How Are Swiss Citizens So Rich Without Owning Homes? - How Money Works
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- Опубліковано 7 сер 2021
- Switzerland is THE richest country in the world with a median net worth of $230,000 American Dollars per citizen… but… the country also has an extremely low home ownership rate, so what gives?
We are told that buying a home is the most powerful tool that ordinary people have for building wealth and you know what this is absolutely true…. In the United States.
In the US tax laws and banking regulations are designed to be very favorable to people who own homes… whereas in Switzerland the laws are much more favorable to people who own financial assets, specifically those purchased in retirement accounts.
The Swiss have what is known as the three-pillar pension scheme.
One of those pillars is a recurring contribution of up to 25% of someone’s salary from employers into tax advantaged retirement accounts.
If you save and invest 25% of even a low income over an entire working career you are going to be very wealthy.
Despite having a similar national wage to people in the US a staggering one in ten Swiss Citizens are millionaires, and they overwhelmingly have retirement planning to thank for the honor.
#Shorts
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I don't know much about Switzerland, but the flag is a big plus.
🇦🇹 Austrian flag is a minus. They get on.
And dats why we Swiss ppl make plus in ouer pockets...its a National thing 😆
Nice one!
I'm steeling this.
@@Dkayn1 that`s why when austrians and swiss come together, nothing comes out.
I’m a Swiss dual citizen, grew up there. Yes Swiss law allows middle class to live like rich people in our country. In Switzerland skills are taken very serious and are honored and respected with good salaries. Swiss government thrives to educate each and everyone with excellent working skills. Hardly anyone talks about millionaires or money in general. Education is 1st on the list. I realized how well and ahead I was on education when I came to America at only 21 yrs old. I was way way ahead of skills then any other worker in my field who were at least 20 to 30 years older. No kidding!!! So that makes the little country Switzerland so strong and successful bcs…… the middle class is extremely driven high in that country and of course the government helps with all the needs for the middle class. I never felt poor in Switzerland verses here you are put immediately in a category of poor or rich!! America is destroying the middle class purposely and dishonors skills. Shame!!
Why would you come to America if it’s that good in Switzerland??
@@TheGirlnurse Don't be dense. There are many non-economic reasons to migrate elsewhere. You mustn't spend your entire life in one place.
What skills are you talking about?
How bout Switzerland take in millions of refugees and illegals? Then we can compare apples to apples…
@@TheGirlnurse they mentioned they hold dual citizenship in switzerland and the u.s.a., so half their family is american. Quite a strong reason to possibly move, i would say.
I need a longer version of this please.
Bruh you're not even in Switzerland.
@@BlackJesus8463 Hey... This is 'Murica! We can move pretty much anywhere!
@@BlackJesus8463 That why I want to know how it works. I've never heard this before.
the longer version is: Switzerland has ALWAYS been a Tax-Haven, all their wealth is due to a very small number of people in some Mountains all working in that same banking industry. (or from servicing the people who run those banks). It's one of the few place "trickle down" actually works because there's only 1 or 2 steps involved
@@iller3 Do you live in Switzerland? Nope, allow me to tell you one thing, that's fan fiction. Switzerland has been tax haven for less than 100 years. And it's has been increasing its wealtch since industrialization, thanks above all to a stable political system. Don't mistake a cherry with the cake over which top it may or may not sit.
Am swiss dude here. Our wages are realy hight and we have minimum wages for every job. If you work here you will always be able to rent a flat and live a good life. nobody here needs two jobs
It depends what a good life to someone is and where you live in Switzerland.In larger cities someone can hardly buy a flat yet alone a house despite high salaries.Yet i like how some Swiss people can be smart with the money they earn.Working for a couple of months and doing insane trips and long vacations.They can put 10k swiss francs on the side in just a few months and can live a whole year with that money and travel in less developed countries
Hmm interesting
Cool
Is it true you're 90% homosexual? Big into ass play? Asking for a friend.
@@mattdarbyshire4962 Are you moving there if the answers are Yes?
I think "mandated" is not really compatible with the US culture.
Can’t even wear a mask. Imagine saving 25% of your income. Hard nope go buy a car with that!
We have "mandated" in US culture -- it's called "Social Security". The Swiss system just takes that money and keeps it with the individual and invested into stocks, etc. instead of providing retirement security through a government-led system.
@@davidgilesjr.1022 they have govt system too, thats mandatory. Its 1st pillar.
@@davidgilesjr.1022 The Swiss also don't have a political party devoted to destroying the Three Pillars so their Billionaire Overlords can make even more PROFIT by stealing the labor of the Working Class.
@@andrewdreasler428 good on you for being vague about political party.. assume you're insinuating that both sides are equally bad about their billionaire overlords?
Nobody “owns” their home. You can pay that mortgage off. But stop paying property taxes and you’ll find yourself homeless real quick. We are all renters. You don’t own anything you’re still making payments on.
Should probably burn the people at top now
.
Unless you live out of city limits, no taxes
@@Victoresyesi Maybe in the USA. But there is not a single place in Canada, as far as I know, where you can escape property taxes.
GOLD IS SAFE INVESTMENT THAN CRYPTO
@@COD4JESSE not even in the USA, that dude is lying lol. Even living on a boat at sea, the IRS will still find something to tax you on
Those unspecified gold piles of unknown origin don't hurt either.
MonkaSwiss
It helps, thanks
Lmao
back to prejudice again.
yes those gold piles are given for free to every citizen, thats why they are so wealthy
I'm sure it was from "very fine people"
This is why I think financial education could solve 50% of the problems that people have with the US
The govt needs the education more haha
Half can be taught. Have an old renter who is not stable with lots of money.... Just was never taught anything and when he learned he took off and the other half does not care. Brought a carpenter in on a flip with me and let him stay in it to save rent.. 2 Weeks later it is a party house and no work getting done. I made 100K on the deal (more great market then me) and had to fire him and he still is broke.
Yeah but there are still the people that would pay much attention and would still be making bad decisions.
True. But this wouldn’t solve the problem of control which is why it will never change 😉
@@InvestedIntelligence that's part of financial education
Pilar 3a (part of the third pilar, the private stuff) is also very beneficial. Mostly because of tax benefits (in that you can deduct all payments into it from your income) and some companies will match a certain amount per year. You can also use all the money in pilar 3a as a downpayment for a home you live in (not to rent it out though) which makes pilar 3a the best way to save for a home down the road.
And that’s the problem of the 3a Pillar. It‘s actually not yours and you have to make a request to be able to do anything with the money you earned…You have to wait until you are 60(!!!) for a payout of your own money. The pillar 3a is a tricky thing and with the enormous inflation not the smartest thibg to do.
It's like a 401k
As an Australian, who has this same system but the mandatory contribution is 10%, there are some serious flaws. Firstly, 25% for retirement is insane and it will leave you with a huge chunk of money to die with. And secondly, it's a dubious claim that the money is really yours given how limited your access is. I'd be tempted to make voluntary contributions with the intent of later withdrawing to buy a house, but who says that will remain a lawful option? I'd bet if the number of pension holders (people who have retired and burnt through their savings, or people who have succeeded at hiding assets) increases then they'd take away your ability to buy a house in order to reduce that number. Also employers have started rewriting their salaries as salary packages inclusive of the mandatory retirement fund contribution, meaning that when the mandatory amount goes up you take a pay cut. Ignoring the possibility that state mandated increased contribution will lead to a proportional decrease in wage growth, as politicians claim.
@@Sexiestmanalive01 It's funny how you and @Jake Surname complain about your mandatory private pillar for retirement. You don't seem to realize that it is already much better than systems where you can only pay with mandated contribution to fund others people retirement. The government funded only are the ones which are the worst !
@@shakya00 in 2008 in economy class in Switzerland. I was told that most of the money we placed in this system will never serve its purpose. Because, there is not enough to go around. The grass is always greener on the other side. But is it really?!
I wish I could have put what I paid into social security towards index funds over the years. I'd be a millionaire. Highly doubt I'll get the same amount when I retire as folks today...
Yes, but the democrats raided it and now it's almost broke. And polosi and congress call it a entitlement, like welfare and food stamps, and medicaid, even thro we paid into it like a savings account all our lives.
@@lorschild not true but ok
@@lorschild wow. You're completely ignorant of what has actually happened over the years.
Is your social security not an index fund?
@@AnimeReference it's a slush fund for the government. There is nothing left of the money people paid in. It's a ponzi scheme that is collapsing due to lower birthrates.
So basically, the Swiss use pensions while in North America we use real estate which completely fucks over people looking to buy for the first time.
So all Swiss have to do is get a job and don’t loose it….easy
A lot real estate belongs to "pension fund firms" in Switzerland. They have to invest.
I so much love how you make it seems like all Swiss people are rich... Just by taking probably one of the most meaningless figure for such a small country. (by the way... how many are truely able to place it on a world map ?)
When you have less than 8 million citizens (so less than Los Angeles alone), and then you have a portion of that composed by very rich people, that completely disrupt such a figure.
Then you have indeed medium - high income people that indeed also counts a lot that net worth figure, in a country which relys mostly on tertiary sector (which is composed by a lot of services industries which tends to pay way more than primary and secondary sectors). And even then, when Switzerland is producing anything, it's usually high value high quality / precision goods. So a very decent part of population has indeed a very confortable income, and as such can indeed have some personal savings and a very decent living standard.
But yeah... you also forget to mention that we have a very high living cost. That we have to pay a mandatory medical insurance and that one can cost you more than $300 per month.
So when you have foreigners that comes in Switzerland, thinking they wil get rich because "all" Swiss people are rich, then they take a serious hit in the face, because a lot of them are not educated or trained to get the high value jobs, and they also don't imagine having to pay a $1200 per month RENT for 2 bedroom appartement. And they will then need to work hard just to be able to barely cover all the living costs.
"ALL" Swiss citizens are rich is a TOTAL MYTH that a lot of people not living in Switzerland tends to carry over just with plain numbers thinking it matches reality.
So when you are truely living in Switzerland, yeah I recon we have a pretty decent living standard, with a lot of positives, which, to me, makes it fine to live here.
But don't be fooled... there are a lot of honnest people that work hard and truely struggle to make it to the end of the month and have to count every penny. Like everywhere in the world.
So true. These videos are always being too superficial and people fall for it because they want to. To add to this, somebody else said the average house cost is around 1 million.
So you better be one of that 10% for living security.
Exactly. A huge thing they always leave out - little chance at upward mobility. Born a janitor, the next 20 generations of your family will probably be janitors. Also why you see little Innovation from SUI and other EU countries - those born into wealth are set - no reason to experiment and take risks.
There’s a reason Elon Musk said the US was the only place to create Tesla.
@@WestCoastAce27 dear sir, sorry but… That’s an huge pile of BS. Your entire comment makes absolutely no sense.
@@Lusitanean lame comeback; no rebuttal.
PS - and you’re on an American site. Why didn’t a SUI citizen (or ANY of Europe) come up with it?
@@WestCoastAce27 “No upward mobility” “20 generations”
“No innovations”
You clearly have no idea how Europe works, nor Switzerland for that matter.
In the us we put in 13% of our earning into social security so we should be quite wealthy as well. The issue is our government just fucks us out of this investment.
And in Switzerland employers pay 25% of your earnings.
It'll take multiple generations to actually set up a decent welfare system. While you only get 6 months to find work or your payment gets cut, USA won't have a world class system.
@@joebloggs3789 You can't get such a welfare system with USA extreme liberal immigration laws. And inside the country now are millions of people who came from broken countries and now needs a lifelong lifeline to get by (they call this slyly "inequality").
Who wants to put in money in that shared pool when everyone hasn't and can't contribute equally and whose not part of your people? The rest of the world is pretty homogeneous and that's why it's doable and why it has been done.
@@fz7694
I suggest you read more into Australia's history, having faced much of what you mention, but we still have a world class welfare system that does get targeted by Asia, much like the USA would be targeted by Mexico, but the inherent strength of this system compared to North America's is the strict guidelines implemented as law as a qualifier for Government benefits. That is what separates Aus from USA, USA is a free-for-all go make money whereas Australia has an extensive monetary system with sophisticated catches.
@@joebloggs3789 So you agree with me in other words? That's how I interpret your response.
Regardless, let me also say the obvious: there are always exceptions.
How you managed to cover so much in 1 minute is amazing. I love it. Bravo!
Thanks :)
GOLD IS SAFE INVESTMENT THAN CRYPTO
If you think that is a lot, you know very little
@@Xhopp3r THEN WHY ETHERIUM IS NOT RISING.ONLY BITCOINS ARE PROMOTED.
Having studied there for 5 years was a dream come true, if only more countries could copy how the Swiss govern the world would be a better place.
Switzerland has 8.7 million people, USA has 330 million people.... That alone make this comparison drastically different. Next Switzerland is a homogeneous country vs USA is very Diverse. The biggest issue you will find in the USA is 46% percent of the working people in the USA do not invest for retirement that right there is why most people in the USA don't build wealth.
most of us here have the so called third pillar rent. this one is not mandatory but highly recommended. in my case they use it to invest and at the end of the year you get a letter that tells you how much it has grown. and you also get a guarantee insurance that it will not become less than you have paid in. so when you are finished working at age 65 or so you can use everything that is in there for a nice time. you can use it all at once or just bit by bit and enjoy it.
oh and this is income-tax free when you always tell them how much you have paid in...
Isnt it 3b as soon as insurance is involved? I‘ve never seen a 3a with a garantee like that. If you don‘t mind sharing the bank, I‘d like to order that package too 😁
@@DemonZapan i was suspiciious at first but they did it fine. its called swiss life select. you get a personal advisor. you can call him anytime you want and ask about all financial questions.. if you are super unfamilliar with financial things like me or retirement topics. you can just ask and your personal advisor will tell you anything that matters...
You recommend insurance: yeah not taking pointers.
Biggest scam there is, no wonder 97% of people struggle in the us
Weather you own a home or you rent , you're still a slave to payment.
In America, owning land was so coveted at one time it was a requirement to vote.
That made sense, now we have homeless and people with entitlements who don't work, able to vote
@@vipkarl And those people vote for politicians who give them free stuff.
@@william-fla-321 every major city has that issue. It's hard to compete with free stuff.
GOLD IS SAFE INVESTMENT THAN CRYPTO
BEWARE OF THE HEADLINE: Also account that the Swiss Franc has risen by almost 100% against the US Dollar in the past 20years; which in US Dollar terms is a doubling of value. It has also risen against the Euro by 80% in the past 10 years. What does this all mean? That most of the wealth is imported.
Yep, from Africa
Plus,high value of money means hardship to get it if your out of the stream,Lone ranger
@@godlivingurassa5752 The proper framing of this point is not that the Swiss franc rose in value so much as the other currencies (USD & EUR) lost value against the Swiss Franc due to inflationary policies...
Thats not true bro
They also have a very strong and stable currency, their wealth is not constantly being stolen by inflation.
Would inflation help since the assets would gain in value?
@@789syrus789 I agree but it goes back way before Brandon came into office. In America we have had rampant inflation for 100 years.
@@jghifiversveiws8729 If you own appreciable assets, maybe. But the vast majority of people do not own appreciable assets. Inflation hurts everyone who earns a wage, rather than making their money from investments or ownership of capital. It's essentially a wealth transfer from the poor and the middle class to the rich.
Imagine if we eliminated social security and put everything into IRAs invested in assets. Everyone in the US would be a millionaire by the time they retired.
Unfortunately the government doesn’t like that Idea because it decreases government reliability AND if you die before reaching the age to receive social security the government gets to keep all that money taken out of your paycheck during your lifetime. The system is very corrupt
U.S. would find a way to spend that money for wasteful programs.
@@mikedat276 I'm sure they would. But it should be deposited into individual IRA accounts
Most people get more out of SS than they paid in. Not to mention there is also an employer contribution.
I think you are not accounting for the low income folks in the USA either. Sure, the well paid will be millionaires. Most of them are probably living in a house worth $1M. With no liquid assets.
Appreciation of Saving for Raining Days & Choosing Quality vs Quantity that made many Swiss to be Financially Secured! 🇨🇭
Well, that was short and precise
I'll only speak to the fallacy about home ownership vis-a-vis helping one to become affluent. On it's face a property is a liability if it's not generating a passive income stream. When and only (if) when it does will it be considered an asset. Anything that doesn't generate a cash flow stream is a liability. Plain and simple. It might be the average Swiss citizen has more of a clue and a well diversified portfolio with regard to personal finances.
If your mortgage payments are similar to what you pay on rent you are better off buying your own home because you end up with an asset.
I'd like to know who owns the homes that the other 97% of the people live in?
I’ve paid about 150-200k in rent in the last 10 years. Tell me that wouldn’t have made a dent in a mortgage 💀 😂. The problem with latte gurus like you is when most people say ‘become wealthy’ they mean things like living somewhere safe and being able to travel, not becoming a billionaire. A (newer) house is a very good strategy to control a major factor of life instability when the majority of your problems are caused by rent increase and the greed or needs of your landlord.
@@namedrop721 it would have paid most mortgages off unless you live in California
The question is, what's even the point of being a millionaire if you still live in a crammed apartment and pay ridiculous rent all the time. "Yeah, I could buy a Porsche but I have no place to put it"... LOL.
Money it'self has no value, it's just paper - and these day, mostly not even that.
Always said it, a property is a huge problem once it doesn't generate wealth
I think most countries have some kind of mandatory pension fund for employees. It works as a tax deduction for SME’s. Here in South Africa we have UIF. Perhaps Swiss wealth could also come from uninterrupted development from day 1 and the fact Europe has been forcing other people to buy their useless crap for centuries. Merchants only make money when there’s a market to sell to.
Pensions are a fucking scam
My former colleague had a Swiss brother-in-law. When you want to build a house you have to put a big, black wooden cut out of the outline up so that people can see what it'll look like, and object if they wish.
Not quite, it's the corners (in three dimensional space) that need to be marked.
@@Kenionatus So THAT's what these curious poles are for!!! Thanks!
So?
In the city, if you want to build a house, you have to show all the plans to the Mayor's office, so that he can see what it'll look like, and object if he wishes.
@@andrewdreasler428 And you think that's the same thing as putting a physical object on the hillside? 🤔
@@andrewdreasler428 In Switzerland, it's not just the Major who can object, everyone has the right to see plans and object if they think the building infringes their right. The markings are there to help with understanding influence on views and light.
(If your objection is found to be baseless, you might have to pay compensation to the house builder for holding up the building process tho)
Great explanation!!! Would love for you to dive deeper into this when you get time because isn't the cost of living also equally high in Switzerland? So how do they manage to become millionaires before retirement, that too after having 25% of their salary sent to Retirement Accounts.
Are the wages higher? Are these 1 in 10 millionaires Home Owners?
Do the (in)famous Swiss Banks have a role to play?
Finally, if someone were to attempt to relocate to Switzerland under a work visa, would they also become rich at a similar rate compared to Swiss citizens?
Swiss here, I'd say it's the higher wages and the fact that there is no inheritance tax in most of our states.
I think the pay for foreigners is also quite high, as long as their diplomas are accepted. But many employers prefer Swiss workers, if they can choose.
Cost of living is high. Houses start at like 500 to 600k.
@@PfennigerDavid we do have inheritance taxes but the amount that isn‘t taxed is quite high. Pay for foreigners should be about equal to the wages for Swiss nationals BUT as long as you are here on a work visa only and you are not a citizen (in the legal sense) you will be subject to the „Quellensteuer“ meaning that a certain percentage of your wage will be withhold by the employer and used to pay taxes. These taxes are usually higher than if you would pay them the normal way since you cannot deduct things as easily. You will still have access to the three pilar system though and you can also deduct pilar 3a payments from your taxes (you get them back afterwards I think).
However, this is only true for the work visa B. If you live here for five years you can get the visa C which gives you equal treatment except that you cannot vote.
A note: If you are a citizen of a EU or EFTA state you only need to get a job in Switzerland to receive the work visa B (some conditions still apply but for most people this is true). And you do not have to get any visa to find a job (job interviews etc.) so migration from those states to Switzerland is very easy.
Yes the wages are quite high (compare our median wage to the ones of the surrounding countries) and in addition we have rather low taxes (there the banks really help by paying a good share).
Most Swiss people obviously never become millionaires in any meaningful way but our living standard is still very high compared to other nations. We have excellent infrastructure, healthcare, education etc.
I would say if you try to get rich quick without a very high education Switzerland is probably the wrong country for you. If you want to live a generally very high quality life and do so without almost no risks then Switzerland is great!
If you are willing to live on a smaller budget (still a very comfortable life I would say) and you part of the higher earning workers you should be able to build quite some wealth though.
@@PhilfreezeCH Switzerland really does have great education, Healthcare, and infrastructure. Quality of life is very high for most people unlike US where you have 40% of people living in poverty. But its also a country of only 8 million people which is like the population of NJ and geographically the size of PA. They also benefitted from being neutral and not have their industries torn down by wars.
Because they watch How Money Works!
The real secret LOL!
I am the World Economic Forum and I approve this video.
"You'll own nothing and you'll be happy."
@@nehajamyrie5689 You should've researched first, it will be gone very soon. If the sheep keep loving their servitude.
Hmmmm but being indebted to a 30 year slave contract just to have a place to live is better?
@@Blank-km4qr Isn't paying emi better than paying rent for a place that you will own completely some day.
@@mubashir3875 I think housing should be partially or fully nationalised. With the money saved by eliminating the profit margin tennents can set up an investment portfolio
Yep propaganda trash
If only most employers paid close to the “up to 25%” of employees’ salaries into the second pillar. If only the returns were higher than 1-2% from government-mandated conservative investing. I miss my 401k. But great overall message of consistently saving for retirement. Start saving early folks! The earlier you start, the less you have to save with compound interest doing all the heavy lifting. 💪🏻
When you look at millionaires in the US you will find they save and invest in 401ks and/or IRAs instead of buying vehicles with high payments.
The number one factor to becoming wealthy in the US is saving in a retirement account regularly.
(Do yourself a favor and also, in addition to retirement, create a gap fund of just 5-10% of your annual income.)
While I agree with your premise of saving and investing towards retirement….the number one factor in the US to be wealthy is your parents.
Most wealthy people in America are wealthy bc of inheritance, in which case all you have to do is not be stupid and squander it.
Sure, there are stories of the poor kid working hard and making it rich, but by and large, wealth is handed down within the family. That’s why rich people hate capital gains tax so much.
I’ve worked my entire life, am good at saving (when I can), and have started 2 IRA accounts. Yet looking at my social security estimates and IRA balances, I’ll be lucky to even afford rent.
Every time I build a little savings, it gets wiped out with a big car repair or doctors bills or something.
It’s ridiculous to spend your life working 2 or 3 jobs at a time and still be scared of being broke when you get old!
Inflation will kill any and all savings. Most Americans are so impoverished that they can't even save $400 for an emergency. Our economy and it's rules are broken and create structural problems for those who don't own assets, ie homes. Buy Bitcoin
@@gwills9337 Don't park money in a bank account except maybe an emergency fund and what you may need for checking.
Invest in mutual funds. Bitcoin is sexy but it's too volatile for me. It would have been nice to have had some back when but no so much now. I don't buy gold or dabble with currencies either.
@Mekehl Mon ok sure. Join all those people fleeing the US... For every one that leaves something over 10 are coming in legally. The vast majority of those who leave do so on a short term basis less than two years.
America doesn't suck. You suck. The system is not the problem. If you truly believe that, leave. It's pretty easy to do. Sell your vintage clothes and other assets, pick a better place in your mind and fly away.
Sad how others come here without money for even rent then become millionaires and you are whining about poor wages. Really?
Improve yourself. Start your own company. While figuring that out make yourself more valuable to your employer and when they notice demand a raise. When they object, check in on the competition.
If you are educated, have a degree, are a good and efficient employee, you will get noticed.
If you are working some low end job with your high education, that's on you not some made up BS about "the system."
Work two jobs for a time. I did it for almost two years. It wasn't fun but I saved tons of money.
Education is overrated as taught in the US collegiate system unless you have a purpose such as becoming an engineer, doctor, lawyer, accountant, etc.
There is nothing wrong with the American system if you actually work.
@Mekehl Mon hey bro, have a plan AND WRITE IT OUT. Look at it every day. Be goal oriented and not problem orientated. Ever gone to a grocery store without a list? Yeah you usually forget a few things. That’s why they’re called “plans”, as you have to actively carry them out.
Both my wife and I are naturalized citizens from Philippines and Korea. We both taught ourselves English. We went to school like you, we both had a plan and carried it out. Then we met and had a NEW joint plan. Both of us had multiple jobs and continued our education. Now we own our home and have cars like we want. Then you must give. Give and it shall be given unto you, good measure, pressed down, shaken together, shall men give unto you. You can do it. It depends on what you’re trusting in.
Their country looks so clean
It is, it does not just look clean.
I highly disagree to explain Swiss wealth as an effect of the 2nd pillar.
2nd pillar doesn't give you much (around 1% yearly...). So that counter the inflation more or less but that doesn't make Swiss people rich
By itself no, but if your money is keeping up with inflation it means your purchasing power will remain roughly the same and you aren’t losing wealth either.
I think Australians are richer. We can access our money more easily
Swiss - Being forced to save for retirement in private pension funds has made the Swiss wealthy.
USA - Being forced to save for retirement in a government pension fund has made the biggest Ponzi scheme.
Exactly! SS was just another way to steal people's money.
i feel like a huge chunk of this video was clipped out.
In the us you do not actually own your home. The government allows you to live there in the home as long as you pay them for the privilege thru property taxes.
Do you know what those property taxes are for?? Maybe you should educate yourself.
@@liranrok1 Of Course. Taxs are collected by local governments and are usually based on the value of a property. The money collected is generally used to support community safety, schools, infrastructure and other public projects etc. I also know that if you fail to pay those taxs they will take your so called property.
The US isn't disciplined enough for this. US citizens would find loopholes to access that money and blow it well before retirement.
Have you seen the government, it's made up of the same people.
Thats what happens when your nation is a small mountain fortress far away from any enemies
That's kinda like dwarves
Might be some apples to oranges as there's many differences in taxes, population demographics, government budgeting, etc. that creates this disparity. Just because it works for the Swiss doesn't mean it will work for the US or other countries.
Yes, because Switerland is a confederation!!! That uses a Parliament with two cameras. There's a gun for every four people, but almost no public shootings. There's public transportation, and owning a car is almost a joke! People eat chocolate like crazy but there are no obese people and almost not heart attacks.....
@@mikatu chocolate doesn't make people obeese sugar does
@@MrSumkinFedor And what do you think one of the ingredients of chocolate is?
I'd love a full video on this
I’m Swiss, and i can honestly say that not all Swiss are rich, that is some myth that someone started who knows when. Homes are expensive here because firstly, the country is small, not so much land to build on as a lot of other countries, secondly, the construction of a house or apartment is expensive because you have triple glazed windows, floor heating, cellars, in apartment blocks you have underground parking, just everything that goes into building a house or apartment is costly. The standard of living is high here.
"how are citizens in Switzerland so rich without owning homes?"
simple. they don't own and pay for homes
“A staggering 1 in 10 Swiss citizens are millionaires.”
Big numbers clearly go over your head. US’ GDP dwarfs Switzerland, and they still have a whole 2% higher amount of millionaires within their population. That speak volumes about wealth being distributed more evenly, in a country where you need less money overall to survive. Since public school failed you, I’ll let you look up what 2% of each population is in each country. Consider it homework.
@@jcnot9712 but still usa has 20mil millionaires which is almost a 40 percent share of the world millionaires and this is a huge margin...
None of the countries even come close to it...
@@sacmarv8997 again, the concept of proportions seem to escape you lot. Nobody’s disputing that the US has the highest number of millionaires in raw numbers. That’s bound to happen in the richest country with 330 million people within it.
@@jcnot9712 😄 maybe you r bad at maths dude, a country which is almost 37 times the population of switzerland still has 8 percent of its adult population as millionaires,as the population increases the wealth averages out, if switzerland has the same population as usa , then the percentage of millionaires will also reduce...
@@sacmarv8997 did the short-bus pick you up when you were little? Wealth averaging out would only happen if money increases linearly. I don’t think you have a concept in your head of how much bigger of a number 32 trillion is compared to 700 billion. Go review scientific notation, you clearly haven’t seen it since the 7th grade.
Millionaires once they retire.
Ya. But that is 10% of population.
My friend is a Swiss born, comes from generations of Swiss people. As an ELEMENTARY school teacher she earns $10k USD per month, full pension, the best health insurance and 12 weeks per year of vacation. The citizens speak at least 4 languages and education is highly valued. They are mortified when I describe the US, more importantly they wonder why Americans are so passive with their government to put up with such substandard living even for the middle class. Its a dream to live in Switzerland. The only downside for me is the rigid mindset. They are very rigid, anal retentive people. Inflexible little robots fixed in their ways.
This is why you should invest in some kind of retirement account as soon as you enter the workforce. Even if your employer doesn't offer a matched contribution. The money you invested will be in the hundreds of thousands by the time you retire.
Key phrase: “in America we are TOLD…”
When I was there everyone was rich and chicken at the restaurant was $70
Yeah, that's the other side of the medal: the cost of living is stupendously high. It's no bother to the Swiss themselves, I guess, for their income matches the expenses. But for tourists or studying abroad it's virtually unaffordable.
Lyer
Because they literally own pretty much all the access to and production of international money. If Americans only knew…
I love Switzerland. Best country ever.
However, I’m wondering what their death taxes percentage is.
Likely very high, but US is sitting at 40% ...
It depends on the Canton and who is the person getting the inheritance. For husband/wife is 0% in all cantons, for sons or nephews is max 3% and only 3 cantons (out of 26) apply it. For distant relatives only 6-7 cantons (if I remember correctly) tax more than 25%, all the others are below that level.
The maximum is 45% in Canton Neuchatel (very left-leaning one!) for distant relatives
The cost of housing is pretty similar these days here in some parts of the US. I never thought I'd see the day where I'd be paying $1k for rent for an apartment 🤯
Swiss is rich because of India's black money in Switzerland .
One more thing, the Swiss have a retirement plan. How are the people in the United States going to take advantage of that when robotics will be the workforce?
Canadians can't even contribute more than 18% in a tax advantaged retirement savings plan. That includes all employer contributions too!
Remember there is TFSA and RESP too.
@@hangarpilot RRSP too
Because were taught nothing from schools and parents
@@BAIGAMING no, the RRSP cap is what I was talking about 18% minus pension contributions. TFSA and certainly the RESP are *not* tax advantaged *retirement* plans.
And employers here think they're UBER GENEROUS matching YOUR contributions up to six or seven percent. And it's not even a dollar-for-dollar match.
Then there's our control-freak government that says, "hold up there, Skippy! You can't contribute more than ten percent! We being kind ALLOWING YOU to contribute even that much!"
Jackasses.
Well, if you’re wealthy, they have no control over you. Therefore, anything to keep you down and dependent upon them. Keeps them in power. It’s not about you, it’s about them
Most companies don't even match 3%.
Switzerland is the most capitalistic country in Europe.
In the US, our government-run pension plan (social security) earns us a negative rate of return. I wonder what their ROI is on their pension plans.
They have always known how to yodell money right out of your pocket.
The Swiss people I know complain a lot about severe taxation.
Because they're spoiled rotten with a great lifestyle over there..
Rich? The average United States Citizen, at birth, now has a tax debt of $750,000! Due to the insane tax and spend by both political parties! Seven-hundred and fifty-thousand dollars! We can't die! We owe too much to the Federal Government! I'm going to move to Switzerland and sell Victorinox Swiss Army Knives door to door! I hope German or French or Italian is the national language.
This message is brought to you by Klaus Shaub and the World Economic Forum.
And _that_ *IS* the *_problem_*! Resist
Brought to u from the future 2030
Personally, after having owned a home, I consider it s money trap. I do not see any benefit to owning a home that drains your wallet of ridiculously high mortgage payments that you spend years just paying interest on before you even get to the principle. By the time you pay your house of the amount you paid out is wayyy more than the listed price. Add in property taxes, homeowners insurance and it becomes a ball and chain around your neck. And if you take out a second mortgage for college expenses you’ve just cut your throat!
When you buy a home and finance it with a mortgage, you are really a renter. A renter of money with a long term lease.
But you build Equity..something you never get as a renter.
Real Estate give you some more benefits than Equity.
@@julioconsuegra1351 You get a tax break, since your profits from sale of a home you lived in are not taxable in most jurisdictions. However, as to equities, you can buy stocks and they will do much better while giving you much more liquidity. If you buy stocks at a relatively young age when apartment life is what you are used to, you can buy a house later with more cash (even entirely financing by cash) and you might come out on top. And we must not forget that the "equity" in a house is not yours, but the bank's until such time as the mortgage has been paid off (with 2-3 times interest).
Cuz American finance ensure the next buyer will be able to pay even more. It’s just a ponzi. It’s all make believe.
If that is the case, you are buying a home that you can't actually afford.
By playing both sides in wars for many years.
Being like 89% Swiss and being the size of Mississippi doesn't hurt neither.
It's VERY expensive to live there. And buy that I mean, you could struggle to afford living on like a £60,000 a year salary
When you got a ton of Nazi gold, of course your all rich.
100$/mo invested into an IRA or 401k from the time you turn 18 until retirement will have you retire as a millionaire.
Its old news. Everyone can do it: you just have to.
You should clarify, people should invest in index funds too, most people think the ira itself is the investment
Cost of living is high and there is I recall a wealth tax. Almost all countries have pension schemes. The Swiss franc looks like a hard currency compared to the US dollar.
So what about the wealth tax?
If somehow every American made double and contributed twice as much to the economy and ALL of the extra amount was taxed, that would be more money for infrastructure you use daily, which would be great
Wealthy during your life > wealthy when you retire
What the hell happened to Australia in 2018-2019?
Rich but pretty dull. Don’t fall for riches and forget that life can be not fun in the swiss.
It's very hard to build your own house in Switzerland also things are super expensive in Switzerland it's a very small country with lots of regulations draconian
200k salary PER person on AVERAGE??
What do you even have to be to make that much? Top tier nurses dont even make that much.
Wow 🔥🔥🔥
Great video in just ONE MINUTE
The county with the richest citizens is Dubai....not Switzerland. 🤷
Short but neat
They have social programs and basic human needs met, America should try it sometime!
So what you're saying is the federal reserve and its regulations are to blame for me not being rich. Got it.
I traveled around Switzerland when I was 19. The impression I got was that their standard of living was nice. Like "woah, everything is tidy and expensive-looking".
Though, Zurich is bleh and God help you finding anything decent to eat with 5 francs. But Lausanne was just sublime, and if I were to live anywhere in Europe, it would be a toss up between der schweiz and Italy.
Switzerland woo ua-cam.com/users/shortsSZz3MK9p_tE?feature=share
So less taxes on assets, cool
You should point out how the poor have been driven from the country and the suicide rate for people declaring bankruptcy is insanely high. Its a beautiful country but there's always dirt under the rug.
When that pension falls everyone is on that plane together at least
Social Security and Medicare is a form a pension. It's essentially worthless and the US government is always stealing from it.
Us - we are best
Swiss - no
Stupid comment. Tiny, homogeneous country that set this system up a long time ago.
If SUI was so great AND provided the Upward Mobility the US does, why aren’t people trying to sneak in? Why didn’t Elon Musk go there to set up Tesla?
🤣😂🤣 1/4 Swiss retirees cant pay for basic necessities.
Source please?
Switzerland is like the polar bear in we bear bears if you watched it you know
Are they the happiest people in the world too? I visited Switzerland 🇨🇭. Found it too expensive boring and miserable. Actually nothing appealed to me in the capital. People are also generally very cold. Money is not the only measure of wealth
But everything is expensive there too right?
Yeah but it's not very proportionate, salaries are still so high you have a lot of money left
The good thing is that you have France, Italy, Germany and Austria where you can buy stuff much cheaper.... not even 3 hours away from any point in the country!
When I went the prices were no different from California except for gas because the public transit is awesome.
When you realize that Switzerland “ethnic” ratios are all considered “white” nationalities… and then you remember when trump said that we should be wanting people from these countries coming to America vs “shit hole” countries. Hahahaha Trump: “we need more of these hard working millionaires coming to improve the United States vs this lottery system pulling from less developed countries aka shit hole countries.” I’m totally in favor of a 25% income tax vs the close to 40% that I have now. You know how badly it hurts knowing that over a grand of my income is striped from me each month to go toward who knows what?! Like, let me keep and save that money greedy ass people.
You are a fascist.
@@pseudonymef1718 I don’t think you know what that word means. Go back to grade school kid.
@@pseudonymef1718 the fascists in Germany took money from the most successful in society to pay for their bloated welfare state and then inflated the currency and went to war pushing the inflation on the rest of Europe. Similarly most migrants into the US and Europe are net drains on the welfare states of each country. The only beneficial immigrants tend to be from within Europe and most agencies mix the two numbers to make it appear as though Arab and African migration is economically beneficial when it is anything but.
Why is it selfish to want to keep the fruits of one's labours but it is not selfish to take the fruits from someone else's labours.
Because most Swiss people are poor as hell, but it's a retirements country. So all the rich new residents boost the wealth per capital Because it's a small country.
It’s also about the price… A house that costs about $500’000.00 in the US may gonna cost you $2’000’000.00 or even more…
Don't Swiss also have the highest amount of debt per citizen? Isn't it like 200k on average
I'm Swiss and I have no clue what you're talking about
I think that's Denmark or something
Swiss is also one of the largest Arms dealers in the world which funds most of their Social programs.
There is a lot that goes into this. And last I checked their retirement plans are in trouble like everyone else! Just a Swiss here commenting.
If you mix the Swiss with any other country it all evens out, well, plus or minus a bit.
The explanation for houses is that we only pay income taxes. we don't pay taxes for money in bank accounts, so people keep that money to invest, rather than buying a house. Also there are no cheap houses. Everything is at least 1mil
I was wondering about the house costs because of course the more average wealth the more houses will cost. I would still prefer to control my own place for security than be a millionaire.
You get interest rates ? My family tells me it's all negative in Switzerland
@@news2383 www.ubs.com/ch/en/private/mortgages/information/magazine/2020/negative-interest-rates-consequences.html
They do have negative but it's destroying this supposedly awesome investment system they have. Looks like people can't make money on bonds anymore and it will hurt the private market also going forward.
It's made housing prices even worse forcing it to be a renters market causing a higher split between economic classes.
But Europe is failing on an economic level in general so they don't think they can afford to stop this plan.
At this rate they won't be able to afford their beloved expensive healthcare systems either. In many EU countries they are already slowly moving more private and minimizing care.
Is the benefit of home ownership in the US really all that great? It depends on the specifics of the purchase, but most homes bought as primary residences are liabilities and not investments. When they do appreciate enough to result in gains after taxes, financing costs, HoA dues, etc. (and inflation! selling a home for 20% more than you got it for in 1970 is a loss, not a profit), it's due to market appreciation in very specific markets that cannot be reliably anticipated. They might be less of an expense over a long run compared to the cost of renting, but they still take money out of your pocket on a balance sheet. In my opinion, in most markets, I would tell a young person to consider buying a rental property or other income generating asset first while still renting themselves before buying a home. You are more justified taking a loan on something that will generate income and that income will make it easier to borrow less when you do purchase a primary residence (2-3% is a LOT, over 30 years it is roughly half of the purchase cost). Of course you can still opt to buy as a young adult with no investments if you truly want to... normal people do have personal preferences and almost no one consistently makes perfect economic purchasing choices.
It's not that the return on residential property is great. It's simply that for the vast majority of people the threat of a bank making them homeless is the only way to make them spend less on crap, save a decent chunk of income every month, and accumulate wealth. For the small proportion of people who have the intrinsic self control to save that kind of money, home ownership is sub-optimal.
If you don't purchase a home that means you're renting, which is even worse, and where I live, monthly mortgage payments are less than rent in the area.
@@Ezonial It's worse sometimes but not always. Renting is often better if you expect to move again in less than a few years or are in specific markets where there is excessive overvaluation. Coming from no real assets it will often make more economic sense to buy a property you can use to create income over buying a personal home with the intention of reducing long-term expense. For personal residence are you also factoring the financing costs, taxes, and other related expenses into the home ownership being cheaper? You could very well still remain correct but there are a lot of hidden costs that need to be factored in.
Using a median figure is BS. There are people having less than 55000 gross salary. So saying everyone is rich in Switzerland is just a big lie. It’s like saying that all people in Monaco are rich.
I am Swiss and lots of things said in this video are not true. Our pension system is inefficient and expensive and every year government is taking more and more from it. Average old people receive around 3000$ monthly. Living costs in Switzerland are just about that. Most people have no financial assets and are not millionaires as said in this video. The system is designed so that average old people just have enough money for living. Also pension money is taxed as well. An average pensioner only has about 10 out of 12 months of income because he pays about 2 months income taxes.