tag:blogger.com,1999:blog-1687943522027007206.post1007237549211325237..comments2023-06-03T17:16:23.390+03:00Comments on Investing by Accident: Kesef B'Kesef Alternatives: Part IIDonnyhttp://www.blogger.com/profile/00393238234242790016noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1687943522027007206.post-76343373990797095322014-01-15T13:53:32.273+02:002014-01-15T13:53:32.273+02:00Thanks, MJ for the comments. I definitely agree ab...Thanks, MJ for the comments. I definitely agree about the BB&B coupons. I still have mine.<br /><br />I work for an international company and the budget is kept in dollars and converted to shekel when needed. The difference is that when a significant downside in currency occurs (like in 2008), the company has plenty of cash to cover so we tend not to feel it at all as just mere employees. Also, they can always balance globally. (You can always grab a few rupees when no one is looking.)<br /><br />I've added your topics to the backlog for future posts. Except for #7 because talking about forex is already quite enough on that sort of thing and anything related to derivatives gives me a headache. Everyone will surely look forward to post on #2 because if there is one thing that people enjoy most, it is talking about taxes.<br /><br />I probably should have pointed this out earlier, but the idea of making aliyah for your money is not that all of it should make aliyah. It should be like family -- you want to keep some of them in America so that you have a free place to stay when you visit the US. The question is which money would make the most sense to keep in Israel considering the types of stocks and bonds that you can buy here. I have a theory on this that I'll share soon in a post entitled, "The Coffee Hypothesis". <br /><br />Looking forward to hearing what you think!<br /><br />Donnyhttps://www.blogger.com/profile/00393238234242790016noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-80758800080061978492014-01-15T13:11:56.065+02:002014-01-15T13:11:56.065+02:00This topic has been on my mind a bit recently and ...This topic has been on my mind a bit recently and I don't think there are any perfect answers aside from balancing exposure - which is what companies that operate internationally do. Of course, they have access to esoteric instruments that we mere mortals do not. I will just throw out a few considerations that I hoe you will address. (1) US stock indexes have greatly outperformed the loss in the exchange rate over the past 2 years, so keeping your money there would have been a better idea at least for now. (2) on the other hand, you technically only have 10 years from making aliyah to avoid israeli taxes on capital gains from abroad. (3) Consider whether a US dollar mortgage on a home in Israel can help balance risk even if your income is in shekels. (4) At what point should you leave money in a US retirement account vs absorbing the penalty and moving it here. (5) Do not under any circumstances stop collecting BB&B coupons. (6) People need to realize that any strategy that reduces risk (protects from volatility) is going to reduce potential upsides. If you adopt a strategy today, you still need to decide what you think the prospects are for the exchange rate in order to weight things. If you think the dollar will recover then adopting a strategy that locks you into a narrow range is also problematic. (7) Forward contracts? (8) Remember your somewhat dim-witted roommate who was in Sy Syms? Google him. He's probably making bucket loads working some options scheme for a hedge fund. Ask him for advice. <br /><br />Anyways, I'm not sure why the invest in israel from abroad strategy makes sense as the shekel's appreciation is not directly a function of the strength of the TASE. <br /><br />MJnoreply@blogger.com