Investing General Discussion

No. It’s not a retirement account. Was money I made from selling my house. I Originally wanted to make some $$ on it for about 5 years but now it’s looking like I won’t need that money for another 5+ Years

Rangoth said:

Question for those of you with more international experience.

Short Version: Is there any place, as a US citizen, I can store EUR in a "risk free/low risk"(I know it is a relative term) way that will do anything other than just completely sit idle?

Longer Version:

• I worked for an international company and as upper level had good stock options. Owned them for awhile, executed a while ago, blah blah
• When I bought the options, I don't remember the exact rate of USD/EUR, but I think it was 1:1.15 or something
• I've since left the company and sold them for fiat(EUR currency)
• That EUR is now sitting in a bank account in the EUR currency.
• I have no immediate fast need for the money, so my idea was to sit on a bit until(if?) the dollar/euro ratio gets back more favorable like it was 9 months ago(pipe dream?) because I bought them in EUR, I got paid in EUR. Now the ratio is something like 1:.98, so while it's not been a "loss" for me, exchanging now feels like a 15% hit mentally
• I was going to put it in NEXO, where I do a lot of crypto storage and trading because they previously offered a decent return on fiat, but US citizens are no longer allowed to earn interest until whatever government regulation is worked out
• I could of course turn it into USD and bring it back into my trading accounts but then I would have to start to do some fuzzy math on if I could turn that into more than waiting on the USD/EUR combo to change and of course there is no bright timeline for that.

General thoughts or options as a US citizen on what the fuck I can do with a pile of EUR other than stare at it gaining 0%? I basically have no experience on this topic other than how to move it from EUR/USD via my two bank accounts.

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You could look into UCITS they are basically Euro mutual funds/money market funds.

Convo said:

No. It’s not a retirement account. Was money I made from selling my house. I Originally wanted to make some $$ on it for about 5 years but now it’s looking like I won’t need that money for another 5+ Years

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Ahh, I think you can move it into better tax status accounts, but only at a certain rate per year. Depending on how much you have in there I'd look at:

1. Roth IRA
2. Self-Employed 401k
3. If you have kids you can put some in accounts for them(529, Roth for Kids, etc)
4. HSA if you have a plan. This gives you some benefit of pulling it for medical if you have situations that would warrant that

Someone more educated than me can chime in

Big reminder. Fed rates today at 2pm. Press conference at 2:30pm with Powell.

Markets all but guaranteed a 75bp move, which shouldn't come as a shock at 2pm. All eyes and ears will be on Powell's statement and Q&A at 2:30pm for clues on the December hike.

*My take:
Any clues about "only 50bp" and/or pausing thereafter will likely take the market back up in a hurry. I don't expect this and we likely just get "data dependent" as usual. Any extra hawkish talk of continued hikes beyond their "target rate" or "no pauses anytime soon" can send us lower in a hurry.

Rangoth said:

• I was going to put it in NEXO, where I do a lot of crypto storage and trading because they previously offered a decent return on fiat, but US citizens are no longer allowed to earn interest until whatever government regulation is worked out

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Is this just for NEXO or all EU banks? If you are not certain, look around at the other big EU banks, or at any Swiss bank not called Credit Suisse (since Switzerland is not in the EU). Now that UK is out of the EU, you could see if a UK bank has low risk options that a US citizen can use. If you have to, just shoot a few emails off; the more money you have over there, the faster they will probably respond.

Also, last I looked at Kraken, they were working on opening a bank branch in the US. So they may offer more options, if you are familiar with the crypto markets and want to look at that route.

The move is due to comments about: "WILL TAKE CUMULATIVE TIGHTENING AND POLICY LAGS INTO ACCOUNT"

Taking lags into account is likely being digested as "pause" due

14:00 *(US) FOMC RAISES TARGET RANGE BY 75BPS TO 3.75-4.00%; AS EXPECTED; NEED ONGOING HIKES UNTIL RATES ARE SUFFICIENTLY RESTRICTIVE; PREPARED TO ADJUST POLICY AS APPROPRIATE; WILL TAKE CUMULATIVE TIGHTENING AND POLICY LAGS INTO ACCOUNT
- IOER raised by 75bps to 3.90%
- Decision was unanimous
- Reiterates inflation remains elevated
- Will continue to reduce Treasury and MBS holdings as planned
- Reiterates highly attentive to inflation risks
- Recent indicators point to modest growth in spending and production
- In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments

Spy rocketing up right now.

Burns said:

Is this just for NEXO or all EU banks? If you are not certain, look around at the other big EU banks, or at any Swiss bank not called Credit Suisse (since Switzerland is not in the EU). Now that UK is out of the EU, you could see if a UK bank has low risk options that a US citizen can use. If you have to, just shoot a few emails off; the more money you have over there, the faster they will probably respond.

Also, last I looked at Kraken, they were working on opening a bank branch in the US. So they may offer more options, if you are familiar with the crypto markets and want to look at that route.

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Nexo is not a bank, it's more like one of those CeFI crypto lending platforms. I store my coins there because they earn same token interest and I don't have as much fear as others on the platform security. They seem to be legit, claim to offer insurance and are making deals with legitimate US banks and stuff. Anyway at some point recently they said all existing stuff keeps earning interest but no new deposits will due to whatever is going on with US & government regulation.

I did not intend to turn this sum of money which is fairly substation into crypto, but I would have left it on Nexo as EUR until the exchange rate became more favorable. I could have just exchanged it on the platform and done a direct deposit....ohh well.

So now I have this money just sitting idle. I have a purpose for it so I'm not looking to take any "high" risk chances, I do want the money. I just don't need it ASAP so I figure waiting 6-12 months for the exchange rate to not blow is no sweat off my back....with this sum of money waiting for the exchange rate to go back to 1:1.10 or even higher is a pretty big deal. I'm not into FOREX stuff or currency crap at all and maybe the rate will never recover or my amount will just take it in the ass for 12 months due to inflation and I should have moved it and eaten the "loss"....that's what I am debating. But waiting 12 months for an extra 10% if the exchange rate recovers sounds perfectly fine by me

JPow: "Rates need to be higher vs previously expected."

Theres the index drop.