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 straightforward 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 how much you will spend in retirement.
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.
Continue reading “How Much Will You Spend in Retirement?”
The third pillar of retirement of Switzerland is entirely optional. Your contributions will be locked until retirement. But you will get a significant tax cut from your contributions.
So, should you contribute to your third pillar every year? Before, it was obvious to me. I have always contributed as much as I could into my third pillar. But recently, several people have asked me if they should invest the maximum every year.
Continue reading “Should you contribute to your third pillar in 2020?”
People that are between jobs in Switzerland transfer their second pillar to a vested benefits account. It is essential to choose the best vested benefits account.
There are many vested benefits account providers in Switzerland. Unfortunately, there are not many great options. So, it is crucial to choose the best account for your needs.
VIAC and valuepension are the best options available for vested benefits accounts. So, let’s see which of VIAC vs valuepension you should choose!
Continue reading “VIAC vs valuepension: Best vested benefits accounts in 2020?”
VIAC is an excellent company that provides the best third pillar in Switzerland. And they just entered the Vested Benefits market. It means that they can also serve the second pillar for some people. It is excellent news!
VIAC Vested Benefits account offers a large allocation to stocks at a low price. On paper, it looks great. Let’s review this account in detail now.
Continue reading “VIAC Vested Benefits Review: Another great retirement account”
Many of you asked me about an excellent vested benefits account. Until recently, I did not know any good one. But now, I came across valuepension! valuepension offers an excellent vested benefits account.
valuepension is a vested benefits account that relies on index investing! They are using low-cost index funds and allow people to invest heavily in stocks. Their vested benefits account looks like a great account that should maximize your return on the second pillar.
Continue reading “valuepension Review – Great vested benefits account”
In Switzerland, you can make a voluntary contribution to your second pillar. 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. And this return is almost instant.
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 many people ask is whether they should contribute money to their second pillar or continue investing in stocks.
Continue reading “Should You Contribute to Your Second Pillar in 2020?”
Many people are using bonds in their portfolio to make it less volatile. And many people are basing their retirement on the 4% rule. But bond yields have never been so low. So how does the 4% rule work when yields are lower?
I am going to try to answer this question in this post. I am going to simulate the chances of success with the 4% rule with different bond returns. The idea is to lower the historical interest rate to see what would have happened.
This is only a simulation of course. But given that the recent average bond returns are much lower than historical returns, it is interesting.
This is something that many people suggested. If you have bonds in your portfolio, this is an interesting question.
Continue reading “Does The 4% Rule work in a low-yield environment?”
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.
Continue reading “All you need to know about The Third Pillar to retire in Switzerland”
It is essential to set yourself goals. And it is even more important to set yourself some good goals. Indeed, not each goal is the same. Having good goals will make it easier and more motivating to reach them.
And the beginning of the year is the best time to start setting goals! But this time, you are going to reach them!
Since I have started to work on my personal finances, I have set myself some goals every year. It helped me a lot to increase the shape of my personal finances.
As I said, a goal can be good, but it can also be bad. Some of the goals I set in the past were not good. I realized this, and I have been improving my goals.
There are many things you can learn to make better goals for yourself. If you do not set goals at all, then it is the perfect time to get started.
In this article, I am going to go over what makes a good goal and how (and why) you should set goals for yourself.
Continue reading “How to set goals to improve your life”
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.
Continue reading “All you need to know about The Second Pillar to retire in Switzerland”