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Retirement income from US

Wazzup

Hello: Am I better off receiving my social security check in my US address or directly to BR & is it more costly direct to BR? Which BR bank offers the better deal?

See also

Banking in BrazilWise Multi-Currency Debit CardOpening first bank account - Any recommendations?Problems with paying in stores with international cardsStill need some Help/advice---Banking
Texanbrazil

The first thing to do is to check approved BR banks on the SS website. (If not set up online, do so ASAP. The only way to get statements.) Should have gotten an email from SS in the last couple of days.
Now to your question; This is often discussed. I never like my eggs in one basket. You can have "X" amount go to BR and the other to a US bank.
The exchange rate changes daily and if you have it set up on the first of the month you can miss out on a 1+ % rise on the dollar. I like to transfer money when I need it and/or higher reais, but it is a personal matter and others here can give you more "pros and cons".
Banks with the best deals?  BB is the largest bank and most experienced in matters with ex-pats.
Wire transfers are not cheap, but you can use US debit and credit cards. Not sure about the withdrawal amount lately and may have changed. I relied on a debit card for almost a year (until I got a CRNM)
The best bet is to find a bank near you and has English speaking rep's.

abthree

All good advice from Tex. 

I especially like the "all the eggs in one basket" argument.  I receive my retirement income in my US bank account, and transfer a set amount every month to my Brazilian bank account.  The rest (if any) remains in dollars and available in the US, including for visits, for paying for US purchases and for paying US-based bills.

Doing it this way gives me a number of advantages:
-- I can pick how my money is transferred.  IF SSA were depositing it in my Banco do Brasil account, I'd get BB's rate, and pay some BB fees.  The BB rate isn't bad, but the TransferWise rate is better these days, and the fees are lower.  More money for us, less money wasted.
-- If I change Brazilian banks, I don't need to change anything with SSA.  A bank change with SSA will cause a payment lag.  They'll make good in the end, but that still can mean a lean month or two.
-- I can change the amount I transfer easily.  In the three years I've lived in Brazil so far this time, the Dollar has appreciated ~60% against the Real.  True, Brazil has suffered inflation during that time, but not at that rate.  If we decide, as we may, that we don't need as many reais to maintain our lifestyle, it's easy to just transfer less next month, and just as easy to reverse course if the currency situation changes.

You may not expect to ever need funds in the US again, or want to maintain a US banking relationship.  In that case, there's certainly nothing wrong with having your funds deposited directly into your Brazilian account.  Just don't close your US account until you have a Brazilian account.  There will be a delay that could run to several months after your arrival, because you can't open a Brazilian account until you have your CRNM. 

When you have a Brazilian address, you can transfer management of your SSA account to the Federal Benefits Unit (FBU) at the US Embassy in Lisbon, Portugal. SS administration for expats is regionalized, and they've established a virtual region for all Portuguese-speaking countries at the FBU.  They have special phone hours for people in Brazil, they're familiar with the kinds of problems that expats run into, and they'll be more responsive than the often overworked US offices.  Here's the link to find out more:

BillBrazil

As soon as your dollars are transferred to reals, you begin to lose value because of inflation.

abthree

BillBrazil wrote:

As soon as your dollars are transferred to reals, you begin to lose value because of inflation.


Yeah, holding large, idle balances in reais, unless for a specific planned purchase or for investment purposes, is poor financial planning.

rraypo

BillBrazil wrote:

As soon as your dollars are transferred to reals, you begin to lose value because of inflation.


While I know inflation always feels bad when you are paying your bills and buying groceries, but the inflation rate in Brazil is actually quite low at under 2%   

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Wazzup

Great advice, I will follow thru. Thanks a bundle!