Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #41  
Old 05.02.2020, 20:33
H in CH's Avatar
Junior Member
 
Join Date: Dec 2009
Location: Zürich
Posts: 59
Groaned at 0 Times in 0 Posts
Thanked 16 Times in 11 Posts
H in CH has no particular reputation at present
Re: Another fundsmith question

Quote:
View Post
(You could take 25% tax free lump sum & put that in the T class direct) Not sure how CH see that for tax purposes.
CH would see (only) the 25% invested in FS as part of one's Wealth declaration (Wertschriften- und Guthabenverzeichnis) - that is all.

Last edited by H in CH; 05.02.2020 at 20:41. Reason: Simplification
Reply With Quote
This user would like to thank H in CH for this useful post:
  #42  
Old 05.02.2020, 21:06
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,506
Groaned at 297 Times in 245 Posts
Thanked 16,518 Times in 9,126 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: Another fundsmith question

Quote:
View Post
CH would see (only) the 25% invested in FS as part of one's Wealth declaration (Wertschriften- und Guthabenverzeichnis) - that is all.
Then it would make sense as the saved fees are many times any wealth tax.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #43  
Old 06.02.2020, 11:13
eng_ch's Avatar
Forum Veteran
 
Join Date: Nov 2005
Location: Up where the air is clear
Posts: 1,605
Groaned at 4 Times in 4 Posts
Thanked 1,543 Times in 791 Posts
eng_ch has a reputation beyond reputeeng_ch has a reputation beyond reputeeng_ch has a reputation beyond reputeeng_ch has a reputation beyond reputeeng_ch has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post
I class are slightly cheaper however you will pay AJ Bell an annual fee, so you will be worse off than a direct investment in T Class although you can do that with a SIPP. (You could take 25% tax free lump sum & put that in the T class direct) Not sure how CH see that for tax purposes.

I'm not yet old enough to take anything out of it, so that point is moot.
Given the choice, therefore, I or T? Is there any material difference other than fees and share price?
Reply With Quote
  #44  
Old 06.02.2020, 14:06
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,506
Groaned at 297 Times in 245 Posts
Thanked 16,518 Times in 9,126 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: Another fundsmith question

Quote:
View Post
I'm not yet old enough to take anything out of it, so that point is moot.
Given the choice, therefore, I or T? Is there any material difference other than fees and share price?
Identical find I has lower charges
Reply With Quote
  #45  
Old 19.02.2020, 16:19
Newbie 1st class
 
Join Date: Jan 2017
Location: lausanne
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
lsnguy has no particular reputation at present
Re: Another fundsmith question

This is the latest FS thread I found.

I invested a very small amount in FS in 2017 (based on recommendations from EF members) and have seen a remarkable appreciation in that.
However, I was not a Swiss Resident from 2017 until recently so couldn't continue to invest.
Now I am back in CH and am reconsidering continuing investing in either FS or any other low cost ETFs (I am a newbie in the investment world and don't have much experience but am willing to learn)

My 2 questions
1. Is it the right time to invest in FS? (I know no-one can time the market but is it not advisable to wait till the markets correct themselves)

2. Alternatives to FS? I do not have any other trading account, so just to diversify is it better to open an account with a Swiss broker or a US based broker to primarily buy low cost ETFs (primarily Vanguard)


Thanks again to the community for the help!
Reply With Quote
  #46  
Old 19.02.2020, 16:35
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,506
Groaned at 297 Times in 245 Posts
Thanked 16,518 Times in 9,126 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: Another fundsmith question

Quote:
View Post
This is the latest FS thread I found.

I invested a very small amount in FS in 2017 (based on recommendations from EF members) and have seen a remarkable appreciation in that.
However, I was not a Swiss Resident from 2017 until recently so couldn't continue to invest.
Now I am back in CH and am reconsidering continuing investing in either FS or any other low cost ETFs (I am a newbie in the investment world and don't have much experience but am willing to learn)

My 2 questions
1. Is it the right time to invest in FS? (I know no-one can time the market but is it not advisable to wait till the markets correct themselves)

2. Alternatives to FS? I do not have any other trading account, so just to diversify is it better to open an account with a Swiss broker or a US based broker to primarily buy low cost ETFs (primarily Vanguard)


Thanks again to the community for the help!
FS has slightly underperformed on a 6 month view as it's been a boom time & everything has gone up, the stocks held by FS are highly defensive so this is totally expected, their best performance relative to the market will be in bad times.
Of course their 1 year, 3 year, 5 year & since inception is in the top quartile. So yes it's probably a better time to invest v the market than 6 months ago.

I don't understand why you could not invest as you were not resident in CH
Reply With Quote
  #47  
Old 19.02.2020, 23:46
Newbie 1st class
 
Join Date: Jan 2017
Location: lausanne
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
lsnguy has no particular reputation at present
Re: Another fundsmith question

Quote:
View Post
FS has slightly underperformed on a 6 month view as it's been a boom time & everything has gone up, the stocks held by FS are highly defensive so this is totally expected, their best performance relative to the market will be in bad times.
Of course their 1 year, 3 year, 5 year & since inception is in the top quartile. So yes it's probably a better time to invest v the market than 6 months ago.

I don't understand why you could not invest as you were not resident in CH
I couldn't invest because I was paying taxes in another country and the account was still registered to a swiss address. It was quite difficult from legal resident perspective.
I want to start investing on a regular basis both back in FS and other ETFs.

Any suggestions for brokers? and ETFs apart from Vanguard worth looking at?
Reply With Quote
  #48  
Old 22.02.2020, 17:01
Member
 
Join Date: Dec 2015
Location: Zurich
Posts: 191
Groaned at 2 Times in 2 Posts
Thanked 70 Times in 55 Posts
Dr Mick has earned some respectDr Mick has earned some respect
Re: Another fundsmith question

Quote:
View Post
I couldn't invest because I was paying taxes in another country and the account was still registered to a swiss address. It was quite difficult from legal resident perspective.
I want to start investing on a regular basis both back in FS and other ETFs.

Any suggestions for brokers? and ETFs apart from Vanguard worth looking at?
Your questions have been asked before by other users.
A quick search over the past posts will give you the answers you are looking for.
Reply With Quote
  #49  
Old 29.02.2020, 08:12
Horatio Gonzales's Avatar
Forum Veteran
 
Join Date: Feb 2014
Location: Luzern
Posts: 516
Groaned at 4 Times in 4 Posts
Thanked 160 Times in 98 Posts
Horatio Gonzales is considered knowledgeableHoratio Gonzales is considered knowledgeableHoratio Gonzales is considered knowledgeable
Re: Another fundsmith question

I'm considering selling off at least half of my FS holdings on Monday and holding cash until an apparent market bottom (Corona virus driven) out then buying back into FS full bore.

What are you all doing? Holding tight? Selling off?
Reply With Quote
  #50  
Old 29.02.2020, 09:21
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 9,570
Groaned at 332 Times in 274 Posts
Thanked 10,946 Times in 5,402 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post

What are you all doing? Holding tight? Selling off?
Depends on how quickly and with what cost you can sell?

I sit tight and buy some more. Mainly because I look at the investment from a longer view.
Reply With Quote
The following 5 users would like to thank roegner for this useful post:
  #51  
Old 29.02.2020, 09:37
kri's Avatar
kri kri is offline
Forum Veteran
 
Join Date: Nov 2007
Location: Currently not in Switzerland
Posts: 1,172
Groaned at 11 Times in 11 Posts
Thanked 782 Times in 434 Posts
kri has a reputation beyond reputekri has a reputation beyond reputekri has a reputation beyond reputekri has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post
Depends on how quickly and with what cost you can sell?

I sit tight and buy some more. Mainly because I look at the investment from a longer view.
Same here. Keeping track of a couple of shares i have been eyeing for a while but had held off as they were at an all time high.

I feel its too late to sell unless you know you need the cash in the short term.
Reply With Quote
The following 2 users would like to thank kri for this useful post:
  #52  
Old 29.02.2020, 10:37
Forum Legend
 
Join Date: Mar 2013
Location: Formerly in Neuchatel
Posts: 2,815
Groaned at 222 Times in 151 Posts
Thanked 5,100 Times in 1,971 Posts
porsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond reputeporsch1909 has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post
I'm considering selling off at least half of my FS holdings on Monday and holding cash until an apparent market bottom (Corona virus driven) out then buying back into FS full bore.

What are you all doing? Holding tight? Selling off?
https://awealthofcommonsense.com/201...-market-timer/
Reply With Quote
This user would like to thank porsch1909 for this useful post:
  #53  
Old 29.02.2020, 11:39
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,506
Groaned at 297 Times in 245 Posts
Thanked 16,518 Times in 9,126 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: Another fundsmith question

Quote:
View Post
I'm considering selling off at least half of my FS holdings on Monday and holding cash until an apparent market bottom (Corona virus driven) out then buying back into FS full bore.

What are you all doing? Holding tight? Selling off?
Why would you do that? Stock market investments are for the long term. Price is considerably higher than 24 December 18.
You do realise the I shares Hit 500p for the first time just 1 week ago so £1 became £5 in just over 9 years.

I am slightly short of cash as I just bought a new home yesterday, otherwise I would be a buyer.

Peter Lynch's fund returned 29% compound over 13 years, the best performing fund in history, the average investor actually lost money due to market timing https://www.alphawealthfunds.com/201...nd-in-history/

EDIT
This is the 3rd panic over coronavirus, the markets recovered & found a new peak on the 2 previous falls.
Reply With Quote
The following 4 users would like to thank fatmanfilms for this useful post:
  #54  
Old 29.02.2020, 13:59
Senior Member
 
Join Date: Jul 2016
Location: GR
Posts: 292
Groaned at 16 Times in 13 Posts
Thanked 76 Times in 70 Posts
wantone has no particular reputation at present
Re: Another fundsmith question

Quote:
View Post
I'm considering selling off at least half of my FS holdings on Monday and holding cash until an apparent market bottom (Corona virus driven) out then buying back into FS full bore.

What are you all doing? Holding tight? Selling off?
It is risky because we don't know if the sell off will continue next week. If you are lucky with timing it could be better because you can buy at lower prices a few days after. If not and the market recovers next week then you will be missing out. If we just new the future....
Reply With Quote
This user would like to thank wantone for this useful post:
  #55  
Old 29.02.2020, 18:08
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,431
Groaned at 269 Times in 175 Posts
Thanked 16,243 Times in 6,901 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post
I'm considering selling off at least half of my FS holdings on Monday and holding cash until an apparent market bottom (Corona virus driven) out then buying back into FS full bore.

What are you all doing? Holding tight? Selling off?
I've been buying, admittedly, probably a bit too much and too soon.
Reply With Quote
The following 2 users would like to thank Phil_MCR for this useful post:
  #56  
Old 29.02.2020, 19:47
Forum Legend
 
Join Date: Apr 2008
Location: Zurich
Posts: 3,345
Groaned at 61 Times in 41 Posts
Thanked 3,447 Times in 1,878 Posts
rainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post
It is risky because we don't know if the sell off will continue next week. If you are lucky with timing it could be better because you can buy at lower prices a few days after. If not and the market recovers next week then you will be missing out. If we just new the future....
The market may recover next week, if the central banks actually go through with the rumored rate-cutting.

However, given the bleak economic outlook this would be similar to "curing" a heroin-addict by switching him to fentanyl.

It would take another one or two months for production in China to resume to the level it was before - but they are only ramping up very slowly because they still get a sizable number of new infections every day and workers are only returning to their places of work very slowly.

In the meantime, a lot of companies all over the world who rely on reselling Chinese goods are just going bankrupt. Larger companies that rely on parts are waiting because switching suppliers in a complicated supply-chain is very difficult.

Likewise, a lot of Chinese companies are also going to go bankrupt, with the state propping up the larger ones. What kind of impact is that going to have on the world-economy?

Chinese tourism alone is apparently a 300 billion industry that is currently at zero. A good chunk of it usually spent outside the mainland.

If you think, all's peachy and stocks are going to go even higher than the pre-correction craziness once this "little problem" has been sorted out - don't hesitate and buy more. Just be prepared to be in for a very long run.
Reply With Quote
This user would like to thank rainer_d for this useful post:
  #57  
Old 29.02.2020, 20:46
Horatio Gonzales's Avatar
Forum Veteran
 
Join Date: Feb 2014
Location: Luzern
Posts: 516
Groaned at 4 Times in 4 Posts
Thanked 160 Times in 98 Posts
Horatio Gonzales is considered knowledgeableHoratio Gonzales is considered knowledgeableHoratio Gonzales is considered knowledgeable
Re: Another fundsmith question

Thanks All for your thoughts on this. The Rationale behind selling 50% is a risk spread. I take half out to isolate it from further falls while leaving half in with the long term view. Akin to dollar cost averaging but for risk.
Reply With Quote
  #58  
Old 01.03.2020, 04:57
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,431
Groaned at 269 Times in 175 Posts
Thanked 16,243 Times in 6,901 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Another fundsmith question

Quote:
View Post
Thanks All for your thoughts on this. The Rationale behind selling 50% is a risk spread. I take half out to isolate it from further falls while leaving half in with the long term view. Akin to dollar cost averaging but for risk.
everybody has their own situation and risk appetite, so do what you feel is right for you.

tbh, nobody knows what will happen. markets were already stretched and the virus looks like it will have a real impact on earnings - but nobody yet knows to what degree. the first death seems to have happened in the US which will no doubt lead to more panicking.

with markets already at high valuations, it's not a suprise that this now triggers a correction and the downturn has already blown through various technical support levels.
Reply With Quote
The following 3 users would like to thank Phil_MCR for this useful post:
  #59  
Old 01.03.2020, 10:49
Senior Member
 
Join Date: Jul 2016
Location: GR
Posts: 292
Groaned at 16 Times in 13 Posts
Thanked 76 Times in 70 Posts
wantone has no particular reputation at present
Re: Another fundsmith question

Quote:
View Post
everybody has their own situation and risk appetite, so do what you feel is right for you.

tbh, nobody knows what will happen. markets were already stretched and the virus looks like it will have a real impact on earnings - but nobody yet knows to what degree. the first death seems to have happened in the US which will no doubt lead to more panicking.

with markets already at high valuations, it's not a suprise that this now triggers a correction and the downturn has already blown through various technical support levels.
If I was going to guess I think the turmoil will continue next week as well. Obviously, it can go the other way and I am sure at some point it will go higher but we don't know how long this will last.
Reply With Quote
  #60  
Old 01.03.2020, 15:51
Member
 
Join Date: Dec 2015
Location: Zurich
Posts: 191
Groaned at 2 Times in 2 Posts
Thanked 70 Times in 55 Posts
Dr Mick has earned some respectDr Mick has earned some respect
Re: Another fundsmith question

Quote:
View Post
The market may recover next week, if the central banks actually go through with the rumored rate-cutting.

However, given the bleak economic outlook this would be similar to "curing" a heroin-addict by switching him to fentanyl.

It would take another one or two months for production in China to resume to the level it was before - but they are only ramping up very slowly because they still get a sizable number of new infections every day and workers are only returning to their places of work very slowly.

In the meantime, a lot of companies all over the world who rely on reselling Chinese goods are just going bankrupt. Larger companies that rely on parts are waiting because switching suppliers in a complicated supply-chain is very difficult.

Likewise, a lot of Chinese companies are also going to go bankrupt, with the state propping up the larger ones. What kind of impact is that going to have on the world-economy?

Chinese tourism alone is apparently a 300 billion industry that is currently at zero. A good chunk of it usually spent outside the mainland.

If you think, all's peachy and stocks are going to go even higher than the pre-correction craziness once this "little problem" has been sorted out - don't hesitate and buy more. Just be prepared to be in for a very long run.
You seem to have everything figured out. Perhaps you should short the market
Reply With Quote
This user would like to thank Dr Mick for this useful post:
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
Question regarding Fundsmith Dr Mick Finance/banking/taxation 158 30.07.2019 10:24
Another wiring question... krn Housing in general 16 10.09.2017 14:40
Another DIY question PaddyG Daily life 28 04.09.2016 12:17
Another English question crm Other/general 4 17.09.2009 10:08
Another Salary question lumpy Employment 9 29.08.2008 11:08


All times are GMT +2. The time now is 05:01.


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