Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 09.12.2010, 18:24
Junior Member
 
Join Date: Aug 2008
Location: Meilen-ZH
Posts: 32
Groaned at 0 Times in 0 Posts
Thanked 10 Times in 5 Posts
AggieCoco has no particular reputation at present
Advice needed please for a Pillar 3A fund account

I would like to open a Pillar 3A account by the end of this year. My only knowledge on this issue is from the threads I have read on EF, information on bank websites, and using www.comparis.ch

I still have a few more questions and am hoping that someone on here can help me figure out these answers.

If for example I want to invest in a 3A fund account that was listed as #1 for highest rate of return per year on the comparis.ch website (UBS Vitainvest 40 U Shareholding: 40%) Do I have to open the account with UBS in order to invest in this fund? Or can I go to any bank? Once I establish this account can I move this account to another bank in the future?

Can I change funds especially as I get older to a less risky fund or do I have to stay with the original fund I choose through retirement?

If I make an appointment at a bank to find out further information can I trust what the person advises? Or could you please recommend any websites or references where I could continue to do my own research so I can make an educated choice?

Thank you for your help!
Reply With Quote
  #2  
Old 10.12.2010, 09:03
Junior Member
 
Join Date: Aug 2008
Location: Meilen-ZH
Posts: 32
Groaned at 0 Times in 0 Posts
Thanked 10 Times in 5 Posts
AggieCoco has no particular reputation at present
Re: Advice needed please for a Pillar 3A fund account

Any advice please?


Thanks!
Reply With Quote
  #3  
Old 10.12.2010, 09:09
MrVertigo's Avatar
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 3,200
Groaned at 86 Times in 70 Posts
Thanked 5,788 Times in 2,254 Posts
MrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond repute
Re: Advice needed please for a Pillar 3A fund account

if you want the highest interest rate you need to open it with the bank offerting the highest rate. You can later transfer the account to any other financial institution that is proposing higher rates for example.
Reply With Quote
This user would like to thank MrVertigo for this useful post:
  #4  
Old 10.12.2010, 09:22
Forum Veteran
 
Join Date: Nov 2010
Location: Zug
Posts: 693
Groaned at 25 Times in 21 Posts
Thanked 781 Times in 358 Posts
xkcd has a reputation beyond reputexkcd has a reputation beyond reputexkcd has a reputation beyond reputexkcd has a reputation beyond repute
Re: Advice needed please for a Pillar 3A fund account

Quote:
View Post
If for example I want to invest in a 3A fund account that was listed as #1 for highest rate of return per year on the comparis.ch website (UBS Vitainvest 40 U Shareholding: 40%)
You do know that their historic performance has almost nothing to do with their financial skills or with future performance, but just with the mere fact that stocks performed rather well compared to other investments ? If stocks tank tomorrow, those funds with a relatively high investment in stocks will lose more than other funds with a lower share of stocks in their portfolio. But then, if you believe that the stock markets will continue to gain - just go ahead with your investment.
Reply With Quote
This user would like to thank xkcd for this useful post:
  #5  
Old 10.12.2010, 09:36
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich
Posts: 1,682
Groaned at 9 Times in 7 Posts
Thanked 1,208 Times in 663 Posts
axman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond repute
Re: Advice needed please for a Pillar 3A fund account

Quote:
View Post
You do know that their historic performance has almost nothing to do with their financial skills or with future performance, but just with the mere fact that stocks performed rather well compared to other investments ? If stocks tank tomorrow, those funds with a relatively high investment in stocks will lose more than other funds with a lower share of stocks in their portfolio. But then, if you believe that the stock markets will continue to gain - just go ahead with your investment.

All true. More importantly however is that OP is looking for a pension investment, which I take to mean 20+ years. OP should be less concerned with the day to day movements of stocks.

Back to the original question, as far as I know, you need to open the account at UBS. If you decide to change banks, say to CS for instance, you would need to close the account at UBS (sell everything), and transfer the money to a new pension fund account at CS. That's what happened to me. This is what I had to do. I could have left the account at UBS though.
Reply With Quote
This user would like to thank axman for this useful post:
  #6  
Old 10.12.2010, 10:00
Forum Veteran
 
Join Date: Nov 2007
Location: Vaud
Posts: 1,071
Groaned at 129 Times in 64 Posts
Thanked 576 Times in 301 Posts
markalex has an excellent reputationmarkalex has an excellent reputationmarkalex has an excellent reputationmarkalex has an excellent reputation
Re: Advice needed please for a Pillar 3A fund account

1/ You can move for 3A account willy nilly whenever the mood takes you.
2/ If you invest in an account that invests in shares than you are taking a great risk, more so if your thinking about moving it willy nilly.
3/ I have lost tens of thousands of CHF investing with UBS who charge you for the service and couldn't give a monkey's ar#s if you make or lose money.
4/ Open a 3A account with interest, choose the establishment offering the highest rate (comparis.ch) will show you. Choose a national one, like postfinance if you want to be more careful.
5/ Invest money again in January 2011, they will pay the interest all year, no point in waiting until the end of the year.
6/ I have also held investments in shares for more then a decade, they are still underwater... given the current climate dont know if they will even break even after 20 years... the stock market today is a kin to the lottery.
Reply With Quote
This user would like to thank markalex for this useful post:
  #7  
Old 10.12.2010, 10:50
Forum Veteran
 
Join Date: Feb 2008
Location: Zurich
Posts: 1,020
Groaned at 6 Times in 6 Posts
Thanked 345 Times in 262 Posts
bill_door has an excellent reputationbill_door has an excellent reputationbill_door has an excellent reputationbill_door has an excellent reputation
Re: Advice needed please for a Pillar 3A fund account

Quote:
View Post
4/ Open a 3A account with interest, choose the establishment offering the highest rate (comparis.ch) will show you. Choose a national one, like postfinance if you want to be more careful.
The 3a accounts of postfinance are actually UBS owned/managed.

Pick any CH based registered bank with the best interest. For each institution an individual invests in, your capital is federally protected up to 100kCHF. Except for capital exclusively held in the postfinance this has complete (100%) federal protection.

In postfinance this 100% cover does not apply to 3a account (held at UBS) and not e-trading (held at BCV)), there the 100kCHF cover applies.
Reply With Quote
This user would like to thank bill_door for this useful post:
  #8  
Old 24.06.2011, 09:34
Stu&Kara's Avatar
Member
 
Join Date: Oct 2007
Location: Oerlikon, Zurich
Posts: 243
Groaned at 0 Times in 0 Posts
Thanked 67 Times in 42 Posts
Stu&Kara has no particular reputation at present
Re: Advice needed please for a Pillar 3A fund account

Quick question for Pillar 3a experts.

I'm considering opening one with Credit Suisse. Online they ask you "which branch" you want to open the account with. I read on another 3a thread on here that the location of the institution determines the tax you pay when you leave, i.e. open a 3a with a bank based in Zug and you get taxed at Zug rates.

Assuming that is correct - does anyone know what happens if I select a branch, like Zug, instead of a branch where I live (Zurich)? Lower taxes?

In the age of internet banking it seems quite a quaint choice to choose a branch - unless it has certain tax advantages.
Reply With Quote
  #9  
Old 24.06.2011, 13:47
jaudi's Avatar
Forum Veteran
 
Join Date: Sep 2007
Location: zurich
Posts: 574
Groaned at 4 Times in 4 Posts
Thanked 495 Times in 231 Posts
jaudi has a reputation beyond reputejaudi has a reputation beyond reputejaudi has a reputation beyond reputejaudi has a reputation beyond repute
Re: Advice needed please for a Pillar 3A fund account

Quote:
View Post
...the location of the institution determines the tax you pay when you leave, i.e. open a 3a with a bank based in Zug and you get taxed at Zug rates....
That is true if you are talking about cashing in after becoming non-resident in Switzerland. If you cash in whilst resident you are taxed according to your Canton of registration (ie where you pay income tax). There is also a small federal tax, but the amount is pretty negligible. Also note, you can open the account with any bank/location, and transfer to a low tax area before (possibly also after?) you leave switzerland. Also, be a little careful - it is not where the branch is, or the bank head office, but the location that the Stiftung (ie trust) is registered in that matters, so I understand.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
3rd Pillar Pension Fund Richard Finance/banking/taxation 485 06.09.2019 21:22
Pay into 2nd pillar whilst drawing on 3rd pillar jaudi Finance/banking/taxation 19 12.07.2011 09:05
Transferring 2nd Pillar Pension Fund to UK Fergico Finance/banking/taxation 4 10.09.2009 23:13
Pillar 3 account with Mortgage bank magyir Finance/banking/taxation 1 22.02.2008 02:02
interview for Hedge fund--Advices needed Ella Other/general 21 15.01.2008 10:26


All times are GMT +2. The time now is 12:06.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0