Best product for indirect amortization?

Hi all,

I’m about to sign a swiss mortgage, but trying to get my head around the best way to amortize it.

Ideally, I’d like to use indirect amortization by investing into some passive index fund. However I can’t use my third pillar since the mortgage is for a holiday home. The bank is rather proposing us to put it into a 3b product which is “swiss life dynamic elements duo” which seems to have a traditional insurance component and a stock based returns component.

I’d prefer to pay a regular insurance policy to cover the risk, and then separately make the amortization indirectly in a low cost ETF or fund.

Any advice on this?

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Don’t.

Indirect amortization usually implies paying into a 3a account. Never heard about indirect amortization with a taxable securities account. You can go with a direct amortization, gradually repaying your debt. Otherwise indirect amortization with UBS 3a account and Vitainvest Passive 100 fund seems to be reasonable.

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In my case, the bank (Migros) asked for indirect amortization using an insurance of my choice.
I went with Generali based on this comparison

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Did this. And used separately life insurance policy (approx 300 chf a year for 500 coverage).

Good idea to stay away from insurance policies mixed with investments. Best to separate, beside cost advantage you can exit insurance any time if you no longer need coverage…

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