[Eur] Income in other currencies (vs. base currency)

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jg12345
Posts: 123
Joined: Fri Dec 11, 2020 1:03 pm

[Eur] Income in other currencies (vs. base currency)

Post by jg12345 »

Hi all,

I am receiving some income in USDs. My base currency in which I want to retire is EUR. There is a slight chance that I will spend in USD in the future, as I travel/move abroad for work reasons, but who knows.

Question for anyone in similar situations: do you exchange any income in a foreign currency into your base currency right away, or do you keep a small part of your holdings/portfolio in a foreign currency? It could fit in my emergency funds, for example

My current procedure is to just exchange USD in EUR as I get it. This avoids having one more ETF or cash in USD, and for a small % of my portfolio.

Thanks for any thoughts!
DJN
Posts: 843
Joined: Mon Nov 20, 2017 12:30 am

Re: [Eur] Income in other currencies (vs. base currency)

Post by DJN »

Hi,
I have invested some earnings paid out into dollars into dollar denominated funds, for example SGLU which is a global government bond fund hedged back to dollars, + some other funds like short term bonds in dollars and some TIPs all through UCITS etfs. I can cash in and exchange any time but it isn't a significant portion of the overall. I also have some BRK and MKL in order to get up to the $60K limit on estate tax for US domicile. When exchanging dollars to euros I would watch the rate and try and avoid negative dips/rises.
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.
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