The Complete Guide to Asset Allocation

In Investing

Asset Allocation is a critical topic in investing. Your asset allocation will define the mix of asset classes in your investment portfolio. For most people, this is simply the question of how much stocks, bonds, and cash they need in their portfolio.

Your asset allocation will determine your expected returns and your expected volatility. If you are willing to take on a lot of risks (volatility), you can expect higher returns. These returns will protect you against inflation and grow your portfolio over time.

But it is important to choose an asset allocation that suits you. If you take on too much risks and panic sell at the first downturn, you would have been much better with an asset allocation with lower volatility.

In this article, we are going to look in detail at what is the asset allocation and a few things you can consider when you are choosing your asset allocation.

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Our 2021 Goals – Let’s do even better!

In Financial Independence

Each year, we set ourselves goals for the entire year. These goals are varied and cover different aspects of our lives. Many of them are financial since this is, after all, a financial blog. But we do have personal goals as well.

Since we are now well inside January, it is time to set up our 2021 goals. In this post, I will go over our goals for the year 2021. Some of them are very similar to our 2020 goals, but we try to do better every year with our goals.

So, without further ado, let’s take a look at our 2021 goals.

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VIAC vs Finpension 3a – Which is the best third pillar for 2021?

In Retirement, Switzerland

Until the end of 2020, VIAC was pretty much unchallenged as the best third pillar in Switzerland. And then came Finpension 3a, another great third pillar offer.

I have already made reviews of these two great services. But we also need to compare VIAC vs Finpension 3a in detail to see which is the best third pillar in Switzerland?

In this article, I am going to compare VIAC vs Finpension 3a in detail. We will see their investing strategies, fees, and everything you need to know to choose!

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Interview of Richard Toolen – CEO of Investart

In Investing

Today, I have the privilege of interviewing Richard Toolen, the CEO of Investart. Investart is a new investing service in Switzerland.

I am very intrigued by this new service. They are offering free investment in Exchange Traded Funds (ETFs) in Switzerland. And they are offering both a custom portfolio and a managed portfolio. Moreover, they are offering more than 80 ETFs, all passive investing ETFs.

Is it too good to be true? What better way to find out than interviewing the CEO and founder of Investart, Richard Toolen. I asked him many questions, and I am sharing his answers with you.

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2020 Goals Review – How did we do?

In Financial Independence

It is now time to review of 2020 Goals. At the beginning of each year, we set ourselves some goals. And during the entire year, we track them month after month. Then, at the end of the year, we review how well (or how poorly) we did!

2020 was definitely a weird year, but it is not a reason to give up on our goals or review. COVID-19 definitely had an impact on some of our goals. But not enough to make us change them.

So, let’s see our review for 2020!

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Updated Trinity Study for 2021 – More Withdrawal Rates!

In Financial Independence

Would you like to know precisely which withdrawal rate is safe and will sustain your lifestyle for a very long time? You will find the answer in this article with updated results from the Trinity Study!

I have recently talked in detail about The Trinity Study. This study researched different withdrawal rates for retirement. Although the original research was not about early retirement, it is referred to a lot in the Financial Independence and Retire Early (FIRE) movement!

However, for me, there are two caveats with the original study. First, they are only covering the period until 1995. And then, they are not covering more than thirty years of retirement. Thirty years is not enough for some people wanting to retire early.

Therefore, I decided to reproduce all the results of the original study. I used much more recent data from 1871 to 2020. I have also considered periods as long as 50 years. It means many more withdrawal simulations than the original study.

In this article, you will find how I did it and all the results I have gathered from this data!

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December 2020 – Moving to the new house

In Monthly

December 2020 and 2020 is now behind us! And what a weird year it was. But I will reflect on this year later. Now, we can reflect on December 2020! I hope you all had a good time despite the weirdness that is going on.

In December 2020, we finally moved to our new house! This was definitely the main event of the month. And to be honest, it dwarfs the financial aspects of the month.

Our move was quite successful. We managed to get most of the moving, mounting, and unpacking in three days. We still had smaller things to do after that, but it was an efficient move.

On the money side, it was an expensive month, like every December. However, our income was good and our ordinary expenses this month were very low. So, we still ended up saving 45% of our income in December 2020!

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What is the Modern Portfolio Theory?

In Investing

The Modern Portfolio Theory (MPT) is popular in the investing world. Many people are designing investment portfolios based on this theory.

And some online services are also using the Modern Portfolio Theory to provide investment services. For instance, this is the case of the Yova Robo-Advisor that bases its portfolios on this theory.

So, it is about time to learn precisely what is the Modern Portfolio Theory and what it means to us, passive investors.

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Depreciating assets will hurt your wealth

In Financial Independence, Save

Depreciating assets are assets that lose value over time. Some assets are losing value at a rapid pace, while others are losing it more gradually.

It is essential to take depreciation into account when you compute your net worth and consider financial decisions. Depreciating assets can hurt your net worth badly.

Depreciation is one reason why some people think they are much more wealthy than they really are. And it can cause damage when they realize it!

In this article, we are going to talk about depreciating assets and what to do about them.

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The Best Websites For Online Shopping In Switzerland

In Save, Switzerland

These days, a lot of shopping is done online. It is so practical to shop for something online. It can save you a lot of time. And it allows you to compare many different websites to get the best deals easily. Shopping online can also save you some money.

Of course, online shopping also has its dark side. Since it is convenient to shop online, some people are buying many more things than they should. It is so easy to press a button and get things delivered at home. I am sure it happened to many of you. At least, it happened to me!

If you are only buying things you need, online shopping can be a great thing. But you still need to know where to shop online. Even in our small Swiss country, there are hundreds of websites where to shop. And let’s not forget that sometimes online shopping is not cheaper than shopping in a normal shop!

In this post, I am going to list the best online shopping websites in Switzerland. This list should allow you to shop for the best prices!

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