Hi all,
We are looking into create an investment account for my son (something agressive as he has 18 years to compensate that loss)
However, I don't know if there's anything like that in switzerland and where to start with but i want something under his name that i can control until he is 18 years old.
We live in Zurich so ZKB is an option. Do you know anything like that?
Thanks!!
I have an account with Truewealth dedicated to that (you can open multiple accounts) and put money each month and it manages itself. Very happy with it.
Truewealth does not do children accounts last time I checked. Your account is probably under your name and you will do a donation when he/she is 18. Donations to kids are rarely taxed today but that could change in 18 years.
Inyova is the only Robo that does children accounts I think.
I opened accounts for both my children when they were born. That way relatives could pay birthday money etc direct to them for when they are 18.
I suggest you go to your bank and discuss it with them.. It was I recall, a very easy procedure.
What are the advantages that you are looking for when it comes to open the account in your child's name, as opposed to just invest money in your name and give them to the child when they turn 18?
I am not aware of any advantage in Switzerland (in other countries it might be different, with trust funds, etc.)
Yes that is correct, account under mine name and I will pass on to the kids when appropriate, either all together or in chunks. Donation in Zurich has a free limit of 200'000 so I am not worried about tax at this stage. Are these discussions that this could change? I am also wondering whether this would be considered a donation if done when child still a minor and on your own tax declaration as not working?
I wouldn't go with an option from one of the big banks tbh - seems to be way too expensive.
there are a few investment apps they all do a good job, decent value for money. just google "investment apps schweiz" and you'll find some organic search results with price comparison, pros and cons etc.
managenent fee should be around 0.5% (including the custody account fee) and TER (total expense ratio of the underlying funds) should be around 0.2%
no discussions whatsoever. giving money to your kids is not taxed as a donation.
no discussions whatsoever. giving money to your kids is not taxed as a donation.
We have an account with Avadis for each child and invest 100% in equity :
https://avadis.ch/loesungen/private-anleger/anlagefonds
The account is in their name which gives them full access when they turn 18.
that's a decent option yes. only negative point is that they are not fully digital, so it's a bit old-school. but they are cheap. that's good.
what I wanted to say is "no taxation whatsoever"
apologies.
The TER is probably misleading, e.g. UBS is anything but cheap and won't be satisfied with a small fraction of 0.63%. The funds and ETFs they hold will levy their own fees, but that's hidden because it's not levied by Avadis. The India ETF Avadis lists as one of the positions charges 0.85% for instance. The analogous seems likely to apply to however much is managed according to the indexes listed.
They know what they're doing, it's their business and reason of being. Ergo it's done to mislead you, otherwise those costs would be mentioned explitly and openly.
Avoid multilevel wealth management like the plague.
On top of that even the 0.63% is not really cheap to start with, when compared to, for example, 0.07% for VT or VSS ETFs
be very careful of the banks funds. These are often fund of funds, and each of those funds are often funds of funds. My wife has a 2nd Pillar fund and looking it up on Reuters, I found one of the funds within the fund had another 6 levels. Each one of course charged a management fee and some a performance fee, though that is hidden.
You could have stopped with "be very careful of the banks."
There are lots of extremely inexpensive 3rd Pillar folks, (VIAC, Finpension), I don't know if you can have regular investments with them, or investments for children.
We have an account with SwissQuote, and those fees are reasonable by Swiss standards, especially for buying things like ETFs, even US-based ones. Don't know if they do kids' accounts either.
But if you want to get the best bang for your buck, avoid investing with banks, they love to nickel-and-dime you to death (rappen-and-rappen you to death?).