Thanks for the update on Wise. Unlike other channels on youtube that discuss the offshore world, you provide value with real examples and relevant information. Thanks again.
I personally have relocated to Panama from Australia to take advantage of tax benefits of living here. I find myself wanting to invest in dividend producing stocks outside of Panama but don't want to pay the huge non resident withholding fees (30% in some cases) that come with it. What strategies/countries/platforms would you recommend to reduce/eliminate these? TIA
@@Andy_OvaSeas some of the limitation on benefits and anti treaty shopping rules can get tricky but usually an EU holding company with tax treaty and no tax on dividends is best.
Chilean PESO is undervalued by about 20% - normally tracks copper. Singapore dollars may be good in the future. Goldman thinks EURO in their last report may hit 1.28 by year end.
Possible but depends partially on where the meltdown happens. And what if you get inflation instead? Then commodity oriented currencies will likely do better.
@@OffshoreCitizen We are seeing that play out right now. Commodities starting to be impacted from years of underinvestment leading to higher OIL/GAS/COAL/COPPER etc etc etc
Here is my opinion: Gold , silver and a good portion of USD. Why? Al the debt that is in the system and has to be cleared, which is deflationary, and deflation = Higher valued currency , in such a scenario the us dollar will do best, Now on a short term basis(for payement and subscription) im holdings eur, in the last 5 months i was paying less and less eur for subscription and other stuff. But overall : Long term(18 month) us dollars Short term (5-6 month) eur
Interesting logic. So clearing debt is deflationary if it gets cleared via defaults. But it could also be inflated away or forgiven both of which would be inflationary. And of course who knows how far down the road they can kick the debt can. What do you think of the idea that the US dollar is gradually slipping in its hold as the global reserve currency?
@@OffshoreCitizen if it goes the other way( inflation) im prepared,i have physical gold and silver, mining stock and some commodities stocks, but im strongly inclined to a deflation first followed by inflation. Will the dollar lose it reserve currency status? Probably, i believe at some point int the near future there will be a transition for sure to a new reserve currency, this transition usually comes with a conflict or some sort of a war, and i believe that it will be one big war before we see any transition imo.
Recent Email from Wiae : "From 26 April, the fee to send money to MXN is going up. When you send money to Mexico, we use a partner to pay the money to your recipient’s account. Since the beginning of this year, these partner costs have increased. Because of that we’ve had to raise our fees to cover our costs. We know that this isn't great news, and we're sorry about that. We'll bring those fees back down as soon as we can. When our costs go down, your prices will go down. As an example, when you send 500 USD to MXN and pay by bank debit (ACH), the total fees will increase from 6.33 USD to 8.56 USD"
@@OffshoreCitizen Not sure if it would be better or worse SEO wise [no pun intended, just a coincidence]. Perhaps you can add it as extra tags if you didn't already, since it's a trending topic. 😉
If cryto currencies are truly "a new beginning" why is it so difficult and expensive to buy say bitcoin in currency X and sell it into another bank account set up into currency Y? Or even, to just transact in bitcoin in the second country. Bitcoin was established to negate the need for a banking middle man, but that exact what coinbase etc are. How dare they (coinbase pro) charge 0.5% of each transaction? At most I think it should be a fixed fee since transferring X or 10X costs the same to them.
Coinbase doesn't charge you that for sending they charge you that for exchanging. The cost of sending crypto is determined by the network based on demand. Also keep in mind we're in the early stages of blockchain technology. Just as it wasn't wise to judge the internet by dial up speeds in 1995 it's not wise to judge blockchain tech by today's standards it will evolve a lot over the next 10 to 20 years
I think they are quite high fees actually. I recently transferred a sum of £70,000 to a Euro acc and got charged £245! @ 0.35%. No exchange rate but £245 is a lot I think. And they were the cheapest!
I recently tried to transfer hkd 1 M to £ account , they are charging £422 and I don't think that's very low, still £42 lower than my bank's bad exchange rate but I thought Wise is suppose to be cheap.
As the state of Wyoming now recognises DAOs - is it possible (probable) that there's a new option for charities to be set up and ran autonomously? I'm wondering if they could be somehow part self-financing also accept donations? Smart contracts to disseminate funds to worthy causes in certain sectors - for example, education in emerging markets. Perhaps a model could be constructed without the high overheads from current charities? Yes... I know it's vague, just musing in the shower this morning.
Yeah could totally be possible. The whole idea of innovations in the legal system based on smart contracts is fascinating not to mention the opportunities for innovations in governance through this mechanism are super cool.
EUR will outperform USD over the coming years? Interesting. What is your thought process around this positive outlook (or at least bias) for the EUR? The oft-cited expectation of USD weakness?
Great question. I think it's worth thinking about what drives currency strength or weakness. On a cyclical basis USD is up, EUR is down so simply looking at that pattern I'd say USD is due for some downward action, which we've seen so far. This being said, part of what attracts USD is the strength of US markets and weakness of foreign markets or bonds. In other words, the interest rate differential between the US and EU since the Euro crisis had a negative relative impact on the Euro. Now the US interest rates have fallen but more importantly there's fears of inflation on the uptick, which makes US bonds very unattractive to hold so I see capital going elsewhere. I think US markets have become extremely expensive relative to a bunch of global markets and this means capital is more likely to flow out of the US to those other markets seeking yield. Then, I think broadly there is weakness is the confidence in the US financial system, which is making less people want to place and keep money there relative to other alternatives, which I think is going to be bearish for the US dollar. Now, is the Euro my favorite currency? Definitely not the problem is I don't think it makes a lot of sense to hold currencies that you aren't going to spend or invest in so for instance I spend almost no time in Switzerland and don't invest in CHF denominated assets so that doesn't make any sense for me to hold (might as well hold gold or something as an alternative if I'm thinking that way). I do tend to believe the US system is a very big strong edifice, what this means is it's tougher to move but more fragile when it does move. I could well be mistaken but my assessment right now is the Euro is likely to outperform the USD over the next 5 years, GBP could be stronger still. What do you think and what's your reasoning?
Today I read US gdp will grow by 6% and Europe contract by 2%. Would not expect EUR to outperform USD. Moreover tapering is discussed in US and treasury yields have already spiked this year and will continue to go up.
@@djdjoko GDP growth rates don't tend to be a great predictor of currency performance. That being said you could be right, time will tell. I've been mostly shifting away from USD but could be proven wrong.
@@MichaelRosmer I agree with you that money will flee the USD for the reasons you mentioned, plus other criteria such as the political turmoil and the rapid decay in the societal structure. All these factors bring uncertainty that typically leads to monetary assets seeking a more secure haven. That said, one could say the same for Euroland. The EUR is sitting on a weak foundation. The EU (and here I am addressing the political, not financial, union that citizens generally never asked for) does not and is unlikely to ever form a coherent whole, whether on a financial, political or cultural level. The EUR as an artificial construct has merely brought about short term benefit at the expense of inequality and strife in society, also now partly reflected in the sorry state of European banks. This is unlikely to change and the stress will become unbearable over time. Thus, while some fiat currencies might be worth a look at, I would not consider the EUR one one these and certainly not over the USD. Of course, as often mentioned, tangible assets will outperform either USD, EUR or most other fiats; one just needs to look at the performance of real estate, commodities etc recently. Then, there is whole discussion of economical and military strength... not to mention the unbearable bureaucracy in many places in Europe stifling progress and change. While western power is slowly dwindling, Europeans have less of an impact than their US counterparts around the world. About USD weakness against other currencies, well, it is regarded at as one of the "save haven" currencies, along with the JPY. At the moment, the charts over the last 12 months would indicate that traders feel more confident holding the former.
![Who Wrote a Short Story That Seriously Disturbed a Teacher? | Dirty Laundry x Smosh [Full Episode]](http://i.ytimg.com/vi/bvHAy_rKoEI/mqdefault.jpg)
Banks used to give free toasters! It's a different time LOL!
Thats definitely something to think about 🤔
Thanks for the update on Wise. Unlike other channels on youtube that discuss the offshore world, you provide value with real examples and relevant information. Thanks again.
You're most welcome. Anything in particular you'd like me to create content on?
I personally have relocated to Panama from Australia to take advantage of tax benefits of living here. I find myself wanting to invest in dividend producing stocks outside of Panama but don't want to pay the huge non resident withholding fees (30% in some cases) that come with it. What strategies/countries/platforms would you recommend to reduce/eliminate these? TIA
@@Andy_OvaSeas some of the limitation on benefits and anti treaty shopping rules can get tricky but usually an EU holding company with tax treaty and no tax on dividends is best.
Chilean PESO is undervalued by about 20% - normally tracks copper. Singapore dollars may be good in the future. Goldman thinks EURO in their last report may hit 1.28 by year end.
How much do you trust Goldman on their forecasts?
I also think holding Euro is better than holding any other currency.
If a meltdown (deflation) happens, look for USD to vastly outperform any other currency + higher negative rates
Possible but depends partially on where the meltdown happens. And what if you get inflation instead? Then commodity oriented currencies will likely do better.
@@OffshoreCitizen We are seeing that play out right now. Commodities starting to be impacted from years of underinvestment leading to higher OIL/GAS/COAL/COPPER etc etc etc
Here is my opinion:
Gold , silver and a good portion of USD.
Why? Al the debt that is in the system and has to be cleared, which is deflationary, and deflation = Higher valued currency , in such a scenario the us dollar will do best, Now on a short term basis(for payement and subscription) im holdings eur, in the last 5 months i was paying less and less eur for subscription and other stuff. But overall :
Long term(18 month) us dollars
Short term (5-6 month) eur
Interesting logic. So clearing debt is deflationary if it gets cleared via defaults. But it could also be inflated away or forgiven both of which would be inflationary. And of course who knows how far down the road they can kick the debt can.
What do you think of the idea that the US dollar is gradually slipping in its hold as the global reserve currency?
@@OffshoreCitizen if it goes the other way( inflation) im prepared,i have physical gold and silver, mining stock and some commodities stocks, but im strongly inclined to a deflation first followed by inflation.
Will the dollar lose it reserve currency status? Probably, i believe at some point int the near future there will be a transition for sure to a new reserve currency, this transition usually comes with a conflict or some sort of a war, and i believe that it will be one big war before we see any transition imo.
Recent Email from Wiae : "From 26 April, the fee to send money to MXN is going up. When you send money to Mexico, we use a partner to pay the money to your recipient’s account. Since the beginning of this year, these partner costs have increased. Because of that we’ve had to raise our fees to cover our costs. We know that this isn't great news, and we're sorry about that. We'll bring those fees back down as soon as we can. When our costs go down, your prices will go down. As an example, when you send 500 USD to MXN and pay by bank debit (ACH), the total fees will increase from 6.33 USD to 8.56 USD"
If they keep on increasing the transfer fee, most people would avoid it and find other options.
Does this fees also apply to all currencies? If I was to only move my money between MXN and EUR, would I be affected?
Your video's title would be more accurate if you used "negative interest" instead of fees, though.
True
@@OffshoreCitizen Not sure if it would be better or worse SEO wise [no pun intended, just a coincidence]. Perhaps you can add it as extra tags if you didn't already, since it's a trending topic. 😉
Are you aware on N26 and is it something you would recommend in conjunction or in place of Wise?
I heard that their service is bad and there were much hacking? :/
If cryto currencies are truly "a new beginning" why is it so difficult and expensive to buy say bitcoin in currency X and sell it into another bank account set up into currency Y? Or even, to just transact in bitcoin in the second country. Bitcoin was established to negate the need for a banking middle man, but that exact what coinbase etc are. How dare they (coinbase pro) charge 0.5% of each transaction? At most I think it should be a fixed fee since transferring X or 10X costs the same to them.
Coinbase doesn't charge you that for sending they charge you that for exchanging. The cost of sending crypto is determined by the network based on demand.
Also keep in mind we're in the early stages of blockchain technology. Just as it wasn't wise to judge the internet by dial up speeds in 1995 it's not wise to judge blockchain tech by today's standards it will evolve a lot over the next 10 to 20 years
I think they are quite high fees actually.
I recently transferred a sum of £70,000 to a Euro acc and got charged £245! @ 0.35%.
No exchange rate but £245 is a lot I think.
And they were the cheapest!
I recently tried to transfer hkd 1 M to £ account , they are charging £422 and I don't think that's very low, still £42 lower than my bank's bad exchange rate but I thought Wise is suppose to be cheap.
As the state of Wyoming now recognises DAOs - is it possible (probable) that there's a new option for charities to be set up and ran autonomously? I'm wondering if they could be somehow part self-financing also accept donations? Smart contracts to disseminate funds to worthy causes in certain sectors - for example, education in emerging markets. Perhaps a model could be constructed without the high overheads from current charities? Yes... I know it's vague, just musing in the shower this morning.
Yeah could totally be possible. The whole idea of innovations in the legal system based on smart contracts is fascinating not to mention the opportunities for innovations in governance through this mechanism are super cool.
EUR will outperform USD over the coming years? Interesting. What is your thought process around this positive outlook (or at least bias) for the EUR? The oft-cited expectation of USD weakness?
Great question. I think it's worth thinking about what drives currency strength or weakness. On a cyclical basis USD is up, EUR is down so simply looking at that pattern I'd say USD is due for some downward action, which we've seen so far.
This being said, part of what attracts USD is the strength of US markets and weakness of foreign markets or bonds. In other words, the interest rate differential between the US and EU since the Euro crisis had a negative relative impact on the Euro. Now the US interest rates have fallen but more importantly there's fears of inflation on the uptick, which makes US bonds very unattractive to hold so I see capital going elsewhere. I think US markets have become extremely expensive relative to a bunch of global markets and this means capital is more likely to flow out of the US to those other markets seeking yield.
Then, I think broadly there is weakness is the confidence in the US financial system, which is making less people want to place and keep money there relative to other alternatives, which I think is going to be bearish for the US dollar.
Now, is the Euro my favorite currency? Definitely not the problem is I don't think it makes a lot of sense to hold currencies that you aren't going to spend or invest in so for instance I spend almost no time in Switzerland and don't invest in CHF denominated assets so that doesn't make any sense for me to hold (might as well hold gold or something as an alternative if I'm thinking that way).
I do tend to believe the US system is a very big strong edifice, what this means is it's tougher to move but more fragile when it does move. I could well be mistaken but my assessment right now is the Euro is likely to outperform the USD over the next 5 years, GBP could be stronger still.
What do you think and what's your reasoning?
Today I read US gdp will grow by 6% and Europe contract by 2%. Would not expect EUR to outperform USD. Moreover tapering is discussed in US and treasury yields have already spiked this year and will continue to go up.
@@djdjoko GDP growth rates don't tend to be a great predictor of currency performance.
That being said you could be right, time will tell. I've been mostly shifting away from USD but could be proven wrong.
@@MichaelRosmer I agree with you that money will flee the USD for the reasons you mentioned, plus other criteria such as the political turmoil and the rapid decay in the societal structure. All these factors bring uncertainty that typically leads to monetary assets seeking a more secure haven.
That said, one could say the same for Euroland. The EUR is sitting on a weak foundation. The EU (and here I am addressing the political, not financial, union that citizens generally never asked for) does not and is unlikely to ever form a coherent whole, whether on a financial, political or cultural level. The EUR as an artificial construct has merely brought about short term benefit at the expense of inequality and strife in society, also now partly reflected in the sorry state of European banks. This is unlikely to change and the stress will become unbearable over time. Thus, while some fiat currencies might be worth a look at, I would not consider the EUR one one these and certainly not over the USD. Of course, as often mentioned, tangible assets will outperform either USD, EUR or most other fiats; one just needs to look at the performance of real estate, commodities etc recently.
Then, there is whole discussion of economical and military strength... not to mention the unbearable bureaucracy in many places in Europe stifling progress and change. While western power is slowly dwindling, Europeans have less of an impact than their US counterparts around the world.
About USD weakness against other currencies, well, it is regarded at as one of the "save haven" currencies, along with the JPY. At the moment, the charts over the last 12 months would indicate that traders feel more confident holding the former.
@@veejl all valid points. The trade though is to ask "what is that worth and could it be the markets have over compensated in one direction?"
And they say they have "super low fees"
Nice video.👌 Thanks for sharing,Stay Blessed.🥰
I think revolut might be better for euros. Wise is still amazing though
I was thinking Revolut as well... not sure if there are similiar restrictions to what has been outlined in the video about Wise.
Is Wise trustworthy? I would like to use them as my main bank in the UK.
Definitely they are trustworthy but I wouldn't rely on any single bank these days
This video didn’t age well. EUR USD 1:1
Does transferwise work with ebay managed payments?
thanks
70 thousand
First one to press like🍷
Yesterday I was just watching a video about Wise ! Thx Michael 🙏🏼
DO NOT OPEN a ~Wise bank account! Truly appalling service!
Could you share more about your experience?
@Richard Baxter, what's your reason for this?
argument for crypto?
Switzerland has a lot of debt?? What??? 😂
Where did you get that idea?
tradingeconomics.com/country-list/private-debt-to-gdp
en.m.wikipedia.org/wiki/List_of_countries_by_household_debt
www.statista.com/statistics/738695/household-debt-gdp-globally-by-country/