I live in Switzerland. In which Index-Fonds should I invest?
Thank you.

Roland

Thank you for posting your investment ideas.
I live in Switzerland. Would you please suggest in which Fonds I should invest. Especially to find an Index Fond for bonds is difficult for me.
Thank you.

Roland

Can I get your valuable opinion on the pros and cons of buying direct bonds from the government instead of ETF A35?

To convince your father, try this:

Explain what passive index investing is and how it works (if you haven’t done so already) and explain how active investing works.

Then give him a laptop and ask him to google this:

“Build a portfolio of actively managed funds that will beat a portfolio of index funds”

Everything he searches for will imply the opposite. He might need to discover this for himself.

Then show him a compound interest calculator online, and have him plug in some numbers that he could consider for his grandchildren. If he won’t think of himself, he might think of them. $10,000 invested at 8% per year for 30 years compared to $10,000 invested at 5.5% per year for 30 years. There’s a good compound interest calculator at http://www.moneychimp.com

He’s paying roughly 2.5% more than you per year on his equity funds with IG. And wow! Those money market fund expense ratios. No wonder IG rakes so much money in!

I’ve been discussing with my father about his Financial situation and it completely baffles me how the industry continues to falsify mutual fund returns in order to confuse the average consumer into purchasing an actively managed fund.

My biggest concern is that my father has most of his retirement savings with Investor’s Group and unfortunately it seems as though most of his money is locked into heavy redemption schedules. He has a portioni invested in GICs maturing in 1,3, and 5 year incréments and a smaller amount in a money market fund paying approx 0,95% MER… OUCH…

I’ve been trying to convince him of making the switch to the e-series funds here in canada and better yet, maybe Vanguard ETF considering he might have more than me to invest at this point… what do you think is the best course of action? He is 61, with a company pension…

Thanks,

Jamie

I’m not sure if it’s been mentioned before or I’m going to convey it accurately below, however here goes

Are you re-balancing when an individual allocation goes out by 15% as part of the ‘total” or “individually”?

i.e. If I had 4 funds with an allocation of 25% each (maybe like the Canadian Divorcee) rough example below..add extra 0′s if required

$1,000 in an International government bond index
$1,000 in a U.S. bond index
$1,000 in a Canadian stock index
$1,000 in a Global stock index

If the Global Stock index moved up 10% or $100 and all other indexes remained constant, then the overall difference to the portfolio is 2.5% only

4100-4000/400*100 = 1/40 or 2.5%

Am i waiting for the individual Global Stock index to move up to 15% or more, or the overall difference to the portfolio to move from 2.5% to 15% before I consider selling some funds and re-balancing?

I’m thinking as you start to add zero’s the second scenario would get harder?

Did I make sense, or just lose/confuse myself?

Regards

Barry