Rentier

[dividinde]

To my knowledge, there is no exhaustive list of stocks that pay dividends that are fully or partially tax-free.

This fairly current article shows a large part of it:

The current dividend is still free

[CARIBOU]

Good evening Jerome, thank you for your feedback. I don't intend to rush this time. I'm patiently waiting for your book :). It's true that I tend to forget inflation which actually reduces yield.

Do you recommend real estate ETFs or if I have to create an ETF portfolio with 50,000 CHF what proportions would you advise me?

THANKS

[CARIBOU]

Good evening Dividende, thank you for your feedback. Too bad for the article, because I don't speak German, but French and English.

[Jerome]

Do you recommend real estate ETFs or if I have to create an ETF portfolio with 50,000 CHF what proportions would you advise me?

 

I'm going to repeat myself, but read my book. You'll find plenty of stock portfolio and/or ETF suggestions that you can choose based on your criteria.

A real estate ETF is a very good starting point anyway.

 

[CARIBOU]

Thank you, I am looking forward to this book.

 

Have a nice day

[CARIBOU]

Hello Dividende, I'm getting back to you, because after reading Jérôme's book I think that for now I'm going to stay with an account in Switzerland. I was thinking about Postfinance. For now my strategy is only to invest 50 or 75K over the next 2 years. Maybe a mix of ETFs and stocks as recommended by Jérôme. I have a few questions:

1) Should we have several foreign currency accounts (CHF, USD, EUR)?

2) I see that there are fees every time money is deposited into the account

3) Are ETFs like Vanguard VT available on PF?

4) Do you need to have a minimum in the account to earn on fees?

5) Right now prices are high, we always say that there is no good time to start accumulating, but given the transaction fees it is difficult to get an idea on how often to spread your purchases for 2021. Any ideas?

 

THANKS

[Jerome]

Hello Caribou

I'll let Dividinde complete, but PF automatically opens foreign currency accounts for you. What fees are you talking about when you pay money into the account? I haven't noticed any fees at home. There are no Vanguard ETFs. You have to go through IB for example for these ETFs. But you can find ETFs from UBS or iShares at PF for example.

PF offers a "smart" package at 5.- per month. If you have a fortune of more than 25,000 with them, it becomes free.

For the frequency of purchases, there is no rule, because it depends on the assets you have to invest, the cash inflows, the transaction amounts and the market valuation. I would say to space them out at least three months apart. So a purchase frequency between 2 and 4 times a year.

[CARIBOU]

Hello Jerome, thank you for your feedback. The fees are called Annual Fees: First deposits 90 CHF. Then they credit you the 90 CHF. I have 50K to invest today. I'm just wondering where to start and how often given the market. You told me to buy 1 ETF at 10,000 CHF and then wait to better understand the market and educate myself. I would have liked to follow your strategy of the Determinant Portfolio with the 12 stocks in your book and become a premium member, but with a postfinance account there may be too many fees to start if I have to constantly readjust the portfolio. My idea would perhaps be to go up to 100k if I see that everything goes well. Then perhaps to go to a second cheaper broker in 2 years.

As I don't have much time to chat, I have to start somewhere.

What are your recommendations?

 

THANKS

[dividinde]

Hello Caribou

In addition to Jérôme's response:

– Start with a CHF account if you just want to buy ETFs and some stocks.
– Indeed 90 fr annual deposit fees but convertible into trading credits.
– Money transfers are free.
– I don’t know what ETFs are available because I only buy individual stocks.
– Yes, the stock market is high at the moment, but no one can predict whether it will continue to rise for years to come or fall in 2 months. Go for it like Jerome said: by spacing out your purchases, for example 5K every 3 months.
– The important thing is to start without procrastinating too much, because no one can have perfect timing in the stock market. On the other hand, the earlier you start, the more you benefit from compound interest.
– Take advantage of the current promotion valid until June 30: https://www.postfinance.ch/fr/particuliers/produits/banque-digitale/e-trading/conditions-de-participation-trading-credits.html

[Jerome]

Given the amounts involved, if you want to start with the determining portfolio, only with Postfinance, I advise you to follow the variant based on ETFs only (for “average capital”, cf. https://www.dividendes.ch/2020/12/portefeuille-determinant-acheter-bitcoin/)

This will give you at most 6 well-diversified ETF positions and there are few transactions, which will limit your costs.

This will also allow you to gradually familiarize yourself with the stock market and then move on to a mixed ETF/stock strategy.

 

[CARIBOU]

Thank you dividend for your feedback. 500 CHF of trading credit is huge. This will help me pay for all the transactions by December 2021.

Happy Easter Monday

[CARIBOU]

Hello Jerome. Ok so the 6 ETFs for a proportion of 50,000 CHF spread over several months? I see that the target is 49% of the portfolio, but to start it is therefore 100%. What percentage of the 50,000 per ETF should I put, because 50,000 CHF divided by 6 = 8333 per ETF.

THANKS

[CARIBOU]

I forgot when you place the purchase orders, so you place the order at the "Market" price?

 

THANKS

[Jerome]

Be careful, I think there is a bit of confusion:

500 CHF trading credit is huge.

Dividinde is talking about 90 CHF credit

Ok so the 6 ETFs for a proportion of 50,000 CHF spread over several months? I see that the target is 49% of the portfolio, but to start it is therefore 100%.

Read my book carefully. There are several types of ETF portfolios. Some are buy&hold and the determining portfolio is of the TAA type (adaptive-tactical asset allocation). The target you mention is only an example at a given time X in the book. It varies over time. To know the current allocation and weightings, you need member access premium. These 49% mentioned also represent only the share part, not the entire portfolio which is obviously 100%. Concerning the spread over several months, if you start with the determining portfolio, you no longer have to ask yourself the question. You enter an ETF by following my movements, when there is a monthly change. So it will be done gradually anyway. Look at the instructions for using the portfolio here: https://www.dividendes.ch/2020/12/portefeuille-determinant-acheter-bitcoin/

What percentage of the 50,000 per ETF should I put, because 50,000 CHF divided by 6 = 8333 per ETF.

All weightings are shown in the portfolio. As indicated they vary over time.

You are obviously not obliged to follow the determining portfolio. I am not pushing you to consume 🙂 You will find plenty of other examples of portfolios, including buy&hold ones in my book. You should find what you are looking for there. There is something for all tastes and all objectives.

If you want to ask more detailed questions about these portfolios or elements of my book, I encourage you to create a new topic in the members-only section (I've given you access). Thank you.

I forgot when you place the purchase orders, so you place the order at the "Market" price?

It depends. For very liquid stocks I don't bother and I place a market order. I use limit orders only for illiquid stocks.

Don't hesitate to read and reread my work because it is very dense. Also browse the blog and the forum (especially the members section).

[dividinde]

Be careful, I think there is a bit of confusion:

500 CHF trading credit is huge.

Dividinde is talking about 90 CHF credit

 

No, Jerome, that's correct: normally you have 90 francs in annual account fees, convertible into 90 francs in trading credits. The current promotion for new customers offers you, in addition to these 90 francs, another 500 trading credits that can be used until December 31.

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