Weakening American Dollar
I recently go an updated statement for my 401K plan and was happy to see that the investments selected had given a reasonable return. However, when I thought about the weakening dollar against the pound, my smile disappeared.
Why? Well when I moved to the London in April 2005, for every British pound, you would get 1.87 American dollars. Now, for every British pound, I get 2.07 Americans dollars. So great if you are moving money from the UK to the US. Not so great if you are moving money from the US to the UK.
On a positive note, I am paid in British pounds and the current exchange rate takes away all temptation to withdraw any funds. Particularly as after Uncle Sam takes its share and the conversion happens, I wouldn’t have much of anything.
So my US retirement money will have to stay where it is for now. Hopefully in time the exchange rate will get better. If not, retirement will definitely have to be someplace more tropical — where I hope the exchange rate will be more favorable.