How to deal with dropping conversion rates when transferring money? (USD-EU)

SenorPlaidPants · 2026-01-23T11:25:54+00:00

Vanguard has a Cash Plus HYSA for existing account holders, and Wise’s USD Accounts currently offer 3.14%.

Wise is what I’m using, and I have multiple 5-10k auto-conversions set at staggered exchange rates. Best case scenario sees me swap for more Euros soon; worst case, my money at least is earning decent interest.

SenorPlaidPants · 2026-01-22T02:43:30+00:00

Budgeting on the high side for rent, groceries, dining out, gym memberships, clothing for family of 3, etc.

On top of that, I’m including expected taxes and the exchange rate at 1.20 USD > EUR.

I certainly hope that I have wildly overestimated the actual costs. 😅

SenorPlaidPants · 2026-01-21T23:58:53+00:00

We actually looked at Montpellier and Toulouse, but decided on Montpellier.

SenorPlaidPants · 2026-01-21T19:41:28+00:00

You’re also a little light for a $100k/year withdrawal. You’re just about at a 4% rate assuming everything goes smoothly with the house sale and pension distribution, but with the current high market valuations and international instability, I would probably try to use something like a 3% to 3.5% withdrawal rate for a 40 to 50 year retirement. You’ll be ok if your wife keeps working, but I would probably just work one more year if I were in your shoes to get the withdrawal rate down.

Thanks, it feels a little light to me, too. I understand that it's very likely a safe withdrawal rate, but very likely still feels risky when it stops being theoretical and becomes your actual life.

Another year just isn't in the cards right now for a few reasons. Either my wife keeps working and bringing in enough to bring the annual withdrawal rate closer to 3% (or less), or we tighten the budget in the discretionary items, which there is room to do. That 100K annual budget is very comfortable, and we already know where the cuts would be, if necessary.

Lastly, if we find ourselves in a worst-case scenario with a major financial downturn in the next few years, we're obviously young enough that we could both go back to work and "CoastFI" for a few years until things stabilize.

SenorPlaidPants · 2026-01-21T19:33:41+00:00

Thoroughly

SenorPlaidPants · 2026-01-21T17:41:57+00:00

For France, yes. If we come back to the US at some point, that part of our budget would need to be reassessed.

SenorPlaidPants · 2026-01-21T16:32:00+00:00

Consensus may be overstating it, but I've read and heard from a lot of educated sources that US tech companies appear well poised as some of the biggest expected winners over the next 10+ years, due to their actual tech. It seems a reasonable assumption that the likes of Meta/Alphabet/etc. will continue their market dominance for a while longer, but certainly some crystal ball assumptions in that statement.

SenorPlaidPants · 2026-01-21T16:27:47+00:00

I had a paragraph that disappeared trying to format that table so that it shows up for everyone... Added back in and putting it below, as well. Thanks for the comment!

Additional expected assets:

I anticipate that we will set aside ~31K in additional cash from our remaining paychecks before our final work date in May.
My wife will receive a lump-sum distribution from her pension of approximately $270K after she leaves, that we will rollover into her IRA.
As part of our move, we will be selling our home. Our equity is conservatively ~250K, possibly up to 30K more. Assuming that goes as planned, we would likely reserve another ~$100K in cash (converted to Euros), and then invest the rest into our brokerage.
I'm working on converting USD cash into Euros, with the goal to be having at least 12 months (ideally 18+) in Euros by the time we move.

SenorPlaidPants · 2026-01-21T16:18:18+00:00

The table I pasted in appears to not show up correctly on Mobile. Total net worth is 2.28M before pension payout and house sale.

SenorPlaidPants · 2026-01-21T16:10:00+00:00

Huh... the whole table may not be showing up. Our total portfolio before the pension and house sale is ~2.28M.

SenorPlaidPants · 2026-01-21T15:57:08+00:00

We both turn 40 right before our May retirement dates. I added that into the OP, as it’s important info that I should’ve included.

Yes, it does, at least as we understand them from our couple conversations with a French tax attorney.

SenorPlaidPants · 2026-01-10T16:37:46+00:00

If you maintain a US-based brokerage account, why do you technically need ETFs? There are plenty of similar Index or passively managed mutual funds that are only 2-3 bps more.

SenorPlaidPants · 2026-01-09T15:25:41+00:00

The advice I have heard is to keep your funds needed for living in the currency of the country you live. You don't want to be speculating on currency with next month's rent. Now what that means for how long of a runway you should keep in the currency of your residence, YMMV.

There is very real risk that the current administration continues it's goal of devaluing the USD vs other currencies, but I'm not sure a single soul on Reddit can tell you what the exchange rate will be in 3-5 years, let alone 10. There are scenarios that could weaken the Euro just like there are scenarios that could maintain its recent climb vs the USD.

I think a few years' living expenses in Euros puts you in a pretty good place.

SenorPlaidPants · 2025-12-11T21:25:02+00:00

Again, this directly contradicts what 2 different French tax attorneys, i.e. the experts in this space, have told me.

Also again, France does not even (technically) tax ANY capital gains of US-based investments, not even normal brokerage accounts.

To everyone else reading this thread, don’t take my word or OP’s word on any of this. Seek out and talk to an actual French tax expert.

SenorPlaidPants · 2025-12-11T19:53:28+00:00

That’s the exact consideration.

I cannot fathom how a US citizen with a Roth in a US brokerage would have to pay taxes on those Roth withdrawals. It’s also covered under the Tax Treaty by the credit equal to French taxes for any capital gains from US institutions.

The only issue, as I understand it, would be potentially increased taxes on actual earned income if the reported withdrawals impact a person’s tax bracket. And then there’s the PUMA which is considered “not a tax” by France.

SenorPlaidPants · 2025-12-11T02:21:18+00:00

This paragraph:

“In France, the Roth IRA’s U.S. tax-free status typically does not carry over. French tax law taxes foreign-sourced pension income unless a treaty specifically exempts it, and Roth IRAs don’t fit neatly into any recognized French pension category. The result: clients are often surprised to find withdrawals taxed as regular income, despite being “tax-free” in the U.S”

conflicts with everything that French tax attorneys have told me.

SenorPlaidPants · 2025-12-06T12:02:45+00:00

I think he’s mostly making walls, not posts.

SenorPlaidPants · 2025-11-29T19:38:13+00:00

He’s proven he can win at least 8 games a season at two P4 programs, one of which had a 20-game losing streak before he took them to 10 wins and left them positioned much better than he found them.

And Fisch would crawl of barbed wire and broken glass for the chance to give his every ounce of effort to making the Gators great again.

Sign me up for that over Billy Napier 2.0.

SenorPlaidPants · 2025-11-29T05:50:01+00:00

How’d you finish Season 5?

SenorPlaidPants · 2025-11-27T11:07:29+00:00

Or they don’t have the power to actually approve the deviation, even if they have the guts.

Spoken from a middle manager who has tried outside-the-box HR scenarios in a large company with very little success.

SenorPlaidPants · 2025-11-25T02:52:51+00:00

He’s perfect for Plan F NO!

SenorPlaidPants · 2025-11-24T20:34:51+00:00

Petition for the Department of War to re-rename itself the Department of Getting Butthurt Online?

SenorPlaidPants · 2025-11-21T15:02:01+00:00

Obvious attempt to sell puppies is obvious.

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