I am 30 and these last months I was reading a lot about investing. It is now time to start investing more actively than only with my 3A Viac Account. To begin with, I have between, 20-25KCHF to invest; then I will start with 1KCHF every month.
The cheapest solution for me would be Degiro Basic account. VWRL is among the ETF you can trade for free. However, at the moment they have a waiting list of more than 200 people. I do not know when it would be possible to make the account. Is it a reasonable fear of missing out to think that if it takes too much time I might be losing an opportunity to invest when the market is down (even if it’s already going up)? Or is it irrelevant?
If it is relevant, I might be choosing to go with IB (even if I am far from the 100K). CT seems as much expensive than IB when you take into consideration the transaction fees…What, you experienced investors, would advise me to do?
The new article published by MP yesterday was perfect timing.
I had the same allocation in mind, however, in the beginning, I’d like to invest only in the Total stock market (either VT or VWRL). I read a good amount of post here and it seems people tend to prefer VT than VWRL, for the lower TER + fact it includes small caps. If I go with Degiro, VWRL makes more sense since it is free to trade.
If I go with IB, I probably choose VT. However, I am not sure about the PRIIPs and the fact that swiss investors will lose access to US-domiciled funds. I know Degiro has removed access to VT. However, it is still available on CornerTrader. After a call with CT they seemed unaware of this situation (at least the person I spoke to…). There is as well the question of the estate tax, but I have less than 60K and from what I read from you guys this “limit” is no more in use, the new amount is way bigger.
Are you still affected by the loss of access to US Domiciled fund if you use IB? If yes, it does not really make sense to me to invest in VT only for a few months or a year before I lose access to it, right?
Accumulating vs Distributing :
According to my research on this forum, taxwise there is not much difference, yet people tend to prefer distributing. I’ll go with distributing as well. It was a comparison made by Nugget that if you fill W8-BEN; WVRL and VT are equal for the Witholding tax.
Thanks for your advice!