE PROSPECTUS)!!

A few red flags (for super inflation in any of these countries)...

Example Australia...FXA. The trust is in New York and the company is in Delaware. You are dealing with JP Morgan Chase (London), Bank of Mellon, Invesco, and the Great Britain, US, and Australian governments. The money is held in London. The fees are paid in Australian Dollars. If the currency of any of the three different countries goes bonkers, it could effect returns. If new laws are passed in three different countries (also states), it could effect returns or just clog the system.

This is not a simple procedure.

Just thinking out loud...Would it be crazy to go to San Francisco (to different banks) and pick up some currency from 3 to 4 different countries (Euro, Australian Dollar, Canadian Dollar, New Zealand Dollar). Just put them in a safe deposit box (till I die or needed). Is this nutzo, or brilliant (in it's simplicity)??

PS "Hey look, a Canadian penny"!!
 
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Cabin111 said:
I read the prospectus on both of those (WHO READS THE PROSPECTUS)!!

A few red flags (for super inflation in any of these countries)...

Example Australia...FXA. The trust is in New York and the company is in Delaware. You are dealing with JP Morgan Chase (London), Bank of Mellon, Invesco, and the Great Britain, US, and Australian governments. The money is held in London. The fees are paid in Australian Dollars. If the currency of any of the three different countries goes bonkers, it could effect returns. If new laws are passed in three different countries (also states), it could effect returns or just clog the system.

This is not a simple procedure.

Just thinking out loud...Would it be crazy to go to San Francisco (to different banks) and pick up some currency from 3 to 4 different countries (Euro, Australian Dollar, Canadian Dollar, New Zealand Dollar). Just put them in a safe deposit box (till I die or needed). Is this nutzo, or brilliant (in it's simplicity)??

PS "Hey look, a Canadian penny"!!
More...
Lol… I think a trip to the Cayman Islands might be in order for our beloved OP.

Just make sure you pay your taxes.
 
Also going to post this in my journal. We talked to our CPA. He said the worst would be to open an account in another country. The next worst is to have cash in the safe deposit box...Not as bad.

So I bought 100 shares of FXC...Just dipping my toes.

Bought 100 share in my Roth IRA $70.99. I then did a covered call for the June 24 $72. I got $1.05 ($105.) for the option.

Income, while I wait a see...
 
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