In our Three Pillars of Retirement of Switzerland series, we already talked about the first and second pillar. We now have to cover the most important of the three pillars: The Third Pillar.
The third pillar is the only one that is not mandatory. Everybody is free to choose to invest in the third pillar or not. It is simpler than the second pillar. But there are many more choices than you can make. You can optimize a lot of things for your third pillar.
I believe it is essential to optimize the investment of the third pillar as much as possible. Once you reach retirement, your second pillar should still be larger than your third pillar. But there is not a lot of things you can do with your second pillar.
In this post, you will find all the details you need to invest in a third pillar. And also, what you can do to optimize your use of this last pillar.
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We have studied the first pillar in the previous post in the series. Now, it is time to see the second pillar. The second pillar is an occupational pension for people working in Switzerland.
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.
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The retirement system of Switzerland is a system with three pillars. Each pillar is paid differently and will cover different needs. The first pillar is the state pension.
If you are working in Switzerland, it is essential to know these three pillars. Even if you do not plan to retire in Switzerland, it is essential to understand how they work. It will help you plan your retirement.
In this post, I am going to talk in detail about the first pillar. This post should contain everything you need to know about the first pillar to be able to retire in Switzerland. I am also going to provide an overview of the three pillars system.
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The world of investing is complex and extensive. There are tons of concepts such as stocks, bonds, leverage, bear markets, and such.
Today, I want to provide you with a glossary of all these investing terms. This glossary has been requested several times by some of my readers. Hopefully, this will help you navigate the investing world easily.
If you think I should include some other terms in the glossary, let me know in the comments below.
As a preface, it is important to remind you that Investing involves risks of losses. Make sure you are aware of that before you start investing.
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TransferWise and Revolut offer services that are quite similar. They are both offering cheap money transfers in many different currencies. How can you decide between both services?
I have both cards. But, I am mostly using my Revolut card. So, many of my readers asked me why I was mainly using my Revolut card, where I could have only used my TransferWise card. Today, I am going to answer the question: Which is better between TransferWise and Revolut?
Both companies will help you save money on foreign currency exchanges. However, they are still different in their fees and their offers. They both have some pros and cons. And that is precisely what we are going to go over in this post.
When I started using Revolut, there was no way to top it up for free from my bank account since they did not have a Swiss bank account. Therefore, I was using a TransferWise card as an intermediary between my bank account and my Revolut account. Now, Revolut has a Swiss IBAN, and I do not have to use my TransferWise card anymore. Let’s see why I am using Revolut more than TransferWise.
For this comparison, I am only going to go over the personal accounts, not the business accounts. Both TransferWise and Revolut offer accounts for businesses. But this is out of scope for this article. So, let’s compare TransferWise vs Revolut.
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I think Swiss investors will agree that the biggest problem with Revolut was that they did not have a Swiss IBAN. Some good news just arrived for us!
Revolut now includes a Swiss IBAN when you want to top it up! It means you can now top up your Revolut account for free directly from your bank account. It is great since that was missing from the start on the Revolut account.
And probably even bigger news for Revolut: they got a European Specialised Bank License! It is a big deal for the company. Revolut is now officially a bank and will soon start offering new services. But for us, it will not change much soon.
I have been using Revolut for about six months now, and I like it. During that time, I have saved a lot of money by using their free currency exchange services. I am interested to see how they are going to implement this banking license in the future. I would like to have a cheap and good bank account in the future. In the meantime, Neon is an excellent bank account.
In this post, we are going to see what do these changes mean for other Revolut customers and me! If you do not know about Revolut, stay tuned!
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Everybody will make some mistakes in his life. There is no way around it. Over the years, I made many investing mistakes.
One thing that is very important with mistakes is that you learn from them. Not only should you not repeat your mistakes. But you should also improve your knowledge after you have made this mistake. You need to understand why this was a mistake and how not to do it again.
It is crucial to learn from your mistakes. And it is also essential to recognize your mistakes. There is no value in thinking you cannot make mistakes. And there is no value in ignoring them. I am not very proud of my investing mistakes. But it is better to talk about them than ignore them! And people can learn a lot from the mistakes of other people.
In this post, I will talk about my eleven biggest investing mistakes and what I could have done better. It is also the story of how I got into investing early and left very early. And finally started investing again way too late!
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Today, we are going to talk about the Efficient Market Hypothesis (EMH)? Have you ever heard about EMH? Do you what it is?
Behind this complicated name hides a simple hypothesis. It says that the market is very efficient. So the stock prices reflect all available information. It means that stocks always trade at a fair value.
The Efficient Market Hypothesis is an interesting hypothesis. It is also very controversial. Based on whether it is true or not can profoundly change the way you are investing. This hypothesis has many implications, as we are going to see in this article.
So, let’s delve into exactly what this hypothesis is about.
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One question that many people have is whether they should rebalance their portfolio or not. And this is even more important in retirement.
Rebalancing is the fact of selling the shares that have overperformed and then buy the shares that underperformed. The idea is to keep your portfolio allocation to the same level.
People do not agree on whether you should rebalance in retirement or not. People do not even agree on that during the accumulation phase. So we are going to cover this subject as well.
And since I have now a lot of data about the stock market, I figured it would be great to use. So, I am also going to simulate whether it has historically been better to rebalance or not.
The data on this article is based on more than 3.2 million simulations of withdrawal rates! Without further ado, let’s delve into rebalancing!
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If you are interested in personal finance, you probably have come across the term Emergency Fund. An Emergency Fund is simply some money, available directly, that you can use in case of emergency. Most people will advise you to get such an account. And they will insist heavily on this subject.
It is an interesting subject since not everybody agrees on it. Some people have an emergency fund that can cover one year of expenses. And some people think you do not need one.
Personally, I do not think an emergency fund is a bad thing. But you should be aware of its cost. It also has disadvantages. And you may not need a fund as big as some people tell you. I think that too much people put too much emphasis on the emergency fund.
In this post, we are going to see both sides of the story. We are going to see in details what an emergency fund is.
Continue reading “Emergency Fund – Do you Really Need One in 2020?”