Post by chang on Apr 20, 2022 16:05:12 GMT
I'm trying to make a relationship work with a European bank. To get the banking terms and conditions I want (basically a waiver of a bunch of onerous fees), it boils down t this: I need to put €600,000 to work with the bank.
Forget funds; nobody can compete with the offerings and terms/conditions in the US. But I can buy various foreign stocks that I would be happy to own.
Their commissions are 0.25% to buy and sell stocks, and 0.15% p.a. custody fees on the assets. That sucks, obviously.
They offered me a line of credit at 0.8% per annum, which I can invest -- using my house as collateral. I don't like that idea very much -- I want my house to be debt-free, owned free and clear; no ifs, ands or buts. The 0.8% doesn't sound too bad: I think I can do better than that, long term, with a few good, stable, low-beta, high ROE, dividend-paying stocks. (ALSO, I would still have to pay the 0.25% purchase/sales charges, and the custody fee.)
Alternatively, I need to keep €600,000 in cash in the bank. I think that's too much for me to let sit (and not work for me). Even at 0.25% (VMMXX), that's wasting a potential €1,500 a year.
I'm not seeing a good solution here. Not surprising, because I want a deal that is favorable to me, and the bank wants a deal that is favorable to them.
Any thoughts? Would you take the line of credit?
Forget funds; nobody can compete with the offerings and terms/conditions in the US. But I can buy various foreign stocks that I would be happy to own.
Their commissions are 0.25% to buy and sell stocks, and 0.15% p.a. custody fees on the assets. That sucks, obviously.
They offered me a line of credit at 0.8% per annum, which I can invest -- using my house as collateral. I don't like that idea very much -- I want my house to be debt-free, owned free and clear; no ifs, ands or buts. The 0.8% doesn't sound too bad: I think I can do better than that, long term, with a few good, stable, low-beta, high ROE, dividend-paying stocks. (ALSO, I would still have to pay the 0.25% purchase/sales charges, and the custody fee.)
Alternatively, I need to keep €600,000 in cash in the bank. I think that's too much for me to let sit (and not work for me). Even at 0.25% (VMMXX), that's wasting a potential €1,500 a year.
I'm not seeing a good solution here. Not surprising, because I want a deal that is favorable to me, and the bank wants a deal that is favorable to them.
Any thoughts? Would you take the line of credit?
