Leisure without borders. How to protect your vacation from currency fluctuations
What rules will help to save up for holidays abroad and to avoid unnecessary costs in terms of a fluctuating exchange rate.
Surely no man who would not leave, especially if you plan to visit abroad. However, since 2014 a holiday abroad was fraught with unexpected currency fluctuations, and many Russians were forced to completely abandon it or to significantly reduce the quality of rest. However, if you start to prepare for summer travel in advance, you can minimize the impact of this factor.
How to save for a vacation
The best strategy is to start saving for the holidays in small portions and in advance, at least six months before the holidays, and better and over the year. In this case, you must know what currency you will need (Euro, dollar and so on).
Monthly you roughly equal parts of the purchase currency, preferably through a stock exchange, to make it cheaper, either through a Bank, if it offers you special conditions of currency exchange. Since we are talking about small amounts, you will have restrictions on the investment assets that you can use for accommodation purchased under a vacation exchange. It should be the conservative tools to market risk is not destroyed 20-30% or more of savings.
Also be aware of foreign exchange revaluation for investment in foreign currency instruments, which can negate all modest gain. Given that the ruble may fluctuate 12-15%, personal income tax, this increase will amount to 2% of the amount.
So anything you place the purchased currency on the exchange contribution, where there is no exchange rate revaluation, or invest with an expected yield above 2% per annum.
It can be close Eurobonds with a maturity date of structural products with full protection and currency exchange traded funds (ETF) bonds.
Those who mainly relies on one-time revenue (bonuses) or just have uneven income, it is possible to propose the following strategy. If a single arrival occurred in advance, months before the holiday, we carefully review the background information: if the news reports are discussing sanctions.
If there is, it is necessary to carefully choose the time to switch to your desired currency. Usually it is the periods of tax payments and sales of foreign currency earnings by exporters, mostly from the second half of each month.
Thus, it is better to buy currency in the second half of the month, not the beginning.
You also need to factor in the seasonal fluctuations of the ruble. Traditionally, the Russian currency strengthened from February to early April, then summer in June-August, sometimes there is a seasonal growth rate in mid-autumn.
If you want to try to catch the best exchange rate, it makes sense to buy options on the purchase of foreign currency in periods of seasonal strengthening of the maturity date to the scheduled trip. Depending on what you choose — just change rubles for foreign currency or to remain in the ruble to the last — you will be able to choose suitable investment instruments for their savings.