🧨 We Lost Thousands to a Bad Exchange Rate – Don’t Make Our Mistake

Happy Sunday, friends! Today we’re talking euros, and what happens when you trade your home currency for them.

We’ve got our own horror story when it comes to losing big to the brutal currency exchange between South Africa and Portugal. We watched money we’d rushed to transfer practically vanish overnight. It was a hard (and expensive) lesson in how ruthless currency markets can be when you’re not prepared.

That’s why I’m especially excited to share today’s feature on currency risk, and how to protect yourself, straight from experts who understand the expat experience inside and out. Even if you’re not dealing with a 20:1 exchange rate like we were (no joke!), the risks are real.

💡 Don’t let poor timing or lack of planning eat into your hard-earned savings. Whether you’re buying property, receiving a pension, or just moving money abroad, this article has something for you.

Here’s what’s on the menu today:

🎵 Summer music events to match the vibe

💲 Smart tips for shielding your money from currency swings

🥗 And spending a few extra euros on a great meal — in Portuguese, of course

Ready? Let’s dive in…

Miradouro Pico dos Bodes is a scenic viewpoint atop a volcanic hill near Faial da Terra, São Miguel Island, Azores. At 460 meters high, it offers stunning 360° views of lush meadows, dramatic coastline, and the Atlantic Ocean. Originally built for whale and dolphin watching, its wooden platform provides a unique spot to take in the island’s natural beauty.

Bossa Market (7-8 June, Estoril): the largest Brazilian culture event in Europe. Enjoy Brazilian food, fashion, crafts, and music, with over 80 artists performing Bossa Nova, Samba, Forró, and more. Family-friendly activities and a vibrant atmosphere make this a standout event.

Carvoeiro Black & White (21 June, Carvoeiro): a free, open-air summer celebration in the Algarve, where thousands dress in black and white to enjoy live music, dance, and street performances throughout the town.

Coala Festival (May 31–June 1, Cascais): featuring Portuguese and Brazilian artists.

Primavera Sound (12-15 June, Porto): with a stellar international lineup including Charli XCX, Jamie XX, Deftones, and more.

Festival de Sintra (12–22 June, Sintra): classical music and opera in the romantic town of Sintra.

ISCM World New Music Days (May 30–June 7, Lisbon and Porto): showcasing contemporary classical music from around the globe.

SunceBeat New Horizons (19–23 June, Lisbon): a four-day music festival featuring house, funk, soul, disco, and R&B DJs and live acts, held at Praia Irmão in Costa da Caparica, Portugal, just outside Lisbon.

Guns N’ Roses (June 6, Coimbra): The iconic American hard rock band will be performing at Estádio Cidade de Coimbra as part of their European and Middle East tour.

Imagine Dragons – LOOM World Tour (June 26, Estádio da Luz, Lisbon): the American pop rock band will bring their LOOM World Tour to Lisbon, promising an electrifying performance.

Porto Beer Fest (18-22 June, Porto): A major event in the Portuguese craft beer calendar, typically taking place in June. It attracts both local and international brewers, with live music and a vibrant atmosphere by the Douro River.

PRAXIS Beer Fest (13-15 June, Coimbra): with craft beer, music, food, and parties at Campo de Santa Cruz and Jardim da Sereia—celebrating 100 years of Topázio & Onyx (historic beers from Coimbra) and Coimbra’s brewing legacy.

Grapes & Grooves Festival (7-8 June, Lisbon): Village Underground, Lisbon. Combines wine tasting from boutique producers, gourmet food, and live music.

Lagoa Wine Show (6-9 June, Lagoa): one of the Algarve’s and southern Portugal’s most prominent wine events. Entry is free. The event was recently awarded “Event of the Year” by the Portuguese Wine Municipalities Association, highlighting its significance in promoting Algarve wine, regional culture, and hospitality.

Moura Wine Fair (28-29 June, Moura, Alentejo): Regional wine tastings, held in the town’s castle, with a festive local atmosphere.

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Welcome to our first expert collaboration with Green Ocean Global Advisors LLC, a global wealth management service that supports expats navigating complex financial decisions across borders. In this edition, we’re diving into a topic that’s often overlooked—but critically important: currency risk.

If you’re living in Portugal (or planning to), and your income, investments, or retirement savings are tied to another currency, even small exchange rate shifts can have a big impact. This article breaks down what every expat should know—and how to protect yourself from nasty surprises.

I’d love to hear what you think of today’s topic! Hit reply and let me know if you found this helpful, and what you’d like us to explore next.

Now, let’s hand things over to the expert for today’s article, Mark Moberg, Certified Financial Planner™ at Green Ocean Global Advisors LLC:

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Currency risk is not solely a concern for ultra-high-net-worth individuals or multinational companies. It’s also highly relevant for individuals planning to live abroad—such as expats relocating to Portugal.

Currency risk is an important consideration for anyone with significant savings or investments outside the eurozone.

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Moving all investments to Portugal may be restricted by regulations like PFIC (Passive Foreign Investment Company) rules for US citizens. In addition, If you hold shares in a PFIC, you must file Form 8621 with the IRS every year for each PFIC investment, regardless of whether you received a distribution.

Other considerations:

After understanding the importance of managing currency risk, it is crucial to develop a comprehensive currency strategy that addresses short-term, intermediate, and long-term financial needs.

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For immediate needs like pensions, annuities, or Social Security payments, transferring funds to a local bank account in Portugal may be practical. Establishing a local account with funds for 6 months to a year of expenses can help manage short-term currency risks.

Use currency exchange apps for small FX (foreign exchange) transfers.

For large purchases, such as buying a home, ensure the necessary funds are transferred into the required currency in a timely manner. Using an established currency exchange service is advisable.

Planning becomes crucial for intermediate-term needs. Ask yourself:

These factors influence how to manage currency risk. If future relocations are possible, it may make sense to diversify your investments across multiple currencies.

If Portugal is intended to be your permanent residence, your planning can be a little more specific, by focusing on managing the volatility between specific currencies.

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Managing currency risk in an investment portfolio can be challenging. Keeping investments with firms like Schwab may allow for exposure to European stocks through individual stocks or U.S.-traded ETFs (Exchange-Traded Funds). This can hedge against currency exposure.

The good news is that you can still get European exposure by either investing in individual European stocks or ETFs through U.S. stock exchanges. ETFs offer diversification, similar to what mutual funds have done for years. By adding exposure to the European stocks, you are, in essence, hedging your currency exposure.

For example, year to date (YTD), the Vanguard FTSE Europe ETF (VGK) is up 19.12% versus the Vanguard S&P 500 ETF (VOO), which is up 1.74%.*

This is largely due to the euro gaining more than 9.69% against the dollar.

ETFs that track specific currencies (euro, British pound, Swiss franc) can also help mitigate currency risk.

Important: Avoid investing in international funds that hedge currency exposure, as this would counter the objective. We want the currency exposure.

_{(*as of 5/17/2025)}

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The three most important factors when choosing a currency exchange service are:

You’ll likely find there’s no one-size-fits-all solution. In general, greater convenience often comes with higher fees. This is where currency exchange apps can be useful—they not only simplify transfers, but some also show real-time exchange rates, so you can compare offers across different services and choose the best option.

An often-overlooked advantage of using a currency exchange specialist is that you get a more personalized service. Imagine the stress of transferring a large sum and something goes wrong. We partner with a few trusted currency specialists and know the people there on a first-name basis. Our clients can be given a direct introduction to not just the company but the people who can make the experience less stressful.

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Gold has historically served as a store of value and a non-correlated asset class. Options include:

However, converting gold into local currency for everyday spending may reduce its effectiveness as a tool for managing currency risk.

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Eliminating all currency risk is impossible, just as predicting stock market movements is uncertain. The goal is to manage currency risk effectively to avoid turning living in Portugal into a financial challenge.

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If you’d like an introduction to a trusted currency specialist—or for Green Ocean to develop an expat financial plan for you—reach out to Mark Moberg, Certified Financial Planner™ at [email protected] - Green Ocean Global Advisors, LLC.

Mark Moberg CPF®, CBDA® Tampa/Lisbon

+1 813 837 2800 / +351 911 715 685

201 Spear Street, Suite 1100, San Francisco CA 94105, United States [email protected]

_{Disclaimer: The information provided in this article is for general informational and educational purposes only and should not be construed as personalized financial, investment, tax, or legal advice. While the author is an employee of Green Ocean Global Advisors, LLC, the views expressed here are solely those of the author and do not necessarily reflect the views of the firm or its affiliates. This content may reference financial planning strategies applicable to U.S. persons living abroad or navigating cross-border financial situations. However, financial planning and tax laws vary by jurisdiction and are subject to change. You should consult with a qualified financial advisor or tax professional who understands the laws in both your home country and country of residence before making any decisions. Nothing in this article constitutes a recommendation, solicitation, or offer to buy or sell any securities or financial instruments. Past performance is not indicative of future results. Green Ocean Global Advisors, LLC is a registered investment advisor located in California, USA. Registration does not imply a certain level of skill or training. For more information, please visit our website or contact us directly.}

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With thanks to our collaborator: Mark Moberg, Certified Financial Planner™ at Green Ocean Global Advisors, LLC, for his valuable insights and contributions to this article.

After revisiting your finances and realizing your latest currency exchange just scored you a few extra euros, why not treat yourself to a night out? Go all in—entrada (starter), prato principal (main course), and café com sobremesa (coffee with dessert). Rui and Joel break down the basics of ordering at a Portuguese restaurant in this fun, practical video. Bom apetite!

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

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