Wednesday , September 22 2021
Home / Mr. The Poor Swiss

Mr. The Poor Swiss



Articles by Mr. The Poor Swiss

How to make money online in 2021 in Switzerland

8 days ago

(Disclosure: Some of the links below may be affiliate links)
Continuing in my series of articles about making some side money, I want to talk about the ways to make some money online.
I have hesitated a while about doing this article since there are so many articles online, and most of these are really bad. So, I will start with a disclaimer: you will not get rich by doing any of these things. These techniques are intended to do on the side and will require some investment of your time, sometimes significant.
However, if you have time, doing something like that could be interesting to supplement your main income. In that case, keep reading to find the main ways to make money online.

Teach languages online

italki

italki is a great place to teach foreign languages to other

Read More »

August 2021 – A good simple month

15 days ago

(Disclosure: Some of the links below may be affiliate links)
August 2021 was a good and simple month for us. We had many events during the weekend with our friends and families. This month was the perfect mix of events and time at home.
Financially, it was also a great month with good income and record low expenses (not counting taxes). So, we managed to save more than half of our income. This puts us back on track to save more than half of our income during the entire year.

August 2021
As I said in the introduction, August 2021 was a good month for us. It was simple and quiet, but this is not a bad thing. Overall, the weather was acceptable so that we could be outside regularly, and we were lucky with our family and friend events since the weather was clement on these days.

Read More »

How do stock options work?

22 days ago

(Disclosure: Some of the links below may be affiliate links)
A stock option is an advanced financial instrument. In essence, it is a contract that conveys a right to buy or sell at a specified price up to a specified date.
In my advanced investing series, I want to cover options as I think they are interesting. Now, I do not recommend investing in options, and I have never done it myself either. They are an advanced financial instrument that most people will never need.
Regardless, I believe it is interesting to learn about these advanced instruments. So, let’s delve into the world of options.

Stock Options
There are several kinds of options, but I will only talk about stock options. These are options related to the stock market, specifically related to stocks.
Let’s start with the

Read More »

How to Open an Interactive Brokers Account in 2021?

August 23, 2021

(Disclosure: Some of the links below may be affiliate links)
Interactive Brokers is an excellent broker from the United States. It is known for its cheap fees and its unique range of offered investment products. It is being used by many personal finance bloggers, for instance.
It is currently the best broker that allows access to U.S. ETFs. And U.S. ETFs are the most efficient ETFs for Swiss investors.
In this guide, I go over the details of how to open an Interactive Brokers account. It is not very difficult, but there are a few things you need to know before you start your application.

Interactive Brokers

Best Broker for Swiss Investors

Interactive Brokers

Interactive Brokers is an outstanding broker, with extremely affordable fees! Trade U.S. security for as little as

Read More »

clevercircles Review 2021 – Pros & Cons

August 17, 2021

(Disclosure: Some of the links below may be affiliate links)
clevercircles is a new Robo-advisor in Switzerland that has been brought to my attention. They are adding a community feature to the Robo-advisory world. Some people have asked me whether they should use this Robo-advisor or not.
So, in this review, I will analyze clevercircles in detail to see how good they are really, how much fees we need to pay, and how they invest their money.
By the end of the review, you will know exactly whether you should invest with clevercircles or not.

clevercircles
clevercircles is a relatively new Robo-advisor, started in 2018. The CIC Bank Switzerland developed it. The CIC Bank Switzerland is a licensed bank in Switzerland since 1909. The CIC Bank Switzerland is a subsidiary of the larger Bank

Read More »

Should you use a cash cushion in retirement?

August 10, 2021

(Disclosure: Some of the links below may be affiliate links)
When you retire based on a safe withdrawal rate, you withdraw from your principal month after month. The main risk is that you run out of money before the end of your retirement.
The main case when that would happen is if you retire just before a major stock market crash. A bad sequence of returns is a big risk for your retirement. One way to reduce the risk is to reduce the safe withdrawal rate you are using. But that means you will need to accumulate significantly more money. And you may also end up with a lot of money left at the end of your retirement.
Another solution that many people wonder about is whether they should hold more cash to protect themselves against that risk. This is exactly what we are going to find out

Read More »

July 2021 – New schedule for the blog

August 3, 2021

(Disclosure: Some of the links below may be affiliate links)
Overall, July 2021 was a good month for us. We could see many friends and family members that we had not seen in a long time. The weather was not great, with many floods in Switzerland, but the weather did not impact us too much.
Financially, it was an awful month because of the taxes due from next year. Because of that, we were not able to save any money during the month. But we already knew it was going to happen. So, this is not too bad in the end.

July 2021
During this month, we had several parties with friends and family members. It was great to see many of these people that we had not seen in a long time. We had a great time. We also ate too much, but that generally goes hand in hand with a good time.
Aside from this,

Read More »

4 Ways to make money with your vehicle

July 29, 2021

(Disclosure: Some of the links below may be affiliate links)
Many people would like to get some extra income with a side hustle. One way to do this is to drive with your vehicle and deliver people or things to some destinations.
Many people have their own vehicle and do not mind driving it around. So a good way to make some extra money is to use your own vehicle to deliver people and things. And there are even ways to make money with your vehicle without driving it!
So, in this article, we will see a few ways to make money by driving your vehicle.

1. Drive people around with a car
The most well-known way to use your vehicle to make some extra money by driving people around, like a cab. For this side hustle, you will need a car.
These days, with Uber and Lyft (and other competitors), it

Read More »

Wise Review 2021 (formerly TransferWise)

July 27, 2021

(Disclosure: Some of the links below may be affiliate links)
Wise (formerly TransferWise) is a British financial technology company. They provide many financial services, but they are especially known for their very affordable currency exchange services.
You can use Wise to send money to other people in many different currencies, with excellent prices. You can also use your Wise card to pay abroad at a low cost. But you can also use it as a bank account and hold many currencies in your account.
But how good is it really? Should you use Wise? Let’s find out the advantages and disadvantages of Wise.

Wise

TransferWise

TransferWise offers a credit card with very low fees for currency exchange.

Buy Now

Wise is a private company based in London, in the

Read More »

How to Choose an ETF or an Index Fund

July 21, 2021

(Disclosure: Some of the links below may be affiliate links)
If you have decided to invest in a precise stock market index, you must first choose the stock market index. And once you have selected an index to invest in, you will have to decide through which index fund you will invest in this index. For this, you can choose either a mutual fund or an Exchange Traded Fund (ETF). For popular indexes, there will be a wide choice of index funds replicating the performance of this index.
Even if you only choose popular funds for a precise index, it will still be challenging to decide. As you will see in this article, there are many things you can take into account when you compare two index funds. The most important remains the price, as most people know. But there are other points you can

Read More »

Selma vs True Wealth 2021 – Best Swiss Robo Advisor?

July 20, 2021

(Disclosure: Some of the links below may be affiliate links)
Robo-Advisors are a great tool to invest their money without unreasonable fees for people who are not willing to invest time in learning to invest themselves. But what Robo-Advisor should you choose?
Selma and True Wealth are two great Robo-Advisors, my two favorites. In this article, I will compare these two Robo-advisors in detail.

I compare Selma vs True Wealth on different factors. We will check their fees, their investment minimums, and their investing strategies.
Selma Finance

Selma

Selma is a great Swiss Robo-Advisor that will let you invest simply. It is a great way to invest in the stock market without the hassle of DIY Investing.

Get 5000 CHF managed for free!

Selma Finance started

Read More »

Raiffeisen Bank Review 2021 – Pros & Cons

July 15, 2021

(Disclosure: Some of the links below may be affiliate links)
Raiffeisen is the third largest bank in Switzerland. Many people are using it, and many customers are even shareholders of the banks.
This bank has some unique characteristics that could make it interesting. For instance, you can become a shareholder of the bank! So, should you use Raiffeisen as your bank?
This is what this article is all about. I will do a deep review of the Raiffeisen bank, its banking features, its fees, and its pros and cons. By the end of the article, you will know whether you should use Raiffeisen or not.

Raiffeisen
Raiffeisen LogoRaiffeisen is a large Swiss bank that has been created in 1899 already. It is currently the third-largest Swiss bank (in terms of assets under management), behind the two

Read More »

How do bonds and bond funds work?

July 13, 2021

(Disclosure: Some of the links below may be affiliate links)
I already have covered stocks in much detail on this blog. But I did not spend enough time on bonds. While bonds are currently not very interesting in Europe because of negative interest rates, they remain an important part of asset allocation. But bonds are very different from stocks. And they have some strange characteristics.
So, I believe it is important to know how do they work. And it is essential to know how bond funds are working because they are not as simple as stock funds.

The basics of bonds
In essence, a bond is fairly simple: it is a loan of money from one entity (the lender) to another entity (the borrower). In exchange for this money, the borrower will pay some interest to the lender. The interest rate is

Read More »

What happened to GameStop in 2021?

July 8, 2021

(Disclosure: Some of the links below may be affiliate links)
Many of you have asked me to delve into what happened to GameStop stock. While it may be late, this will still help you understand this strange event.
In 2021, the stock of GameStop, a company on the decline, increased more than tenfold and many hedge funds lost a lot of money, driven by some individual investors.
It may have been the first time some well-organized retail investors have fought against big hedge funds and have caused big damages to them.
So, keep reading to find out what happened.

GameStop
For context, let’s talk a little about what GameStop is first.
GameStop is an American retail company that sells video games and gaming merchandise. They have thousands of shops in the entire world. They are the largest

Read More »

Should you rebalance your portfolio in retirement?

July 5, 2021

(Disclosure: Some of the links below may be affiliate links)
Many people want to know whether they should rebalance their portfolios. This is an excellent question, and it becomes essential once in retirement.
Rebalancing is the fact of selling the shares that have overperformed and then buy the stocks that underperformed. The idea is to keep your portfolio allocation to the same level.
People disagree on whether you should rebalance in retirement or not. People do not even agree on that during the accumulation phase. So we will cover this subject as well.
And since I now have a lot of data about the stock market, I figured it would be great to use. So, I am also going to simulate whether it has historically been better to rebalance or not.
The data on this article is based on more than

Read More »

June 2021 – A warm and quiet month

July 1, 2021

(Disclosure: Some of the links below may be affiliate links)
June 2021 is already over. It went very fast! After the crappy weather of May, we finally got some better weather, although it was crazy hot. And then we went back to the crappy weather. But overall, it was a good month. We even had a nice short vacation in Thun.
Financially, it was an okay month, despite large expenses due to the vacations, the blog, and some shopping for the house. Overall, we still managed to save 53% of our income this month.

June 2021
The Schadau castle in ThunJune 2021 was a good month for us overall. The beginning of the month had some nice weather again. Unfortunately, the end of the month was back to bad weather with thunderstorms almost every day. Our vegetable garden was almost destroyed by hail!

Read More »

Add some margin of safety to your FIRE plan

June 29, 2021

(Disclosure: Some of the links below may be affiliate links)
If you plan to retire early based on a withdrawal rate strategy, you base your FIRE plan on historical data. So, what would happen if the future is very different from the past?
We obviously cannot predict the future. So, what can we do? We can improve our FIRE plan with some margin of safety!
In this article, we will see several ways of adding some margin of safety into your FIRE planning.

The need for some margin of safety
If you plan your FIRE plan precisely for the parameters you know, you risk running out of money during your retirement. Here are three examples of things that could go wrong with your FIRE planning.
First, If you think you need your money to last 50 years of retirement, you could plan everything exactly

Read More »

Inyova Review 2021 (Was Yova) – Pros and Cons

June 29, 2021

(Disclosure: Some of the links below may be affiliate links)
Inyova is a Swiss Robo-Advisor that focuses on impact investing. You may know it under the name Yova that was its previous name until June 2021.
The main idea is to invest to make the world better. So not only will you get good returns for your investment, but your money will work to improve the world.
But how does Inyova compare with other Robo-Advisor, and how much does it cost? That is what we are going to find out in this complete Yova review.

By the end of this Inyova Review, you will know all the advantages and disadvantages of investing with Inyova. You will also know if this service fits your personal investing needs.
Keep in mind that I am not investing with Robo-Advisors. DIY Investing is better for people willing

Read More »

PostFinance Bank Review 2021 – Pros & Cons

June 24, 2021

(Disclosure: Some of the links below may be affiliate links)
PostFinance is the bank of the Swiss Post. It is one of the largest banks in Switzerland. But is it any good?
I am going to answer this question in this article. I will look into the bank services of PostFinance in detail and see the advantages and disadvantages of this bank. They have changed many things recently with their banking packages and how they handle negative interest rates. All these changes will be included in my review.
By the end of the article, you will know whether you should use PostFinance or not.

PostFinance
PostFinance logoPostFinance is the financial entity of the Swiss Post. It was already founded in 1906, so it is a very mature bank. As of 2021, it is the fifth-largest retail bank in the country. In

Read More »

How to choose a Safe Withdrawal Rate?

June 22, 2021

(Disclosure: Some of the links below may be affiliate links)
Your Safe Withdrawal Rate (SWR) is an essential component of your retirement planning if you plan to retire based on your investment portfolio. We have already talked at length about this method of retirement, the essence of the Financial Independence and Retire Early (FIRE) movement.
But we have not talked in-depth about how to choose a Safe Withdrawal Rate for your situation. No SWR would fit every situation. And while there are some rules of thumbs, it is still something you have to decide for yourself.
So, by the end of this step-by-step guide, you should know how to choose your Safe Withdrawal Rate.

Safe Withdrawal Rate
A Safe Withdrawal Rate is a withdrawal that is safe enough for you to have a successful retirement.

Read More »

Financial advisors – Do not get ripped off

June 17, 2021

(Disclosure: Some of the links below may be affiliate links)
I have already mentioned financial advisors on this blog and my dislike of them. But I have not yet delved into the subject. It is essential to realize the dangers of financial advisors.
Most financial advisors do not have your interest at heart, but theirs! This is the main issue with financial advisors. Most are biased. And this bias can cost you a lot of money in the long term.
And there are other issues with financial advisors as well. So, in this article, we are going to delve into the problems with financial advisors.

What does a financial advisor do?
There are different levels of involvement for financial advisors. But the idea remains the same: help you with your money. But they will generally focus on the investing

Read More »

Is inflation in Switzerland really that low?

June 15, 2021

(Disclosure: Some of the links below may be affiliate links)
In 2020, inflation in Switzerland was negative, at -0.7%. It means that, on average, consumer prices have decreased in the year 2020. So, life has become cheaper in Switzerland.
But is life in Switzerland really cheaper? And if so, is it cheaper for everybody? Today, I want to delve into inflation numbers for Switzerland and what they exactly mean. As we will see, inflation is not a perfect indicator of the cost of living in Switzerland.
So, this article will talk in detail about inflation in Switzerland.

Inflation in Switzerland
Inflation in Switzerland is calculated by the Federal Statistical Office (FSO). Every month, they compute the Swiss Consumer Price Index (CPI). This index is a representation of the price of goods

Read More »

All you need to know about the Trinity Study

June 9, 2021

(Disclosure: Some of the links below may be affiliate links)
You have probably heard of the 4% rule if you are interested in early retirement. This rule states that if you withdraw 4% of your portfolio every year, you can sustain your withdrawals for 30 years. But do you know where it comes from? If you have read a lot about it, you probably heard about the Trinity Study. This study is where it all started.
But do you know what the Trinity Study is? Probably not. A lot of things people are saying about the Trinity Study are not correct. A lot of people talking about this study have not even read the original paper.
There is nothing mystical about this study. It is merely a research paper by three professors of The Trinity University. Hence the name.
And do you know that it has nothing

Read More »

All you need to know about the Trinity Study

June 9, 2021

You have probably heard of the 4% rule if you are interested in early retirement. This rule states that if you withdraw 4% of your portfolio every year, you can sustain your withdrawals for 30 years. But do you know where it comes from? If you have read a lot about it, you probably heard about the Trinity Study. This study is where it all started.
But do you know what the Trinity Study is? Probably not. A lot of things people are saying about the Trinity Study are not correct. A lot of people talking about this study have not even read the original paper.
There is nothing mystical about this study. It is merely a research paper by three professors of The Trinity University. Hence the name.
And do you know that it has nothing to do with early retirement? So, why is

Read More »

The role of the Swiss National Bank (SNB)

June 8, 2021

(Disclosure: Some of the links below may be affiliate links)
What the Swiss National Bank (SNB) does is not very clear for many people in Switzerland. So, I thought it would be interesting to research this subject and write about my findings.
The Swiss National Bank is quite famous, even abroad, but what does it really do? It is because of it that we do not have any interest rate in our bank accounts?
Let’s see in detail what this central bank is doing. We will also see that the Swiss National Bank has several unique characteristics.
The Swiss National Bank
The Swiss National Bank (SNB) is the central bank of Switzerland. It is the bank responsible for creating notes and bills for the Swiss Francs. They are only responsible for the monetary policy of the country.

Read More »

The role of the Swiss National Bank (SNB)

June 8, 2021

(Disclosure: Some of the links below may be affiliate links)
What the Swiss National Bank (SNB) does is not very clear for many people in Switzerland. So, I thought it would be interesting to research this subject and write about my findings.
The Swiss National Bank is quite famous, even abroad, but what does it really do? It is because of it that we do not have any interest rate in our bank accounts?
Let’s see in detail what this central bank is doing. We will also see that the Swiss National Bank has several unique characteristics.

The Swiss National Bank
The Swiss National Bank (SNB) is the central bank of Switzerland. It is the bank responsible for creating notes and bills for the Swiss Francs. They are only responsible for the monetary policy of the country. Their main goal is to

Read More »

Retiring early is simple but not easy

June 4, 2021

(Disclosure: Some of the links below may be affiliate links)
Many people are saying that I make FIRE and early retirement look too simple. And many people are falling into the trap of believing that retiring early is easy.
I want to delve into that important subject. For me, retiring early is simple, there is no doubt. However, it is not easy! The difference is fundamental. And there are no secrets to getting to FIRE. You need to focus your efforts on that goal. And how much effort you are going to put into it will shape how fast you can retire.
So, let’s see why FIRE and early retirement are simple concepts but not easy to reach.
Retiring early is simple
The math between early retirement is extremely simple: you withdraw X% of your portfolio every year, and you

Read More »

Retiring early is simple but not easy

June 3, 2021

(Disclosure: Some of the links below may be affiliate links)
Many people are saying that I make FIRE and early retirement look too simple. And many people are falling into the trap of believing that retiring early is easy.
I want to delve into that important subject. For me, retiring early is simple. There is no doubt. However, it is not easy! The difference is fundamental. And there are no secrets to getting to FIRE. You need to focus your efforts on that goal. And how much effort you are going to put into it will shape how fast you can retire.
So, let’s see why FIRE and early retirement are simple concepts but not easy to reach.

Retiring early is simple
The math between early retirement is extremely simple: you withdraw X% of your portfolio every year, and you can sustain your

Read More »

May 2021 – The house strikes back!

June 1, 2021

(Disclosure: Some of the links below may be affiliate links)
Overall, May 2021 was a good month, despite the crappy weather. We had some opportunities to see our friends and family again, and we feel like life is slightly going back to normal.
But from a financial point of view, it was not a great month! We had to pay a large bill for the house. So despite a good income this smooth, we did not save any money this month, and our net worth fell for the first time in a long time.
So, let’s see what happened in detail!

May 2021
May 2021 had the perfect balance for personal events. We could see friends and family. And we could even celebrate a wedding in the family. The only downside of the month was the crappy weather with mostly rain.
The big thing this month in our expenses is the

Read More »

PostFinance E-Trading Review 2021 – Pros and Cons

May 28, 2021

(Disclosure: Some of the links below may be affiliate links)
PostFinance is a well-known Swiss bank and broker. They are generally considered to be very affordable and very easy to use.
If you want a Swiss broker, should you use PostFinance as a Swiss investor, especially as a passive investor? This is what we are going to find out in this in-depth review.
In this article, we will see what PostFinance offers as a broker, how much it costs, and much more too. By the end of the review, you will know whether PostFinance is a good broker for your investing or not.
I am only going to talk about PostFinance as a broker, not as a bank.
PostFinance E-Trading
PostFinance is the bank of the Swiss Post. It was founded in 1906 already. They got a banking license in 2013. They

Read More »