Many organisations in Switzerland offer share schemes as part of a reward package to their employees. Whilst these can be very lucrative, you could only be a profit warning away from seeing your overall wealth significantly depleted.
Having a large percentage of your investments tied up in a single company is always extremely risky. Unfortunately, many people who invest via company share schemes can often fail to realise the risk until its too late.
It's easy to assume the company you work for will be here forever. However just ask the former staff of Bear Sterns, Lehman Brothers, Pan AM, Enron, Woolworth's, Thomas Cook,Northern Rock, Blockbuster and many more.
Fortunately, our team of experienced Financial Planners work with thousands of clients in Switzerland to ensure they manage the risk of their assets inline with their international status, and they have compiled a concise e-guide that covers all you need to know.
Whilst the benefit of such schemes is obvious, If these shares form a large part, or even all of your investment strategy if the worst was to happen, you risk losing your income and your savings!
A regular review with an experienced financial planner will ensure your assets are not correlated, and suggest ways to reduce your exposure by building a varied portfolio.
Of course not all companies will go bust! In fact history is littered with countless success stories of the business world. And while all the major stock markets have consistently grown over time, picking the next Amazon or Apple isn't as easy as some would like you to think.
As such, rather than investing in a single stock many people choose to invest in an Index tracker fund which attempts to mimic the overall performance of a market such as the FTSE100.