Hi fellow fire friends
Let’s assume you have 2 mio CHF (I guess that is a big number and somewhat close
to what RIP and others are gunning for) in the bank account and you want to FIRE.
The markets are sky-high but you still invest in VT and you decide to consume only
the dividends (2%) and let the equity rise/sink over time. The aim being that you
won’t need to consume that nest egg (good for your kids, etc).
-If you don’t work, you still need to pay AHV - roughly 3638 CHF (source:
-You have 30k yearly expenses (rent, food, healthcare, etc)
-You will pay 5765 CHF in taxes (Freienbach - since i wanted to calculate the
If my math is right, things should work just OK (39000 expenses vs. income of 40000).
A few questions:
- Thanks to the US/CH tax treaty you would see 15% tax withholding for the 40k.
- What happens if the effective tax rate is below the 15%? Would the CH tax office refund you (even though the US tax office gets to keep the 15%)?
- Are those the biggest cost factors or do you use completely different assumptions?
- Have you seen any robust bond that yields 2% in CHF? (I haven’t )
- What do you think about barrier reverse convertible (BRC)? They are tax-free and buying Nestle/Roche/Novartis for 5% yield with a 40% downside protection doesn’t sound horrible. Do you know whether those certificates can be bought via the SIX stock exchange (I mostly see volume 0) or is “zeichnen” a must?
- Have people considered starting a GmbH just to be employed? (That could make sense to avoid the AHV “fine” – plus if you earn just the required minimum for Säule 1, you would still be able to increase you pension)