BeeBop does UK

[SBQ]

Agree, but for me the GBP is the final resting place for the money: independent school fees, hopefully university fees, and most probably a house all to be paid out for in the UK. I think we are lucky (at the moment) with the benefit of a USD income stream - on the right side of timing.

Also happy for the current USD/NZD exchange rate too, makes a bit of a change from around six years ago!

My preference is holding USD in these turbulent times. Can't say much about the GBP as it's been relatively flat to the NZD for the past 5 years, though there's more potential for the GBP to plummet over Brexit.

School fees? What's wrong with public schools?

The NZD is weak to the USD because the NZ economy isn't doing well and potentially we could see under $0.50 in the next 2 - 5 years. How does this translate to the person that has lots of USD or GBP cash? Well you may benefit on the exchange rate but you realise that you do live in NZ and everything you consume and do will go up in price. Inflation is tied to NZ's currency because we simply can't produce everything and since most imported products are based in USD, the retailers are forced to raise prices, and thus inflation becomes a problem.

On the grand scheme, NZ residents won't be doing as well as overseas residents like in N. America. We are plagued with over-regulations, FMA, FIF, AML, etc. The only charm NZ has left is investing in real estate, where the gains can be tax free. But for most places around the world, the principle residence is tax free.

[BeeBop]

My preference is holding USD in these turbulent times. Can't say much about the GBP as it's been relatively flat to the NZD for the past 5 years, though there's more potential for the GBP to plummet over Brexit.

School fees? What's wrong with public schools?

The NZD is weak to the USD because the NZ economy isn't doing well and potentially we could see under $0.50 in the next 2 - 5 years. How does this translate to the person that has lots of USD or GBP cash? Well you may benefit on the exchange rate but you realise that you do live in NZ and everything you consume and do will go up in price. Inflation is tied to NZ's currency because we simply can't produce everything and since most imported products are based in USD, the retailers are forced to raise prices, and thus inflation becomes a problem.

On the grand scheme, NZ residents won't be doing as well as overseas residents like in N. America. We are plagued with over-regulations, FMA, FIF, AML, etc. The only charm NZ has left is investing in real estate, where the gains can be tax free. But for most places around the world, the principle residence is tax free.

If you read my "chats" you will know that I am not based in NZ and I have distinct reasons for GBP.

As for government schools....many countries do not have the general privilege that NZ has with mostly fantastic schooling. If my kid was to go public here, she would be fully covered (except for face) and the international schools are an "expat bubble"....no dirt, no independence, and extremely restricted subject choices (great for a budding engineer, doctor, or lawyer, but not a budding farmer or "world famous actor/ress").

Prior to Brexit hitting the headlines, I did 'store" USD but now the chance to gather GBP has been too good. Further to that, buying NZD directly has been superb. Unfortunately, I am not a quick enough, nor smart enough, expert to figure out how to optimize my USD/GBP/NZD opportunities.

And yes, NZ residents are not doing as well. We were kind of encouraged off-shore as there were no good employment options for us unless we wanted to enjoy the "lifestyle". Just chatting to another academic who has finally decided to leave NZ's fair shores after decades of funding grant applications...offered a place in a great institution and no funding to apply for...get on with the job taking a longview.

So, I DON'T live in NZ and probably another poster or two (on this particular thread) do not live in NZ. But one day, our cash will come back, our spending will be there and hopefully I can return a well educated (at personal as opposed to tax payer cost) young person who believes they are going to work in the agricultural or marine sector.

By the way, I see your location is ChCh: I spent a couple of months there late last year - fantastic city now!

[GTM 3442]

I like this thread - I always learn something.

Like BeeBop, I have an actual use for actual pounds to buy actual stuff, so this has been a good year to accumulate them.

I also hold other currencies as cash (AUD CAD CHF SGD and USD) - mainly as insurance against the arse falling out of the GBP or NZD (or indeed both).

No, the cash doesn't pay well (or pay at all for the CHF), but insurance always costs.

Thanks for the Investor's Chronicle it looks interesting, and I suspect we'll all need all the help we can get with the UK in the near future.

[BeeBop]

I wonder what next week will hold for Brexit. BeeBop is doing a little "family" holiday to the UK and Ireland.....crossing back from Ireland to Northern Ireland on the 31st (to avoid any issues)....on to London on the 1st.....Prepaid most of the holiday costs when the GBP was down at 1.23-1.24....we shall take any currency opportunities on offer

Must explore Whitbread shares again....as constantly using the Premier Inn chain....GBP30-40 per night, can't be beat, although I am sure my entire global human network partake in the PI T4 at Heathrow (even works well as a London base if One can be bothered with a 40 min underground journey costing GBP3.20): take that as a London travel tip and use SIXT rental car which is very close and saves using shuttles (but only ever book when you are on a UK VPN to ensure you don't get caught with the extra insurance charge on collection).

I wonder which way Brexit will swing?

[GTM 3442]

I wonder what next week will hold for Brexit. . . . . . . . I wonder which way Brexit will swing?

Too many people have too much invested in Brexit for it to be allowed to come to come to any conclusion this early in the piece.

On the bright side, I expect your Vodafone UK SIM card will continue to work in Ireland and the rest of the EU just as seamlessly as it currently does for some time yet. . .

In the meantime, I have to decide what to do with a swag of pounds. GBP invested as GBP in the UK economy, or GBP invested elsewhere in the world in a GBP-denominated ETF or fund.

Possibly hedged by some other currency invested in the UK via a CHF/Euro/USD/whatever-denominated fund.

Or buy palladium again?

The possibilities are endless.

Travel safe.

[Snow Leopard]

...Must explore Whitbread shares again....as constantly using the Premier Inn chain....GBP30-40 per night, can't be beat, although I am sure my entire global human network partake in the PI T4 at Heathrow...

What I particularly like about PI T4, apart from being able to keep your Airport luggage trolley in your room, is the range of discounts, specials & freebies available in the restaurant that the promise of a reasonable tip reveals.

I can recommend SIXT, Avis (I still get a special business rate from them) and Enterprise can be very competitive for medium term rentals.

[BeeBop]

What I particularly like about PI T4, apart from being able to keep your Airport luggage trolley in your room, is the range of discounts, specials & freebies available in the restaurant that the promise of a reasonable tip reveals.

I can recommend SIXT, Avis (I still get a special business rate from them) and Enterprise can be very competitive for medium term rentals.

Snow Leopard....maybe PI T4 will serve up as a ShareTrader meeting point! I shall check out Enterprise’s medium term rates....I like their wee Vauxhall Adam cars...much better than the Fiat 500s if I am getting a city car.