The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, is a book by Thomas J. Stanley and William D. Danko. This book is a study of millionaire households in the United States. In this post, you will find out exactly what this book is about and what I thought about it. I was lucky to find it very cheap on Kindle.
This book is one of the best personal finance books I have read. The authors have really gone into a lot of effort to collect all the data from millionaires. And they have drawn some very interesting conclusions from this data.
I am still reading many new personal finance books. And so far, it has been a great ride. There are some really great books about personal finance, investing and frugality. It is just a bit sad that most of these books are missing any international content. They are really made for the United States. However, a lot of their lessons can still be translated into Europe.
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The previous three posts of the series covered the three pillars of retirement in Switzerland:
In this final post of the series, I am going to summarize over the entire system. I am also going to talk about how early retirement works in this system.
It is very important to
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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 much more choices than you can make. You can optimize a lot of things for your third pillar.
I believe it is very important 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 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.
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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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Many people have life insurance. One of the best reasons for itis 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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