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Dollar or peso account


bezerk
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Theoretical question..

say a person was to get/inherit/receive 50 or 100 K in dollars.  That person has to decide to get it in transfer funds in dollars or pesos.  The person lives here and plans to stay here in Mexico.  The person cannot put into any risky accounts as insufficient income to take a loss.  

Some say keep it in dollars others say no peso exchange now is better to go with pesos.

Anyone have rational behind dollars or pesos.  Which is better for this person money will be to used to pay additional expenses after SS. 

So dollars or pesos??  Reason why please as well.

Thanks in advance. 

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Hedge that bet. Put half of it in a dollar account and half in a peso account. Draw from each depending on the exchange rate. Don't claim to be much of a financial wizard...but...I believe the value off the U.S. dollar is currently falling in relation to other major currencies. Due to the close economic ties between the U.S. and Mexico, their currencies tend rise and fall together in comparison to other major currencies. The exchange rate between the peso and the U.S. dollar is currently influenced to a great extent upon the "Trump factor." Sorry, I can't be specific about that since the monitor of this board will get uptight and accuse me of inserting "politics" into what is an economic issue. Send me a PM if you really need more of an explanation. And, if anyone disagrees with my analysis, feel free to correct me. Like I stated earlier in this post, I don't claim to be a financial wizard. It's an interesting issue and very important to us expats living here in Mexico. 

 

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If it’s big dollars, and $50-100k meets my definition, and if I were risk adverse I’d be looking to put some of it NOB in a guaranteed account making peanuts..... but safe. If one feels that can be done in Mexico without any risk then flail away, but.....

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29 minutes ago, alex45920 said:

Hedge that bet. Put half of it in a dollar account and half in a peso account. Draw from each depending on the exchange rate. Don't claim to be much of a financial wizard...but...I believe the value off the U.S. dollar is currently falling in relation to other major currencies. Due to the close economic ties between the U.S. and Mexico, their currencies tend rise and fall together in comparison to other major currencies. The exchange rate between the peso and the U.S. dollar is currently influenced to a great extent upon the "Trump factor." Sorry, I can't be specific about that since the monitor of this board will get uptight and accuse me of inserting "politics" into what is an economic issue. Send me a PM if you really need more of an explanation. And, if anyone disagrees with my analysis, feel free to correct me. Like I stated earlier in this post, I don't claim to be a financial wizard. It's an interesting issue and very important to us expats living here in Mexico. 

 

That's well put!  But at times the exchange rate doesn't seem to move in any particular direction with the T-factor.  There are too many variables to make it simple.  

Look at those money exchange booths all round town.  Those guys are professional speculators.  You could learn a lot by talking to one of those guys, if they'd talk to you.

If I could enjoy such a windfall I'd invest my dosh in my mattress.  In that case dollars would be better cause they're worth more with less bulk.  Wouldn't want my mattress to get too lumpy.  

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I wouldn't invest all of it in anything that pays 8% and consider it "safe".  My stash would be in an insured dollar account in one of  the major financial institutions in the U.S. that currently pays peanuts in interest.  (The peanuts, however, will very likely be growing steadily in the future based on financial and political events in the U.S.)

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4 hours ago, modeeper said:

So glad you pointed that out.  I'll return the favor, honest I will. 

Saying the future is finally bright isn't a plug?  

All the people who work in the business sectors and the financial sectors, along with the financial indicators report that the USA is better off now than it has been in MANY years.  And, the future outlook is very bright. Put your personal bias aside and listen to the people who are involved and trained to know. People are tired of fear mongers with Political agendas.

 

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10 hours ago, gringal said:

I wouldn't invest all of it in anything that pays 8% and consider it "safe".  My stash would be in an insured dollar account in one of  the major financial institutions in the U.S. that currently pays peanuts in interest.  (The peanuts, however, will very likely be growing steadily in the future based on financial and political events in the U.S.)

Unfortunately, those insured accounts mean nothing anymore as the FDIC no longer has the money to cover what they insure.  They just don't bother to disclose that fact.

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38 minutes ago, modeeper said:

Put your personal bias aside and listen to the people who are involved and trained to know.  People are tired of fear mongers with Political agendas.

 

How about this Mod5?  Where does this fit in?  Just asking so I know what political correctness is for you.  Please remember this was directed to me.   This reporter sees this comment as a political correct way of saying, "I know, you don't, shut up."   

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4 hours ago, Zeb said:

Unfortunately, those insured accounts mean nothing anymore as the FDIC no longer has the money to cover what they insure.  They just don't bother to disclosure that fact.

Right on!  It's rolling disclosure.  They will disclose it the day after the WaPo cracks their nut. 

Hey, I'm just a little man.  I could sit on the edge of a dime and swing my legs.  I'm just happy that my grandson hasn't been shot at school  ... yet.

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We used to trust in the advice of our professional advisor.  After some rather painful reading and learning, it seems that they get some of their information and number from government agencies, who want to protect the US economy.  When the numbers didn't look good, then those agencies would simply change the criteria to make them look better.

She used to say to us that financial results were  the results of what people believed.  I think before the great depression, things were looking really good according to the experts.

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Perhaps the word "insured" is overly optimistic or "faith based" in referring to places where your money is safer than in a Mexican peso account.  In fact, it is the condition of the financial institution that is the best guarantee that your money will be safe.  It's up to the investor to do the research and make the decision on that.

As far as having faith in the financial pundits who tell us what kind of shape the economy is in and will be in, in the future,  that's another matter.  I read the financial pages daily.  There are those predicting a great future with no clouds in sight and there are also those predicting a nasty "correction".  Bring on the roulette wheel.B) 

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14 hours ago, traderspoc said:

there is always risk

currency risk, country risk

i live here and spend pesos. i am willing to take the risk.

but also consider  in the right bank, you can get over 8% safe return in interest.

do not put all your eggs in one basket, lave part in US bank account.

any prudent person would want 8% interest

Oh, dear...politics risk so on.. 

say a person was to get/inherit/receive 50 or 100 K in dollars.  That person has to decide to get it in transfer funds in dollars or pesos.  The person lives here and plans to stay here in Mexico.  The person cannot put into any risky accounts as insufficient income to take a loss.   ..this is the theoretical example so...

No investment accounts, no stocks..staying in Mexico, opening an account NOB is an impossibility.  So dollars or pesos.

One person mentioned to me a peso account with interest which is 7%. No investment, anyone have that??

Suggestions on banks??  Actinver being out of the question.

To above-quoted post, where is this 8% interest. ??

 

The money initially must be wired/transfer in one denomination so living off pesos, exchange is up around 18 ,is there valid reason to get in dollars other than what future may hold etc. politically.

 

 

 

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" No investment accounts, no stocks..staying in Mexico, opening an account NOB is an impossibility."

Why is it not possible to have a U.S. savings account?  Contact American Citizens Abroad web site and go from there.  Savings, checking and credit card account are available with the use of a Mexican address and new accounts can be opened from Mexico without a problem. 

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