Funds for retirement - target 2035

[Dr.PI]

I have not seen any “easy” (passive, reasonably priced, well tradable) target date funds in CHF. If any exist, they are probably shitty expensive actively managed funds issued by Swiss banks for the benefit of these banks.

So most probably you have to do it yourself.

While you may want to calculate target values of different assets yourself, it can be implemented, for a fee, with a robo advisor. Finpension is probably the best option.

Finpension invest – a new robo-advisor for non-3a ETF investments

finpension will launch a robo-advisor solution for non-3a investments “soon”. According to what they told me via e-mail, they are currently waiting for a FINMA license to be granted. Should be interesting. Up to now, TrueWealth was the only solution that combined free and 3a assets, but underusing Swiss pension funds IMO.

Experience with RoboAdvisors: TrueWealth, Selma, Finpension, Avadis

Hi, I have a relative who is going to retire soon. They will take part of the 2nd pillar + 3rd pillar as capital. So far they have let UBS manage what they had and it is … as you could expect. They are not knowledgeable and don’t want to deal with investing themselves but would be ok to try something else than UBS. I saw a few old posts but was wondering if anyone had recent experience with TrueWealth and Selma ? Thank you

To do it completely by yourself, you can check fixed income options in CHF.

Short guide to CHF fixed income options

The benchmark for fixed income is going to be the risk free rate, aka SNB rates: Current interest rates and exchange rates ( currently ~1.5%). Anything higher than that will mean some risk is incurred (e.g. interest rate risk, the value of the holding will go down if interest rates go up and vice versa, or default risk esp. for corporate bonds). While risk free rate was negative, the clear winner were cash accounts at Swiss banks (since many of them did not apply negative interest rates), but s…

For individual one time lump sum investment a Swiss government bond with the maturity date close to your target date can be an option, although I think the yield is suboptimal (indeed). Mid term notes of Swiss banks with a maturity term of 10 years and, later, shorter ones, should be a good option with more work for you and more yield, from my point of view. Both should not or cannot be touched until the maturity.

Bond funds will take an intermediate position with respect to duration and liquidity. Bank accounts and money market funds are the shortest duration and most liquid fixed income instruments.