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Old 24.04.2012, 17:11
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Different 3rd Pillar accounts.. be very careful

Hi, I have recently found out that I am being transferred away from Switzerland and am tying up or my insurance and pension accounts. Over my stay in Switzerland I utilised the Pillar 3a via my bank to reduce tax and i am now able to withdraw this money, (I am moving outside the EU) pay tax and take it with me.

Last year I saw a 'financial advisor' who suggested I go into a 3rd Pillar account with an insurance company as the yeild on these funds would be much better than that offered by the bank. Expecting all 3rd pillar accounts had 'the same rules' I started another policy with his advised insurance company and paid the maximum amount I could.

Now upon contacting the insurance company to withdraw my 3rd pillar they advise me that as this 3rd pillar is a life insurance policy and there fore has no redemption value until i have paid 3 years premiums at which point the redemption value is approx half of what you have paid in premiums. Needless to say we are ropable and are pursuing the issue.

Has anyone else had this experience?
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Old 24.04.2012, 17:23
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Re: Different 3rd Pillar accounts.. be very careful

See this thread: Beware Financial Advisors on the Prowl

You've basically been had, now there might be a case of mis-selling as the advisor didn't take into consideration the fact that you might leave in a few years time and want to take the money with you.

If the 3rd Pillar is used as a tax free wrapper for life insurance or a fund investment etc then the rules for redemption apply in the same way.
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Old 24.04.2012, 17:39
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Re: Different 3rd Pillar accounts.. be very careful

That's basically what you get with life-insurances.
Whatever coating you put on them.

You didn't think that larger yield would come at a price, did you?

Mind you, I paid myself dearly on life-insurances - and I also got out only half of what I paid in - after paying for 9 years...

My advice: unless your time is free and your lawyer works pro-bono, just eat the losses and learn.
If you change countries often, I think the best thing to do is to just hoard cash or stuff that can be easily converted to cash with little losses.
Most "investment vehicles" with a high yield make certain assumptions which are most likely no longer true once you leave the country...
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Old 24.04.2012, 18:00
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Re: Different 3rd Pillar accounts.. be very careful

Sorry to hear this. You've been scammed by someone posing as an expert and, naturally, you believed what the so-called expert told you.
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I started another policy with his advised insurance company and paid the maximum amount I could.
You paid the maximum amount because this is what he recommended? More money from you means more commission for him/his employer.

Makes sense to start recording the phone calls/conversations.
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