I currently have:
Around 40K invested
55K cash that I’m planning to invest in EFTs
25K in my second pillar
So 120k in total, your current asset allocation is 46% cash, 33% shares and 21% “bonds”.
I guess your investment horizon is well above 10 years? So go with Global 100 and make sure to open up at least 3 portfolios with VIAC.
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thanks a lot for the feedback!
Yes, my horizon is well over 10 years, 20 to 30.
So if I understand correctly form the article you shared, I’ll open a different 3a pillar portfolio every 10 years.
Or should I open 3 different portfolios at once and split the payments between the 3?
Ideally you open up 5 accounts right now and try to increase them at the same time. So you’ll transfer AXA and SwissLife to Portfolio 1/2 and contribute to 3/4/5 for the next couple of years. As soon as all 5 are about the same, you contribute to all of them (current maximum / 5 each year).
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All clear, thanks so much!
It is quite scary to go with global 100 but I guess it does not make sense to be more conservative with the 3a pillar.
Also considering that I will have 3 portfolios, doesn’t it make sense to diversify?
Or you suggest I go for the global 100 in all of them?
Global 100 is already diversified as it’s covering the whole world with an overweight in Swiss stocks.
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Nice! As your total wealth is not that high, I suggest to define a dedicated emergency fund. It should cover for example 3 months of your fixed expenses without excessive spending, in case you have no income at all. Will it be something like 10k in your case? This emergency fund you can put in a separate saving account or something like a saving pot at YUH, to simplify further calculations and avoid a temptation to use these money for other purposes. Note that planned expenses such as taxes are not emergencies, you should plan them in advance. You can also for example open different saving pots at YUH and contribute monthly small amounts to cover future expenses.
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And finally you have to decide about stocks/bonds asset allocation for the rest. Nowadays bonds are 2nd pillar and cash, because actual bonds have a negative yield. Despite of what FIRE enthusiasts are writing here, serious authors writing about Boglian investment recommend min 25% and max 75% stocks. You can go for 75% stocks.
It is better to put as much stocks allocation into 3rd pillar as you can, because of tax advantages and because these money are blocked for a long time. And the rest you calculate - how much you should invest outside of 3rd pillar and how much cash as a part of the investment portfolio to keep.
And then comes the most difficult part - keep up with it for next 30 years.
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Indeed, I will keep around 20K cash for security.
As of January I’ll start a now job with a big salary increase, so I’ll be able to save up a lot more.
This means you suggest as well to go for the “Global 100” in VIAC for my 3a?
Indeed, starting is the easy part, keeping up for 30 years is another story…
Yes. Maximum of stocks in 3a.
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That said, it’s definitely ok to go with lower. Might even be a good idea, you should really do what you feel comfortable with.
Especially when starting, seeing a -10%, or -20% drop in what you investment won’t be fun, so you need to know you can stick with your decision and stay invested (the risk is that you go out, and then not know when to go back in, and end up having a much poorer performance than the market).
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Exactly this. And even if they accept and even if you transfer to their products, some banks will put an index on the investment to a cash value and not necessarily the value of the investment to reduce their exposure to risk. Make sure they’ll let you keep investing on your 3a.
Pardon my internet ignorance (didn’t realize I became so old 
) - what does this “F” phrase mean with today’s internet/meme/gaming/whatever kids?
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F in the Chat
F in the chat means to pay your respects. They are mostly on streams like twitch. The term originated after a feature in the 2014 release of Call of Duty asked players to press F on their keyboard or X on their controller to “pay respects” to virtual fallen soldiers.
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Hi there,
So yesterday I went out with a colleague of mine and he said he just payed his 3a at UBS. I explained him that banks take too much fees etc and he should switch to Viac, Fenpension etc. However, I just checked this morning UBS‘ fees and was surprised:
On the last page of the PDF the UBS (CH) Vitainvest – Passive 100 shows 0.18% / 0.25% (what is the difference between this two?). This seems lower than Viac etc. Am I missing here something? Are there any hidden cost?
The 0.25% includes transaction costs.
Yes, UBS charges an additional 0.65% p.a. as part of the UBS Fisca Custody Account. I.e. the total fee is 0.90% p.a. See “Custody account factsheet” at Pillar 3a custody account with investment funds | UBS Switzerland
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Thank you so much. Where did you find this information?
Just proves again how intransparent the sector is…
Bogle-style investment accounts for your total portfolio. Your pension fund (pillar 2) would generally count towards the “bond” portion, since it has a minimum guaranteed interest rate. You could even count your social security (pillar 1) in that section if you want to, as it’s similar to government bonds. When you look at it that way, your total portfolio probably already has a pretty big “bond” component.
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