Hello Mustachians, I personally started to invest in VIAC in 2018 with 4 portfolios and 97% equity each. I pay some money on them on a monthly basis.
Mainly SPI extra/World/Small caps and EM.
I still have one 3a portfolio, about 40k CHF in cash, at Postfinance. I was thinking to transfer it to VIAC in order to have all 3a portfolios together (i dont worry about the 100k insurance for now).
Since the price for equity is very high right now, and I put only money monthly on the 4 other portfolios, I do not want to go 100% equity with this one (or at least not right now, and not in these proportions anyway).
What are your thoughts on a setup that could be interesting, especially if markets drop down in the next months?
-> keeping it 100% cash and increase stock allocation when stock markets drop
-> keeping it 90% cash and 10% gold for instance. Gold being often negatively correlated to stocks.
-> one other idea i had would be to add some bonds, but everybody seems to be pretty much against it, and high yield bonds are quite correlated with stocks.
-> I thought of adding also some REIT (CH and US) but again it seems to be quite correlated to stocks
-> Right now I thought of doing something like this with this portfolio but it may be totally counter productive
65% cash / 10% REIT / 10% Gold / 10% high yield and EM bonds / 5%equity
Is anyone in the same situation with an existing cash 3a? I would be glad to hear your thoughts on what to do with all this cash at the moment.
In my canton this is not even mandatory anymore to attach, unless is the first time you contribute to 3a. Afterwards they trust you that the number you put is actually what you put into 3a.
I have 40k in cash right now in one 3a (2012-2017), all other portolios (4) are full equity (2017-2019). I make monthly payments on the 4 VIAC portfolios.
I do not wish to invest the cash portfolio, with 97% in equity for next rebalancing since equities are quite high right now, and so far I am ok with the equity amount of the other portfolios account in equities and my ETFs with IB.
If shares drop down, I will invest some of the money of this cash 3a in equity (in a way I will “rebalance” with the other portfolios).
My question remains: If I do not wish to go with equity and I want to use it to rebalance, what could be a nice way to do it? Put some REITs, some gold, etc etc or simply leave cash and wait.
I know I should not be market timing, but I really think stocks are expensive right now, and I am already investing monthly through IB and VIAC.
If my 4 equity portfolios loose lets say 20% of their value, then i can decide to increase the equity allocation of the 5th one, in order to keep the same equity/cash ratio on my 3rd pillar.
That way I dont see it as market timing. Market timing would be to have only one portfolio and expect a market crash in order to purchase equity, no?
Why? Assuming one wants to keep a certain percentage of his/her portfolio in cash, once the market tanks, the share of cash would be higher and one could use some of that cash to buy the (now less expensive) equities, bringing the percentages back to where they belong. I personally like the idea of keeping that cash in the 3d pillar accounts.
Diversification is always very good (gold, platinum, crypto, whisky, wine,…). But also keep in mind that we do not have a “natural” market situation right now. Central Bank’s are buying in the market every day and enforcing the fire. There will be dips on the road, maybe 10%, 20% or 40% or more, but in the meantime the market grown 100% in the past few years and maybe also in the future. If you want to time the market, you have to figure out when e.g. EU (and other countries) are out of ammunition - which nobody has any clue.
Sorry, you question was toward VIAC and there is no whisky nor wine yet to buy…
Hi there
Being with VIAC for about 8 Months now and having 40k in 5 portfolios. All of them have the Global 100 strategy.
I read through the guide of Mr. Lean Life and saw the portfolio recommendation to reduce fees:
3% Cash
10% CSIF SPI Extra
27% CSIF SMI
60% CSIF World ex CH
In this thread here, some users showed their own allocation. Is there consensus what makes sense for the ordinary user that likes to invest the annual 6,8k in VIAC and not having to worry about the market? While I dream about market timing and changing everything to cash now, I know that I’ll remain invested. So my sole optimization would be a (slightly) cheaper asset allocation than global 100.
Additional question I:
would you recommend to have different slightly asset allocations (all ± similar to global 100) for the five portfolios?
Additional question II:
having read about the FX/handling fees of VIAC, would it make a difference to pay the 6,8k in one turn (five single payments for each portfolio) or can I invest each month 6,8k/12, i.e. having 12 payments?
step is to define the share of cash you want to achieve and keep in cash after all.
now you have the money to invest, so it is to be divided in the 12-24 portions
invest the equal portions during 1 to 2 years on else but cash
I know this is a very simle advice but there is no other one. Keeping too much cash and stay out not invested is a risk mitigation until a certain level and time frame but not longer than 2 years or so.
Mmhgrmph, so I wonder if when one has an individual strategy & one changes from iShares Core S&P 500 IE00B5BMR087 (Cost to date 0.07%) to CSIF US – Pension Fund CH0030849712 (Costs new 0.00%) the USD will be changed to CHF on selling (as is common) and then back to USD for buying. that would suck.
I’ll ask.
It says on their website “In the monthly rebalancing, all trading orders of all customers are first combined and, as far as possible, settled internally.” So globally only.
I’ve asked via the Viac support, including the addtional question from Strabor. (And will post answer when received)
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that would suck. 