Are you going to Disney in 2024? These investments can multiply your dollars until the trip

Traveling abroad requires a lot of planning, especially when traveling to a country with a stronger currency, like the United States. According to experts, before venturing to Disney, New York or another American destination, it is essential to buy dollars in advance and in stages, to get the best average price. But it’s also important to know where to keep your money until your trip – and it’s not in the money changer at the back of your wardrobe.

The purchase of dollars should ideally be distributed over at least nine months, which is the recommended period to reduce the effect of exchange rate volatility and preserve capital so as not to have surprises when boarding. In this window, investment options in dollars are not so plentiful, but they exist.

“When we talk about a short term like this, investment abroad has the same premise as a similar allocation in Brazil. The ideal is to balance liquidity, profitability and security. For this, American fixed income appears as an attractive option”, says Bruna Allemann, head of international investments at Nomos.

A few years ago, investing for a few months in fixed income in the United States did not make sense, as interest rates were close to zero and, therefore, the returns were not relevant, especially for such short periods. But the context has changed, and US rates are at a high level by the country’s standards, at around 5.5% per year – still well below the Selic in Brazil, but attractive for investments in dollars.

“There is no magic that will make money yield a large amount in months. Even more so if we consider that we are talking about a conservative application, as the objective is not to lose value. Some time ago, there was nothing to do. Today, even in three months, public bonds will yield something”, says Mário Nevares, partner responsible for international investments at G5 Partners.

What to invest in?

The experts’ main recommendation is to invest the dollars reserved for the trip abroad in short-term US Treasury bonds (Treasuries), with maturities of months. It is possible to invest directly in bonds or via ETFs – as long as the fund invests in short-term bonds.

“It is important to take as little risk as possible. When buying a Treasury bond, the interesting thing is to take it until maturity, to guarantee the return and not lose value with the mark-to-market. In the case of ETFs, those with short bonds have little price variation and pay interest”, says Nevares.

For the American Treasury, the indication of experts are the Treasury Bills, which are bonds with maturities of one month to one year. As for ETFs, some options are:

• SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL): invests in Treasury bonds with maturities of 1 to 3 months;
• iShares Short Treasury Bond ETF (SHV): includes Treasury bonds with maturities of up to 1 year;
• BlackRock Treasury Floating Rate Bond ETF (TFLO): invests in US government bonds with a floating rate, with a very short term (up to 3 months).

Income accounts

Another option to guarantee some income during the months of waiting for the trip are funds Money Market, types of “income accounts” in dollars. They offer daily liquidity, almost like a DI fund in Brazil, but the resources are invested in private securities, such as certificates of deposit, for example.

“They are the best fixed income investment option for the short term. Ideal for those who need a dollar reserve for a trip or a short-term commitment”, says Marcus Vinícius Leôncio, specialist in global investments at Monte Bravo.

The Bankrate platform, which gathers data on financial products in the USA, shows that these funds are yielding around 5.25% per year.

There are still saving accounts, which pay interest on deposits starting at US$1, more or less like Brazilian savings. According to Bankrate, the current yields on these accounts are also in the 5% range, but this option is exclusive to those with accounts in American banks.

How to invest?

Brazilian brokers with international accounts offer ETFs, Treasuries and other investments, with the exception of saving accounts. The investor, however, needs to pay attention to details such as redemption deadline and tax collection.

“If it’s a short-term trip, one to two weeks, it’s interesting to have the entire amount at once. But, if it is the case of a trip lasting a month or more, redemptions can happen little by little, to keep the money coming in”, recommends Bruno Mori, financial planner at Planejar.

The professional states that taxes should not greatly affect the income from applications, considering that the deadlines will be short. International investments are subject to a 15% tax rate on profit, that is, in this case, on interest received during the period.