Hrm, ok.
As your average investor, I’d still pursure the plan @Cortana pursues.
Are you suggesting anything different?
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6 posts were split to a new topic: Invest in what matters
Can a mod or @Bojack delete hajes29a posts any everything related to it? 
This thread isn’t about optimizing investments and cash allocation right now, it’s about the 5 years before early retirement and the plan afterwards.
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A bit late to the party, and very little to add. Just to emphasize some inputs others made already (especially @PhilMongoose, @xerox5003 and @Your_Full_Name), specifically to your questions:
Not a bad idea, but I’d suggest investing the 7% cash in equities instead and overall skew your equity portfolio to achieve a decent dividend yield (covering basic needs). This addresses the sequence of return risk better I believe, also from a psychological point of view.
Go for high(er) bond allocation in pillar 2/3, which will long-term have higher taxable return vs equities. The great benefit in Switzerland is that capital gains are always tax free, so make use of a high equity allocation in free assets. Also: Do you have access to a pillar 1e and already today the possibility of a high equity allocation in your pillar 2? If yes, what if that changes? If no, how do you plan to completely restructure your portfolio upon retirement? The answers to those questions are again an argument to keep a decently high bond allocation throughout in retirement assets.
You need a global view of your portfolio. And as said before, if you keep a high bond allocation in pillar 2, you should be able to always easily balance to target allocation through your free assets. Keeping all parts of the portfolio at the same allocation is a nice thought, but doesn’t work in reality.
Dividends. We all know this isn’t ideal long-term and technically slightly lowering expected returns, but the lower volatility and regular cash returns aren’t to be underestimated. Having reached my FIRE target a few months ago (without RE), I went through the phase of securing my FI and reducing my sequence of return risk in the last three years as getting FI became a tangible, real outlook, and believe me: FIRE is as much a psychological exercise as it is a financial one. So again: Dividends (and bond interest) to cover your basic needs.
Great plan, very similar to my own. I am sure you will get there.
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I think maybe FIRE is more a psychological exercise than it is a financial one.
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Interesting plan. Which CHF corporate bonds do you use to manage liquidity/cash mgmt? I think 150k just in cash shouldn’t be an option. Or do you guys have some tips what to do with cash you could need in mid or short term.
What’s wrong with cash? It’s almost always better than the government bonds (because no taxes), and it’s less risky than corp bonds.
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Maybe someone could update Short guide to CHF fixed income options (funny how the cycle goes, this was created when we started having positive rates again, and now we’re back at 0)
As another option, there’s e.g.
https://www.moneyland.ch/en/mediumtermnotes/list
But given tax, I’m not sure I’d bother for 0.1%-0.3% vs. 0% in cash.
Or have a friend at a bank which gets 1%+ interest for a normal cash account. I also know of companies which have their internal bank which also offer 1%+ interest on cash accounts (like a cheap loan for the company to not have to pay out the full salary).
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For the companies lending to their employees, you’re giving up on esisuisse’s insurance and they aren’t regulated like banks so you are taking on more risk for a (potentially slightly) better reward. Chances are they’re lending to you at lower rates than they could get from institutional lenders, which is why they’re doing it, and which would mean the risk adjusted returns are likely not on par with what you can find on the market. There again, you do have some level of insider information when it comes to your company and depending on what you know of their actual financials, you may face a reduced risk vs the market so could lend to them at lower rates (not the average employee, I guess, you’d have to work at the higher levels or in accounting).
Using a friend working at a bank introduces counterparty risk. You have to trust them and could face hassle in some fringe cases (say they die unexpectedly). If you work it out as an actual lending agreement that allows you to get more interests than you would have at a bank yourself, the risk adjusted returns are probably still below market rates as your friend’s creditworthiness would probably not get them sub 1% interest rates unless the loan is collateralized (which, I guess, you could do but that’s not the kind of relationships I would want to have with my friends for a few tenths of a percent of interests on cash).
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