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Old 19.09.2006, 21:26
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Salary in Swiss Francs or Dollars?

My U.S.-based employer is giving me the option of taking my salary in Swiss francs or U.S. dollars. Any thoughts on which makes more sense? I'm assuming the banks will get a conversion fee from a deposit in dollars and my crystal ball is fuzzy on which currency will be strongest in the years to come.
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Old 19.09.2006, 21:58
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Re: Salary in Swiss Francs or Dollars?

Normally the commission is included in the exchange rate that banks propose you.

I would prefer my salary in swissie. I have a friend working in the embassy with a salary in USD, she told me it s such a pain for an non-expert to play with fx market all the time.
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Old 19.09.2006, 22:39
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Re: Salary in Swiss Francs or Dollars?

You can open an account in US dollars. You can then decided when you want to convert it to CHF.
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Old 19.09.2006, 23:34
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Re: Salary in Swiss Francs or Dollars?

Essentially you then have to take a bet on which currency you think will be stronger in the long run. I suspect your boss will want to pay in USD since that mean zero risk to him.

If it were me, I would take Swiss Francs, not because I think the Franc is a fantasic currency, but because my personal views on the long term future of the dollar are not good (mountains of sky-high debt and rising).

Imagine if you'd been faced with the decision back in the good old days in 2000 when it was 1.9 francs to a dollar. Look at it now...

Mind you - if you take Swiss Francs and you essentially "win" this means your boss will lose - and then he won't be happy. So either way - you may lose
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Old 20.09.2006, 10:13
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Re: Salary in Swiss Francs or Dollars?

Quote:
My U.S.-based employer is giving me the option of taking my salary in Swiss francs or U.S. dollars. Any thoughts on which makes more sense? .
Velo....my 2 cents

As an american ex-pat who dealt with what you're describing back in 2001-2004, I can tell you the following:

1- If you want to take it in USD, try to see if you can get a "fixed" exchange rate agreement from your employer. Meaning XX rate for the next Y years independently of what the market does.

2- Take a percentage of your salary in USD and the rest in CHF, specially if you still have outstanding debts in the US (mortgage, student loans etc). Transfering can be a pain, depending on the bank, the transfer fee varies between 8-15 USD per transaction (and sometimes you get charged in CH and US bank), this in addition, to being at the mercy of what the bank's exchange rate is, trust me, it really adds up

3- Take it all in CHF, no complications....just remember besides taxes, you need to tell Uncle Sam about every bank account where you have more than 10K USD

If I were to do it all over again, I would probably stick with taking all in CHF

cheers
laifu
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Old 20.09.2006, 10:31
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Re: Salary in Swiss Francs or Dollars?

Where are your expenses ? What about the rest of your cash ? What are you going to do with it (invest here or US) ?

If intend spending it in Switzerland then get it in CHF, else you will be paying the spread every time you convert which can mean several % each time you convert a few thousand chf. Thats not even considering the relative strengths of the currencies.

Its a pain in the arse getting paid in a different currency, as you never seem to have the right amount of the correct one...

If you plan to be here long term and have significant expenses, I would take it in chf.

dave

Quote:
My U.S.-based employer is giving me the option of taking my salary in Swiss francs or U.S. dollars. Any thoughts on which makes more sense? I'm assuming the banks will get a conversion fee from a deposit in dollars and my crystal ball is fuzzy on which currency will be strongest in the years to come.
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Old 20.09.2006, 11:11
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Re: Salary in Swiss Francs or Dollars?

the simple answer is ... you want your income to be in the currency in which (the bulk of) your expenses will be incurred
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Old 20.09.2006, 11:48
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Re: Salary in Swiss Francs or Dollars?

I'd frankly only consider US$ salary in two years when the current problem should be almost resolved

Alternately I'd take the € as it seems to be The Currency at the moment.
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Old 20.09.2006, 12:12
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Re: Salary in Swiss Francs or Dollars?

Quote:
I'd frankly only consider US$ salary in two years when the current problem should be almost resolved

Alternately I'd take the as it seems to be The Currency at the moment.
Or even good old Great British Pounds:
http://www.telegraph.co.uk/money/mai...1/cnster11.xml
[Uk Daily telegraph]
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Old 20.09.2006, 12:19
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Re: Salary in Swiss Francs or Dollars?

Visit from George Soros [wikipedia] anyone?

No but seriously, I don't think it makes much sense for the original poster to be paid in a completely separate currency than either he, nor the company usually deal with - either euro or pounds. There would have to be two steps of conversion and even greater chance of the exchange rate moving away from either CHF or USD.

"regaining her 19th-century crown as queen of currencies" - please....
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