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-   -   How do people prepare for their pensions? (https://www.englishforum.ch/finance-banking-taxation/298500-how-do-people-prepare-their-pensions.html)

doropfiz 08.06.2020 19:26

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by Karl (Post 3188957)
In Switzerland if you run out of money in old age, the state pays to keep you fed, housed and looked after, courtesy of tax-payers.

More like this:
  • Fed means: just enough money to get by if eating mostly pasta
  • Housed means: rental covered up to a maximum rental limit at which it is very hard to find even a bachelor studio, and no help to find such accommodation, and penalised for every franc that exceeds that permissible monthly limit
  • Looked after means: mostly, nothing. Perhaps Spitex home nursing to come by, if there is a medical reason.

Also paid is the basic medical insurance premium, and that's a real blessing. And a small monthly allowance to cover everything beyond medical and rent.

Urs Max 09.06.2020 00:59

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by EPMike (Post 3188917)
How did you manage to invest into fundsmith via interactive brokers?

I didn't say I invested (bought fund shares), I paid (transferred) the money. I thought it worth mentioning the money came from IB as that was within the country, hopefully removing one or the other potential pitfall.

Urs Max 09.06.2020 12:30

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by EPMike (Post 3188939)
How is that possible with a fund almost 2Bn now?

I guess I need to do some more reading on how investment trusts work. Apparently I underestimated the liquidity aspect.

SSON and FEET are both investment trusts, in the US they'd be called closed-end stock funds (CEF), see for instance cefconnect.com for other CEFs (but beware!). For a CEF the number of shares outstanding is constant at most times, sharecount doesn't change on a daily basis like it does for an ordinary fund or ETF. Like an ordinary company (think Microsoft) the change of the value a share represents depends on the company(CEF)'s performance, but the price is subject to supply and demand and can deviate from NAV by a lot.

FEET for instance trades 13% below NAV, meaning you pay only 87 cents for every dollar's worth you buy. SSON however trades at 1.2% premium, the price is 1.2% above NAV.

Thank you for mentioning SMT, looks quite interesting.

fatmanfilms 09.06.2020 13:14

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by Urs Max (Post 3189325)
SSON and FEET are both investment trusts, in the US they'd be called closed-end stock funds (CEF), see for instance cefconnect.com for other CEFs (but beware!). For a CEF the number of shares outstanding is constant at most times, sharecount doesn't change on a daily basis like it does for an ordinary fund or ETF. Like an ordinary company (think Microsoft) the change of the value a share represents depends on the company(CEF)'s performance, but the price is subject to supply and demand and can deviate from NAV by a lot.

FEET for instance trades 13% below NAV, meaning you pay only 87 cents for every dollar's worth you buy. SSON however trades at 1.2% premium, the price is 1.2% above NAV.

Thank you for mentioning SMT, looks quite interesting.

Interesting you mentioned Microsoft, Microsoft fell very heavily, not because COVID would hugely reduce profits, but due to it's huge liquidity you could sell $1 billion of stock without issue, many fund managers had to sell what was liquid to fund redemptions, not what they wanted to sell.

FEET had a 17% discount a couple of weeks ago, change of sentiments happen very quickly.

wantone 09.06.2020 15:58

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by Urs Max (Post 3189227)
I didn't say I invested (bought fund shares), I paid (transferred) the money. I thought it worth mentioning the money came from IB as that was within the country, hopefully removing one or the other potential pitfall.

Do you see the position in IB?

EPMike 09.06.2020 16:25

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by Urs Max (Post 3189325)
SSON and FEET are both investment trusts, in the US they'd be called closed-end stock funds (CEF), see for instance cefconnect.com for other CEFs (but beware!). For a CEF the number of shares outstanding is constant at most times, sharecount doesn't change on a daily basis like it does for an ordinary fund or ETF. Like an ordinary company (think Microsoft) the change of the value a share represents depends on the company(CEF)'s performance, but the price is subject to supply and demand and can deviate from NAV by a lot.

FEET for instance trades 13% below NAV, meaning you pay only 87 cents for every dollar's worth you buy. SSON however trades at 1.2% premium, the price is 1.2% above NAV.

Thank you for mentioning SMT, looks quite interesting.

I can't believe you didn't have Scottish Mortgage on your radar.

Urs Max 09.06.2020 16:26

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by wantone (Post 3189400)
Do you see the position in IB?

No, it's completely separate.

EPMike, I focus on US and Swiss markets.

newtoswitz 09.11.2020 15:37

Re: How do people prepare for their pensions?
 
Does any Swiss employer offer defined benefit pension?

I've only seen defined benefit for the insurance part (death and disability), and defined contribution for the actual pension.

eyebeebe 09.11.2020 16:25

Re: How do people prepare for their pensions?
 
Quote:

Originally Posted by newtoswitz (Post 3237302)
Does any Swiss employer offer defined benefit pension?

I've only seen defined benefit for the insurance part (death and disability), and defined contribution for the actual pension.

I got 5 months of it in 2009 when I first moved here and then the model changed to defined contribution. I would guess that some public sector roles and maybe some heavily unionised roles do still have it, but I can‘t see those being the types of job that most EFers are in.


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