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Dollar or peso account

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35 minutes ago, gringal said:

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) 

Well put.

Yes, it's a crap shoot.  Boxing is fixed.  Football is fixed.  Horse races are fixed.  But the Stork Market isn't?  Everybody has a motive.  The bigger the money the bigger the motive.  

The other day we were discussing the days of the New Peso devaluation.  Now we all know those with a palanca knew a day before it came.  Were any of us informed?    The unconnected lost three zeros.  I doubt anything NoB is that volatile.   But Mexico is.   So let those peace on Earth enzymes flow to your brain .. everything is going to be alright.   

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1 hour ago, modeeper said:

Damn is that misused in 100 ways.  Like when you're driving in a neighborhood where you wouldn't dare stop for gas and someone says:  Don't be so negative, nothing will happen to us, have faith.  Will a positive attitude misdirect bullets?  In this Universe millions of objects are on a collision course.  The Stock Market movements is just one more of them.    

Yes of course.  I agree with that.

I don't think I expressed what she said properly.  What she meant was people make financial decisions on how they perceive  things are going economy wise. She said decisions are based on two factors: fear or greed.

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31 minutes ago, gringal said:

" 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. 

Or go straight to the State Department Federal Credit Union's site:https://www.sdfcu.org/  You do not have to become a member of ACA to join.  There is a list of organizations you may already belong to, or can join that are cheaper than ACA's cost of membership.  

That said, when I called my current CU where I have an account from my work years, they said they had no issues with my living outside the US.  it could be that all CU's have this policy???? 

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4 hours ago, gringal said:

" 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. 

I was not aware with the new  laws you could open an account while abroad.

What a dilemma, I just do not understand the use of an American account.  No one gives me a good reason for that . 

a fixed rate peso account..??   I do like the not keeping all eggs in one basket...

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On 2/17/2018 at 4:49 PM, bezerk said:

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

 

I have a one year fixed income investment at Multiva that will pay a little more than 8%. It is a 3 part promissory note with one part maturing in 1 year, another that matures and rolls at 6 months and the last matures and rolls every 3 months. The minimum investment was $1 million pesos.

Three month Cetes are paying 7.5%.

The average CD rate in the US is 1.5%.

For those of us living here full time the fluctuating exchange rate is not terribly important.If it tips in our favor then bring cash down. Invest it in fixed income instruments and then use it for everyday expenses.

The July presidential election could disrupt the currency exchange rates just as the 2016 US election did. How many took advantage of 21:1 last November? It could go the other way too but when there appears to be a buying opportunity, take it. 

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On 2/17/2018 at 3:08 PM, 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 disclose that fact.

Do you have any other conspiracy theories?  Anyone who pays any attention to financial information will of course conclude that the FDIC is ‘over extended’ at some level. But we had a pretty big melt-down 2007-09 and I don’t remember any news of thousands of folks loosing their a**es with respect to FDIC insurance going south. Could it happen? Yes, of course, but if it does in a big way, we all are going to have a whole lot more to worry about than that,  that’s for sure. 

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My brotha from another motha.  Never in the history of my time on Earth has there been so much American propaganda on the media.  Go figure, everyone with a three-digit IQ should know by now 30-40% of US citizens are dumber than dirt.  What's a politician's golden rule?  Stay in power.

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WEll , little did I gain from this other than a roulette wheel. 

I am thinking Intercam..eggs in many baskets and in pesos.  Who knows..

The theoretical question is real just without many details or altered details.  sigh..

 

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On 2/24/2018 at 11:30 AM, bdmowers said:

How could someone receive dollars in Mexico and put it in dollars in a bank in Mexico?  No lo puede, creo.  I think once it goes into a bank in Mexico it is converted to pesos.  If you could get the money out of Mexico (I believe that can only be the equivalent of $10,000USD at any one time) then you`d have dollars in a US bank which in my opinion is far more stable than  having pesos in a bank in Mexico (from one who has lost 40% of his monetary value in a Mexican bank since 2012).

 

We have an option at Actinver. They will hold your money in dollars or pesos.

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I to use Actinver to hold dollars which I will convert to pesos once the exchange rate is more favorable.

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Bezerk, two things, imo, for you to consider/research.  Tax implications and investment strategy.    These two things are unique to each individual so pointless recommending any personal bias.    

So do you want to leave the money in the northern climate?  Hide it? Or keep it close down here in Mexico?    Do your future plans include buying anything major like a car or renovations?   All these impact on what you might do.   

Me, I’d want to keep it away from any Government’s prying eyes and sticky fingers.  I’d first get it down here in a bank that provides a US dollar account and make my decisions from there to coincide with my living objectives.   

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I would echo Vetteforron and be very carefully ahead of the Mex election where the firebrand liberal/socialist is the front runner. If he wins, think of Venezuela. 

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The office of Presidente is not a ticket to dictatorship. Right now, we have such a corruption-laden mess at the top and all the way down the line, complete with out of control cartels, that I don't see AMLO as the worst thing that could happen.  Naturally, we expats can't help but awfullize about losing our status and our possessions, but I don't think we look like a target since there would be little to gain by treating us badly.  We are not as big an economic force as some think we are.

Meanwhile, most of us probably have a "Plan B" in place.  At least, we should have when we make the decision to move to a foreign country...any foreign country.  The worst that could happen to this expat would be having my property confiscated and forcing me to return "home".  I don't keep a significant amount of money in Mexican financial institutions...for a reason.

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That is my main point. I know lots of people who have a large part or whole part of their liquid net worth in pesos, and have since it was 10 to 1 and are like the proverbial frog in a slowly heated kettle! Even earning 6% while losing half of the principal is not a recipe for financial success. 

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7 minutes ago, tomgates said:

That is my main point. I know lots of people who have a large part or whole part of their liquid net worth in pesos, and have since it was 10 to 1 and are like the proverbial frog in a slowly heated kettle! Even earning 6% while losing half of the principal is not a recipe for financial success. 

Some are getting up to 8% and that is the lure.  I'll keep my lousy interest and sleep better.

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You should also be aware of FBAR reporting requirements.  Basically, if you have more that $10,000 USD in a Mexican Bank they will report on that and you should file with the IRS and Treasury Dept.   See https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar for more information

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On 2/17/2018 at 5:08 PM, 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 disclose that fact.

The FDIC never reallly has any money. It gets its insurance premiums and gives it to the treasury and when it needs money gets it from the treasury dept. It was only meant to be in business for a few years after the depression but we still have it. As a former FDIC chairman, Bill Isaac, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like.". Many of those those local bank mergers one sees in  are basically arranged by the FDIC.  You don't see banks going under anymore because the FDIC has a more solvent bank buy the assets of the potentially failing bank and the FDIC has a division that tries to unload the bad assets. If you want to know how your local bank is doing look at its Texas ratio. DEFINITION of 'Texas Ratio' The Texas ratio was developed to warn of credit problems at particular banks or banks in particular regions. The Texas ratio takes the amount of a bank's non-performing assets and divides this number by the sum of the bank's tangible common equity and its loan loss reserves. There are sites that show the ratio. Google it. Very few know of it. There are sites that ranks banks and now include its Texas rtatio but that ration has been around for many decades.

 

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1 hour ago, michael2595 said:

The FDIC never reallly has any money. It gets its insurance premiums and gives it to the treasury and when it needs money gets it from the treasury dept. It was only meant to be in business for a few years after the depression but we still have it. As a former FDIC chairman, Bill Isaac, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like.". Many of those those local bank mergers one sees in  are basically arranged by the FDIC.  You don't see banks going under anymore because the FDIC has a more solvent bank buy the assets of the potentially failing bank and the FDIC has a division that tries to unload the bad assets. If you want to know how your local bank is doing look at its Texas ratio. DEFINITION of 'Texas Ratio' The Texas ratio was developed to warn of credit problems at particular banks or banks in particular regions. The Texas ratio takes the amount of a bank's non-performing assets and divides this number by the sum of the bank's tangible common equity and its loan loss reserves. There are sites that show the ratio. Google it. Very few know of it. There are sites that ranks banks and now include its Texas rtatio but that ration has been around for many decades.

 

Very good information.  Thanks for posting and sharing that.

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12 minutes ago, Zeb said:

Very good information.  Thanks for posting and sharing that.

You are very welcome. I was an FDIC Examiner in the seventies. Couldn't take it. Boring. Should have stayed to collect a super fat pension but I would have definitely turned into a drunk since my territory was NY state , New Jersey State and Puerto Rico and travel was about 90 percent and I would be in god awful towns. Some of my friends who retired have  taken jobs with the banks they used to investigate . Mostly high level compliance jobs. That's the game. Lets just put it this way , If Bank Of America goes under no one will be knocking at our doors with checks for us. The minute we put our money in the banks it is no longer our money but the banks and they leverage it into loans etc. 10 to 1. What got us in trouble in the great bank heist was 30 to 1 leverage which was beyond insane. Hopefully we will stay at 10 to 1 and the FDIC will charge higher premiums and make sure the reserves are in line.

 

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You could diversify. Put some in property, some in a dollar account, some in peso account...I guess you need a financial adviser...

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Be aware of the possible  outcome of the Mexican Presidential elections coming up in July. Many Mexicans think if the Morena  party  is elected, then only a short way from becoming a Venezuela and neither the  Peso or Dollar will be "safe" currency 

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10 minutes ago, lakeside7 said:

Be aware of the possible  outcome of the Mexican Presidential elections coming up in July. Many Mexicans think if the Morena  party  is elected, then only a short way from becoming a Venezuela and neither the  Peso or Dollar will be "safe" currency 

How about getting a little more specific than "many Mexicans think".  Are these working class Mexicans or are these the upper income types who need not work and would worry that a Morena party would end the level of privilege some enjoy?  Is there any parallel in government structure between Mexico and Venezuela before the dictatorship developed?

 

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2 hours ago, gringal said:

How about getting a little more specific than "many Mexicans think".  Are these working class Mexicans or are these the upper income types who need not work and would worry that a Morena party would end the level of privilege some enjoy?  Is there any parallel in government structure between Mexico and Venezuela before the dictatorship developed?

 

You took the words right outa my mouth.....

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12 hours ago, RickS said:

You took the words right outa my mouth.....

Then there's the ultimate source of truthiness:  "THEY SAY THAT..."

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