• Welcome to OGBoards 10.0, keep in mind that we will be making LOTS of changes to smooth out the experience here and make it as close as possible functionally to the old software, but feel free to drop suggestions or requests in the Tech Support subforum!

Pit Brain-Trust Assistance Needed

ImTheCaptain

ImTheCaptain

I disagree with you
Joined
Mar 15, 2011
Messages
57,838
Reaction score
9,770
Location
Carlisle
OK, I need a little help considering a decision related to our upcoming relocation to the UK in 2024. Backstory: my wife was offered a temporary position as Director of Dickinson College's study abroad program in the UK. We'll be relocating there as a family summer 2024-2026.

Below is the section related to her compensation as "Director" while abroad for two years. This is their standard policy for all their abroad programs, not specific to the UK.

As is, my wife's salary is largely used as savings/college funds and pays for our younger daughter's daycare (and will likely continue to fund semi-private schooling in the UK, if we can get in). Given the timeline (24 months) I'm not sure stabilization is really necessary given the dollar's strength has risen (historically) and seems flat over the past 5 years, relatively?

Am I missing something?

Salary Stabilization

The director’s salary is paid in dollars, twice monthly, in Carlisle. The College offers directors a choice between two options concerning exchange rates:

1. The director may simply take his/her chances in exchanging salary dollars for pounds or Euros, benefiting or not from fluctuations in rates; or
2. The director may choose to participate in the optional salary stabilization protection plan.

Under this plan, the director may choose any portion of his/her salary, from 0% to 100% (in wholepercentage points), to be protected against fluctuation in exchange rates. If the US dollar weakens against thedirector’s salary exchange rate for the program (to be communicated to directors by Global Accounting on July 1), the College will provide additional dollar salary for the amount protected; similarly, if the US dollar strengthens, the College will reduce the director’s salary accordingly. This is a guarantee of the director’s salary’s buying power and is more or less equivalent to paying salary in pounds or Euros (as applicable) rather than in dollars.

Calculations, based on the latest exchange rate, are performed by Financial Operations every month on the last working day of the month. Adjustments (if any) appear on the next paycheck and are communicated to directors in writing. Exchange rates used for the “director’s salary exchange rate” and for monthly calculations are the official published walk-in rates provided by the program’s on-site bank (or other major money-center bank in the host country). Directors are asked to let the Director of Global Accounting know in writing on or before July 15 whether or not they wish to participate in this optional salary stabilization protection plan.
Click to expand...
 
Last edited:
Whatever percentage you are anticipating to spend in the UK, put into the stabilization program…?
 
Last edited:
No Palma option to receive compensation in silver bars or pinball machines?
 
When I studied abroad my parents gave me a monthly allowance that was determined in dollars. Every month that I was there the dollar got weaker and I got less and less money.
 
It is a nice thing that they offer. Otherwise, you are gambling on the exchange market. The safe thing to do would be a certain % in the stabilization plan. Since 2021 the Pound has dropped from $1.48 to as low as $1.08 and is currently sitting at $1.21. This doesn't seem like that big a deal until you consider it in the thousands. I think it really depends on how risk-averse you are as a family.
 
Since you have until July 15 to make the decision I would hold off. There are a handful of things that could have an impact on the exchange rate over the next year like jobs and inflation, both in the US and the UK. I would just keep an eye on it over the next 6-8 months and see how things shake out. Right now I think 50.1% of "experts" would speculate that the dollar will outperform vs the pound over the next year, but I don't think anyone really knows.
 
TimmyClutch said:
It is a nice thing that they offer. Otherwise, you are gambling on the exchange market. The safe thing to do would be a certain % in the stabilization plan. Since 2021 the Pound has dropped from $1.48 to as low as $1.08 and is currently sitting at $1.21. This doesn't seem like that big a deal until you consider it in the thousands. I think it really depends on how risk-averse you are as a family.
Click to expand...

Or millions.
 
I look at a lot of house listings, what is it about that one that screams "american"? The kitchen island? curved staircase? Open floor plan?
 
despite the trappings this is not a rich person question. i probably wouldn't be asking b/c i'd be too rich to not care very much about the variance
 
You must log in or register to reply here.
Back
Top