Posted On : 19-03-2018

Cost-Benefits in Having Foreign Savings Accounts or Investments

Untung Rugi Memiliki Tabungan atau Investasi Mata Uang Asing

One of the objectives in investments is to achieve financial goals. There are many ways to make an investment, be it in rupiah, foreign currencies, or precious metals. In Indonesia, American dollars, Singaporean dollars, Australian dollars or Euro are often an alternative form of investments/savings in foreign currencies

Today, the choice of the financial products for short-term needs is available in BCA savings and deposits. Meanwhile, for long-term needs, dollar-based fixed-income mutual funds and unit –linked insurance denominated in a foreign currency.

According to financial planner, Prita Ghozie, as quoted by Detik, in addition to investment choices, the public are also provided with a higher risk speculative instrument such as trading with derivatives in foreign currency.

“Every investment product has its own risks and promise potential for larger returns. In foreign currency-based investments, profits can be obtained from returns and foreign exchange differences with Rupiah, between the buy and sell rates,” she explained.

Prita also said that people should understand that exchange rates are highly dependent on macroeconomic conditions. It will therefore be difficult for the general public to estimate the potential for future profits. Foreign currency trading is not recommended because the speculative nature of the practice.

Should your conditions are as follows, investments in foreign currency might be something to consider.

Living Expenses

If your household income and expenditure are predominantly paid in foreign currency, then having savings in that currency works best. Especially, for those who have family abroad due to work or education, or a couple who both works in foreign country.

Education Funds for Your Children

If you have children who study abroad, it is recommended to save and invest in foreign currency. To avoid double conversion, you should directly invest in the currency of the country where you study.

If studying abroad is included in your children’s education fund planning in the next five years, you should start investing in foreign currency.

Imported Products & Lifestyle

If you are fond of imported products, you might want to consider having savings in foreign currencies. Start devising a plan on which month you’ll be needing the said currency. So, start savings in foreign currency you gradually buy every month until the fund you need is adequate.

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