Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 20.06.2017, 19:17
Senior Member
 
Join Date: Apr 2015
Location: Port-Valais (was SFO)
Posts: 328
Groaned at 5 Times in 3 Posts
Thanked 212 Times in 119 Posts
Caryl has earned the respect of manyCaryl has earned the respect of manyCaryl has earned the respect of many
Long-term investment for infant

I've been asked if there is any sort of investment scheme in Switzerland along the lines of Junior ISA (available to the child at 18) or JSIPP (child pension programme; HMRC pays 20% of the maximum £3,600 a year (more if the child, a model, actor or musician, say, actually works) and money payable at 57+/-.

I tend to doubt that without the concept of a trust such schemes are likekly, but what do I know. And let's not even think about the PFIC horror if the child (not being American already) might move to the USA before being entitled to the money.
Reply With Quote
  #2  
Old 22.06.2017, 12:41
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 94
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Long-term investment for infant

I have opened a "gift account" for my daughter, because grandparents wanted to gift some money for her future. These are not tax-efficient instrument, just regular saving accounts with a preferential rate, and the child name attached to them (parents are authorized users).

Honestly, the interest is quite depressing. The most rational thing to do would probably be investing that money in index funds (or similar instruments).

For us, it's just a matter of feelings. Grandparents want the account to have her name on it, and to be "safe" (while rationally speaking we could take more risks).

If better solutions are proposed in this thread, I would be happy to hear them!
Reply With Quote
  #3  
Old 23.06.2017, 06:18
FriendlyKiwi's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: Shoppinzentrum
Posts: 1,784
Groaned at 20 Times in 16 Posts
Thanked 914 Times in 551 Posts
FriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond reputeFriendlyKiwi has a reputation beyond repute
Re: Long-term investment for infant

Quote:
View Post
I've been asked if there is any sort of investment scheme in Switzerland...
I can recommend Education.
Money well spent, the returns might take a while but they are often worth it.
Reply With Quote
The following 5 users would like to thank FriendlyKiwi for this useful post:
  #4  
Old 23.06.2017, 08:34
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 94
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Long-term investment for infant

Quote:
View Post
I can recommend Education.
Money well spent, the returns might take a while but they are often worth it.
With the cost of bilingual childcare in Zürich, I can guarantee that we are already investing in education.
One year of krippe here costs as much as the out-of-state tuition fee at University of California, San Diego.
Reply With Quote
The following 3 users would like to thank RoastedRhino for this useful post:
  #5  
Old 23.06.2017, 08:45
Guest
 
Posts: n/a
Re: Long-term investment for infant

Are salaries the same in Zurich as San Diego ?
Reply With Quote
  #6  
Old 23.06.2017, 09:08
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 94
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Long-term investment for infant

Quote:
Are salaries the same in Zurich as San Diego ?
No, of course not.
Actually, when I was in Boston for example, housing and especially childcare were comparably more expensive.
Reply With Quote
  #7  
Old 12.07.2017, 15:53
Dark Blue's Avatar
Senior Member
 
Join Date: Mar 2012
Location: Thalwil
Posts: 379
Groaned at 18 Times in 17 Posts
Thanked 411 Times in 242 Posts
Dark Blue has earned the respect of manyDark Blue has earned the respect of manyDark Blue has earned the respect of many
Re: Long-term investment for infant

I was just about to open new thread on a similar topic but I guess this one can be good as well to increase the scope of discussion.

So we are expecting our first child and I would start an investment strategy for our new born. We plan to put aside appr. 500chf per month till the kid reaches 18 years of age(hopefully in good health).

My question is which investment tool should I consider?
  1. physical gold
  2. blue chip stock shares(google, coca cola,etc)
  3. savings account
  4. any other

Can the wise minds of the forum give an idea?
Reply With Quote
  #8  
Old 12.07.2017, 16:03
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Long-term investment for infant

The kid would get most or all your assets anyway after you die so why you need to make a special investment account for him and invest separately from investing in your own name is beyond me. You can always give tax free gifts to him any time later whenever you want. And I don't think you'd enjoy any tax and liability benefits in separation of wealth between you and the kid until he reaches certain age
Reply With Quote
  #9  
Old 12.07.2017, 16:10
Dark Blue's Avatar
Senior Member
 
Join Date: Mar 2012
Location: Thalwil
Posts: 379
Groaned at 18 Times in 17 Posts
Thanked 411 Times in 242 Posts
Dark Blue has earned the respect of manyDark Blue has earned the respect of manyDark Blue has earned the respect of many
Re: Long-term investment for infant

It is not about inheritance actually.
I will definitely make those funds available to her when she reaches 18. The money can be used to finance studies, world travel, wedding or start a business.

So in short this is to help her to get a kick start in life. I think it is worth to note I will not let her know about this fund till she reaches 18
Reply With Quote
  #10  
Old 12.07.2017, 16:11
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Long-term investment for infant

You can always give the money to your kid later at the point when she will actually need it. Just try not to go bankrupt by that time. There's no reason to give it now while she can't even do anything with it, it's just an unnecessary artificial separation of wealth
Reply With Quote
This user would like to thank ivank for this useful post:
  #11  
Old 12.07.2017, 16:17
Dark Blue's Avatar
Senior Member
 
Join Date: Mar 2012
Location: Thalwil
Posts: 379
Groaned at 18 Times in 17 Posts
Thanked 411 Times in 242 Posts
Dark Blue has earned the respect of manyDark Blue has earned the respect of manyDark Blue has earned the respect of many
Re: Long-term investment for infant

I just want to keep a disciplined approach to that saving. That's why I choose an amount which wouldn't create a wealth for me but if I do it every month then it is something.

Anyways I am going to do it, question remaining is which option would make more sense.
Reply With Quote
  #12  
Old 12.07.2017, 16:24
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Long-term investment for infant

Apply the discipled approach to managing your own wealth first
Reply With Quote
This user would like to thank ivank for this useful post:
This user groans at ivank for this post:
  #13  
Old 12.07.2017, 16:28
Dark Blue's Avatar
Senior Member
 
Join Date: Mar 2012
Location: Thalwil
Posts: 379
Groaned at 18 Times in 17 Posts
Thanked 411 Times in 242 Posts
Dark Blue has earned the respect of manyDark Blue has earned the respect of manyDark Blue has earned the respect of many
Re: Long-term investment for infant

and what do you know about my wealth?
Reply With Quote
  #14  
Old 12.07.2017, 16:40
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Long-term investment for infant

Exactly as much as you told us about it in this thread
Reply With Quote
This user would like to thank ivank for this useful post:
  #15  
Old 12.07.2017, 16:46
Dark Blue's Avatar
Senior Member
 
Join Date: Mar 2012
Location: Thalwil
Posts: 379
Groaned at 18 Times in 17 Posts
Thanked 411 Times in 242 Posts
Dark Blue has earned the respect of manyDark Blue has earned the respect of manyDark Blue has earned the respect of many
Re: Long-term investment for infant

ay weyyy...

ok, back to the question.
Reply With Quote
  #16  
Old 12.07.2017, 16:49
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Long-term investment for infant

Manage the wealth as your own and the question won't even come up
Reply With Quote
  #17  
Old 13.07.2017, 13:16
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 94
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Long-term investment for infant

Quote:
View Post
You can always give the money to your kid later at the point when she will actually need it. Just try not to go bankrupt by that time. There's no reason to give it now while she can't even do anything with it, it's just an unnecessary artificial separation of wealth
It is an artificial and inefficient separation of wealth, you are right.
But, at least in my case:

1. Grandparents sometimes contribute to this account, and it just doesn't sound right to give (again) money to their children. They want to give this money to their grandchildren so that when they are 18 and can spend them for traveling, education, or whatever, they know who made it possible. It's just symbolic: everybody's life, since birth, is strongly affected by the wealth and the choices of their grandparents and their parents, although too many people think they are self made.

2. When children turn 18, it is very different to say: "this money is yours to spend (invest!) on things that will make your future life happier", rather than say "do whatever makes your life happier, we'll foot the bill".

In our case, it's a small amount, and we can keep it out from more efficient investments.
Reply With Quote
  #18  
Old 13.07.2017, 13:36
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,994
Groaned at 385 Times in 295 Posts
Thanked 18,805 Times in 10,133 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Long-term investment for infant

I think it's very important children should be tasked with looking after their own money, I had a NatWest UK cheque book at 11 & a cheque guarantee card at 13.
Reply With Quote
The following 2 users would like to thank fatmanfilms for this useful post:
  #19  
Old 13.07.2017, 13:45
Guest
 
Posts: n/a
Re: Long-term investment for infant

We actually decided to have an extra savings in our own name, ours is now 1 yr and we never know what the future brings. If he needs money for his first home or study, drivers license and all of such we'll be more than happy to help him from that money or even fully pay for it, if he however decides he's best off as a beer drinking jobless bum (no-one can predict the future), Well... then the money is best spend on a nice big fat car for mommy and daddy. Seeing a kid drinking and partying the money away that parents carefully and with love have collected over the years to give the kid a better start at independent life hurts me when i see it.
Reply With Quote
The following 2 users would like to thank for this useful post:
  #20  
Old 13.07.2017, 14:17
Guest
 
Posts: n/a
Re: Long-term investment for infant

Hello,

I was thinking about a similar thing when my son was born. You know, living in CH, let's make hay while the sun shines and set him up with a nest egg.

I went to www.baloise.ch in the end. A finance guy visited and went through some investment options. A fairly conservative option was selected, a direct debit set up and that was it.

Not so traditional that it can't be touched until he's 18. It's my investment, and in my name, so it's flexible.

Difficult to say whether I'd recommend it, that's only something I could say after a decade or so, but right now I feel pleased with it.

Last edited by BrianClose; 13.07.2017 at 14:18. Reason: spelling
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
Long-term B permit, long-term unemployment and limited German proficiency InCH Permits/visas/government 1 04.10.2016 13:52
Very long term investment for dummies EPMike Finance/banking/taxation 93 04.06.2016 11:22
Short term accomodation (=long term hotel ?) in Zürich varioplus Housing in general 4 04.09.2010 12:58
B Permit Form - different for Long term B and Short term B ? samofsydney Permits/visas/government 3 14.02.2010 15:40
Early change of short-term B to long-term B Alirezakarimi Permits/visas/government 12 14.01.2008 01:00


All times are GMT +2. The time now is 13:38.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0