We have studied the first pillar and Switzerland three pillars system in the previous post in the series. Now, it is time to see the second pillar. The first pillar covers the basic needs of everybody. If you did not read the previous part, I would encourage you to do it before you read this article.
The second pillar is here to cover a larger part of your salary than the first one. It is an occupational pension. If you never worked, you will never pay anything for this and you will never receive anything from this. It is significantly more complicated than the first pillar.
In this post, I am going to give you all the important details as possible on the second pillar. I am also going to help you understand what you can do to improve it.
Continue reading “The Second Pillar of Retirement in Switzerland”
Switzerland retirement system is based on a system with three pillars. Each pillar is paid in a different manner and will cover different needs. If you are working in Switzerland, it is important to know these three pillars. Even if you do not plan to retire in Switzerland, it is extremely important to know how they work. This will help you plan your retirement.
In a series of posts, I will try to give you enough information on these three pillars. The goal is that you have a good understanding of how they work. And also what you can do with them to improve your retirement. In this first post of the series, I will introduce the system and talk about the first pillar.
I am going to use the French acronyms in this post. But the figure at the top of this post has the acronyms in English as well.
Continue reading “The First Pillar of Retirement in Switzerland”
I have monitored my net worth since October 2017. But until now I have not considered my second pillar into it. Why? Because I do not get a monthly report on my second pillar. However, I do not really need this monthly report since I can extrapolate from the yearly values. Before, I just was too lazy to do it. But laziness is not an excuse, especially for personal finances!
So, I decided to stop being lazy and do it. In this post, we are going to see why you should integrate your second pillar into your net worth. And we are going to see how to integrate it. It is very simple. And it will make your net worth calculation much more accurate. I believe it is very important to have an accurate view of your net worth.
If you do not know your net worth, first take a look at how to calculate your net worth. I strongly encourage everybody to compute his net worth. It is an important indicator, especially if you want to become financially independent.
Continue reading “How to Integrate Second Pillar in Your Net Worth”
Having decided to start investing in Exchange Traded Funds (ETFs), I needed a broker account. I decided to open an account on DEGIRO. In this post, I am going to go over the reasons for this choice and over how to open a broker account on DEGIRO.
After reading a lot about funds and low-cost index funds in particular and the inefficiency of most actively managed funds, I decided I will stop giving my money to fund managers. Therefore, I decided to start investing in passive index funds and not active funds. Moreover, I also decided to only focus on no-load funds. Currently, I was investing with PostFinance funds, but the Total Expense Ratio (TER) of these funds is high and PostFinance is charging a 0.5% percent load on each buy of funds.
Since we do not have access to excellent mutual funds such as Vanguard funds here, I decided to invest in Exchange Traded Fund (ETF) versions of the funds. This means I need a broker to invest. I looked at the trading offer of PostFinance but it is insanely expensive. Therefore I decided to find a new broker with significantly lower fees.
The links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF in transaction credits and I will also receive 20 CHF.
Continue reading “How to Open a Broker Account on DEGIRO”