Dividends estimation

Hi FI followers,

As promised so time ago, I am estimated our up-coming dividends reception, for that I am using different analyst/site to calculate a first estimation that help me planning our futures purchases. So based on our today portfolio, we should have:

Number Title dividend per share Total dividends Taxes Net dividend
10000 UBS 0.55 5’500 1’925 3’575
4600 CS GROUP 0.5 2’300 805 1’495
400 Roche 8 3’200 1’120 2’080
5100 ABB 0.72 3’672 1’285 2’387
7000 TansOcean 1.5 10’500 3’675 6’825
750 Adecco 2 1’500 525 975
620 Swiss Re 6.62 4’104 1’437 2’668
Philip Morris 591
3a pillard (Tax advantage)
34.7 Fisca 25 3.08 107 37 69
737.37 Fisca 50 0.91 671 235 436

So it gives us a total of: 21’101 CHF.

I am very happy with these dividends and I still believe that our banks equities (UBS and CS) will not give dividend but capital gain distribution which are not taxed and therefore giving us additional cash and therefore future dividend. The biggest unknown is regarding Transocean, where I am probably too optimistic based on the oil price and low demand for rig and deep see drilling.

How is your estimation for 2015? Looking forward reading you.

Cheers

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Viva the ¨SALES¨ period

I must make a post to thank my beautiful Wife for her passion for the sales. I mentioned before that she can wait the right time to buy something that she needs but with the right discount.

So today, she made 2 great deals after several month of waiting. She bought 1 pair of leather boots from Zara at 49.95 CHF where 2 month ago were at 199 CHF, so 75% reduction!!! the other purchase is a cashmere sweater for 70 CHF, where it was at 139 CHF, so 50%. These 2 pieces will last for a long time as she is very cautious on her stuff.

So well DONE Madame RA50!!!

Tax Advantage Portfolio Increase

In my Saving % post, I describe the different saving scheme we have in Switzerland and I mentioned about the 3rd pillar which is tax advantage saving account. Thanks to SNB to stop supporting the Swiss franc, I jump in the opportunity to buy shares of 2 funds that our bank managed and decided to transfer the full amount for 2015 (6875 CHF) and not our standard monthly investment. By doing that, I really hope to maximize our return in 2015.

Since the 15 of January, the famous date when the SNB decided to stop supporting the CHF, the 2 funds reduced their value by around 4%.

1) ¨ UBS (CH) Vitainvest – 50 Swiss ¨: 737 parts @ 127.48 CHF

The fund focus mainly in the Swiss market with a maximum amount of 46% (long-term) of high quality Stock (main position: Novartis, Nestle, Roche, UBS and Richmont), the rest is composed of bonds and real estate.

2) ¨ UBS (CH) Vitainvest – 25 World ¨: 35 parts @ 323.54 CHF

The fund has a maximum amount of 25% (long-term) of high quality Stock (main position: Novartis, Nestle, Roche, Microsoft and Apple), the rest is composed of bonds and money instruments.

Now our Tax Free Portfolio has a total value of: 105’184 CHF.

So I consider that we made a good move in buying after this DROP with an upside of 4200 CHF and more. The expected dividend for both fund should be around 500 CHF.

Now let’s wait end of February to refill our investment cash account as it’s the month of the annual bonus. Let’s hope that our company will be generous.

Have a good weekend.

Cheers

Portfolio increase

Yes!!!

The first purchase after the drastic drop on the Swiss market due to the SNB move to stop supporting the Swiss franc.

To benefit for a nice dividend and averaging down our position, we bought 510 shares of Swiss Re @ 79.65 CHF, which bring our average price at 81.77CHF.

Based on the UBS analyst as well as the site that I like to use to evaluate my stocks (http://www.4-traders.com), Swiss Re should give a dividend of 6.62 CHF. Which will give gross (before tax) a nice dividend of 7480.60CHF.

Which you imagine will be re-invested.

In a next post, I will update you on the increase of our tax advantage portfolio (3rd pillar), where we had 100K cash. So I will not loose the market opportunity.

see you soon, cheers

Saving %

Dear FI Friends,

I would like to describe our total saving scheme which include the government, company pension fund, tax advantage and personal savings.

In Switzerland, I must say that we are really lucky to have a good retirement saving scheme, which is composed of 3 pillars of out 2 are mandatory and 3rd one is private but as a tax advantage benefit.

1) Social Security fund, taken directly out of our salary and represent 4.2%. The company contribute to 4.2% as well which give us a total 8.4%.

2) Company pension fund, taken directly out of our salary, the percentage has a minimum defined by law by can vary above this percentage from company to company. For my company, the percentage is 7% (new as of 1st of Jan 2015).

The 2 above funding process should represent around 60% of the last salary.

3) The privately funded 3rd pillar has a maximum amount 6768 for an employee, this amount is increasing a little bit every year. This amount if fully deductible from your tax (income).

All of the above cannot be withdrawn before 65 years old except if you are leaving Switzerland or for the 2) and 3) if you want to buy a house.

Now, our individual saving that goes at 100% into our portfolio increase. After all above deductions, taxes, rent and all other spending we are still able to put 18% aside.

So let’s recap on the below table:

Saving type

Saving percentage

Social security fund 4.20%
Company Pension fund 7.00%
Tax advantage fund 3.28%
Personal investing fund 18%
Total 32%

In total, we achieve a minimum of 32% saving, but from time to time we are able to save a little bit more on the personal investing fund.

We are away from some of our FI friends around the world but still believe that living in Switzerland is great achievement.

Let me know where you stand on the savings.

Cheers,
You can choose to put your money under a simple account that will give you around 1%-2% per year or you can choose in invest in fund with different risk level (% of equities).

Oh Boy, what a week!

Hi all,

As you probably have seen the SNB decision to leave the CHF to fluctuate to the EUR and the dramatic response of the Swiss shares in the SWX platform. What I must say that we took a big it, I could be devastated of losing around 20% of our portfolio value, but no, I see that as opportunities to buy more shares at DISCOUNTED prices. OK, now I will need to see which strategy to go, cheap and low rending shares or more expensive ones with high dividends. I will probably do a bit of both.

Now the Zurich financial shares are again attractive price wise especially with high dividends they provide.

Let’s see how the week goes!

Cheers

Cost of living in Switzerland

A lot of people think that Swiss people are rich, but it is not the really the case because of the cost of living. But it’s true that we are rich in many send of the word. Firstly for the quality of life, we have very efficient services (paid by our taxes), public transport are fantastic, Swiss people are the biggest user of public transport in world, the security is still fairly good even if crime is increasing in some regions.

So why we are not rich financially, because we spend a lot of money in health care insurance (between 300-500USD per month), lodging can range between 900-4000USD/month (around 60% of the population is renting and not owning a house), groceries are around 30% more expensive that France or Germany. A Starbuck coffee, tall mocha is probably around 7USD, 1 Kg of premium beef will be around 90USD! I will not talk about restaurant as the are extremely expensive. So how can we become financially independent and be able to increase our saving rate?

The biggest trick we have for groceries shopping is:

At the supermarket: at the end of the day, just before closing, products that have their expired date the next day will be discounted at a rate of 30%-50%, so almost everyday we go to the supermarket and try fish-out some opportunities.

In my next post, I will detail our saving schemes.