Interesting facts about loans and banks
Modern Russians have long appreciated all the delights of loans that can be taken at any time, in virtually any amount, for any time frame and with minimal interest rates.…

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How can a non-resident open an account in Europe without visiting a bank?
Today, a foreign bank account in a country with a reliable and well-organized banking system is an indispensable tool for both private and corporate individuals. Problems in the banking sector…

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Questions to ask a banker before investing

A private bank, managing other people’s assets rarely takes a large commission. Often we are talking about 1-2% per annum of the size of the assets. The proposal looks tempting, so not everyone asks additional questions.
A must. The fact is that in addition to the commission of the bank itself, there are additional commissions: the commission of the mutual fund, if your banker invests money in mutual funds; stock / bond storage fees; withdrawal fee, etc.
Before agreeing to the proposed conditions, ask for a full list of commissions and ask for an explanation of what is charged. After all, the promised 1-2 percent can accidentally grow up to 3-6% and eat most of the profits that you received.
Size matters?
Almost philosophical question about the importance of size, in the field of finance has its own application. Unlike many other areas where large size implies additional bonuses, the answer here is diametrically opposite.
According to the research of financiers, the larger the size of assets under the control of a bank, hedge fund or another person, the more difficult it is to achieve high returns. Warren Buffett, the owner of Berkshire Hathaway, whose earnings per share falls, despite the experience and even some genius of its owner, speaks of this with some longing.
The fact is that with large assets, the experience of the investor ceases to play the role, and those projects in which the assets can be invested have a great influence. As the owner of the assets of 300 million dollars, the investor can find companies with small capitalization and appreciate their hidden merits, imperceptible to others. When talking about assets of 5 or 10 billion, it becomes difficult to invest in small companies and the choice falls on large and huge corporations. And here everything is quite predictable.
Therefore, before giving the funds to manage the banker, specify the size of the controlled assets. If you are proudly answered about several billions, then be prepared for relatively low returns, albeit with less risk. If your task is to find a higher return, then look for an experienced manager who manages relatively small assets. He has a chance to please you with interest at the end of the year much more than that of a competitor with a huge stock of other people’s money.
Remote opening of an account with external asset management at VP Bank in Switzerland
Historical returns don’t make sense to you. Twice
Almost everyone has ceased to be a trick on marketers who show a high-yield picture, and then put the footnote “historical profitability does not guarantee similar results in the future.”
Despite this, the historical yield remains the only criterion that shows at least some prospects of a particular banker, bank or investment fund.
But even here you can be manipulated, showing you the maximum result of a particular client, while you will never get such a result. Where is the underwater rock?
Any banker clients are served by different strategies. High rates of return may be for a client who has chosen a slightly more risky strategy or has simply been lucky in the past year. It’s not a fact that the next year will be as profitable for a specific investor.
We recommend that you ask for the aggregate return on all accounts. This is a kind of “average temperature in a hospital,” but it’s still better than misleading through magical indicators over and above the profitability of a single client.
Remote account opening with external asset management in Banque de Luxembourg
How is high yield achieved?
The next question to ask when working with bankers is: how is high profitability achieved? It is great if you have found a specialist who offers you high interest rates, but we remind you that there are always risks. Therefore, we understand where the numbers come from.
Firstly, it can be just a little or a little risky investment. Startups, ICO, new financial instruments – they carry great opportunities and big risks. This is a conscious choice of each investor.
Secondly, borrowed funds can be used for investments. And here, at first glance, the picture is only getting better: the money taken under the loan works for you and if the profitability of your portfolio is higher than the interest on the loan, then you get additional profit.
The problem is the same: borrowed money works as an amplifier, and in both directions. If instead of growth you got a fall at the end of the year, then you automatically lose more. And in order to just play back the fall and return to the point of zero, you need to ensure profitability in the new year several times more than it was before. Or borrow money again and expect to grow in the future.
If your chosen assets or a banker continue to fall, your financial stability collapses.

Reasons to open a foreign bank account today!
What could be more important than the safety and stability of your savings and assets? Perhaps only the reliability of your bank. Yes, it is the bank that should be…

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