Advertise here from only 40 baht per week
cashING in
The Financial Benefits
of Being an Expat.
Every week in this article Helen Couldrey, a financial
consultant with the deVere Group, and also a qualified
English lawyer, will give you tips and ideas of how to
take advantage financially of being an expat. Helen has
clients in Bangkok, Hua Hin and Cha-Am who she helps
to maximise the financial benefits of living overseas.
bang goes the baht
Being an expat makes a little economist out of all of
us to a certain degree... Just one example; how often
do you find yourself moving between one currency and
another, or even two, three or four at once!
When Hans, down the pub, says that a decent Wiener
Schnitzel costs 12 euros in his home town, most of us
will find ourselves reflecting on how far the equivalent
(about 500 Baht) will go on a night out around Cha Am
or Hua Hin. But how often do we stop and really think
about the ramifications of the currency conversions
that we make in everyday life? As an expat in Thailand
currency should be an important consideration for all
of us as it can have a huge impact on our finances and
in particular how far we can stretch our Baht (or Euro,
Dollar, Pound, etc.,).
In the past 12 months alone the Thai Baht has fallen
(high to low) against a range of major world currencies
by as much as around 17% (Sterling), 9% (Euro) or 6.5%
(USD). Of course if you have assets in these currencies,
be it a property, cash deposits or investments, or if you
are receiving an income, pension or otherwise, from
overseas, this has been great news as you’ll have seen
real increases in value in Thai Baht terms.
Of course, on the other hand if you have most of
your assets here in Thailand, but have commitments
overseas like a mortgage, child at university or debts,
you will have found these outgoings have become a
bit more expensive. It is swings and roundabouts and
that is only over the past year. Many of us have been
here longer than a year and I am sure that many of you
will remember a time when the Baht was significantly
Contacting AWOL
Advertising: [email protected]
Classifieds: [email protected]
Submissions: [email protected]
Enquiries: [email protected]
Property:
[email protected]
CHA-AM AND HUA HIN
Retirement Planning - Education Fee Planning
Regular Savings - Tax Saving
Lump Sum Investments
Helen Couldrey, BA (Hons), L.L.B, CISI
Contact Helen for a finance review
086 088 2127
[email protected]
weaker against other major world currencies. (2005:
75 Baht to the pound anyone?)
For example, over the last ten years GBP has seen
highs of up to 76.01 against lows of 43.80 to the Baht.
That is a shift of more than 40% in the relative value of
the two currencies. Meanwhile USD saw a high of 41.70
against the Baht versus a low of 28.65, a shift in value
of just over 30%.
This raises two important points; Firstly, over the
last ten years holding US Dollar would have proved a
better option than pounds sterling because there was
less volatility against the Baht. (The highs weren’t as
high and the lows weren’t as low so there was more to
lose holding sterling.) Secondly, just because holding
US Dollars would have proven a better option over the
last ten years doesn’t mean that it will for the next.
Indeed it is always easier to make a judgement about
the past than a prediction of the future.
So what can be done? Well, firstly you should diversify
your assets through a range of different currencies if
you can. Secondly you should contact an experienced
foreign exchange broker whenever you are moving
money. This will mean that you have more options on
which currency to move in or out of, helping you make
the switch at the best time, generating better rates.
However, there’s always the prospect that another
series of protests may send the Baht into turmoil!
Website:
Telephone:
Facebook:
Twitter:
Office:
Join the AWOL forum
www.awolonline.net
081 649 8361 (Eng) or
081 614 8728 (Thai)
AWOLexpat
awolhuahin
136/229 Emerald Hill, Soi 6,
Borfai, Hua Hin, 77110,
Prachuap Kiri Khan
9