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  #21  
Old 27.05.2021, 21:46
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Re: What to do with bank balance

This is a problem, that I wish to have.
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  #22  
Old 28.05.2021, 07:47
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Re: What to do with bank balance

Spend it, problem solved.
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  #23  
Old 28.05.2021, 09:34
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Re: What to do with bank balance

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I've heard advice against this, because one's needs and wishes can change, as can the local by-laws and the committee to approve one's plans, so that the dream piece of land, now, may not turn out to provide the dream home by the time one gets around to trying to build it.
This is true based on my knowledge.

I know of 2 distinct cases. 1 person bought a plot and the local laws changed and his build was never approved as the land was reclassified as "agricultural land". A 2nd person was lucky that his plot had a ruin so he was able to destroy the ruin and build a new property within certain limitations.

Be careful with buying a plot of land. At least one that does not have either a pre-existing build or an approved build project with the local commune
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Old 28.05.2021, 15:01
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Re: What to do with bank balance

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He is not looking for volatility and his time horizon is much shorter.

Yes, in ten years you could have double the amount. Or half of it. Let's not forget that many markets haven't reached yet the highs from many years ago.
The statement "many markets haven't reached yet the highs from many years ago" is misleading. The MSCI World index has grown 9.92% per year for the past 10 years in USD and 6.4% per year since end 2000. Returns in CHF will be lower but still positive.
https://www.msci.com/documents/10199...4-43fcb5bd6523

I appreciate OP stated he or she wanted to avoid volatilty. I was highlighting a watchout from experience since I know many people in CH who have fallen into a trap of keeping cash to buy a house without having a fixed timeframe. The waiting period ends up extending for years. After 3 years the probablity of being better off by investing is already towards 90%. I do understand that a 10% probability of being worse off is not acceptable for some people's circumstances
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Old 01.06.2021, 21:03
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Re: What to do with bank balance

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We are sitting on a bank balance ( mid 6 figure ) for a while now because we have been looking at buying a house in the Mediterranean region, and not wanting to have the money in anything volatile / illiquid since we don't have a handle on the timing.
The relationship manager has mentioned that they will probably start applying negative interest rates soon.
Any ideas on where I can park this money?
You can search if they are short term corporate bonds in the same currency that you can buy. If maturity is less than 1 year the the probability of bankruptcy is small however you should look for a good company and not a bank.
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  #26  
Old 02.06.2021, 16:28
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Re: What to do with bank balance

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You can search if they are short term corporate bonds in the same currency that you can buy. If maturity is less than 1 year the the probability of bankruptcy is small however you should look for a good company and not a bank.
All interest received is taxed as income. If you buy, say, 6 months before maturity your price includes the 6 months interest that already accrued, only to be taxed yet again when the full-year amount is paid out. Taking half the bid/ask spread, trading fee, and bank fees for coupon and redemption into account, what you suggest may well be significantly more expensive than 0.75% negative interest.
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Old 02.06.2021, 18:16
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Re: What to do with bank balance

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You can search if they are short term corporate bonds in the same currency that you can buy. If maturity is less than 1 year the the probability of bankruptcy is small however you should look for a good company and not a bank.
He wants return and liquidity (don't we all).

But the return on a decent corporate bond during the last year will be quite low, and they can be illiquid unless you're willing to lose money.
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