The First Pillar of Retirement in Switzerland

Categories Financial Independence, Investing, Retirement, Switzerland13 Comments on The First Pillar of Retirement in Switzerland
This post is part 1 of 4 in the series The three pillars 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.

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How to Integrate Second Pillar in Your Net Worth

Categories Financial Independence, Investing, Switzerland8 Comments on How to Integrate Second Pillar in Your Net Worth

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.

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How to See Total Result on DEGIRO Mobile Application

Categories Investing2 Comments on How to See Total Result on DEGIRO Mobile Application

In my review of DEGIRO, I mentioned that something I really did not like was that it was not possible to see the total result of the position in the mobile application. The application is only able to display the daily result of each position of your portfolio. Personally, I do not really care about the daily variations of my portfolio. I am much more interested in the total results of my portfolio. This is what most long-term investors should care about.

However, I just found out it was, in fact, possible to see this information on the DEGIRO mobile application. It took me quite a while to figure out how to find this information. It is just not really intuitive. Or maybe, it is just me. But once you know it, it is really easy to use. Since it was not easy for me to find it, I am going to post my findings for all of you!

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Review of DEGIRO as a Broker for Swiss Investor

Categories Investing, Switzerland2 Comments on Review of DEGIRO as a Broker for Swiss Investor

(This post was first published on Mustachian Post. Thanks a lot to MP for the opportunity of guest posting.)

I have now been using DEGIRO for about four months. I think It is now time for a review of the tool.

It’s important to mention that I never tried any other broker. I decided to use DEGIRO four months ago based on costs. Moreover, I am a computer scientist, so no issues with potential tech issues. Finally, my portfolio is very small, so my experience may not compare to yours.

Note: The links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF and I will receive 20 CHF as well.

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DEGIRO Updated its Cash Funds Structure

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DEGIRO just updated a few things about the cash you hold in your account.

Since Netherlands investment firms are not permitted to hold cash, Degiro invest the cash from your account in a money market fund. There is a separate money market fund for each currency that you can hold with Degiro. Money market funds are principally investing in government bonds, with very high quality. However, the interest rates are very low and even negative for many European countries. Therefore, some money market funds, such as the EUR or CHF cash funds, have a negative interest rate.

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How to Account for Life Insurance in Your Net Worth

Categories Budget, Investing, Retirement7 Comments on How to Account for Life Insurance in Your Net Worth

Many people have life insurance. One of the best reasons for life insurance is if people are depending on your income. If you pass away or are unable to generate that income, the life insurance can come into play to help the people that are dependent on you. This will not last for life but can be of great help.

In most case, it is very difficult to account for your life insurance in your net worth. Indeed, unless you die, you will not get any money from the insurance. So it does not make sense to account for it as a value in your net worth. But there are different kinds of life insurance. In Switzerland, we have some special kind of life insurance that is linked to retirement. If you do not have any issue before retirement, you will get back most of the money. Therefore, it makes sense to account for this kind of life insurance in your net worth.

So, let’s see how to account for it!

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Updated ETF portfolio for Switzerland – Bonds and Dividends

Categories Investing, Switzerland20 Comments on Updated ETF portfolio for Switzerland – Bonds and Dividends

Update: I have now made some changes to make my investment portfolio much simpler.

In 2018, I wanted to add a few bonds to my portfolio. I am in long-term investing. I only in my 30s and I do not plan to retire for at least 10 years. And I already have some very safe investments in my second and third pillars. Therefore, I do not need a lot of bonds. But I wanted to add 5% of bonds into my portfolio to be safe and to allow for more re-balancing opportunities. Also, I do have bonds in my third pillar account.

Moreover, I wanted to improve my portfolio. More specifically, I also wanted to get rid of my crypto-currencies. So, I updated a bit my previous portfolio to reflect this. Moreover, I also wanted to depend less on the dollar. In this post, we are going to see exactly what I have changed in my portfolio.

Remember that it is only one example of a portfolio. I am no financial advisor. I am just sharing what I am doing for investment. What may work for me may not work for you.

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Rich Dad Poor Dad – Book Review

Categories Investing, Real Estate5 Comments on Rich Dad Poor Dad – Book Review

The most recent finance book I have read is “Rich Dad Poor Dad” by Robert T. Kiyosaki. This is my short review of the book. This book is very different from the others, in several ways. Generally, the personal finance community does not rate this book very high. In this post, I will give you my point of view about this book and tell you what it is all about.

As you will see, my point of view in this book is a bit varied. Some things are really good. But some things are really bad about this book. Let’s directly see what I am talking about.

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The Bogleheads Guide to Investing – Book Review

Categories Investing5 Comments on The Bogleheads Guide to Investing – Book Review

Here is another book review of an investing book. This is the second book I read in my way to personal finance enlightenment: The Bogleheads Guide to Investing, by Taylor Larimore, Mel Lindauer and Michael LeBoeuf.

This book is a complete guide about personal investing, how to save money and how to invest it. I think it is a really good book, well-written and full of very good advice. The book is full of quotes from other financial figures and uses facts to support every argument. It is not perfect. It is very well suited to U.S. investor, less practical for international investors. But it still is a book I would recommend to anyone serious about investing.

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Goals for 2018 – Reaching for FI

Categories Budget, Frugality, Investing1 Comment on Goals for 2018 – Reaching for FI

For the first year in my life, I am gonna try to set clear goals for this year! I have set up a nice spreadsheet for my goals for this year (credits to retirebyforty for the spreadsheets idea):

My 2018 Goals

I have tried to not set goals that are too high but still strive for better than this year. Since it is the first year I am setting goals like this, I do not want to be over-optimistic. This is my first attempt at setting yearly goals, so maybe I will add new goals during the year, but I will not remove any goal nor downsize any goal.

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