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Hello
This is a question that has been debated a few times on this forum already.
It is wrong to say that there is no exchange rate risk on the Swiss market. The stock quoted in CHF varies according to the price of the foreign asset AND the currency of the asset.
Personally I always prefer to buy the original.Hi David
sorry for the late reply, I'm going through a bad time from a professional point of view, one of those that gives me a reminder, so that I remember why I'm on the path to financial independence.
Anyway, welcome here. I also started like you 17 years ago, buying IPOs and techs. Today I laugh about it, but back then it wasn't so funny 🙂
But it was through these failures that I turned to growing dividends.Good luck to you
Hello and welcome
You are right to be concerned about this. I have been saying for a long time that a correction is coming, but it is taking a long time.
There are not many good buying opportunities left at the moment, unlike what we experienced after the subprime crisis.
Indeed, it is better not to invest 100% of your cash.
Personally, when I see a good opportunity, I buy it, but it's rare at the moment. The rest of my cash, I keep it for later. Lately I even tend to sell certain stocks more than to buy them, which is rare when you invest in growing dividends, so more of a buy&hold approach.Hi Jean-Louis
I have been using their services for a year and a half and I find them great. The fees are minimal.
I'm talking about it here in relation to auto signal trading, but it also applies largely to more traditional investing:
Regarding the withholding tax, there is only US withholding since it is a company under American law. It is up to you to decide whether you still want to declare in Switzerland.
The FATCA tax information exchange was scheduled in both directions USA-CH normally for very soon but with the arrival of Trump that may well change. So we might want to take the risk.
Personally, I prefer to be fair because I think that in the long term it is difficult to escape it.My principle is to always buy on the source market. In this case, as it is a British and Dutch company, preference should be given to London to benefit from the attractive tax regime on dividends.
you have to go through the topic there is already several information on this subject, but the rule is always more or less the same 15% non-recoverable and between 10-15% recoverable via annual taxation
for Swiss dividends, the 35% are actually recoverable during taxation (will be taxed as income)Hello Nathan
Yes, that's correct. I would like to point out, however, that even if the tax impact is real, it should not be overestimated, especially when compared to the potential long-term gains of such a strategy. With increasing dividends, we benefit from a less risky approach than investments in stocks that do not pay dividends and that beat the market in total performance, i.e. in capital and income.
Let's not forget that the strategy based on growing dividends does not seek high dividends, but rather moderate dividends that increase each year. Their companies only pay a prudent part of their profits. So the tax impact is moderate and we also benefit from a certain capital gain, which is interesting in Switzerland.
If you want to further reduce the tax impact, there is also the possibility of resorting to the Trading Auto Signal.Hi Thierry. Indeed, to start, it is better to attack with good growing dividends like Global Dividend Growers.
Even though the Postfinance interface is cumbersome and unclear, in my eyes they remain the best Swiss intermediary for buy and hold.
And we can always hope that they will improve it.Hello Nicolas
This is already a good start. For the rest, you should indeed enrich yourself with growing US dividends. Check out the best ratings of the different strategies on this site, especially, at the beginning, in the Global Dividend Growers.
To learn how to use the different strategies, go here:Indeed you are right, you have to be careful in IB to avoid borrowing, as the rates are so low and the “maneuver” is so easy.
Personally, I always make sure not to exceed my cash assets when I buy. It's a rule of conduct that I have imposed on myself... I have always been very careful and it is certainly due to my stock market experiences during the decade 2000-2010. Sometimes I happen to exceed my assets very slightly, by a few hundred francs, but it is mainly because I know roughly the amount of the order that I want to place and I do not rack my brains too much to do apothecary calculations, given the simplicity and almost free of charge of the process at IB.
As for your question, I cannot answer from experience, but in my opinion there is no reason for it to be taxed by the tax authorities or the AHV, since it is a capital gain, not taxable in Switzerland.
