Hello dear Mustachians,
I’m lucky enough to have my parents donating me around 500K € from their savings.
What should I do with 500K€ in my bank account?
The idea is to use them as a down payment to buy a house here in CH in the next 2 or 3 years
What worries me is the FX rate, what is the best approach.
Should I change smaller amounts every month?
If you want to buy a house in CHF and your life generally evolves here, then yes - I would exchange them for CHF. 500K is going to be a nice down payment!
I would exchange the entire amount in CHF
Now the question is where you should do it? IBKR (cheap), Traditional bank (expensive), others?
If he has IBKR it is a no brainer imho for amounts >10K
Thanks for the info, I’ll look into ibkr,
The question is more, should I do it all at once or in split it in multiple times to minimize the impact of forex fluctuations?
Change them to USD and invest in VT?
If you search for “EUR” in the forum, you will find many threads where very similar questions were discussed.
But personally I decided to not keep any foreign currency in an amount higher than I need in next few weeks, for investments or a vacation.
Unless you want to invest in Swiss assets, I think a bit more diversification would be beneficial.
Remember that both your parents and you have to do a tax declaration, even if you do not have to pay taxes for Erbvorbezug from parents. As a result, you may have to transfer all at once.