Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #21  
Old 02.01.2021, 23:27
Senior Member
 
Join Date: Apr 2015
Location: Port-Valais (was SFO)
Posts: 447
Groaned at 5 Times in 3 Posts
Thanked 326 Times in 181 Posts
Caryl has a reputation beyond reputeCaryl has a reputation beyond reputeCaryl has a reputation beyond reputeCaryl has a reputation beyond repute
Re: Advice for a newborn

I'm not quite clear what the issue is. My grandson is British-Swiss and lives in Britain. I am Swiss-American and am domiciled in Switzerland. My US status limits what financial arrangements I can have, CrSuisse is stuck with my longtime mortgage up for renewal now and they are working on it. A few years ago I wanted to set up savings plans for my (now) 7-yo grandchild. As the only bank that will deal with me sensibly is PostFinance I asked them. They actually looked up my grandson's domicile and said that b/c he isn't resident in CH I can't open an account for him. Worked out well enough: Hargreaves Lansdown opened both a JISA and a JSIPP. Turns out there are fewer than 100,000 JSIPPs in existence. Given the confiscatory 55% tax on SIPPs over £1.03 mn I can understand that: his SIPP is now £15k and using the standard Excel FV formula =FV(B3/B5,B4*B5,-B6,-B2) (varies slightly according to facts) this could reach £25 mn @ 16% (obviously less and lower market returns, but that's what Terry Smith gets), in 50 years.

Now that JISAs have an annual limit of £9k there is no reason for me to leave any taxable probate estate in the UK, and my Swiss residence barely exceeds the mortgage, and that after 14 years of ownership.

I plan to leave this world with what I came into it: zero.

Switzerland has little to offer in terms of generational tax-sparing entities and arrangements. My grandson has ASD so he also has a Vulnerable Person Trust, one of few categories of UK trusts that is free of decennial IHT (he can keep it for life, even if he outgrows the disability (he will never outgrow the status)). He's bilingual, 2 years ahead of his French school class in maths and French, is chatty and has lots of friends. Fortunately the benefits he gets, including a bilingual learning assistant, can't be taken away until age 16, and the VPT never.

I've been in touch with Autism-Valais. Switzerland offers nothing like that. Indeed even in the UK county after county admits that while the law says they have to offer such help they're broke and can't. "Sue us!"
Reply With Quote
The following 2 users would like to thank Caryl for this useful post:
  #22  
Old 03.01.2021, 00:13
HIAO's Avatar
Forum Veteran
 
Join Date: Jun 2011
Location: Bellevue
Posts: 1,362
Groaned at 8 Times in 7 Posts
Thanked 3,491 Times in 978 Posts
HIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond repute
Re: Advice for a newborn

I can understand concerns about the maturity of a young adult who receives a meaningful amount of money when they ‘come of age’.

Thanks to the wonders of compound interest, putting away 350 a month for 18 years, and getting an entirely possible annual growth of 3% will give a pot of around 100k. (120k if it grows by 5%).

Which, for most 18 year olds is a fair chunk of change.

All the more important for parents to teach finance, and have regular money conversations with their offspring throughout childhood and adolescence.
Reply With Quote
The following 7 users would like to thank HIAO for this useful post:
  #23  
Old 03.01.2021, 11:04
Izzt89's Avatar
Member
 
Join Date: Nov 2020
Location: Zurich, Zug
Posts: 152
Groaned at 0 Times in 0 Posts
Thanked 352 Times in 139 Posts
Izzt89 has a reputation beyond reputeIzzt89 has a reputation beyond reputeIzzt89 has a reputation beyond reputeIzzt89 has a reputation beyond repute
Re: Advice for a newborn

Quote:
View Post
I can understand concerns about the maturity of a young adult who receives a meaningful amount of money when they ‘come of age’.

(.....)

All the more important for parents to teach finance, and have regular money conversations with their offspring throughout childhood and adolescence.

I am of the same opinion. Money spent in your baby, toddler or child TODAY in language, arts, sports and any other form of focused interest (academic or not), will have, no doubt, better RoI than any equity investment in the bank... and then, it also avoids (as quoted before), family 'trust' relationship issues, as well as potentially struggle, sorrow and wrongdoing in the future.

The best inheritance is a good education. All my godchildren can (at least) ski, paint, typewrite, horse ride and be at ease on the most strict etiquette rules -among others. Learning when young is a game, and it comes naturally. (Parents take care of academic & language education).
Reply With Quote
The following 2 users would like to thank Izzt89 for this useful post:
  #24  
Old 03.01.2021, 11:32
Junior Member
 
Join Date: Jul 2017
Location: Geneve
Posts: 44
Groaned at 4 Times in 3 Posts
Thanked 13 Times in 9 Posts
lemming has annoyed a few people around herelemming has annoyed a few people around herelemming has annoyed a few people around here
Re: Advice for a newborn

Sorry, i should have specified that that money is earmarked to university expenses.
Reply With Quote
  #25  
Old 03.01.2021, 14:53
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 32,246
Groaned at 2,467 Times in 1,784 Posts
Thanked 39,342 Times in 18,543 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Advice for a newborn

Quote:
View Post
Sorry, i should have specified that that money is earmarked to university expenses.
Except that 18 they can do what they want with it.

Tom
Reply With Quote
This user would like to thank st2lemans for this useful post:
  #26  
Old 03.01.2021, 15:43
Junior Member
 
Join Date: Jul 2017
Location: Geneve
Posts: 44
Groaned at 4 Times in 3 Posts
Thanked 13 Times in 9 Posts
lemming has annoyed a few people around herelemming has annoyed a few people around herelemming has annoyed a few people around here
Re: Advice for a newborn

Quote:
View Post
Except that 18 they can do what they want with it.

Tom
Yes you are right, i'm just assuming my son will not be an idiot but i may be wrong.
Reply With Quote
This user would like to thank lemming for this useful post:
  #27  
Old 03.01.2021, 17:32
kri's Avatar
kri kri is offline
Forum Veteran
 
Join Date: Nov 2007
Location: Switzerland
Posts: 2,165
Groaned at 43 Times in 32 Posts
Thanked 1,955 Times in 993 Posts
kri has a reputation beyond reputekri has a reputation beyond reputekri has a reputation beyond reputekri has a reputation beyond repute
Re: Advice for a newborn

Quote:
View Post
Yes you are right, i'm just assuming my son will not be an idiot but i may be wrong.
At 18 many teens will just not be mature yet and potentially make wrong choices, not a matter of being an "idiot" and I hope you will have more compassion for when your child will make wrong choices....
Reply With Quote
  #28  
Old 03.01.2021, 17:45
Forum Legend
 
Join Date: Jul 2020
Location: Frick, Aargau
Posts: 2,876
Groaned at 63 Times in 51 Posts
Thanked 4,070 Times in 1,901 Posts
HickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond repute
Re: Advice for a newborn

Quote:
View Post
At 18 many teens will just not be mature yet and potentially make wrong choices, not a matter of being an "idiot" and I hope you will have more compassion for when your child will make wrong choices....
I wasn't immature but just lacked knowledge about investing. I'll be keeping one hand on the wheel through their 20s. Perhaps only an eye by late 20s if they prove their acumen!

Last edited by HickvonFrick; 03.01.2021 at 19:04.
Reply With Quote
This user would like to thank HickvonFrick for this useful post:
  #29  
Old 04.01.2021, 15:25
Forum Veteran
 
Join Date: Nov 2010
Location: Zurich
Posts: 569
Groaned at 40 Times in 23 Posts
Thanked 253 Times in 139 Posts
Harrie Nak has made some interesting contributions
Re: Advice for a newborn

We are investing the monthly child allowance for both our kids via Avadis.

Assuming they still live at home by the time they turn 18, we will simply hide the letter Avadis wil send them about how big their piggy bank has become.
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
Advice for insuring newborn, all the bells and whistles? bilko Insurance 12 30.01.2020 22:10
Newborn insurance drkarthiks Insurance 9 05.11.2015 01:30
Permit for a newborn Jacinto Permits/visas/government 23 04.11.2015 12:01
Newborn baby insurance : advice needed aout07 Insurance 19 20.09.2011 10:30
US passport for newborn? mightymarce Family matters/health 9 16.01.2008 23:03


All times are GMT +2. The time now is 02:23.


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