Yes, we have signed the contract for the building of our apartment

Dear FI,

Another step in our objective to own an apartment in Switzerland, we have signed the construction contract with the architect as well as we bought the part of the land that we own based on the surface of our future apartment.

I must say that we are very happy but at the same time, a bit stressed because you know that now you have a big debt to the bank and that you hope that nothing will happen: lost of my job, accident, and worst death. so yeah, doing this crazy purchase is quite stressful.

The construction of the building has started 2 months ago with first, the destruction of of the old house. Then they dig around 10 meters for the foundation and the garage. So there is not much except a big hole in the middle of the city.

Looking forward to see some part of building coming up the ground.

I will update you soon with our financial.

Wish you a good weekend and best regards



Discount on our future apartment

Dear all,

I hope everybody, is doing fine in this fluctuating market?

As you know, we are in the process of purchasing an apartment in Switzerland. 2 weeks ago, the architect office responsible of the whole project offered a discount on the remaining apartment, as it was probably difficult to sell them all. When I saw that, I jumped on my phone and called our contact and request some general explanation on the status of this project and at the end, I mentioned that I saw the price reduction and I wanted to know if they could do something for us. The person said that we were able to select the best apartment before everybody else and that only the less attractive lots remain, she was not sure, she could offer us a price reduction but she would come back to us.

So Last Friday, the person contacted me and says that they cannot make the same discount that for the remaining lots (2.5%), but she can give 1% or 15K CHF in our case. As I was not expecting to get something, I am very happy with the results of this quick phone call, this reduction, will allow us to buy extra stuffs when we will move in.

By the end of the month, we should have signed the contract and started to spend our own equity. I will keep you inform of this.

Cheers and good Sunday.


oh Boy, what a 2016 start

Dear friend,

I am sure that you thought that we left the net after one month without a post. No, we are still on the air, but so many things happened that I had no time or too tired to write new articles.

I will summarize, what happened during the last month:

  1. With Mrs Retired, we took a big decision by buying an apartment in Switzerland (more details to follow in specific posts)
  2. On the 2nd of January, Retired50 celebrated ONE YEAR anniversary!!!
  3. The market goes crazy and the variability is not controllable
  4. First step in preparation of the min 20% equity to put down for the purchase of the appartment (sold SwissRe and Roche shares)
  5. Meet with banker for the first mortgage meeting

So, I am preparing some articles to explain you what is required to buy a house/apartment in Switzerland .

Wish you a good weekend

Cheers, RA50

The first salary after my job move

Hi All,

Yesterday, the October pay check was quite impressive, as we received the first salary with the 4.3% increase (promotion), the relocation allowance and the 13th salary adjusted to 9 months (based on my previous salary). Next month, I will receive the remaining amount of the 13th salary based on my new salary.

First thing I did is to transfer money to our broker account, now we have a new cash position of 20K CHF, which next month will increase by around 4000 CHF, with the remaining of 13th salary.

I am happy to have this cash position, as the market as been so volatile recently that good opportunities exists to buy shares at discounted prices.

For example, Roche (ROG:VX) is very attractive and with the excellent 3rd quarter results, will prove once again a very good investment.

You may have seen that Credit Suisse (CSGN.VX) will increase their capitalization and I believe the investors should have preferential positions, let’s see. My only concern we are already over-weighted in financial companies with UBS.

LafargeHolcim is another company that I believe should be invested in, they are really discounted now, and the future is bright for the cement Giant.

What about you, any tips on what to buy?



What if, the market is falling like in 2008-2009

Morning all,

Just woke with this thought in mind, what if today, we would enter the 2008-2009 market crisis level. What would we do?

Hopefully, we would not have bought shares just a couple weeks before the crisis like we did at that time; for example our 2 actual bank positions (CSGN.VX and UBSG.VX), bought at 87.5 CHF and 67.8 CHF respectively. They are now trading @ 24.8 CHF and 18.56 CHF. Luckilly, we have been able to re-invest to average down to a level close to this week average. But during this long period of time, these shares have not provided a lot of income.

So we are trying to manage our portfolio to avoid this kind of situation, meaning that we are more and more on the reserve to invest at the all time high. But at the same we don’t want loose opportunities, so it’s when the dilemma start. On a previous post (Why my god feeling is telling me that we are going to enter a turbulent time), I was saying that I am feeling some turbulence in the market, since then the SMI lost 2.4%. So the future correction that everybody is expecting could start soon.

We are in a relative good position has we have in total around 210’000 CHF in cash position, split 50/50 in between our portfolio account and our 3rd pillar (tax advantage account, see the gain we made Portfolio decrease). It represent around 20% in case to invest and still have around 8000 CHF in dividend still to receive.

As the market this week is shaking, the 2 companies, I mentioned on Sunday (Stock Pick – May) are becoming even more interesting, I am checking the market very closely…

What about you, where do you stand? Are you ready to invest or are you block like we were 8 years ago?



Stock Pick – May

Dear all,

Find below our stock pick for May:

  1. Novartis (NOVN.VX)
  2. Nestle (NESN.VX)

For the following reason:

Novartis (pharmaceutical company, Novartis):

Producing for example: Clozaril, Voltaren Diovan and Gleevec/Glivec. Additional agents include for example: Ritalin, Lamisil:

  1. 1Q15: Core EPS beat by 10%, as 3% sales beat translates in strong op leverage
  2. Pharma: Op Profit 11% and 14% ahead of Consensus
  3. Valuation estimated at 115 CHF
  4. Continuous dividend increase (2.74 estimate for 2015 vs. 2.60 2014)
  5. The stock decrease since by 5% since the 10th of April (all time high)

Nestle (largest food company in the world, Nestle):

Producing for example, Baby food, Nespresso, Nescafe, Kit Kat, Nesquik, Vittel and Maggi.

  1. A solid start to 2015, Q1 organic sales growth was a solid 4.4%
  2. Continuous dividend increase (2.25 estimate for 2015 vs. 2.20 2014)
  3. The stock decrease since by 5% since the 16th of April (all time high)

Let’s see how the market will go in the next couple of days, and maybe hopefully can make some shopping.



Credit Suisse (CSGN.VX): dividend or shares

Dear Friends,

As proposed and accepted during the Shareholder meeting of Credit Suisse (CSGN.VX), we received today the letter asking us to choose between dividend in cash (0.7CHF/share, which are not taxed as it’s a capital distribution) or received X shares (at zero cost).

The # of new shares will be determined based on our position and the value that will be calculated as the average of 5 days closing value.

Based on my rough estimation, we should receive between 165-195 new shares.

Now what is the financial impact of these new shares:

  • it will reduced our purchase value by +/- 1.20 CHF or +/- 5%;
  • it will increase our 2016 dividend by +/- 120 CHF (considering 2015 distribution).

Now if we decide to take the dividend distribution of 0.7CHF, what is the financial impact:

  • it will give us a net cash gain of 3220 CHF,
  • Using our average dividend yield obtained in 2015, it will give less than 100 CHF in yield.
  • we can decide to invest this money at any time.

At first and before making this simulation, we would have taken the cash, but now, we realized that it’s probably better to take the new shares.

And you, what would you do if you were us?

In waiting your feedback, accept our best regards,