Ways to Minimize the Hit From Currency Exchange Rate Difference?

[albin25]

Here's a problem (well, ok not a "problem" problem)...but hey, who wants to lose value if it can be avoided?

My wife and I will inherit approx. $45k (Canadian) and I'm wondering if anyone here has had any experience with how to handle a cross border situation like this without getting murdered by the current disparity in value. It will be dispersed to beneficiaries as of Dec.30th 2016.

Should we just leave it in Canadian funds in a Canadian bank and hope for an eventual improvement?
Take the hit now Because the dollar is not going to improve much anyways?

The hit will be like having $45k(CDN) becoming only $34k(USD) a loss of $11k on paper.

Any ideas (legal ones) would be very much appreciated.

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[66PonyCar]

You really haven't lost any money. You are inheriting an asset which is worth $34,000 U.S. dollars.

The question is whether to leave it in Canada or repatriate the money. If you leave it in Canada then there's a chance the Canadian dollar will increase in value relative to the U.S dollar and you will make a profit. Alternatively, if the Canadian dollar decreases in value relative to the U.S. dollar then you will lose money.

Also if you have foreign bank accounts, that will require you to report it to the IRS when you file your tax return.

 

[Certaindeaf]

I heard .22lr is in plentiful supply in Canada. lol

 

[Larrytpdx]

You really haven't lost any money. You are inheriting an asset which is worth $34,000 U.S. dollars.

Correct. It is the same if you inherited 691,490 Mexican Pesos. Canadian Dollars are NOT US Dollars.

 

[Medic!]

Do some shopping in Canada.

9 Things That Are WAY Cheaper In Canada Than The U.S.

 

[Larrytpdx]

Do some shopping in Canada.
9 Things That Are WAY Cheaper In Canada Than The U.S.

Very good idea!

 

[Member 5605]

Bitcoin

 

[BlackRyder]

Diamonds

 

[jbett98]

Gold Maple Leaf one ounce rounds.

 

[308]

BC bud

 

[Certaindeaf]

Magic beans.

 

[PDXSparky]

The hit will be like having $45k(CDN) becoming only $34k(USD) a loss of $11k on paper.

Actually, you are wrong in your calculation. The $45k CDN is equal to $34k USD. There is no loss with 2 things are equal. The only loss you might have would be in the future if you keep the funds in CDN currency and the value of the USD goes up in comparison.

If you think that the Canadian dollar will gain value in comparison to the USD, then keep the money in Canada. Otherwise, convert the money to USD soon.

Or buy stuff that's cheaper in Canada.

 

[Bushman]

Triangular arbitrage is the multinational finance concept. Find an exchange rate that is favorable with 3 trades.