$ -£ exchange rate
Jul 29th 2019, 4:34 pm
#1
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$ -£ exchange rate
Any thoughts on the $ - £ exchange rate.
Tempted to cash in my IRA and take advantage of the current rates.
Tempted to cash in my IRA and take advantage of the current rates.
Jul 29th 2019, 6:47 pm
#2
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Re: $ -£ exchange rate
Don't you get taxed on early withdraw?
I was thinking about cashing out my 401k but I would probably end up losing 30-40% in taxes
I was thinking about cashing out my 401k but I would probably end up losing 30-40% in taxes
Jul 29th 2019, 8:55 pm
#3
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Re: $ -£ exchange rate
If it goes to parity I have told my family that we will sell up and retire in the UK. I am not sure how likely that is.
Jul 29th 2019, 9:41 pm
#4
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Re: $ -£ exchange rate
It got this low in January 2017 right when we were buying our house so we transferred a load of money at that time. Having been extremely lucky once I’m hesitant to incur more taxes to get a rate that may actually go lower as Oct 31st gets nearer. My US pensions get paid monthly so they have been enjoying the recent low rates but those low rates have pushed me into the 40% UK tax band.
Decisions, decisions.....
Decisions, decisions.....
Last edited by durham_lad; Jul 29th 2019 at 9:46 pm.
Jul 30th 2019, 8:12 am
#5
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Re: $ -£ exchange rate
It got this low in January 2017 right when we were buying our house so we transferred a load of money at that time. Having been extremely lucky once I’m hesitant to incur more taxes to get a rate that may actually go lower as Oct 31st gets nearer. My US pensions get paid monthly so they have been enjoying the recent low rates but those low rates have pushed me into the 40% UK tax band.
Decisions, decisions.....
Decisions, decisions.....
Jul 30th 2019, 11:59 am
#6
Lost in BE Cyberspace
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Re: $ -£ exchange rate
And the pound keeps falling. I wonder how many expats will see this as a good time to move back financially. I do fear how the country will fair after this is all over.
Jul 30th 2019, 1:10 pm
#7
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Location: Western Australia
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Re: $ -£ exchange rate
The developer went into administration early 2018 and shortly after that we moved back to Oz. Early indications were that we wouldn't see a penny of our money, but we've managed to claw £45,000 back. That was deposited in our UK bank account today, where it will have to sit doing absolutely nothing for us for the foreseeable future. We can't invest it in the UK because we're no longer resident. I don't feel able to take the hit of transferring it back to AUD, we've bloody well lost enough. So there it sits.
* I was an idiot to fall into the off-plan trap. I thought I was buying an apartment, but of course all I was doing was being a speculative investor. Never, ever participate in a fractional sales/buyer funded off-plan property purchase!
Jul 30th 2019, 2:23 pm
#8
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Re: $ -£ exchange rate
Absolutely. While I am opposed to a no-deal Brexit I have certainly benefited by living here and having my US pension boosted by 33% with the fall of the £ from 1.6 to 1.25. My pension is fixed (no inflation adjustment) so having any "increase" once I started receiving it 9 years ago was never expected, nor was being in the 40% tax band.
Jul 30th 2019, 3:43 pm
#9
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Joined: Jul 2005
Location: Europe (to be specified).
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Re: $ -£ exchange rate
Absolutely. While I am opposed to a no-deal Brexit I have certainly benefited by living here and having my US pension boosted by 33% with the fall of the £ from 1.6 to 1.25. My pension is fixed (no inflation adjustment) so having any "increase" once I started receiving it 9 years ago was never expected, nor was being in the 40% tax band.
Aug 11th 2019, 12:09 pm
#10
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Re: $ -£ exchange rate
Thanks for the replies. The current volatility in the markets is a concern. My own gut feeling is it would be better to cash out the IRA and take advantage of the exchange rate sooner rather than later. Either way it's a gamble.
Aug 19th 2019, 8:19 pm
#11
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Re: $ -£ exchange rate
US pension and SS will go a long way as $/£ edges closer to parity. It is tempting for expats in US to return for this reason. But then you're left with the Brexit aftermath economic and political mess, especially with no deal likely.
Last edited by Richard8655; Aug 19th 2019 at 8:46 pm.
Aug 24th 2019, 5:31 am
#12
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Re: $ -£ exchange rate
Absolutely. While I am opposed to a no-deal Brexit I have certainly benefited by living here and having my US pension boosted by 33% with the fall of the £ from 1.6 to 1.25. My pension is fixed (no inflation adjustment) so having any "increase" once I started receiving it 9 years ago was never expected, nor was being in the 40% tax band.
Aug 24th 2019, 5:40 am
#13
Forum Regular
Joined: Jan 2016
Posts: 42
Re: $ -£ exchange rate
Absolutely. While I am opposed to a no-deal Brexit I have certainly benefited by living here and having my US pension boosted by 33% with the fall of the £ from 1.6 to 1.25. My pension is fixed (no inflation adjustment) so having any "increase" once I started receiving it 9 years ago was never expected, nor was being in the 40% tax band.
Aug 24th 2019, 11:13 am
#14
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Re: $ -£ exchange rate
The whole amount is taxed by both the IRS and HMRC. When I file my US taxes the pensions are marked as “Resourced by Treaty” so they are treated as foreign pensions on form 1116 and I claim a foreign tax credit for the taxes paid to HMRC. This reduces my US taxes to zero.
Aug 24th 2019, 12:22 pm
#15
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Re: $ -£ exchange rate
The whole amount is taxed by both the IRS and HMRC. When I file my US taxes the pensions are marked as “Resourced by Treaty” so they are treated as foreign pensions on form 1116 and I claim a foreign tax credit for the taxes paid to HMRC. This reduces my US taxes to zero.