Stick With Sterling Or Change To Baht?

[richardjm65]

I have sterling invested in four funds in the care of one financial adviser, with whom I have no problem. I also have sterling on a 12 month deposit with Santander in Jersey in addition to a Santander account which I maintain to receive my state pension and deal with any necessary sterling transactions. This pays no interest and requires the balance to be above 5,000GBP or charges are incurred

Over the last week or so I've started wondering if it would be sensible to close up the 12 month time deposit in Jersey (currently yielding 3%) when it matures and move it into a similar account in Thailand as it is unlikely that I shall ever wish to move back to the UK. These thoughts are prompted to some degree by the recent European crisis and the fact that Santander now looks a little less safe than it did. I'm not looking for high interest high risk investment - at my age and with my modest means I'm looking more for a safe place and a moderate interest return - I don't like to feel exposed.

Any thoughts on the wisdom (or otherwise) of taking such a step? I still remember the 1997 Asian currency crisis due to which I lost my company in Bangkok and would not want to risk repeating that experience in my private life.

[churchill]

Take advice from your financial advisor .. but I would diversify my currency risk ....perhaps you can hedge you currency risk in the four funds .. 25% share each to SGD, THB, USD and GBP as a suggestion ..

I would move some funds now from you Sandander account ,whilst the rate is close to 50 from GBP to THB ....

Good luck ..

[Darrel]

Hmm. My opinion of financial advisers couldn't be much lower than it is. They seem to be solely interested in obtaining a maximum of commission for a minimum of work, and the little work they do is badly done anyway. I'm glad you are happy with yours though, just as I am glad not to have one at all.

That aside, you should watch out for Santander offshore which does not have any guarantee from the parent UK company that they will bail it out in case of trouble. LloydsTSB is the same.

Quite why you would have a current account with Santander paying no interest on a minimum balance of GBP5K is beyond me. You can get a perfectly decent account paying interest on minimal balances elsewhere for your pension payments etc., so move. Of course you can also go back onshore where the choice and rewards and security are greater, and this is what I have been doing over the last couple of years.

As for the THB/GBP exchange rate, no one knows what it will do so any speculation is exactly that. Flip a coin if you like.

[Thailand]

You could of course open a sterling account here and have the pension money paid in to it and it would also allow you to still do your various sterling transactions and you don't have to maintain 5000 sterling.

I do this with both sterling and US$ accounts with BB.

I agree with a diversification of currencies but mainly sterling US$ and Thai Baht (limited) and perhaps a side bet on the Yuan.

[london]

IF you feel that you aren't going to go back to the UK AND IF you are sure you are going to stay here, then why not put your funds into THB ?

It seems the practical thing to do.

There are too many ifs and buts to currency speculation, so just do what is simple if its right for you.

[w11guy]

If you're looking to keep your money safe then please don't take financial advice from people on this forum. You will probably lose the whole lot.

[richardjm65]

Well, up to now, some interesting perspectives and suggestions, all of which I will consider. The reason for my original post was to gather opinions, because every now and then, someone comes up with something quite brilliant that had simply not occurred to me. Thanks, guys, for your input thus far. Any other suggestions would be most welcome.

Understand that I am one of those financial retards who really needs honesty. I come from a time when I believed that banks and politicians were trustworthy. Now I begin to understand the necessity for advanced knowledge, healthy scepticism......and cunning.

[rakman]

If you're receiving funds in the current year in Thailand, doesn't that make the money susceptible to Thai income tax? If you receive it outside of Thailand and bring the money in the following year, then there is no Thai tax.

Of course, for us Americans, US tax is always present.

[12DrinkMore]

Understand that I am one of those financial retards who really needs honesty. I come from a time when I believed that banks and politicians were trustworthy. Now I begin to understand the necessity for advanced knowledge, healthy scepticism......and cunning.

Yep, been there.

Now I know for certain that the bankers, politicians and financial advisors all have something in common. They are in the game for themselves.

You have to do what gives you peace of mind, well, as close as you can get.

I moved enough money to Thailand to cover my expenses for the next 6 to 10 years (yep, it's that vague). You can get up to around 3.4% tax free interest on it (you have to claim back the tax, but that is easy). I am very happy with that decision.

I have not bought any property. I am very happy with this decision too. I have been tempted, but no, stay out of it and just rent. My reason are that it is very easy to spend the money, but very difficult to sell and get your cash back, and secondly I do not want to feel that I am now "here to die". I have to move around every few years.

I moved out of GBP as I do not like/trust the politicians and the UK bankers.

[yoshiwara]

I think you have to decide whether you want to prioritise diversifying your currency exposure or earning interest.

[topt]

You could of course open a sterling account here and have the pension money paid in to it and it would also allow you to still do your various sterling transactions and you don't have to maintain 5000 sterling.

I do this with both sterling and US$ accounts with BB.

I agree with a diversification of currencies but mainly sterling US$ and Thai Baht (limited) and perhaps a side bet on the Yuan.

Hi Thailand, I presume BB is Bangkok Bank? Do they let you keep less than 5k in a Foreign Currency account then as when I had one with SCB for a short period that was one of the constraints? Also would you not get hit with transaction costs if you were paying any UK bills or does it go through the London branch at zero cost?

I am also curious if you can share how you are making a side bet on the Yuan as it is not easily tradeable.

[kiwiinasia]

Stirling is looking very good now. It may last a while too considering all the greek cr*p going on.

Leave it in stirling as it will strengthen over the short term. Change to another currency like the Singapore dollar not the baht, it (the baht) is not a good bet considering the political stability of this country.

[12DrinkMore]

You could of course open a sterling account here and have the pension money paid in to it and it would also allow you to still do your various sterling transactions and you don't have to maintain 5000 sterling.

I do this with both sterling and US$ accounts with BB.

I agree with a diversification of currencies but mainly sterling US$ and Thai Baht (limited) and perhaps a side bet on the Yuan.

Hi Thailand, I presume BB is Bangkok Bank? Do they let you keep less than 5k in a Foreign Currency account then as when I had one with SCB for a short period that was one of the constraints? Also would you not get hit with transaction costs if you were paying any UK bills or does it go through the London branch at zero cost?

I am also curious if you can share how you are making a side bet on the Yuan as it is not easily tradeable.

Do your homework.

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Transaction%20Accounts/Foreign%20Currency%20Account/Pages/Terms%20and%20Conditions%20for%20Non-Residents.aspx

Also would you not get hit with transaction costs if you were paying any UK bills or does it go through the London branch at zero cost?

Zero cost through the banks???

I am also curious if you can share how you are making a side bet on the Yuan as it is not easily tradeable.

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Transaction%20Accounts/Foreign%20Currency%20Account/pages/fcdyuan.aspx

[topt]

Hi Thailand, I presume BB is Bangkok Bank? Do they let you keep less than 5k in a Foreign Currency account then as when I had one with SCB for a short period that was one of the constraints? Also would you not get hit with transaction costs if you were paying any UK bills or does it go through the London branch at zero cost?

I am also curious if you can share how you are making a side bet on the Yuan as it is not easily tradeable.

Do your homework.

http://www.bangkokba...-Residents.aspx

Also would you not get hit with transaction costs if you were paying any UK bills or does it go through the London branch at zero cost?

Zero cost through the banks???

I am also curious if you can share how you are making a side bet on the Yuan as it is not easily tradeable.

http://www.bangkokba...es/fcdyuan.aspx

With ref to I was simply trying to highlight to the OP that if he currently does not pay charges he probably was going to pay if he went the route suggested......and I pay no charges (as in any additional amounts) for running my UK account. Depends on your definition of zero cost

Thanks for the links

[yoshiwara]

Stirling is looking very good now. It may last a while too considering all the greek cr*p going on.

Leave it in stirling as it will strengthen over the short term. Change to another currency like the Singapore dollar not the baht, it (the baht) is not a good bet considering the political stability of this country.

During the current Euro uncertainty SGD is weakening against USD.

[12DrinkMore]

During the current Euro uncertainty SGD is weakening against USD.

The USD is strengthening against most currencies.

To be a little more relevant the SGD has traded between THB 24 and 25 over the last year, currently on an upswing. I expect the volatility THB/SGD to be less than any of the western currencies against the THB, as the Asians are using a basket of currencies to hold the rates fairly steady. The western currencies are just basket cases.

So holding SGD would be a reasonable bet to hold value against the THB, although the SGD will not give you any interest (suggestions?) and the THB will.

[yoshiwara]

During the current Euro uncertainty SGD is weakening against USD.

The USD is strengthening against most currencies.

To be a little more relevant the SGD has traded between THB 24 and 25 over the last year, currently on an upswing. I expect the volatility THB/SGD to be less than any of the western currencies against the THB, as the Asians are using a basket of currencies to hold the rates fairly steady. The western currencies are just basket cases.

So holding SGD would be a reasonable bet to hold value against the THB, although the SGD will not give you any interest (suggestions?) and the THB will.

In the immediate crisis I think USD/HKD better to hold, but if you think that USD is going to weaken later then rotate into SGD. Alternatively just split between HKD/SGD. No interest payments on SGD. The anticipated gain is between trading the SGDHKD pair. The SGDTHB pair looks to me to be quite tight and trade within a narrow band, so holding SGD might not sufficiently offset THB account interest receipts.

[cheeryble]

I have sterling invested in four funds in the care of one financial adviser, with whom I have no problem. I also have sterling on a 12 month deposit with Santander in Jersey in addition to a Santander account which I maintain to receive my state pension and deal with any necessary sterling transactions. This pays no interest and requires the balance to be above 5,000GBP or charges are incurred

Over the last week or so I've started wondering if it would be sensible to close up the 12 month time deposit in Jersey (currently yielding 3%) when it matures and move it into a similar account in Thailand as it is unlikely that I shall ever wish to move back to the UK. These thoughts are prompted to some degree by the recent European crisis and the fact that Santander now looks a little less safe than it did. I'm not looking for high interest high risk investment - at my age and with my modest means I'm looking more for a safe place and a moderate interest return - I don't like to feel exposed.

Any thoughts on the wisdom (or otherwise) of taking such a step? I still remember the 1997 Asian currency crisis due to which I lost my company in Bangkok and would not want to risk repeating that experience in my private life.

I have a similar situation to the OP.

I got a letter from Allied Irish saying they were closing down offshore accounts.

So i shipped 53k GBP into my Bkk Bank acct last week.

I already have about 40% of my assets in baht ( the rest in GBP and $), but I think I'm here for life, so

I was thinking to change those newly imported pounds to baht also.

Question is.....what to do with them....interest rates are not nearly keeping up with inflation.

Stockmarket here is riding a wave right now so don't want to jump in until the unmentionable event happens when I may make a long term move.

So is there perhaps the equivalent of a Treasury bond tracker on the market, or some bond fund ETF, that will pay a bit more and is liquid?

Cheers

Edited May 30, 2012 by cheeryble

[yoshiwara]

I have sterling invested in four funds in the care of one financial adviser, with whom I have no problem. I also have sterling on a 12 month deposit with Santander in Jersey in addition to a Santander account which I maintain to receive my state pension and deal with any necessary sterling transactions. This pays no interest and requires the balance to be above 5,000GBP or charges are incurred

Over the last week or so I've started wondering if it would be sensible to close up the 12 month time deposit in Jersey (currently yielding 3%) when it matures and move it into a similar account in Thailand as it is unlikely that I shall ever wish to move back to the UK. These thoughts are prompted to some degree by the recent European crisis and the fact that Santander now looks a little less safe than it did. I'm not looking for high interest high risk investment - at my age and with my modest means I'm looking more for a safe place and a moderate interest return - I don't like to feel exposed.

Any thoughts on the wisdom (or otherwise) of taking such a step? I still remember the 1997 Asian currency crisis due to which I lost my company in Bangkok and would not want to risk repeating that experience in my private life.

I have a similar situation to the OP.

I got a letter from Allied Irish saying they were closing down offshore accounts.

So i shipped 53k GBP into my Bkk Bank acct last week.

I already have about 40% of my assets in baht ( the rest in GBP and $), but I think I'm here for life, so

I was thinking to change those newly imported pounds to baht also.

Question is.....what to do with them....interest rates are not nearly keeping up with inflation.

Stockmarket here is riding a wave right now so don't want to jump in until the unmentionable event happens when I may make a long term move.

So is there perhaps the equivalent of a Treasury bond tracker on the market, or some bond fund ETF, that will pay a bit more and is liquid?

Cheers

You might be interested in something like this, but don't know if there is an equivalent offered by a Thai Bank.

http://services.assetmanagement.hsbc.com.hk/site/microsites/banners/asian_hybf/eng/index.html

[cheeryble]

I have sterling invested in four funds in the care of one financial adviser, with whom I have no problem. I also have sterling on a 12 month deposit with Santander in Jersey in addition to a Santander account which I maintain to receive my state pension and deal with any necessary sterling transactions. This pays no interest and requires the balance to be above 5,000GBP or charges are incurred

Over the last week or so I've started wondering if it would be sensible to close up the 12 month time deposit in Jersey (currently yielding 3%) when it matures and move it into a similar account in Thailand as it is unlikely that I shall ever wish to move back to the UK. These thoughts are prompted to some degree by the recent European crisis and the fact that Santander now looks a little less safe than it did. I'm not looking for high interest high risk investment - at my age and with my modest means I'm looking more for a safe place and a moderate interest return - I don't like to feel exposed.

Any thoughts on the wisdom (or otherwise) of taking such a step? I still remember the 1997 Asian currency crisis due to which I lost my company in Bangkok and would not want to risk repeating that experience in my private life.

I have a similar situation to the OP.

I got a letter from Allied Irish saying they were closing down offshore accounts.

So i shipped 53k GBP into my Bkk Bank acct last week.

I already have about 40% of my assets in baht ( the rest in GBP and $), but I think I'm here for life, so

I was thinking to change those newly imported pounds to baht also.

Question is.....what to do with them....interest rates are not nearly keeping up with inflation.

Stockmarket here is riding a wave right now so don't want to jump in until the unmentionable event happens when I may make a long term move.

So is there perhaps the equivalent of a Treasury bond tracker on the market, or some bond fund ETF, that will pay a bit more and is liquid?

Cheers

You might be interested in something like this, but don't know if there is an equivalent offered by a Thai Bank.

http://services.assetmanagement.hsbc.com.hk/site/microsites/banners/asian_hybf/eng/index.html

Thanks for that, yes could be the sort of thing I'd use......except

wonder if there's a way around the swingeing 5.25% entry fee.

This is the sort of amount salesmen (aka financial advisors) get for finding the client and that is probably why it's so high, otherwise it could never be justifiable. By the time the annual fee is paid it would take well over a year to just recoup fees.

But always interested.....

[letitbe]

Take advice from your financial advisor .. but I would diversify my currency risk ....perhaps you can hedge you currency risk in the four funds .. 25% share each to SGD, THB, USD and GBP as a suggestion ..

I would move some funds now from you Sandander account ,whilst the rate is close to 50 from GBP to THB ....

Good luck ..

Take advice from your financial advisor .. but I would diversify my currency risk ....perhaps you can hedge you currency risk in the four funds .. 25% share each to SGD, THB, USD and GBP as a suggestion ..

I would move some funds now from you Sandander account ,whilst the rate is close to 50 from GBP to THB ....

Good luck ..

do it yourself dont trust a FA use your gut research as best you can you will do better than most FA's my biggest mistake financially was listening to a FA 20 years ago and it cost me 1/2 million us$ since then I do my own its not that dificult and you might not get it right all time but youll beat most of so called experts IMO

[yoshiwara]

I have sterling invested in four funds in the care of one financial adviser, with whom I have no problem. I also have sterling on a 12 month deposit with Santander in Jersey in addition to a Santander account which I maintain to receive my state pension and deal with any necessary sterling transactions. This pays no interest and requires the balance to be above 5,000GBP or charges are incurred

Over the last week or so I've started wondering if it would be sensible to close up the 12 month time deposit in Jersey (currently yielding 3%) when it matures and move it into a similar account in Thailand as it is unlikely that I shall ever wish to move back to the UK. These thoughts are prompted to some degree by the recent European crisis and the fact that Santander now looks a little less safe than it did. I'm not looking for high interest high risk investment - at my age and with my modest means I'm looking more for a safe place and a moderate interest return - I don't like to feel exposed.

Any thoughts on the wisdom (or otherwise) of taking such a step? I still remember the 1997 Asian currency crisis due to which I lost my company in Bangkok and would not want to risk repeating that experience in my private life.

I have a similar situation to the OP.

I got a letter from Allied Irish saying they were closing down offshore accounts.

So i shipped 53k GBP into my Bkk Bank acct last week.

I already have about 40% of my assets in baht ( the rest in GBP and $), but I think I'm here for life, so

I was thinking to change those newly imported pounds to baht also.

Question is.....what to do with them....interest rates are not nearly keeping up with inflation.

Stockmarket here is riding a wave right now so don't want to jump in until the unmentionable event happens when I may make a long term move.

So is there perhaps the equivalent of a Treasury bond tracker on the market, or some bond fund ETF, that will pay a bit more and is liquid?

Cheers

You might be interested in something like this, but don't know if there is an equivalent offered by a Thai Bank.

http://services.asse.../eng/index.html

Thanks for that, yes could be the sort of thing I'd use......except

wonder if there's a way around the swingeing 5.25% entry fee.

This is the sort of amount salesmen (aka financial advisors) get for finding the client and that is probably why it's so high, otherwise it could never be justifiable. By the time the annual fee is paid it would take well over a year to just recoup fees.

But always interested.....

You are right, management fees are significant and don't stop after purchase. And you are exposed to currency moves within those countries generating higher interest rates. With that 53k staring at you, there is a temptation to letting that cash burn a hole in your pocket. The sterling is here now. Should you convert into baht? What interest rate on term deposit is the BB currently offering?

Edited May 31, 2012 by yoshiwara

[jsflynn603]

Change to Baht, Sterling will eventually tank. (Note: I believe the same about the US$) Just my opinion but 99.5% of my investments are in Singapore $; Oz$; and Canadian $. I wish I had more in Thai baht.

Note: If China tanks though the Baht may take a hit, along with the Oz$. Again just my opinion.