Money Monday: Travel Fees and Financial Advice

With the Summer Season almost upon us we will look at some fees. Next, some information on who to trust when seeking financial advice will be provided.

Debit or credit cards tack on an extra 3% when you purchase items in a foreign country’s currency. One way to avoid these fees is to have a credit or debit card that does not charge fees. Bank of America Travel Rewards and Wells Fargo Autograph credit cards charge no fees on foreign transaction fees once you qualify. These cards charge no annual fees  either.

If you prefer to use your debit card instead of a credit card when you travel or purchase items from a foreign vendor, most banks will charge you a foreign transaction fee. However, there are a few debit cards you can use to avoid these fees. These include the Capital One 360 Checking, TD Bank Beyond Checking and Charles Schwab Bank Investor Checking account debit cards. With the latter two you will also save on ATM fees if you use your debit card overseas at an out of network ATM.

Finally, dynamic currency conversion proves critical when it comes to overseas travel fees. Be alert when overseas and the merchant or vendor asks: “do you want me to charge the purchase in United States Dollars or the currency of that country?” There will certainly be additional fees if you choose to charge the purchase in U.S.dollars, since the exchange conversion rate will be high. What you should do is decline purchasing the item in U.S dollars and purchase the item with the local currency. Don’t let dynamic currency conversion get you!

So, while you are planning for your overseas trip to go learn how travel fees operate, and save yourself some money!

WHAT’S UP!

Today’s What’s Up is about financial advice. In 2018 the Department of Labor fiduciary rule requiring financial professionals who give retirement advice to act in the best interest of their clients was struck down by the courts. Some hope that proposed new rules will cover some of the fiduciary loopholes in existence since 1975. Since no current fiduciary rules exist, however, you must check, and then check again, and then double check the people from whom you receive financial retirement advice. And that’s what’s up!

 

Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC . Give2Get Rich, LLC 2023. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.

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