Is Truewealth any good? [switzerland]

[chestwood96]

Hello Mustachians

I recently stumbled over this blog (I think I was just reading random stuff on stackoverflow when there was a link to the cost of commuting post and then I got sucked in). I was fascinated with the concept of early retirement (My reaction: Wait this is an option? why did nobody tell me that?). I am not quite done reading all the posts (i am currently arround Sept 2013)

Also my savings on my savings account wich barely have positive interrest started to burn a hole in my pocket. So I went searching for a Betterment alternative in Switzerland and found one (it is called Truewelath) it looks OK and I am fairly shure it is not a scam. So I made an account and put half of my savings in it everything works great so faar.

It charges a fee of 0.5% per year (on top of the expense ratios) but there are no transaction fees so those might cancel each other out and it also forces you to diversify somewhat excessively and you can not pick the products themselves.

My question is if it is suited for mustachian investing or if I should look into other platforms.
I have read a couple of investing guides (all targeted at us citicens sadly) and they mostly used 3 or 4 vanguard funds to do everything.

I am a 19 jears old porgrammer aprentice (I will be done this summer and join the productive workforce this winter(yay mandatory military service)). So I am on no rush but I want to have the investing figured out and on autopilot by the time I earn a full salary so I can start to figure out the other parts of the mustachian livestyle.

[samuck]

Hi chestwoo96, I've looked into this, and with the reputable founder I'm also convinced it's not a scam.

For smaller contributions per month, say, below chf 800 per month, I think this is the way to go to have a balanced and diversified portfolio from the very start, especially now that they scrapped the minimum fee. If you can invest more per month, anything above chf 800 per month, you're better off with ETFs thru Postfinance, Swissquote or others because the fees are lower (SIX-traded global and Swiss ETFs from Vanguard or iShares).

I'm very interested in your experiences, I'm considering Truewealth for my kid's investing portfolio. What products/ETFs are they using?

[chestwood96]

Well I am planing on way more than 800 so I will have to pick some etfs out of the gazillion out there.
Is there like a recomended set or should I start another thread for that (there is one about investing in switzerland but that did not get any clear answers)?

About my experience:
Technically speaking the service is very well made and very responsive.
About the products they are using I can just tell you what I have (see atachment)

[samuck]

You could simply go for what they've chosen for you, but scrap their extra fee ;-)
There is a lot of information on this forum about how to choose the right strategy and the right set of ETFs - take some time and start reading. If helpful to you as a possible way to go, I'm using Vanguard FTSE All World as main investment, and add some Vanguard FTSE Emerging Marketd plus iShares Core SPI. Happy so far...

[larmando]

Just wondering: does it make sense to own a Swiss or European bond fund, given that Swiss and European bonds have mostly negative yield? It seems to be that at that point cash at 0% interest is better.

[chestwood96]

Just wondering: does it make sense to own a Swiss or European bond fund, given that Swiss and European bonds have mostly negative yield? It seems to be that at that point cash at 0% interest is better.

I have not really looked into bonds jet (and kind of do not want to either) but If you are asking because it is in my TrueWealth portfolio it is because it basically forces you to.
There is a diversification meter and a savety meter and it changes depending on what you pick and you can not go over (or under) a certan level. I just picked the bonds because they brought the risk down to allow me to put more into stocks.
That is one reason I am currently working on getting my own investing going.

Also the negative yield is mostly a governemnt bond thing if i understood that right so corporate bonds might still work but that is just a guess, i am planing to go 100% stocks with a cash reserve (but that is not set in stone jet).

[Kilbim]

Hei, I am looking into this to invest very small sums every month (around 150CHF).
Since I am looking a way to invest small sums in ETF and apply a dollar-cost-averaging strategy, this seems a good website because it has small fees.
Or so it seems, I don't understand what this means:

"Our management fee includes transactions costs (creation, adaptation to target weightings, portfolio reduction); i.e., trading commission and currency exchange markups charged to you by our custodian bank will be deducted from our management fee in the next fee statement. There is not right to having the commission reimbursed."

Does this means I need to add the trading commission on top of what I pay Truewealth, or does it means that the trading commission are already included in what I pay to Truewealth?

Thank you

 

[chestwood96]

Hei, I am looking into this to invest very small sums every month (around 150CHF).
Since I am looking a way to invest small sums in ETF and apply a dollar-cost-averaging strategy, this seems a good website because it has small fees.
Or so it seems, I don't understand what this means:

"Our management fee includes transactions costs (creation, adaptation to target weightings, portfolio reduction); i.e., trading commission and currency exchange markups charged to you by our custodian bank will be deducted from our management fee in the next fee statement. There is not right to having the commission reimbursed."

Does this means I need to add the trading commission on top of what I pay Truewealth, or does it means that the trading commission are already included in what I pay to Truewealth?

Thank you

Lol you just posted into all the threads I am subscribed to in reverse order (we probably do have a similar problem except you are a bit more structured about it and i am more guestimating it).

As faar as I see it there are no other costs appart from the 0.5% yearly fee and the TER of the products if they charged me for commissions they hid it well (it also probably costs them next to nothing because they can do the transactions in bulk and they only do them twice a week)

Account creation was pretty painles in my opinion (except for getting ripped of by the Post for a fucking 25CHF coppy of my god damn ID with a fucking stamp on it, I know its is just 25CHF but it still pisses me off).

Why do you not just open a test account and play arround a bit (that is even more painles)?

[Kilbim]

Hei, I am looking into this to invest very small sums every month (around 150CHF).
Since I am looking a way to invest small sums in ETF and apply a dollar-cost-averaging strategy, this seems a good website because it has small fees.
Or so it seems, I don't understand what this means:

"Our management fee includes transactions costs (creation, adaptation to target weightings, portfolio reduction); i.e., trading commission and currency exchange markups charged to you by our custodian bank will be deducted from our management fee in the next fee statement. There is not right to having the commission reimbursed."

Does this means I need to add the trading commission on top of what I pay Truewealth, or does it means that the trading commission are already included in what I pay to Truewealth?

Thank you

Lol you just posted into all the threads I am subscribed to in reverse order (we probably do have a similar problem except you are a bit more structured about it and i am more guestimating it).

As faar as I see it there are no other costs appart from the 0.5% yearly fee and the TER of the products if they charged me for commissions they hid it well (it also probably costs them next to nothing because they can do the transactions in bulk and they only do them twice a week)

Account creation was pretty painles in my opinion (except for getting ripped of by the Post for a fucking 25CHF coppy of my god damn ID with a fucking stamp on it, I know its is just 25CHF but it still pisses me off).

Why do you not just open a test account and play arround a bit (that is even more painles)?

I just found this thread because of what you wrote in the other thread :)
Anyway, of the 8500 you need to use to start upfront, can you invest them gradually? So just put them in the account and then month after month invest them, so that you can apply a sort of dollar cost averaging strategy?

[Grog]

You still will have to pay at least the swiss stamp duty tax of 0.15% per transaction

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[Stashing Swiss-style]

Another thread for investing in Switzerland!  Yay!  I'm going to take a look at Truewealth.  Thanks.