What makes Vanguard unique?

Categories Financial Independence, Investing4 Comments on What makes Vanguard unique?

If you read personal finance blogs, you will see that most of them are advocating investing in Vanguard Index Funds. On this blog, I also recommend using their index funds in most cases. I have more than 75% of my portfolio invested in Vanguard funds. And I plan to continue investing with of my money into their funds.

There are many different mutual funds companies. You probably have heard about Fidelity, BlackRock or T. Rowe. And there are others. But most people are talking about Vanguard. So what makes Vanguard so unique? Why is everybody recommending you to invest in their index funds?

I believe they are the best mutual fund company currently. There are many reasons that make them so great. In this post, we are covering the main points that make Vanguard unique.

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How much will you spend in retirement?

Categories Financial Independence, Retirement, Travel6 Comments on How much will you spend in retirement?

If you want to reach Financial Independence and be able to retire, you need to know how much you are going to spend while retired. If you are retiring next year, it is really easy to know how much you are going to spend. However, if you are going to retire in a long time, it is not trivial to estimate your retirement expenses.

I have already talked about the different ways tor each Financial Independence (FI). Regardless of which way you choose to reach FI, you will need an accurate estimation of your retirement expenses. Without this, you will not be able to know how much of the road remains.

You could think that you are going to spend exactly the same as you spend now. But this is quite wrong. You need to take into account many things. You will normally pay fewer taxes. But your health expenses are likely to increase. And inflation will increase your expenses significantly over the years.

In this post, I am going to cover the main points that will impact your retirement spending. It is not a surefire way to estimate your retirement expenses. But it will definitely help if you want an accurate estimation.

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5 Sure Ways to reach Financial Independence

Categories Financial Independence, Frugality, Investing, Real Estate, Side Hustle12 Comments on 5 Sure Ways to reach Financial Independence

We have seen that there are many reasons to want to reach Financial Independence (FI). Once you reach FI, you can do what you want without having to worry about money. This is awesome! You only keep working if you want to. This is something most people would want to achieve. For me, my ultimate goal is to reach FI.

There are several ways to achieve Financial Independence. Indeed, there is not a single path to go from where are you now to the point where you are financially independent. Of course, there are some similarities between some of these ways. But they are different enough. Most of the time, you will need to follow several of these ways to reach Financial Independence earlier.

In this post, we are going to see the different paths you can take to become financially independent. There are surely other ways to reach Financial Independence. But these are the main ways and the ones I know. If you know of another sure way to become financially independent, I would be glad to hear about it.

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Should you contribute to your second pillar ?

Categories Financial Independence, Investing, Retirement, Switzerland8 Comments on Should you contribute to your second pillar ?

In Switzerland, you can do a voluntary contribution to your second pillar. The second pillar is the Swiss equivalent of a 401(K). These contributions come with some tax advantages since you can deduct that from your income. Therefore, you have a return equal to your marginal tax rate. However, the money is then blocked into the second pillar. And the returns on that blocked money have been very low in recent years. Finally, you can only withdraw the money from your second pillar if you retire, if you buy a house or if you start a company.

One question that I actually ask myself these days is whether I should contribute money to my second pillar or continue investing in stocks. These days we are able to invest enough money each month that I am wondering about this. I could contribute some money to my second pillar and continue to invest enough in stocks. But is it a good solution. In this post, I am going to try to answer this question.

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7 simple ways to grow your career income

Categories Financial Independence6 Comments on 7 simple ways to grow your career income

I recently wrote about whether you should spend less or grow your income. The answer was that ideally you should do both to reach Financial Independence (FI) faster. In this post, I am going to focus on growing your career income. There are other ways to grow your overall income such as side hustles or real estate investment. But I am not going to cover them in this post.  I am also not going to talk about starting your own company. I will only cover your main career income in this post.

There are several ways to grow your main income. Some of them are easier than others. And some of them are best applied to some field but may not work on some fields. There are no simple get-rich-quick ways to increase your income. It will take time and commitment. But if you are really committed to increase your income, you will get a better salary.

In the next sections, I am going to talk about increasing your salary. However, you may also try to get new advantages. Getting Restricted Stock Units (RSUs) from your company is very good. If you can participate in an Employee Stock Purchase Plan (ESPP), you will also get some very interesting extra income. You could get your company to participate in your fees for commuting or your health insurance fees. Or you could get a better pension plan. There are many other things that you could get. You need to look at the bigger picture!

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Adopting the Minimalist Lifestyle Book Review

Categories Financial Independence, Frugality2 Comments on Adopting the Minimalist Lifestyle Book Review

I was thinking to buy a small book on minimalism recently. But actually, I bought a pack of several books about minimalism. To be honest, I was thinking I was buying a single book but ended up with a pack. Oh well. The first book  I have read is Adopting the Minimalist Lifestyle by Ariel Horowitz.

It’s a really tiny book. I was thinking the entire set of book was small already, but each book is tiny. It’s a minimalist book about minimalism ;) I have been able to find it for very cheap on Kindle once again. It is difficult to find this kind of books in my used book shop. But if you are patient, it is relatively easy to find them for cheap on Amazon.

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Grow your income or spend less to reach FI ?

Categories Financial Independence, Frugality, Investing, Side Hustle14 Comments on Grow your income or spend less to reach FI ?

When you are trying to reach Financial Independence (FI), the best way to do it is to increase your savings rate. Your savings rate is the amount of your net income that you are able to save. For this, you have two options. You can either spend less or grow your income. These two options will directly increase your savings rate. And as result, they will speed up your road to Financial Independence and make you reach FI faster.

So which should you focus on if you want to reach Financial Independence ? There are some advantages and disadvantages to each of them. They do not accelerate your path to FI at the same rate. Find out what you should do to become financially independent.

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Seven blogs on FIRE I really like

Categories Blogging, Financial Independence12 Comments on Seven blogs on FIRE I really like

This post is not about my blog but about other blogs! As I mentioned several times in the past, I am reading many other personal finance blogs. Some blogs are purely on investing and some blogs are purely on Early Retirement. However, all of them contain some important lessons if you are on the road to Financial Independence (FI). Some of them helped popularize the Financial Independence and Retire Early (FIRE) movement. I think it is also important to share with the community and not only focus on a single blog.

There are several reasons why I read other blogs. The first reason is to learn from others. Indeed, I am far from being an expert in FIRE. I like reading what people are doing to achieve FIRE and especially what people who already achieved FIRE can teach me. Also, I like reading in general and some of these blogs have really enjoyable content. Another reason is to get some inspiration for my blog.

The seven following FIRE blogs are in no order. I do not have a favorite in these seven blogs. They all are my favorite blogs. I also read many other blogs. But the entire list would be too long to publish here. I strongly encourage you to take a look at them if you are not already reading them!

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9 Reasons to live in a small countryside village

Categories Financial Independence, Frugality, Switzerland7 Comments on 9 Reasons to live in a small countryside village

I have lived in a small village all my life. Actually, I have lived all my life inside the same village. And I do not really want to change this. A lot of people find this very surprising. Today, we are going to discuss why anyone would want to live in a small country village.

For me, there are too many advantages of living in the countryside and especially in a small villages. Of course, there are also disadvantages and some people may not like it. But for me, it is great :) In this post, we are going to focus on the main reasons why I love living in our small village.

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What’s an opportunity fund ? Be ready for a bear market

Categories Financial Independence, Investing8 Comments on What’s an opportunity fund ? Be ready for a bear market

I have already talked about the emergency fund before. Today, we are going to cover a different kind of fund: the opportunity fund. It is not as well-known as the emergency fund. And it is not nearly as used at the emergency fund either. However, I think it is important to know what it is.

As its name indicates, this is a fund that contains money waiting for an opportunity. The idea is to get ready for investing opportunities. The best opportunity in the stock market being a full-blown bear market. In this post, we are going to see exactly what purpose this kind of fund serves. And also I am going to discuss its downsides.

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