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-   -   Investment Fund Savings Plan/Income Plan (https://www.englishforum.ch/finance-banking-taxation/98246-investment-fund-savings-plan-income-plan.html)

tesla 01.11.2010 12:22

Investment Fund Savings Plan/Income Plan
 
Hello!!

Did any of you had experience with any Investment Fund Savings Plan/Income Plan?
I was looking the ones form credit Suisse and seemed really good..For example, (numbers are approx.) with a capital of 20,000 and a monthly payment of 1,500 in one year you will reach a final amount of 50, 000,practically 20,000+ 18,000(1500*12)=38,000 my annual payment and 12,000 will be the earned money. :thumbup:Sounds good, right? I am wondering If I am missing something… Of course I intent to contact them and discuss this in detail, however do you know where the risk can lay or where is the catch, if any?

Thank you…….

Arewa77 01.11.2010 12:28

Re: Investment Fund Savings Plan/Income Plan
 
hi there
this invest figure can charming.. only to lure you into there cash pooling strategies. i propose to meet the bank officers for a direct discussion on the real + actual yield you can expect from an investment
cheer
arewa77

axman 01.11.2010 12:32

Re: Investment Fund Savings Plan/Income Plan
 
I think you are missing something. YOu need to earn an interest of 35% p.a to get that.

I am guessing that monthly payments is actually annual payments. So annual payments of 1500 ?

axman 01.11.2010 15:40

Re: Investment Fund Savings Plan/Income Plan
 
Maybe it is like this: Fr.20,000 down

Fr.125 per month, or Fr.1500 annually.

for 12 years.

Total you paid in after 12 years is Fr.38,000. IF it earns an average 3% per annum, you will have Fr.50,000. This is nothing special, but, it is a big IF.

My usual question for investment funds is their commissions. It is no use if you choose a fund which expect to earn 4% but they charge 2% annually for their management fees. Even worse, they say they charge only 1% fees, but forget to tell you that there is a minumum charge of Fr.50 (which if you pay Fr.1500, is a lot more than 1%).

01.11.2010 15:45

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by axman (Post 998524)
Maybe it is like this: Fr.20,000 down

Fr.125 per month, or Fr.1500 annually.

for 12 years.

Total you paid in after 12 years is Fr.38,000. IF it earns an average 3% per annum, you will have Fr.50,000. This is nothing special, but, it is a big IF.

My usual question for investment funds is their commissions. It is no use if you choose a fund which expect to earn 4% but they charge 2% annually for their management fees. Even worse, they say they charge only 1% fees, but forget to tell you that there is a minumum charge of Fr.50 (which if you pay Fr.1500, is a lot more than 1%).

It sounds like this is a 3% guaranteed net return. Which is fair, but not great.

Karl 01.11.2010 15:49

Re: Investment Fund Savings Plan/Income Plan
 
Do not trust Credit Suisse. I have over a decade of experience dealing with them and investing in their funds: what a mistake. I have only lost money based on their recommendations, my financial "advisor" was a different person each time, they outright lied to me about the management fees (saying as a CS customer I was exempt from paying managements fees...the trick is they embed them in the rate so it is invisible, but very much there).

If you don't have at least a million invested you are little more than a cockroach to them. Stay clear of Credit Suisse (and UBS for that matter).

If you really want to invest in the stock market do it directly with a low-cost broker and invest in a simple Index Tracker fund.

simpa 01.11.2010 16:32

Re: Investment Fund Savings Plan/Income Plan
 
is there any program who will accept bank instruement as well ? for weekly or monthlu payout ? how we could reash the trader or asset manager ?

Snowwhite 01.11.2010 16:40

Re: Investment Fund Savings Plan/Income Plan
 
I would suggest that you go personally to the credit suisse bank and speak with the customer service manager .They will direct with you with investment portfolio manager .This will help you in taking the right direction.

Karl 01.11.2010 16:47

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by Snowwhite (Post 998640)
I would suggest that you go personally to the credit suisse bank and speak with the customer service manager .They will direct with you with investment portfolio manager .This will help you in taking the right direction.

They will tell you to do what is in THEIR best interest, NOT yours. They will try to convince you it's in your best interest. They are very good at it.

That is how banks make money.

simpa 01.11.2010 18:30

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by Snowwhite (Post 998640)
I would suggest that you go personally to the credit suisse bank and speak with the customer service manager .They will direct with you with investment portfolio manager .This will help you in taking the right direction.

we did but unfortunately some kind of investment it is not for all :msngrin: and you need very good connection to go through ... thats the fact at all the banks

they will only convince you only for what they think it is fine for them and what is open for the public , that the fact at all banks

axman 01.11.2010 22:46

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by Karl (Post 998543)
If you really want to invest in the stock market do it directly with a low-cost broker and invest in a simple Index Tracker fund.

+1 for a simple index tracker fund. If you just want to put in an annual amount and not have to manage it for the next 10 years, this is probably the simplest. Because it is quite basic, it usually runs at very low commission levels.

01.11.2010 22:52

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by axman (Post 999174)
+1 for a simple index tracker fund. If you just want to put in an annual amount and not have to manage it for the next 10 years, this is probably the simplest. Because it is quite basic, it usually runs at very low commission levels.

-1 for a simple index tracker fund. Obviously if you know what you're doing and you have time to devote then great. Financial planning in general isn't about simple market exposure (which market, for whom, at what stage in life?). Most people will enter the market at the wrong time, need their money while the market is down and all in all be in for an expensive (though low cost) exercise.

axman 02.11.2010 09:17

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by economisto (Post 999186)
-1 for a simple index tracker fund. Obviously if you know what you're doing and you have time to devote then great. Financial planning in general isn't about simple market exposure (which market, for whom, at what stage in life?). Most people will enter the market at the wrong time, need their money while the market is down and all in all be in for an expensive (though low cost) exercise.

I agree with what you are saying. How to invest needs to be a very well considered decision. However, it seems to me that the OP has a 12 year time frame, so timing the market is not that important, the money is not needed within the time frame, and the low cost would help a lot when compounded over the period.

Yes, this might not fit into OP's personal situation (more info would be needed), but the OP would do well to ask CS about index funds because CS will probably try and sell you all sorts of funds, but not low cost funds.

02.11.2010 09:28

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by axman (Post 999399)
I agree with what you are saying. How to invest needs to be a very well considered decision. However, it seems to me that the OP has a 12 year time frame, so timing the market is not that important, the money is not needed within the time frame, and the low cost would help a lot when compounded over the period.

Yes, this might not fit into OP's personal situation (more info would be needed), but the OP would do well to ask CS about index funds because CS will probably try and sell you all sorts of funds, but not low cost funds.

In fact market timing is still important, though you're right in that it's less important when to buy (just asap). Buying on day one will mean that you'll see between one and two market highs within 12 years. It's important to downgrade risk levels at or near this point to lock in profits. Tracker funds/ETFs are useful tools with expense ratios of 0.3% to 0.7% per year. However if you're paying someone to look after them for you, rather go for a cheapish fund at 1% to 1.5% AMC with 0% to 2% front load. In my opinion it works out as better value. Having said that I would never go near a bank for financial advice (other than maybe HSBC Offshore who are best in class).

taskalem 02.11.2010 09:31

Re: Investment Fund Savings Plan/Income Plan
 
Talkin about funds, I was approached by a guy from Churchill & Partners last week and he was telling me that by using off-shore locations they can provide me with 5-10% of income per year (in CHF basis for sure).
What do you think about off-shore staff, is it risky? Shall I go with it, because 5-10% per year is very tempting when you think about the 0.5% given by UBS:)

02.11.2010 09:37

Re: Investment Fund Savings Plan/Income Plan
 
Quote:

Originally Posted by taskalem (Post 999410)
Talkin about funds, I was approached by a guy from Churchill & Partners last week and he was telling me that by using off-shore locations they can provide me with 5-10% of income per year (in CHF basis for sure).
What do you think about off-shore staff, is it risky? Shall I go with it, because 5-10% per year is very tempting when you think about the 0.5% given by UBS:)

You are being offered a knock-out product which is a banking instrument making use of market volatility. I'm surprised it's really in CHF, but in any case it'll be conditional on indices or stocks not dropping beyond a certain point in a certain time frame. Post the details and I'll tell you more.

I absolutely detest these products. There are so many IFAs, especially working for banks, that sell these products as lower risk vehicles (they sort of look like bank accounts with interest rates). They carry substantial risks including significant counterparty risk. While there is nothing wrong with the products per se, I believe the wrong people are buying them.

taskalem 02.11.2010 09:45

Re: Investment Fund Savings Plan/Income Plan
 
Thank you.
I don't have the details yet, he is going to bring a folder containing all the funds and other stuff. I will post here as soon as I have all.

17clarence 02.11.2010 10:04

Re: Investment Fund Savings Plan/Income Plan
 
Look up old threads on cold calling and financial mis-selling to expats for more info.
Also, you can be sure this thread will be pulled soon as they do not like negative publicity.
They prefer to work in the dark, like the rats they are.


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