Exchange Day Check List and Tips posted by JBH4129 at TNT
TNT:
Posted by JBH4129
Exchange Day Check Sheet
The following information is meant as a guide for you on Exchange Day. It does not cover everything or every situation and may not be what you want to do or say. However, many of us can use this form as a guide to jog our memories on the day of exchange to make sure we are making the most of our opportunity. Think of it as a backup plan in case your nerves get the best of you.
The last two pages are the “Exchange Day Check Sheet”. If you print them “double sided”, it will be one page that you can take into the exchange with you.
Previous Homework
This document is made to be used on Exchange Day. You have done lots of work (or should have!) before getting to this point. Here are a few things you may have already calculated...
Your monthly expenses. If you know your future monthly expenses, you will know how much money you need your investments to provide to you each month. Knowing your future lifestyle will help you determine the rate you are willing to settle for. Use this spreadsheet to help calculate your future monthly expenses. https://bit.ly/MoExp
Once open, choose FILE, MAKE A COPY so that you have an editable version. To save this spreadsheet to your device, choose FILE, DOWNLOAD, MICROSOFT EXCEL and choose where to save it.
Your currency. You should already know how much currency you have and approximately what it is worth. Sort it by country and by denomination. You can use this currency converter spreadsheet to help you determine the approximate value of what you have. Change the values as needed to reflect recent rates. https://bit.ly/CurConvert
Once open, choose FILE, MAKE A COPY so that you have an editable version. To save this spreadsheet to your device, choose FILE, DOWNLOAD, MICROSOFT EXCEL and choose where to save it
Other resources. “Tech-on-Que” has created a valuable resource page (TNT Resource) packed with information. Lots of links and articles. Go read. Be knowledgeable.
https://tinyurl.com/tntresource
How banks make money. This is for your information... not necessarily to be discussed during the exchange as the exchanger may not know this information. You may say to yourself, “How can I justify asking for such high interest rates?!” Any money that you leave with the bank can, and will, be used by the bank. They will loan your money out to others at any rate they choose. Using “fractional banking,” the bank will be able to loan out even more money than they have in house. Through “overnights”, banks will collect 1% interest on the balances they have in house. There are 22 overnights per month. The bank is going to be using your money to make money for themselves. They can share this wealth with you by giving you a higher interest rate.
You may also want to learn more about Compound Interest. A good interest rate combined with interest compounded more frequently can produce higher returns. Definitely worth some research. Here is a starting point to learn more. You can also search “compound interest” online for more information. https://bit.ly/2R9nCmp
How you best learn. Remember to do your part. You have to have some “skin in the game’ in order to really understand what will happen on exchange day and after. Be willing to do some research. Be willing to learn. Be willing to share and contribute to discussions. The more you learn and the more you do with that information, the better your exchange will be.
Here is some background information on the items on the check sheet.
Verify Currency Amount
Know how much of each currency you are taking into the bank. Make sure the amount the bank counts during the exchange matches what you have. It has been suggested that it would be helpful to organize your currency by country and then by denomination. It may be helpful to know how much of each denomination you have. Organizing your currency could help your appointment to move along faster.
Highest Exchange Rate
Hopefully, before we go to our exchange appointments, we will have a call where the currency rates are shared. We’re likely to be given a range of rates. It may be helpful to calculate how much money you will receive using the highest rate and then calculate again using the lowest rate. This will give you an idea of the range of dollars you will be receiving for your currency. Having an idea of this range will prevent you from having “sticker shock” when big numbers are discussed during the exchange. It would be helpful to practice saying these large numbers aloud. Get use to them rolling of your tongue with ease.
Need help reading large numbers? Start here: https://eslblogs.waketech.edu/esl-english/2016/05/22/how-to-say-big-numbers/
Keeping these high and low rates in mind, negotiate your highest and best rate. Remember the saying, “He who speaks first, loses.” Rather asking for a specific rate, try using the phrase “What is the highest rate available to me?” “Are there any other rates I might qualify for?” You must politely advocate for yourself. The exchanger works for the bank, not for you.
If there are caps or maximums in place on the amount you can exchange for the “contract rate”, try to negotiate your best deal using all of your currency. Let’s take the Dong as our example. It has been said that there will be a 50 million Dong maximum that can be exchanged for the contract rate. If you have 120 million Dong, is it better to get the contract rate on the first 50 million Dong and some other amount you negotiate on the remaining 70 million Dong? Or, would you receive more by not taking the contract rate on 50 million but negotiating a lower rate for all 120 million Dong? Be prepared to do some calculations while you are there. Bring your tablet, laptop, calculator, phone, pencil, paper ... whatever you are comfortable using for calculating.
Fees
Expect to pay some fees somewhere along the line ... but the less the better! Remember, a 1% fee on a million dollar exchange is $10,000! Ask if there are monthly fees on your new account(s). Ask if all fees can be waived. If they say, “I don’t think I can do that...” say “Let’s put it in the computer and see if it works.” Everything is negotiable.
Interest Rate
For the money that you are leaving at the bank, even if only temporarily, you will want to negotiate the highest possible interest rate at the time of exchange. You will have to use your knowledge and skills to impress the person you are speaking with to get the highest rate. A 20% interest rate has been talked about as possibly being available – maybe even higher. There was a conversation shared on a call where someone was offered and accepted 15%.
You should ask for this high interest rate for any and all accounts that you establish with this bank... checking, savings, spill over accounts where you place your interest each month, business accounts, trusts... all accounts. Some of us may decide to temporarily ‘park’ our money at the bank where we exchange while we are investigating other bank products at other institutions. Naturally, you will want to be earning money on your money while you are doing this! Ask for their best interest rate and be willing to negotiate. Remember the bank works for the bank, not for you.
Shoot for the moon: 30% interest rate on all accounts, compounded monthly, and interest paid monthly.... but a 15% interest rate, compounded yearly, with interest paid monthly may be more reasonable.
Everyone will have a different comfort level in their asking and in what will be acceptable. Start with an “outrageous rate” but have a number in mind that you would be willing to settle for before you go to the bank. No one knows for sure what rates will be offered until we get there.
Also consider using compound interest as a bargaining tool. Ask for your money to be compounded daily instead of weekly.... or weekly instead of monthly. The more frequent the compounding, the more earned.
Assignable Account
Make sure that all the accounts you create are assignable to another owner. Basically, this means that the name of the account owner can change. If the accounts are set up in your name, you may want to change the ownership once you have created a trust or a business entity and put the account into that entity’s name. Make sure this is allowed.
Option to Renew
When setting up your accounts, ask for the option to renew. You will want to keep the same terms and be able to renew the agreement every 3-5 years, in perpetuity (forever). This is why it is important to get the best interest rates now. Ensure that you (or your entity) are collecting on those high interest rates to keep funding your plans and dreams.
TOD/POD
For personal accounts, you will want to ensure you have added beneficiaries for Transferable on Death (TOD) (for investment accounts) / Payable on Death (POD) (for bank accounts) to all of your existing and newly created accounts. This will tell the bank what to do with your accounts when you leave this earthly plane of existence. Bring this information with you on the day of exchange.
Restrictions on Accounts
You do not want just anyone to be able to see your accounts. Ask that these restrictions be placed on all of your accounts: Access restricted, Tag as non-test / non-training accounts, No offers, No counter staff. The less people with access to your accounts, the better your privacy.
Deposit Slips
Be sure to have receipts for all of your deposits into all of your accounts. Also be sure you have all information for all accounts, routing numbers and account numbers, so you are able to move your money to any other institution when you are ready.
Online Banking
If you would like online banking for your new accounts, set it up before you leave. Ask to see your new balances displayed on their screen in these accounts. Consider privacy and security concerns with this access if you are accessing this information from your phone. Definitely do not save your banking password to the phone. It may be best to have a separate computer used only for accessing your bank accounts.
Availability of Funds
Be sure to understand when your funds will be available. A percentage will be available immediately. The balance may take time to become available, but it should not be a lengthy period of time. It may be helpful to write this information down.
Clean and Clear Certificate
Clean and Clear certificates were used prior to September 11th as a way to indicate that new found wealth was not somehow tied to illegal business dealings. With the passing of the Patriot Act, once foreign currency is deposited and accepted by the bank, then it is deemed to be clean and clear. You may want to ask if these certificates are still necessary. If yes, ask for 10 to have with you for other business dealings.
Starter Checks
If you are getting checks with a new account that you establish during the exchange, ask for some starter checks to tide you over until your new checks arrive.
ATM / Debit / Visa card
If you want a card for your account(s) be sure to order one. A credit card offers more protections than a debit card. It has been suggested that you do not have such a card for any account that has large balances. A better idea is to move the money you plan to spend into an account with a lower balance and have a card for that account. This way, if your card information is stolen, the thieves will not have access to large balances.
Insurance
Although it is highly unlikely, banks can fail. You will want to be sure your money is protected if the bank does fail. Be sure to ask, “How will my funds be insured?” “How are other customers with large balances protecting their funds?” FDIC protection only covers $250,000 per person per bank. (A jointly held account is covered for $500,000) Other insurances exist such as Lloyds of London or a program called CDARS. Read up on these programs now so you are familiar with how they work. The bank should know of more options and their cost. (Wells Fargo had a division for “ultrahigh net worth” clients called Abbot Downing. In March 2021, it became part of “Wells Fargo Private Bank”.) Research then ask about Multimillion dollar FDIC Insured Cash Sweeps “ICS”.
If you are on the wealth management private side of banking, these protections may not be necessary as your money would not be “on their books”. Ask to be sure.
NDA
If you signed a Non-Disclosure Agreement, be sure to have a signed copy in your hand before leaving the exchange. This will remind you of the conditions you and the bank agreed to at the time of exchange. For example, you may not be able to discuss the rates you were given for a period of 90 days.
Perks
Ask what perks are now available to you. Banks offer different perks for different levels of customers. Some services are complimentary for high balance account holders, some are available at cost or for a service fee. Some perks may be taxable. It could be helpful to have a copy of the perks that details which are free, which have a fee and which are potentially taxable.
Additional Information
Exchange Day will be exciting and nerve wracking! Be sure to write down important details as the exchange process is proceeding. The second page (or back page) of the Exchange Day Check Sheet gives you space to write down any important information.
If you have multiple currencies, you may want to print a sheet for each currency you are exchanging. You may wish to deposit each currency exchanged into a separate account. In the event that there is an unforeseen hiccup with one currency, all of your money will not be tied up or effected. Do what is comfortable for you.
Remember, there is no set script for how this is going to go and everyone will have their own comfort levels when interacting at the bank. All we can do it take our best guess as to what we think will happen and continue to grow our knowledge as we wait.
Print the following two pages “doubled sided” to take with you to your Exchange Appointment as the Exchange Day Check Sheet.
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Exchange Day Check Sheet
___ Verify currency amount. I have _________________________________________________________
___ What is the highest exchange rate available to me? (what we call “contract rate”) Are there any other rates that I qualify for?
___ Can all fees be waived? (“Let’s put it in the computer and see...”)
___ Negotiate highest possible interest rate on any and all accounts - money being ‘parked’ or money being invested at the bank (20% ?)
Justifications: My money available to loan, Fractional Banking, Overnights @ 1% x 22 night (“Let’s put it in the computer and see...”)
___ Account is assignable to another owner (ex: to a trust or business)
___ Option to renew all accounts, same terms, every 3-5 years, in perpetuity
___ Add Transferable on Death (TOD) (investment accounts) / Payable on Death (POD) (bank accounts) Add these names to all personal accounts
___ Restrictions on all accounts:
Access restricted, Tag as NON-test/NON-training accounts, No offers, No counter staff ___ Deposit slips and all account information.
___ Online banking set up / verified working (“Can you show me on your screen?”) ___ My funds will be available on ________________________________ (all / ______ percent) All of my funds will be available on ______________________________________ ___ Is a Clean and Clear Certificate necessary? If yes, ask for 10.
___ Get starter checks, if wanted, for your new account(s).
___ Order ATM / debit / Visa card (credit card only recommended)
___ How will my funds be insured? “How are others with large balances protected?” (ex: CDARS, Lloyds of London, Multimillion dollar FDIC Insured Cash Sweeps “ICS”...) This may not be needed if you are on the wealth management or “private side”
___ Do I have a signed copy of the NDA(s)? (if applicable)
___ What Perks are available to me? (Ask for list with details on costs, fees, taxability)
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Exchange Day:
Names of Bank Exchangers
Exchange Bank
Branch
Bank Routing Number
Checking Account Number(s)
Savings Account Number (s)
Other Account Name / Number (s)
Private Banker / Wealth Manager Name
Direct Telephone Number
Future Appointments:
Private Banker / Wealth Manager Name
Direct Telephone Number
Bank Name
Location
Appointment Date _____________________________ Time: ________________________ Additional Notes:
(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)