Closed 3nd pillar = Big short term loss = what is the plan now?

Banks, Insurances & Third Pillar
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Hi Mustachians !

Following many advices here, I decided to close my 3nd pillar with two well-knows insurance companies. I contributed for 6-7 years…was an easy decision to cancel everything with them but was not easy to accept the loss…approx 22k lost for ever. Anyways, I have been able to get some money back (valeur de rachat) for approx 14k CHF.

I opened 3 accounts with VIAC, Finpension and Franckly, planning to invest in their most agressive plan (VIAC 100 global, etc…).

What would you do ? Go all in, one shot, deploying 14k and 7k approx. (max for this year) right now ?

Or better to spread out the investments over the next 6 months.

Happy to have your views here :smiling_face:

Cheers

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Hi,

If you didn’t transfer the fund, you should be able to invest 7056 chf for 2024 for all your 3a accounts.
I have 3 aggressive 3rd pilar in Viac and I invest monthly on the 3 accounts. So maybe do a lump sum investment for thé post 6 months and mensualise across the 3 from July.

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Same here. 32K transferred to VIAC (basic account 0.95%). I’m waiting…

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If you’re far enough from retirement age, I’d start by investing all in the same 3rd pillar portfolio. It’ll be easier to manage.

While it’s indeed a good strategy to have 5 or so portfolios when you retire, to withdraw on different years and reduce taxes, it doesn’t mean you have to feed the 5 of them at once.

Start with one, and when it’s high enough, switch to the next one. Up to you, the amount you have invested and your retirement horizon to decide when is a good time to move on to the next portfolio. I personally switched when the first one reached 30k, and will switch again when the 2nd one matches the 1st one (which should have gained value by then), and so on.

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If it makes you feel better, you didn’t lose 22k, you paid 3k a year for a life insurance that you luckily didn’t need.

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This approach wont work if you invest 100% in stocks. At one point the lower ones wont be able to keep up with highest one.

Better start earlier to fill the additional 3a accounts.

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Yes you’re probably right, I’ll do some maths and review my strategy. I assumed it was not that bad to have small differences between portfolios, but maybe the tax difference would end up being worse than what’s lost in fees by feeding 5 portfolios each month.

There’s also the possibility to rotate monthly between each portfolio, this one can be interesting as well, if the bank allows for 5-month interval automatic wiring. I’ll check this as well.

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Might be enough to change contribution target every 6-12 month in favour of comfort. But thats up to you to decide.

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I do round-robin. Each year I contribute to just one and move on to the next. And after that, start over with the first one.

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Isn‘t there also a motion in parliament to make partial payouts possible for 3a, so people don‘t have to do the 5 account “trick”.

I would expect this to eventually pass, it just does not make much sense as it is now.

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Wouldn’t or shouldn’t we expect this loophole of the 5 accounts/pots to be patched, eventually?

I’m doing it myself, just questioning if it’ll still be relevant in 10+ years.

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I have also asked myself this question, but in the other direction. My conclusion was: do what makes the most sense at the moment. Nobody can predict the future.

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Actually the most rational move.