Catégorie : Investments

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Investments

Navigating the Tax Implications of Investing in Switzerland

Navigating the Tax Implications of Investing in Switzerland

“The road to a better place is not a straight line, but a journey well worth the effort” – Zig Ziglar

2 min read

Navigating the Tax Implications of Investing in Switzerland

“The road to a better place is not a straight line, but a journey well worth the effort” – Zig Ziglar

2 min read

Switzerland, renowned for its financial stability and picturesque landscapes, also boasts a unique tax landscape that significantly impacts investors. As you embark on your investment journey, understanding the tax implications is crucial to maximizing returns and remaining compliance. In this article, I unravel the key tax considerations associated with investing in Switzerland.

Capital Gains Tax: The Sweet Exemption

Unlike many countries, Switzerland does not impose capital gains tax on individuals. Profits earned from the sale of assets such as stocks, bonds, and real estate are generally tax-free. However, this does not apply to professional traders, whose trading activities may be deemed taxable income.

Wealth Tax: The Weight of Prosperity

One notable feature of Switzerland’s tax system is the wealth tax. Depending on the canton (region) you reside in, you may be subject to an annual tax based on your net wealth, which includes your investments, real estate, and other assets. The rate varies among cantons, making it essential to research and plan your investments accordingly.

Dividend and Interest Income: Variable Tax Treatment

Dividend income from Swiss companies is typically subject to a lower tax rate due to the participation exemption, which aims to encourage investment. However, this exemption may not apply if you hold a significant stake in the company or if the dividend is considered interest-like. Interest income, on the other hand, is usually subject to standard income tax rates.

International Tax Agreements: Double Taxation Relief

Switzerland has entered into numerous double taxation agreements (DTAs) with other countries to prevent investors from being taxed twice on the same income. These agreements outline rules for determining which country has the primary right to tax specific types of income, offering relief to investors and promoting cross-border investments.

Third Pillar: Retirement Savings with Tax Benefits

For Swiss residents, the Third Pillar is a government-sponsored retirement savings scheme. Contributions to this pillar are tax-deductible, incentivizing individuals to save for their retirement while enjoying immediate tax benefits. However, withdrawals during retirement are subject to income tax, albeit typically at a lower rate. The amount you can contribute to your Third Pillar is limited each year and this limit is subject to change.

Estate and Inheritance Tax: An Important Consideration

When investing in Switzerland, it’s essential to consider the potential impact of estate and inheritance taxes on your assets. These taxes vary by canton and can significantly affect the distribution of your wealth to heirs or beneficiaries.

Navigating Towards Success

Switzerland’s tax landscape for investors is a blend of unique advantages and complexities. While the absence of capital gains tax and the participation exemption on dividends offer attractive benefits, wealth tax and other considerations require careful planning.

Before making any investment decisions, consulting with a professional financial advisor or tax expert who understands Swiss tax regulations is crucial. This ensures you navigate the intricate tax system effectively, optimising your investments for financial success in this captivating country.

Get in touch with us today to ensure your investments are working for you as efficiently as possible whilst remaining compliant.

Contact us now to book your initial, no-cost and no-obligation meeting. Either send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Patterson Mills are not tax Advisers and thus the information provided in this article is not advice. Please contact us to discuss this article before making any financial or investment decisions.

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Planification Financière Investments

The Principles of Growing Your Money

Young woman watering little seedlings against blurred background, closeup

The Principles of Growing Your Money

“Big shots are only little shots who keep shooting.” –  Christopher Morley

2 min read

The Principles of Growing Your Money

“Big shots are only little shots who keep shooting.” –  Christopher Morley

2 min read

By understanding these principles, you will be one step closer to achieving your long-term goals.

Investing can be an intimidating and complex topic, but it doesn’t have to be if you take professional advice. Understanding the basic truths of investing will help you make better decisions, regardless of how much money you may or may not have.

Start Investing Early

Investing early is one essential way to build wealth. Instead of waiting till you have a large amount of savings or cash flow to invest, the earlier you start investing, the better. This is because of the power of compounding. Compounding is the magical snowball effect that occurs when the pounds you earn through investing generate even more earnings. Essentially, not only does the original amount you invest grow, but also any interest, dividends and capital gains that you accumulate. 

And the best part? The longer you are invested, the more time there is for your investment returns to compound. So don’t wait until you have a large sum of money – start investing early and take advantage of the powerful force of compounding. It can help you reach your financial goals more quickly and achieve the financial freedom you’ve been dreaming of.

Investing Often is Just As Important As Starting Early

Investing regularly is a key strategy that can help you build more wealth over time and achieve this goal. By making investing a priority throughout the year – not just around certain deadlines – you can give yourself the best chance to succeed. A disciplined approach to investing can help you weather all types of market conditions. Whether the market is rising, falling or staying flat, investing regularly can help you stay on track. With a fixed pound amount invested on a regular basis, you can buy more investment units when prices are low and fewer units when prices are high. This approach can potentially reduce the average cost of your investment over the long term. Investing small amounts of money on a regular basis can also help you smooth out returns over time and reduce the overall volatility of your portfolio. By avoiding big market swings and focusing on the long term, you can build a sustainable investing plan that supports your financial goals. 

It’s Time in the Market That Matters, Not Timing the Market

When it comes to investing, being patient and consistent is key. The idea of ‘timing the market’ – or trying to predict when prices will go up or down, so you can buy at a low price and sell at a high one – is enticing. But in reality, this strategy rarely works out successfully for investors and even if you manage to get out of the market at the right time, you are likely to miss out on significant gains when it rebounds. Missing just a few of the market’s strongest days can have a significant impact on your overall investment returns, so it’s essential to stay invested and ride out the market’s ups and downs. 

By consistently investing over long periods of time, you are able to benefit from compounding returns and give your investments more chance to grow. It also makes sense psychologically; since stock markets tend to fluctuate wildly in short periods but trend upwards over longer ones, staying invested for the long run can be less stressful. The longer you stay in the market, the more able you will be to ride out economic downturns without having to make desperate decisions that may not pan out. So, as an investor, it’s essential to remember – time in the market is more important than timing the market.

Markets Go Through Up and Down Cycles, But They Have Trended Higher Over the Long Term

It’s no secret that markets are subject to cycles of ups and downs. While it can be stressful to see your investments drop in value, it’s essential to keep a long-term  perspective. Even when markets experience significant dips, such as during times of economic uncertainty or global crises, history has shown that markets have always recovered and continued to trend higher over time. Rather than panicking over short-term fluctuations, it’s wise to focus on your long term investment goals and have confidence that the markets will eventually rebound.

The More Frequently You Check Your Portfolio, the More Volatile it Will Feel

It’s natural to want to keep an eye on your investments, but checking it too often could lead you to unnecessary stress. As tempting as it may be to obsessively track the dips and spikes, it’s important to remember that investing is a long-term game. The more often you check, the more you’re exposing yourself to the daily volatility of the market. Even if your investments have the potential to grow, they may experience temporary losses in the short term, causing you to panic and make rash decisions. Instead, focus on your long-term investing goals and review your portfolio less frequently. This approach can help you stay on track and avoid reactions that could jeopardise your chances of achieving your financial objectives. Remember, investing is a marathon, not a sprint. 

So set it, and forget it – at least until it’s time for your next portfolio review. Be patient and have faith in your investments. Over time, they have the potential to grow and provide you with the returns you desire. Headlines often focus on the sensational, short-term and negative – none of which should matter to investors It’s important to not get caught up in the sensationalism of the news covering economic, financial or political events that can give you a reason to not invest. Instead, focus on your long-term investment goals. This means ignoring the short-term noise and maintaining a diversified investment strategy that can weather various market conditions. 

When unforeseen events do occur, it’s important to remember that investing is for the long term. Don’t make any sudden changes to your portfolio or investment strategy based on a single event or headline – this can lead to ultimately harming your investments. By staying focused on your long-term financial goals and maintaining a disciplined approach to investing, you can navigate markets in good times and bad, and ultimately achieve greater success in your overall financial strategy.

Diversification is a Key Element of Your Investment Strategy

When it comes to investing, diversification is key to managing risk and generating consistent returns. By spreading your investments across different asset classes, sectors and markets, you reduce the impact of any one investment on your overall portfolio. Historically, diversification has proven to be one of the most effective strategies for reducing volatility and achieving long-term investment success. By constructing a welldiversified portfolio that includes stocks, bonds, property and other assets, you can help ensure that your returns are more stable and less subject to market ups and downs.

Even in times of market turmoil, a diversified portfolio can help you weather the storm and stay committed to your long term investment plan. Rather than reacting emotionally to short-term market fluctuations, a diversified portfolio allows you to stay focused on your goals and the bigger picture. So if you’re looking for a solid investment strategy that can help you achieve your financial goals, diversification should be at the top of your list. With the help of professional financial advice, you can construct a well diversified portfolio that’s tailored to your unique needs and risk tolerance.

Get Started Now

So, are you ready to make investing a priority? Start investing regularly today and enjoy the benefits of a more disciplined and fulfilling approach to growing your wealth. 

Get in touch today to book your initial, no-cost and no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

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Planification Financière Investments

Do You Need Financial Advice?

Judgement-free conversations

Do You Need Financial Advice?

“A goal without a plan is just a wish” – Antoine de Saint-Exupery

2 min read

Do You Need Financial Advice?

“A goal without a plan is just a wish” – Antoine de Saint-Exupery

2 min read

When it comes to managing your finances, the wealth of resources now available can make it easy to try and go it alone. However, obtaining the right financial advice from a trusted and qualified independent financial Adviser will ensure you are able to plan ahead by including expectations for items such as inflation, market declines and your protection requirements, so you can stay on track. 

Receiving professional advice is one of the main advantages of working with a financial Adviser. Without obtaining this advice, there may be risks that you are disregarding without even knowing it. Emotional factors also have an influence on financial decisions and these can cloud judgement, causing illogical or irrational choices.

Achieving Your Goals

This includes confirmation bias, when we seek out information that reinforces an existing belief, which can lead to overconfidence in investment decisions. Your financial adviser will help  provide objectivity and identify any possible risks you may not be aware of. Having financial goals is also one of the main reasons to obtain advice. Whether it’s planning for retirement or another objective, having an experienced professional by your side can help you create and execute an investment plan tailored to achieving your individual goals.

Successful Investment Portfolio

If you are planning for your retirement, you now have more choices than ever before. While this offers numerous opportunities, it also means that careful consideration and knowledge of pension allowances, tax-efficient savings and other factors have become essential in order to ensure a comfortable retirement. Knowing what assets you hold and having a clear strategy is key to creating a successful investment portfolio, but these portfolios can become complicated over time. For example, you may have investments with several different providers, overlapping funds or funds that don’t align with your goals any longer.

Streamline Your Strategy

In such cases, it may be beneficial to bring all of your investments together and simplify the portfolio. Your Adviser will help you do this, as they will be able to construct a streamlined portfolio with a clear strategy suited to your specific needs and risk tolerance. When it comes to wealth building and preservation, tax planning is key. Investing within an Individual Savings Account (ISA) can be a way to start minimising taxes. However, there may be more complex strategies available that could further reduce the amount of taxes you have to pay. That’s where professional advice, if appropriate, will ensure you are able to maximise your tax savings by taking advantage of alternative sophisticated strategies.

Providing Invaluable Guidance

In addition, to maximise potential returns within your risk appetite, it will be appropriate to look beyond domestic stocks. When managing your own portfolio, you may sometimes be guilty of suffering from ‘home bias’, which involves overinvesting in local stocks, or ones more familiar to yourself, at the cost of international ones. Your financial Adviser will help you to use the full breadth of investment opportunities and make sure that you are getting the best potential returns. If you have recently come into a large sum of money, it can be difficult to know what to do with it. Your financial Adviser can provide invaluable guidance in this situation and help you make the right decision. You’ll have many questions such as should the money be invested or used to pay off your mortgage? Will there be tax implications? And is it best to invest all at once or over time? It’s important to remember that tax treatment varies according to individual circumstances and is subject to change.

Complex Financial Matters

Your Adviser will be able to assist you with these decisions, ensuring that you get the best possible returns and maximise your wealth in the long term. When it comes to complex financial matters,
receiving professional financial advice is important. With expert guidance, you can plan accordingly and make sure that your retirement goals are met without risking a substantial tax bill.

Professional, Personal and Proactive Approach

We can help you to understand how investments work and how market changes will affect them. We’ll also explain the associated risks and inform you on how proposed changes in legislation may affect your current and future tax strategies, so that you can make decisions with all the facts in mind.

To tell us about your goals and how we can help you, contactez-nous dès aujourd'hui and book your initial, no-cost and no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

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Investments

Diversification: Investing in an Unpredictable World

smart businessman allocate golden egg into many baskets. do not put all eggs in one basket. has good return of investment in each buiness

Diversification: Investing in an Unpredictable World

“Know what you own, and know why you own it” – Peter Lynch

2 min read

Diversification: Investing in an Unpredictable World

“Know what you own, and know why you own it” – Peter Lynch

2 min read

Why is diversification an important part of investing? In practical terms, diversification is holding investments that will react differently to the same market or economic event. Generally speaking, there are four broad asset classes: cash, fixed interest (bonds), property and shares (equities). Since performance in any one asset class can be unpredictable depending on shifts in the market, investing across several asset classes can provide greater diversification potential. Therefore, if one asset class performs favourably, it can potentially offset another that is performing less favourably, providing more balance to your portfolio when market shifts occur.

Range of Assets

One of the most effective ways to manage investment risk is to spread your money across a range of assets that, historically, have tended to perform differently in the same circumstances. This is called ‘diversification’ – reducing the risk of your portfolio by choosing a mix of investments. In the most general sense, there are many adages: ‘Don’t put all of your eggs in one basket’, ‘Buy low, sell high’, and, ‘Bears and bulls make money, but pigs get slaughtered’. While that sentiment certainly captures the essence of the issue, it provides little guidance on the practical implications of the role that diversification plays in a portfolio. Therefore, though it may sound simple, ultimately, there is no such thing as a ‘one-size-fits-all’ approach.

Spreading Your Investments Within Asset Classes

There are four main types of investment, known as ‘asset classes’. Each asset class has different characteristics, advantages and disadvantages for investors, with the main ones detailed below.

While it cannot guarantee against losses, diversifying your portfolio effectively is vital to achieving your long-term financial goals whilst minimising risk. Although you can diversify within one asset class – for instance, by holding shares (or equities) in several companies that operate in different sectors – this will fail to insulate you from systemic risks, such as international stock market volatility. Another example of diversifying within asset classes would be corporate bonds and government bonds as they can offer very different propositions, with the former tending to offer higher possible returns but with a higher risk of defaults, or bond repayments not being met by the issuer.

Diversify Across Assets Valued in Different Currencies

Effective diversification is likely to allocate investments across different countries and regions in order to help insulate your portfolio from local market crises or downturns, as we’ve been seeing recently. Markets around the world tend to perform differently day to day, reflecting shortterm sentiment and long-term trends.

There is, however, the added danger of currency risk when investing in different countries, as the value of international currencies relative to each other changes all the time. Diversifying across assets valued in different currencies, or investing in so-called ‘hedged’ assets that look to minimise the impact from currency swings, should reduce the weakness of any one currency, significantly decreasing the total value of your portfolio.

Creating a More Effectively Diversified Portfolio

Achieving effective diversification across and within asset classes, regions and currencies can be difficult and typically beyond the means of individual investors. Individual funds often focus on one asset class, and sometimes even one region, and therefore typically only offer limited diversification on their own. By investing in several funds, which between them cover a breadth of underlying assets, investors can create a more effectively diversified portfolio. Multi-asset funds hold a blend of different types of assets designed to offer immediate diversification with one single investment. Broadly speaking, their aim is to offer investors the prospect of less volatile returns by not relying on the fortunes of just one asset class.

Shape Your Personal Financial Journey

There is no crystal ball, and so in such unpredictable times we are here to help you shape your personal financial journey. We take the time to understand your ambitions and support you to achieve them through our long-term thinking and expertise borne of experience.

To find out more, please contactez-nous dès aujourd'hui and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

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Planification Financière Investments

Positive Steps to Achieve Financial Freedom

Plan for your future

Positive Steps to Achieve Financial Freedom

3 min read

When are you thinking of retiring? With many pre-retirees reassessing their lives and priorities in the wake of the pandemic, there really is a seismic shift for many people towards achieving life balance. People need a plan to flex with their changing aspirations – it has become more about living life rather than going through the motions of the daily grind.

With earlier retirement a serious consideration for many seeking balance, a quarter of those sampled who aspire to retire early feel that age 60 is the optimum time to do so1.

Embracing a New Lifestyle

What really makes you happy? If you are planning to celebrate your 60th birthday by saying ‘goodbye’ to working life, it’s good to know that 68% of people report an increase in overall happiness as a result of retiring early, with 44% of early retirees reporting their family relationships improved and 34% citing improvements in their friendships. From a health perspective, 57% of early retiree respondents report a boost to their mental wellbeing, with 50% believing their physical wellbeing has improved.

Driving Force

Nearly a third (32%) of people who retired early or plan to do so are driven by the desire ‘to enjoy more freedom while still being physically fit and well enough to enjoy it.’ Other factors driving people to pursue early retirement include financial security (26%), reassessing priorities and what’s important to them in life (23%), wishing to spend more time with family (20%) and finding they are either ‘tired or bored’ of working (19%). Stress is also a contributing factor that 19% of respondents are keen to eradicate.

Pause for Thought

With a sizable 24% of people returning to work after retiring because they experience financial issues, careful planning is essential. Interestingly, 47% of retirees found that their finances worsened and only 22% felt they benefited financially from their decision to retire early.

Positive Steps to Financial Freedom

People cited steps toward making early retirement achievable like paying off a mortgage (30%), saving little and often (29%), saving extra when they receive a pay rise or bonus (19%) and receiving an inheritance (14%).

We are here to reassure you that happiness does not need to come at a cost when retiring early. Although it is very important to be realistic, with meticulous planning and careful consideration, we can assess and develop a robust plan to align and flex with your changing requirements and priorities.

Financial freedom is what many strive to achieve, though not all of us know how to get there. This is where we come in.

Contactez-nous today and book your initial, free, no-obligation meeting so we can show you the way. You have nothing to lose and potentially lots to gain! Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32, or fill in our contact form

1Aviva, Dec 2021

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ESG Investing Planification Financière Investments

Sustainable Investing: the What, the How, the Why

ESG concept of environmental, social, and governance.ESG icon on a woodblock with small tree on stack coins idea for esg investment sustainable organizational development. account the environment,

Sustainable Investing: the What, the How, the Why

Sustainability is no longer about doing less harm. It’s about doing more good

Jochen Zeitz, President and CEO of Harley-Davidson Tweet

5 min read

Many people have heard of ESG-SRI, including sustainable and impact investing. These words may seemingly appear around every corner, in every questionnaire and are growing in popularity. So, what exactly is it all about?

The What

It is important to first understand what these terms actually mean:

  • “ESG” stands for Environmental, Social and Governance
  • “SRI” stands for Sustainable (or Socially) Responsible Investing
  • “Impact investing” seeks to make a positive impact on the World, as well as using ESG and SRI principles at all times

ESG integration as an investment tool is very different from sustainable investing. While some ESG factors do describe aspects of company sustainability, its aim is to unlock factors that solely impact financial performance. For example, an excellent ESG integrated strategy may still invest in sectors that could be considered unsustainable – like tobacco manufacturers or fossil fuel extractors.

A potential issue, and definitely something to look out for, is ‘greenwashing’. This is where a company is making false claims about a product that purports to be environmentally conscious but is not actually making any notable efforts for sustainability at all. To avoid this, seek companies that display their sustainability ‘credentials’ in a clear and easy to understand manner, with no misleading messaging or imagery, backed up by data and compared to a suitable benchmark.

The How

ESG investing has three criteria:

  1. Environmental impact
  2. Social impact
  3. Governance

The environmental aspect looks at how a company impacts the planet by asking what a company does to reduce its harmful environmental footprint, utilise renewable resources and energy, and how it incentivises its employees to reduce their own footprint.

The social aspect questions how a company treats its employees, customers, suppliers, and the local community. This will analyse healthcare policies, compensation, employee working conditions, discrimination and more.

Governance relates to information about a company’s board of directors, business ethics and structure. Specifically, voting practices, independence, diversity, how new members are selected, how the company trades, levels of transparency, and so on.

Impact Investing seeks to make a positive impact by investing in companies whose products and services create positive impacts rather than just avoiding a negative impact. Impact investing also adds another element: the ability to measure the (global) effect of the investment.

This usually means that Impact Investors are more focused on creating a measurable impact on the World, even if it means foregoing a larger financial return possible elsewhere. It should be noted however that a lower financial return is far from being the norm nowadays from an Impact portfolio.

A lesser-known facet of ESG investing is to look for companies that are B-Lab certified as a B-Corp.  B Lab creates standards, policies, tools, and programs that shift the behaviour, culture, and structural underpinnings of capitalism.  Discover more about B-Lab’s work as a non-profit here.

The Why

There are clear reasons for the rise of ESG investing. Volatility in this sector has seen a great decline for investors over the last 5 or 6 years and it is now possible to obtain enhanced returns with reduced volatility risk in some cases. This is making ESG investments highly attractive as this sector develops further.

In addition, consumers and investors are holding companies accountable for their impact on environmental, social and governance factors against relevant benchmarks. This leads to the decision that a more ESG oriented company may deserve your money over a less ESG oriented company.

A record $649 billion poured into ESG-focused funds worldwide up to 30th November 2021. This was up from $542 billion in 2020 and $285 billion in 2019, making a 127% annual increase over just two years! In December 2021, Morningstar Direct estimated that global sustainable fund assets reached $2.7 trillion.

Sustainably Investing for the Future

ESG and Impact Investing should not be only for a select few. At Patterson-Mills, we believe in investing for a better future and making it accessible for all. To accomplish this, we offer tailored solutions from a carefully selective range of funds, fund managers, with rigorous analysis of appropriate criteria. Following an initial no-obligation meeting, we create a bespoke recommendation for our clients so as to successfully achieve their investment objectives.

Whether our clients wish to invest 100% of their available capital into ESG, SRI and Impact Investing fund styles, or maybe 25%, or perhaps initially none at all, we have a suitable offering available. However, the key is to be put into a position to make a fully informed choice, which at Patterson-Mills, we show all prospective clients. 

Our interests and those of our clients are one and the same, and so we only use proven, cost-effective, and tailored solutions in order to produce the most positive outcomes for our clients’ financial objectives.

Get in touch today and book your free no-obligation review meeting. You have nothing to lose and potentially lots to gain!

Send us an e-mail to edward@pattersonmills.ch, call us direct at +41 78 214 84 32, or fill in our contact form below.

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Investments

Springing Into Action

Springing Into Action

Most people don't plan to fail, they fail to plan

John L. Beckley Tweet

2 min read

Spring is very much a season of hope; a time to look forward and plan. While that’s not always easy amid a flurry of headlines concerning the cost-of-living and immense global political tensions, it’s important to look beyond short-term bouts of market volatility and ensure your financial objectives remain firmly aligned to your life goals – which may well have shifted or flexed over the last couple of years.

Investing is for everyone

At times like these, the fear of losing money can be a powerful deterrent to investing. However, in reality, most of us have been investors throughout our lives – if you own your home, for instance, you’ve invested in the property market; if you own jewellery you’re effectively investing in precious metals. With inflation factors at play, some may consider holding too much cash as a risky move at present.

Diversification is key

While it’s easy to understand potential unease in the current climate, it’s also important to appreciate markets have always experienced short-term bouts of volatility. The key to managing this risk is by diversifying your assets. By holding a balanced portfolio with a mix of equities, bonds, property and cash, this aims to effectively mitigate risk by ensuring ‘all your eggs are not in one basket.’ By building safety nets as well as opportunities for returns into your plans you will end up with an optimum mix of investment, protection and saving instruments, allocated according to your circumstances, objectives and risk tolerance.

Plan, plan, plan

Recent research1 also vividly highlights the importance of investing in relation to retirement planning. The study found that less than 40% respondents are currently on track to receive a moderate level of income in retirement. In other words, if most people don’t take action now, they face living on only the most basic standard in later years.

Regular reviews paramount

One way to ensure your financial plans stay on track is by arranging regular reviews. This will help to identify any areas of concern and ensure you avoid any untoward financial surprises at a later stage in life. With meticulous planning and careful consideration, we can assess and develop a robust plan to align and flex with your changing requirements and priorities. We’ll help you spring into action and ensure you can look forward to a sound financial future.

Get in touch today and book your initial, free, no-obligation meeting.

You have nothing to lose and potentially lots to gain!

Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32, or fill in our contact form below.

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1HL, 2022

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Investment Terms Trigger Emotional Response

Investment Terms Trigger Emotional Response

You must learn to talk clearly. The jargon of scientific terminology which rolls off your tongues is mental garbage.

Martin H. Fischer Tweet

2 min read

Investment terms (aka Jargon) are common in the world of investments and pensions, which can make them seem impenetrable and intimidating. If the thought of ‘Equities’ and ‘Investment ISAs’ makes your heart race, you’re not alone, new research1 has shown that financial terms really do make people anxious.

Jar-gone

Researchers used a variation of the Emotional Stroop Test, which measures information processing speed when naming the ink colour of different words, to compare response times for neutral words like ‘pencil’ with investment-specific terms like ‘FTSE.’

Nearly two-thirds of participants had slower response times and higher error rates for financial trigger words, suggesting they may be susceptible to a stress response. Additionally, 44.3% experienced an increased heart rate and 11.5% reported breathlessness.

The terms ‘Stockbroker’, ‘Asset Management’ and ‘Investment Risk’ produced three of the slowest reaction times. Other investment-related words like ‘Bond Fund’ and ‘Equities’ also took longer than average.

Don’t fear ‘FTSE’

Stripping back jargon can help people think more clearly about investments and pensions. In supporting research, Barclays found that 71% of respondents don’t feel confident enough to invest money in the stock market, with a quarter feeling ‘frightened’ by the idea.

Despite these fears, people do want to improve their financial knowledge, with three in five participants keen to learn more about financial terminology. We can relieve the stress of investments and pensions – and take the fear out of financial planning!

Get in touch today and book your initial, free, no-obligation meeting.

You have nothing to lose and potentially lots to gain!

Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32, or fill in our contact form below.

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1Barclays, 2021

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Great Expectations for the Year Ahead

New year 2021 or start straight concept.word 2021 and strategy written on the road of asphalt road at sunset.Concept of target and challenge or career path,success business,opportunity and change

Great Expectations for the Year Ahead

2 min read

Given the challenges of the past two years we could be forgiven for focusing on life’s trials and tribulations as a new year dawns. However, while concerns about supply chain disruption and rising inflation may be disconcerting for investors, all the signs are that the coming 12 months will be a time of opportunity as well as risk, as we move towards a post-pandemic future.

Recovery Continues

In its final 2021 assessment of economic prospects, the International Monetary Fund (IMF) predicted a continuation of the global recovery in 2022, with the world economy forecast to grow by 4.9% this year. The international soothsayer did, however, acknowledge that the degree of uncertainty surrounding future prospects has risen with policy choices becoming more difficult and increasingly complex.

Inflation-Proof Your Wealth

In particular, concerns surrounding global supply chain issues and rising inflation have created a policy dilemma for central banks. These twin concerns have also heightened the need for investors to employ careful and considered strategic thinking in order to reposition their portfolios to take advantage of new growth opportunities while ensuring their wealth is inflation proofed.

Beware Investment Scams

Although the spectre of rising inflation is expected to see central banks tighten monetary policy as the year progresses, deposit-based savings rates are forecast to remain at historically low levels. Such meagre returns have prompted many savers to shift their money into investments, with research1 suggesting over half of all adults have done so. This move though has raised concerns that unrealistically high return expectations could leave some investors susceptible to investment scams.

Advice Remains Key

While the coming year is sure to present ongoing challenges for investors, the key to successful investing will remain the adoption of a carefully considered strategy based on sound financial planning principles. Attractive investment opportunities are likely to present as 2022 unfolds and, with our help and careful repositioning of your portfolio, you should be able to make the most of these as and when they arise.

Get in touch today and book your initial, no-cost and no-obligation meeting. You have nothing to lose and potentially lots to gain! Send us an e-mail to info@pattersonmills.ch, call us direct at +41 21 801 36 84.