June Monthly Insights: Dollar Drop • Retiring in China • Financial Aid & Life Insurance
1. Will the U.S. Dollar Keep Falling?
The U.S. dollar has dropped about 5% against a basket of global currencies.
But according to Federal Reserve data, the “real value” of the dollar (after inflation) is still high—about two standard deviations above its long-term average.
History shows only two similar cases:
Mid-1980s
Early 2000s
In both times, the dollar fell another 25–30% afterwards.
A weaker dollar doesn’t mean it’s losing its global importance—it still plays a major role in the world economy. However, it can lead to:
Less appeal for U.S. Treasury bonds
Higher import costs → possible inflation rise
Cheaper exports → could help reduce the trade deficit
Why it’s falling:
U.S. stock market underperformed compared to Europe and some emerging markets this year
Expectations of further decline can push bond yields up, creating a self-reinforcing cycle
Unless new positive factors appear, the dollar may stay weak for some time.
🔗 Read the Financial Times article
2. Could China Become a Retirement Destination for Chinese American? 🇨🇳🏠
Some officials are considering a special retirement visa for people aged 50 and above, making it easier to live in China long-term.
By 2035, China will need about 40 million nursing home beds—four times the current number—suggesting a fast-growing senior care market.
Many overseas Chinese, including Chinese Americans, are considering returning to China for more affordable care.
🔗 Read about retirement homes in Beijing (WeChat link)
3. Is Life Insurance a Good Way to Get More College Financial Aid?
Short answer: No.
Here’s why:
All U.S. citizens and eligible non-citizens (including green card holders) who want federal or state financial aid must file the FAFSA each year (opens October 1 for the next school year).
FAFSA asks for:
Adjusted Gross Income (AGI)
Untaxed income (e.g., tax-free interest, child support received)
Certain assets (savings, investments, business/farm assets, 529 plans)
What’s not counted:
Your main home
Retirement accounts (401(k), IRA)
What is counted:
Cash value of life insurance policies — this can raise your Expected Family Contribution (EFC) and lower the amount of aid you get.
The Department of Education uses FAFSA info to calculate your Student Aid Index (SAI), which determines your financial aid package.
💬 Which of these topics interests you most—weak dollar trends, retiring abroad, or college aid planning?