Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 01.11.2010, 12:22
tesla's Avatar
Junior Member
 
Join Date: Sep 2008
Location: zurich
Posts: 42
Groaned at 3 Times in 1 Post
Thanked 7 Times in 3 Posts
tesla has no particular reputation at present
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. 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…….
__________________
When bees make honey, who needs money?
Reply With Quote
  #2  
Old 01.11.2010, 12:28
Newbie 1st class
 
Join Date: Oct 2010
Location: Zurich
Posts: 11
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
Arewa77 has no particular reputation at present
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
Reply With Quote
  #3  
Old 01.11.2010, 12:32
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich
Posts: 1,249
Groaned at 3 Times in 3 Posts
Thanked 604 Times in 392 Posts
axman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond repute
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 ?
Reply With Quote
  #4  
Old 01.11.2010, 15:40
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich
Posts: 1,249
Groaned at 3 Times in 3 Posts
Thanked 604 Times in 392 Posts
axman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond repute
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%).
Reply With Quote
  #5  
Old 01.11.2010, 15:45
economisto
 
Posts: n/a
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
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.
Reply With Quote
  #6  
Old 01.11.2010, 15:49
Karl's Avatar
Forum Veteran
 
Join Date: Sep 2008
Location: Here
Posts: 1,861
Groaned at 174 Times in 78 Posts
Thanked 2,721 Times in 882 Posts
Karl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond repute
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.
Reply With Quote
  #7  
Old 01.11.2010, 16:32
Member
 
Join Date: Jan 2010
Location: Zurich
Posts: 207
Groaned at 21 Times in 7 Posts
Thanked 57 Times in 44 Posts
simpa is considered unworthysimpa is considered unworthysimpa is considered unworthysimpa is considered unworthy
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 ?
Reply With Quote
  #8  
Old 01.11.2010, 16:40
Newbie
 
Join Date: Jan 2010
Location: Zurich
Posts: 9
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
Snowwhite has no particular reputation at present
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.
Reply With Quote
  #9  
Old 01.11.2010, 16:47
Karl's Avatar
Forum Veteran
 
Join Date: Sep 2008
Location: Here
Posts: 1,861
Groaned at 174 Times in 78 Posts
Thanked 2,721 Times in 882 Posts
Karl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond reputeKarl has a reputation beyond repute
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
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.
Reply With Quote
  #10  
Old 01.11.2010, 18:30
Member
 
Join Date: Jan 2010
Location: Zurich
Posts: 207
Groaned at 21 Times in 7 Posts
Thanked 57 Times in 44 Posts
simpa is considered unworthysimpa is considered unworthysimpa is considered unworthysimpa is considered unworthy
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
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 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
Reply With Quote
  #11  
Old 01.11.2010, 22:46
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich
Posts: 1,249
Groaned at 3 Times in 3 Posts
Thanked 604 Times in 392 Posts
axman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond repute
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
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.
Reply With Quote
  #12  
Old 01.11.2010, 22:52
economisto
 
Posts: n/a
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
+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.
Reply With Quote
  #13  
Old 02.11.2010, 09:17
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich
Posts: 1,249
Groaned at 3 Times in 3 Posts
Thanked 604 Times in 392 Posts
axman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond repute
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
-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.
Reply With Quote
  #14  
Old 02.11.2010, 09:28
economisto
 
Posts: n/a
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
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).
Reply With Quote
  #15  
Old 02.11.2010, 09:31
taskalem's Avatar
Member
 
Join Date: Apr 2010
Location: Lausanne
Posts: 242
Groaned at 0 Times in 0 Posts
Thanked 160 Times in 96 Posts
taskalem is considered knowledgeabletaskalem is considered knowledgeabletaskalem is considered knowledgeable
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
Reply With Quote
  #16  
Old 02.11.2010, 09:37
economisto
 
Posts: n/a
Re: Investment Fund Savings Plan/Income Plan

Quote:
View Post
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.
Reply With Quote
The following 2 users would like to thank for this useful post:
  #17  
Old 02.11.2010, 09:45
taskalem's Avatar
Member
 
Join Date: Apr 2010
Location: Lausanne
Posts: 242
Groaned at 0 Times in 0 Posts
Thanked 160 Times in 96 Posts
taskalem is considered knowledgeabletaskalem is considered knowledgeabletaskalem is considered knowledgeable
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.
Reply With Quote
  #18  
Old 02.11.2010, 10:04
17clarence's Avatar
Forum Veteran
 
Join Date: May 2008
Location: Geneva
Posts: 803
Groaned at 15 Times in 12 Posts
Thanked 965 Times in 440 Posts
17clarence has a reputation beyond repute17clarence has a reputation beyond repute17clarence has a reputation beyond repute17clarence has a reputation beyond repute
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.
Reply With Quote
Reply

Tags
income plan, investment fund, savings plan




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
My small plan to bring some savings to CH giff Finance/banking/taxation 27 12.02.2010 14:37
Risiko plan? crinno Finance/banking/taxation 0 25.01.2010 23:51
What's your summer plan.... gissa bijoy Travel/day trips/free time 35 23.01.2010 01:11
Evilness - I has a plan Polorise General off-topic 4 19.10.2009 14:06


All times are GMT +2. The time now is 11:09.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0