i just discovered that my insurance (assura) offers a 2% discount on the premiums if i pay the full year of premiums in advance (other than on monthly basis). now I ask myself, doas that make sense in terms of my stash?, btw they also offer 1% for the half-yearly payment, but ill ignore that.
- 2% is 2%, based on CHF ~2856 premium (238/month), this is CHF 57 saved
- stock markets on average go up more than 2%, so i better have the money there
- i need to have CHF 2800 liquid on top of my cushion (not relevant/ given)
so i went ahead and compared paying one year ahead at 2% discount with paying monthly and having the rest invested at 4%. interestingly, the difference is diminishing, and paying all year at 2% comes ahead by 4 (!) francs. break even comes at around 4.5% market yield or CHF 260 monthly premium
30 minutes invested for CHF 57, somewhat ok-ish if not too often