With the Thai Baht predicted to fall further in 2014, I've been giving some thought to transferring some cash to take advantage of the FX rate. My concern is that I already have approximately 40% of my liquid assets (cash and securities) in Thailand and don't want to put too many eggs in a "developing world basket".

But at the same time, this is where I plan to live out the rest of my days and don't want to regret missing out on 34 or higher to the dollar if it goes back to 29.

None of the above.

1.5% of my cash is in Thai baht.

12% is in actual U.S. dollars

The other 86.5% are in U.S. denominated, dividend yielding stocks and closed end funds, with a great emphasis on the latter.

I'm also only 34. If I was retired and had no plans of leaving, I would plan to buy a lot more baht this year. As it stands, I'll just continue with my electronic transfers every month or two. If conditions change and I feel the baht is poised to make significant gains, I'll perhaps double my purchases. However, I feel the trend is in the opposite direction at the moment, and I'm content with my more conservative approach.

If you're retired, your situation differs to mine. And even though 40% is already a lot, it's not a bad time to buy, especially since you'll probably be averaging down.

It's easy to hope for huge swings, but historically, current exchange rates are already very favorable.

Edited December 26, 201312 yr by aTomsLife

If your long term liabilities are here , then justifiable to increase your % allocation.

I think the issue is should you hang out for a better fx.

I have a significant amount in cash , I have held this position for over a year waiting for a strengthening sterling..I am still going to hang on.

Just under 40% of liquid assets held in Thailand

Just over half of total assets in held in Thailand

That's not necessarily a true reflection of currency risk or geographical risk though, as it includes foreign investment funds here denominated in THB, but the actual companies they invest in are mainly overseas.

Cheers

Fletch

would have liked to vote but there is no option for 3%

would have liked to vote but there is no option for 3%

or less.

I spend 6-8 months per year in Thailand so I have anywhere from 6 months to 3 years worth of expenses invested in baht, depending on the exchange rate and where I think it will go. I'm currently near the high end of that range but that's still only 2% of my liquid assets.

I plan to live out the rest of my days and don't want to regret missing out on 34 or higher to the dollar if it goes back to 29.

And what if it goes up to 50?

I buy more baht when the rates are favorable, but would still not go out much further than one year's living expenses held in baht in a local bank account. I have used some extra baht to buy gold in THB terms because in that form it's less liquid (i.e. I won't spend it with out giving it a lot of thought), but it is available for emergencies and seems fairly cheap now ... although here again, I wouldn't "bet the farm" on it since it could still become a lot cheaper.

Assuming you're here in retirement, you should have an overall plan that allows you to change the pace of your shift into baht for living expenses, but it's rarely a good idea to make some major change in your investment plans that puts all your eggs (and the chickens that are laying them) in one basket. Not even an issue about this being a developing economy. I wouldn't put everything in US Treasuries or Australian mining stocks or Swiss banking shares. Better to keep an allocation that you're comfortable with and make minor adjustments from time to time if they seem advantageous. No one thing is really going to be foolproof or a sure thing.

Edited December 26, 201312 yr by Suradit69

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I voted 10% because there is no lesser option.

In fact in Thailand I have my retirement extension deposit of 800K which rolls over permanently and a further sum that would cover about 3 years of my total normal living costs, which I also consider to be a health insurance buffer. Then I have another similar sum on deposit in the UK available for instant online transfer to my Thai bank account. Everything else would take a while to access but is still technically liquid, and it is in the UK (though not all in GBP).

would have liked to vote but there is no option for 3%

I dont believe you only have a couple of hundred pounds over here Naam.

only joking ,i bet its at least 500

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What do you guys live on if you have zero cash here?

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What do you guys live on if you have zero cash here?

Not sure maybe I am wrong. But I look at liquid assets as assets other than essential living expenses?

Money liquid you can access that is here in Thailand other than living expenses.

I personally do not have a bank account here at all. I go to the bank once or twice a month and get enough to live on. A small amount for car expenses, food, travel, site seeing. I selected a credit union to bank with. It lets me withdraw money at NO service charge. While drawing a small interest. If I need extra money?

I don't have to keep 800K in a Thai bank for my retirement visa.

To be honest I don't know the meaning of liquid assets? But, I keep all of my money out of the country. In my home country drawing interest. So I consider that not liquid. My definition anyway...

I personally like it that way. It makes me live on my pension. A good check and balance system for me. Not having any money here readily available is a good thing for me. I am terrible with money.

Edited December 27, 201312 yr by garyk

To be honest I don't know the meaning of liquid assets?

Definition of 'Liquid Asset':

"An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally regarded in the same light as cash because their prices are relatively stable when they are sold on the open market."

So cash or gold or money in the bank or blue-chip shares are all liquid, but a house or car or furniture aren't.

would have liked to vote but there is no option for 3%

There's also no option for 1%.