# exchanging dollars for euros now



## tout va bien

hi all. we are americans near retirement age and plan to move to brittany, normandy, or the dordogne with our adult daughter in the next couple of years. we plan to buy a house using proceeds from the sale of our farm which will not be until we are close to the time of the move. however, we have an account we are adding to every month until retirement. should we convert these dollars into euros now while the euro is low to the dollar or wait until we get to france? this account is about $50000 and adding about $60000 per year while my husband is working. we feel we will all qualify for french residency and have been doing a lot of research on the rules so that is not a concern. additionally, if you have any thoughts on the three regions we are interested in, please do not hesitate to give your thoughts. thank you, deb


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## zarathustra

You'll get a lot more for your money in Brittany or Normandy than Dordogne, but then quite a lot of Dordogne is picture-box pretty. With the changing climate, you may find Dordogne a little on the hot and dry side as the years go by, whilst Brittany/Normandy perhaps offers a bit more relief, but more wind and rain too. You have to be careful not to purchase next to a Brittany pig farm, as the smells might be off putting. I love the three regions, and if I was asked to choose it wouldn't be an easy choice.


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## Bevdeforges

How are you planning on exchanging dollars for euros, and where will you stash the euro funds once you have exchanged the dollars? Unless you have a French bank account already it may wind up being more trouble than its worth.

Yes, it's tempting to try to beat the market with the euro at historic lows against the dollar, but there is no telling which way things "could" go in the coming year, or two or three. There's also the matter of what kind of account you're using for your savings. Admittedly bank interest these days is pretty pathetic, but that's the case all over the world apparently. And here in France, most bank interest is taxed at a flat tax rate (for residents, obviously) of 30%, which is withheld directly from your account. (I'm not sure how that works for foreigners with a non-resident account). You could easily be adding a layer of complexity to your planning and preparation that you'll come to regret later.

But no doubt there will be others here with other opinions on this one.


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## tout va bien

zarathustra said:


> You'll get a lot more for your money in Brittany or Normandy than Dordogne, but then quite a lot of Dordogne is picture-box pretty. With the changing climate, you may find Dordogne a little on the hot and dry side as the years go by, whilst Brittany/Normandy perhaps offers a bit more relief, but more wind and rain too. You have to be careful not to purchase next to a Brittany pig farm, as the smells might be off putting. I love the three regions, and if I was asked to choose it wouldn't be an easy choice.


thank you. i am more of a river than an ocean person, but i can not take humid heat, thus looking at brittany and normandy too. we would love to eat fresh seafood multiple times a week and four seasons is preferred. deb


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## jweihl

We just had a zoom meeting with our financial advisors and, according to them now is an excellent time to move a few more dollars to euros. Of course, you need to be able to move them efficiently, have an ultimate use for them, and not leave yourself short of dollars for your US based expenses. In our case we were examining our liquidity, evaluating our retirement distributions, and determined that at least for us it made excellent sense to do so.

While I feel a bit bad for the economic factors depressing the value of the euro, for those of us with dollar based incomes it's a bit of a windfall.


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## Befuddled

I am familiar with the Dordogne's charm and had hoped to settle there but due to the cost of property I bought in Brittany. 
*Zarathustra's comments on the weather are gospel. In a way, I'm glad I ended up in Brittany. I no longer enjoy the heat and apart from long grey winters Brittany works well enough for us. Rarely experience extremes of climate and where we settled in 22 we're only about half an hour from the coast. You do get the four distinct seasons and if you intend to carry on a bit of veggie growing you can find a property with a little or as much land as you desire at moderate cost. 
Reasonably priced fresh seafood is available pretty much everywhere if that's your bag. *


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## tout va bien

bou


jweihl said:


> We just had a zoom meeting with our financial advisors and, according to them now is an excellent time to move a few more dollars to euros. Of course, you need to be able to move them efficiently, have an ultimate use for them, and not leave yourself short of dollars for your US based expenses. In our case we were examining our liquidity, evaluating our retirement distributions, and determined that at least for us it made excellent sense to do so.
> 
> While I feel a bit bad for the economic factors depressing the value of the euro, for those of us with dollar based incomes it's a bit of a windfall.


thank you, i agree. if we lock in some euros now at a low rate it can't hurt. i did speak to an advisor after i wrote my post and it will be very easy to purchase and hold the euros in an account here in the u.s. all the best to you


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## tout va bien

zarathustra said:


> You'll get a lot more for your money in Brittany or Normandy than Dordogne, but then quite a lot of Dordogne is picture-box pretty. With the changing climate, you may find Dordogne a little on the hot and dry side as the years go by, whilst Brittany/Normandy perhaps offers a bit more relief, but more wind and rain too. You have to be careful not to purchase next to a Brittany pig farm, as the smells might be off putting. I love the three regions, and if I was asked to choose it wouldn't be an easy choice.


thank you. we are more river people than ocean people, but heat with humidity, and curvy mountain roads have us rethinking the dordogne. we also appreciate all four seasons and would like to eat shellfish multiple times a week. all the best to you


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## tout va bien

Befuddled said:


> I am familiar with the Dordogne's charm and had hoped to settle there but due to the cost of property I bought in Brittany.
> *Zarathustra's comments on the weather are gospel. In a way, I'm glad I ended up in Brittany. I no longer enjoy the heat and apart from long grey winters Brittany works well enough for us. Rarely experience extremes of climate and where we settled in 22 we're only about half an hour from the coast. You do get the four distinct seasons and if you intend to carry on a bit of veggie growing you can find a property with a little or as much land as you desire at moderate cost.
> Reasonably priced fresh seafood is available pretty much everywhere if that's your bag. *


thank you, we are leaning toward brittany due to humid heat and winding roads in the dordogne. we enjoy the four seasons, are avid veg and flower gardeners, and would like to eat seafood as much as possible. all the best to you


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## tout va bien

zarathustra said:


> You'll get a lot more for your money in Brittany or Normandy than Dordogne, but then quite a lot of Dordogne is picture-box pretty. With the changing climate, you may find Dordogne a little on the hot and dry side as the years go by, whilst Brittany/Normandy perhaps offers a bit more relief, but more wind and rain too. You have to be careful not to purchase next to a Brittany pig farm, as the smells might be off putting. I love the three regions, and if I was asked to choose it wouldn't be an easy choice.


we find all three areas beautiful, but we do not want humid heat. we enjoy all four seasons as they give opportunities for varying activities. saving money is also always a great thing to us. all the best to you


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## tout va bien

Bevdeforges said:


> How are you planning on exchanging dollars for euros, and where will you stash the euro funds once you have exchanged the dollars? Unless you have a French bank account already it may wind up being more trouble than its worth.
> 
> Yes, it's tempting to try to beat the market with the euro at historic lows against the dollar, but there is no telling which way things "could" go in the coming year, or two or three. There's also the matter of what kind of account you're using for your savings. Admittedly bank interest these days is pretty pathetic, but that's the case all over the world apparently. And here in France, most bank interest is taxed at a flat tax rate (for residents, obviously) of 30%, which is withheld directly from your account. (I'm not sure how that works for foreigners with a non-resident account). You could easily be adding a layer of complexity to your planning and preparation that you'll come to regret later.
> 
> But no doubt there will be others here with other opinions on this one.


hi. we would purchase through our investment company which would hold them in an account, but also show their value in dollars. i do agree that i cannot predict the future of where the dollar and euro will be when we retire. i must say that not being able to predict the future is extremely disappointing as this ability could really change our lives. we could put them in a low interest earning account or invest them with the hope they would appreciate. i was told we can transfer them to a french institution as long as we remain american citizens living in the u.s.. once we move to france we could not transfer euros to a french account, only dollars to then be converted to euros. so we could use the purchased euros for a house deposit or purchase of a french property, but apparently any leftover euros would need to be converted back to dollars once we are french residents. i hope i understood that and conveyed it all correctly. all the best to you and thank you for being on this forum and helping me and so many others


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## Bevdeforges

tout va bien said:


> once we move to france we could not transfer euros to a french account, only dollars to then be converted to euros. so we could use the purchased euros for a house deposit or purchase of a french property, but apparently any leftover euros would need to be converted back to dollars once we are french residents.


Oh, that's an issue I didn't see coming. OK, so that's the policy for the investment company you're working with, and if that's OK by you, then just consider carefully how much you want to exchange at this time so that you don't get "stuck" should the exchange rates change in future. Also, think about the timing of your transactions - unless you are traveling regularly to France so that you are looking at buying a property while still US resident, you may have difficulties should you decide to rent in France for a bit before buying a property.

Just for reference, what I have been doing (as a French resident) is to transfer US dollars from my IRA to my Wise US account, and then exchange and transfer the euro funds into my French bank account. But I'm doing that a bit every month so as to spread out my exchange exposure (since I have to report my IRA withdrawals here in France as "pension income" - for which I receive a tax credit at French rates).


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## 255

@tout va bien -- I think it is a good time to exchange a bunch of dollars to euros. I think your investment advisor transfer rules sound like nonsense. Traditional FX brokers often have a bid-ask spread of half a pip (0.00005.) Banks often have horrible spreads (maybe 50 to 300 pips.) Small transfers, I wouldn't worry about it, but large transfers (like you're talking about,) you could literally lose thousands! And if you change form USD to EUR to USD to EUR (3 exchanges) -- that would negate any exchange rate gain by paying fees (most FX brokers make their money on the spread.) Cheers, 255


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## tout va bien

Bevdeforges said:


> How are you planning on exchanging dollars for euros, and where will you stash the euro funds once you have exchanged the dollars? Unless you have a French bank account already it may wind up being more trouble than its worth.
> 
> Yes, it's tempting to try to beat the market with the euro at historic lows against the dollar, but there is no telling which way things "could" go in the coming year, or two or three. There's also the matter of what kind of account you're using for your savings. Admittedly bank interest these days is pretty pathetic, but that's the case all over the world apparently. And here in France, most bank interest is taxed at a flat tax rate (for residents, obviously) of 30%, which is withheld directly from your account. (I'm not sure how that works for foreigners with a non-resident account). You could easily be adding a layer of complexity to your planning and preparation that you'll come to regret later.
> 
> But no doubt there will be others here with other opinions on this one.


thank you bev. your response initiated a more than one hour discussion and research session by my husband and i and it was good for us. it looks like we will be purchasing some euros now, but though a less expensive source than our investment company, we will stash them there though. we plan on purchasing some every month until it no longer is a bargain. again, this is not a huge amount as we will not have enough for a house purchase until we have sold our farm in northern virginia. so, it will either become a good investment or a small loss as we can use them at their dollar value in our investment account. we can also use them when we are traveling through france looking at areas and towns. i am sure we will need a few trips before we are actually packed up and moving. if you have time to answer, what are your thoughts on brittany and normandy? we are very concerned about climate change and would like to be somewhere that is cooler and less humid in spring, summer, and fall than northern virginia or southern france. thanks again, deb


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## tout va bien

255 said:


> @tout va bien -- I think it is a good time to exchange a bunch of dollars to euros. I think your investment advisor transfer rules sound like nonsense. Traditional FX brokers often have a bid-ask spread of half a pip (0.00005.) Banks often have horrible spreads (maybe 50 to 300 pips.) Small transfers, I wouldn't worry about it, but large transfers (like you're talking about,) you could literally lose thousands! And if you change form USD to EUR to USD to EUR (3 exchanges) -- that would negate any exchange rate gain by paying fees (most FX brokers make their money on the spread.) Cheers, 255


thank you, yes we have already decided there are better and less expensive ways to purchase the euros here in the u.s. and will be doing even more research and evaluating as we would like to do a larger amount now and probably use part of our monthly savings to purchase more every month until it is no longer a bargain. i will definitely look at fx brokers. deb


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## Bevdeforges

tout va bien said:


> if you have time to answer, what are your thoughts on brittany and normandy? we are very concerned about climate change and would like to be somewhere that is cooler and less humid in spring, summer, and fall than northern virginia or southern france.


I'm a big fan of either Bretagne or Normandy - though (full disclosure), I have only been to Bretagne a couple of times, whereas I've spent considerably more time in Normandy. Both have the reputation of being cloudy, rainy and somewhat dreary weather-wise - but like Ireland, the rain results in lush, green countryside. However this year, all of France is experiencing some considerable drought conditions. The up side of that is that many weather reports currently comment on how sunny and bright it is in Brittany and Normandy, which is kind of "unusual" - but much appreciated by those living there. I don't think the humidity is comparable to Virginia or most of the mid-Atlantic coastal areas. I grew up in New England, and even on days I consider "humid" here in the Paris area, it's nothing like the thick, dampness we used to get in New England.


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## tout va bien

Bevdeforges said:


> I'm a big fan of either Bretagne or Normandy - though (full disclosure), I have only been to Bretagne a couple of times, whereas I've spent considerably more time in Normandy. Both have the reputation of being cloudy, rainy and somewhat dreary weather-wise - but like Ireland, the rain results in lush, green countryside. However this year, all of France is experiencing some considerable drought conditions. The up side of that is that many weather reports currently comment on how sunny and bright it is in Brittany and Normandy, which is kind of "unusual" - but much appreciated by those living there. I don't think the humidity is comparable to Virginia or most of the mid-Atlantic coastal areas. I grew up in New England, and even on days I consider "humid" here in the Paris area, it's nothing like the thick, dampness we used to get in New England.


thank you, we have only been to bretagne and not normandy. cloudy, rainy and dreary can be nice for hot chocolate, fires, reading, knitting, playing family games and travelling to warmer sunnier countries. we lived in germany for almost 5 years and every so often i would tell my husband it was time for a trip to the tropics or southeast asia. so at this point in our lives, if it is too depressing, we can just go somewhere else for a while. i want to live somewhere with enough rain and underground water that hopefully drought will not be a problem. we are 100% dependent on well water now and the taste and chill is something i really love. we also have 2 spring fed ponds and knowing we will always have water is a great comfort to me. i am a firm believer in climate change and that is one of the many reasons we left california 9 years ago, that and the forest fires in the sierras. thank you again for all your advice and opinions, deb


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## zarathustra

I've lived in the capital, I now live about 40 minutes from Dordogne, and I've also made an investment purchase of a house by the Brittany coast having visited frequently, and am considering retirement there one day, but I also love where I am. I've explored quite a bit of Dordogne and Brittany (and a lesser extent Normandy), and I honestly think it's not an easy choice.
We bought in Brittany with an investment fund, and I half expected them to try and talk us out of it, but instead they thought it was a great idea (covid lockdowns had just started and the investment was losing money); they said what we were thinking, that with future changes in climate, it's a pretty good place to consider, as the south of France gets hotter and drier. Turned out to be a great investment, but that asides I love where I am, but then I loved Paris too, although I was a younger with no real responsibilities.

If you enjoy a cooler climate, don't mind a bit of rain and wind, and like sea food, then Brittany or Normandy would be the obvious choice. You can get quite a lot for your money if you go a little inland, but there are areas by the coast that are still well priced and not overrun by developments and tourism, that also offer a bit more of a micro-climate and rarely experience frosts.
I have to add that where I live it is much warmer, but I never get sunburn (I garden a lot), however even with acclimatised skin, when I got to Brittany it can be in the low 20's, and I burn within a day! I think it must be something to do with the sun bouncing off the ocean/sand. :O


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## TOrner

10 years ago, we were enticed to Brittany, and were just about to pull the trigger. We loved Vannes and southern Brittany. But like many were concerned about the weather. Then my wife suggested we look at the Loire Valley and we went town shopping between Nantes & Tours. And we chose a town on the Loire between Angers & Tours. The microclimate is fantastic. Plenty of beautiful areas - there's a reason the French kings built their chateaux along the Loire. Prices are just a bit higher than Brittany & Dordogne for land/property, but much cheaper than most anywhere in the US.

As for euros, we purchased them when we needed them. When we arrived in 2012, it was 1.34 euros to the dollar, and has only decreased since then. When we bought our house in 2014, it was 1.2e to the dollar. When we bought our car in 2020, it was 1.05. Personally, I don't think it will go much lower, maybe 0.95 which just makes are standard of living even better.


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## tout va bien

TOrner said:


> 10 years ago, we were enticed to Brittany, and were just about to pull the trigger. We loved Vannes and southern Brittany. But like many were concerned about the weather. Then my wife suggested we look at the Loire Valley and we went town shopping between Nantes & Tours. And we chose a town on the Loire between Angers & Tours. The microclimate is fantastic. Plenty of beautiful areas - there's a reason the French kings built their chateaux along the Loire. Prices are just a bit higher than Brittany & Dordogne for land/property, but much cheaper than most anywhere in the US.
> 
> As for euros, we purchased them when we needed them. When we arrived in 2012, it was 1.34 euros to the dollar, and has only decreased since then. When we bought our house in 2014, it was 1.2e to the dollar. When we bought our car in 2020, it was 1.05. Personally, I don't think it will go much lower, maybe 0.95 which just makes are standard of living even better.


thank you, i will look into that area in detail. the things about brittany are the ocean, water sports and very fresh shellfish. it is going to be hard to beat that. however, we are open to all suggestions deb


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## TomMM

I’ve been exchanging USD for Euros using a combination of Wise and Revolut. Working out pretty good so far.


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## tout va bien

TomMM said:


> I’ve been exchanging USD for Euros using a combination of Wise and Revolut. Working out pretty good so far.


thank you for the info, i know my husband found two services with low fees and now we need to compare them. deb


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## Peasant

tout va bien said:


> ...what are your thoughts on brittany and normandy?


Both lovely places and probably better than a lot of places in France if you're worried about global heating.
OTOH, during a recent stay in Brittany (July) the temps got up to the high 30s/low 40s and there were huge fires all along the coast.
If you don't mind snow in winter how about somewhere higher up like the Haut-Savoie, Jura, or the Pyrenees?


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## tout va bien

Peasant said:


> Both lovely places and probably better than a lot of places in France if you're worried about global heating.
> OTOH, during a recent stay in Brittany (July) the temps got up to the high 30s/low 40s and there were huge fires all along the coast.
> If you don't mind snow in winter how about somewhere higher up like the Haut-Savoie, Jura, or the Pyrenees?


thank you. we actually love snow and lived many years in lake tahoe, ca. however, shoveling snow and icy surfaces are now too much for us. i will look at these areas and see if there are some micro climates more suitable for us. deb


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## TomMM

tout va bien said:


> thank you for the info, i know my husband found two services with low fees and now we need to compare them. deb


Having easy and inexpensive access to my money back in the US was certainly a learning experience. As was establishing a local account!


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## suein56

Peasant said:


> Both lovely places and probably better than a lot of places in France if you're worried about global heating.
> *OTOH, during a recent stay in Brittany (July) the temps got up to the high 30s/low 40s and there were huge fires all along the coast.*


We live on the coast in southern Brittany .. and whilst temperatures were high in some parts of July and August (as elsewhere) and there were some wild-fires there were certainly not 'huge fires all along the coast' I can assure you.


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