3rd Pillar - Multiple Portfolios question

Hi everyone. I have a Third Pillar question and this is the forum I trust more then anywhere else for advice.

I have a 3rd Pillar with VIAC, 2 years worth, so approx. 14k. I have it in one portfolio. I was thinking to open the next portfolio when this one had some more investments built up. But I read online recently that its better to open the accounts now and split the 14k, and then also split future payments. Does that make sense? Does that mean for 2020 setting up various Direct debits to the various portfolios? Its not a problem to do that but wanted to make sure my understanding was correct first.

Thank you community for your help.

Just open a second one (or ones) and fill them up until 14k in the coming N years.
Then rotate each year after that.
No need to complicate (and print out 5 forms with 1.x k each for the yearly tax purposes).

I don’t know by which criteria would the other approach be “better”.
What matters is when you start withdrawing at the end, years from now - that’s when it’s better to have them in separate accounts for tax purposes.

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You can’t split an existing account.

Open a 2nd and fill it up till 14k (or whatever), then open a 3rd and do the same. You could do this till you have 5 accounts. After that I would just rotate year after year (or split your standing order into 5 standing orders).

This will give you the possibility to withdraw them in different years and save a lot of taxes.

Thanks for the advice. I was making it more complicated then needed.

I will open a new account for 2020

I guess there are no extra costs for multiple accounts, as fee is charged on total assets?
How many portfolios do you or anyone else have, or plan to have ?

Nope, no extra costs. I have the maximum of 5, which some people would argue is overkill (3 is also a popular choice… it just depends on how many years you want it to take from a tax-perspective to withdraw your total 3a contributions).

I suggest using a naming convention like “2019, 2024” for this year’s 3a account, “2020, 2025” for next year’s, etc. Then it’s easier to keep track of which account to contribute to in which year.

You can always contribute to the account that has the lowest balance.

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Thanks guys, that makes total sense. I will open a new account for next year and keep it simple. Thanks for the help. Appreciate it.

Hey all,
But how is this compared to just dropping all into, lets say, VT.
So no Third pillar, just standard investing ?

Guys, what is the limit until which you should fill into an existing VIAC 3A account?

For e.g. I have a 3A account and have put into it 5568 for 2018 and 6826 for 2019. With appreciation, the account is currently around 14,000.

Should I go ahead and invest another 6826 for 2020 also in the same account OR should I open a 2nd 3A account and invest over there?

Sorry if this has already been answered in some other thread. Thanks!

If you want to split it up fairly, just open 5 accounts and put the money in one of them and alternate every year. Do not see any negative impact with that related to fees nor distribution process from VIAC. And from 60 (to 65), you can close each of them every year to get targeted with a lower tax.

I believe this has been touched on multiple occasions already. Read through other threads on the topic.
In short: taxes (both when paying in, on dividends, as well as taking money out) vs. not unlimited freedom of asset allocation.

Yes it has been, in this literal thread.
Are you really that lazy not to read through the first 3 posts of the topic you are posting in?

Well, I know i read it, indeed.
And the difference is clear, but the choice is not. Because the analysis is not so straight forward.
I will try to find it.

Just look at your marginal tax rate and the wealth tax in your canton and plug in the numbers in my spreadsheet.

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