The Second Pillar of Retirement in Switzerland

Categories Retirement, Financial Independence, Investing, Switzerland8 Comments on The Second Pillar of Retirement in Switzerland
This post is part 2 of 4 in the series The three pillars of Retirement in Switzerland.

 

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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The First Pillar of Retirement in Switzerland

Categories Retirement, Financial Independence, Investing, 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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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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Updated ETF portfolio for Switzerland – Bonds and Dividends

Categories Investing, Switzerland22 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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No Billag: Swiss People Like Taxes

Categories Frugality, Switzerland6 Comments on No Billag: Swiss People Like Taxes

Yesterday, the Swiss people were voting on several objects. The No-Billag initiative was one of them, as I mentioned earlier. This initiative wanted to remove the Billag tax. This tax supports the Swiss TV and Radio services. This tax is currently around 450 CHF. But the government will reduce the tax next year to 365 CHF. Unfortunately, the Swiss citizens strongly refused the initiative :(

I have to say that I am quite disappointed in my fellow citizens today. It seems like people like to pay inconsiderate taxes. Thus, we will still have to pay this tax. The only upside is that the tax will be less expensive next year. But that is still a tax I am paying for nothing I am using.

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