Each year my investment plan consists of the same 3 buckets:
- ETFs (Degiro account)
- 3rd pillar (VIAC)
- Employee stock purchase plan (30% discount)
In essence this boils down to a mix of monthly (e.g., Degiro account) and lump-sum (e.g., employee stock purchase plan) “payments” throughout the year, a situation I assume is not altogether different from most other forum members’ investment plans.
The most simple investment schedule would likely be to make equal monthly payments into my Degiro and VIAC accounts, and to save an equal portion each month for the employee stock purchase plan knowing that the actual “payment” won’t be due until September.
Although simple, I realise this isn’t necessarily the most sensible investment schedule. For example, saving an equal portion each month for the employee stock purchase plan due in September results in a large amount of money idling in my account for a majority of the year. Alternatively, perhaps I’m better off increasing the payments into my Degiro and VIAC accounts at the start of the year (e.g., Jan-Jun), stopping those payments during the months of Jul-Sep to save exclusively for my large lump-sum payment, and then resuming in the months of Oct-Dec.
My question is: what investment schedule do you use? Do you personally make 12 equal payments into your 3rd pillar, or simply pay it off as soon as you can while temporarily neglecting your other investment “buckets”? When you know that you have a large, one-time investment in Q4, do you already start setting aside money in January or simply stop making investments in your other “buckets” a few months beforehand?
How do you pay your taxes? If you are not paying Quellensteuer, this should also be considered.
In my case I invested here and there when I had a surplus of between 5 and 10k in my daily-business account which was about every 6 months.
For now my plan is investing monthly (ETF’s at IB and VIAC).
One thing to consider though is that paying the 3rd pillar in full on 1st January each year is probably the best way to maximize returns. So I would prioritize the 3rd pillar at the beginning of any given year until its full and then move onto the other investments.
why Januar 1 and not December 31? You only get back the tax much later anyway?
Because he alredy payed AHV for this year. You can’t overpay. I’d say 3rd of January though. Banks are closed the 1st and 2nd.
My reasoning is that if you pay it in at the start of year X, you get a whole year of time in the markets vs. if you pay on December 31. (with VIAC)
Upon further thought this actually doesn’t really matter that much, because I assume you are forgoing investing in regular ETFs for january, which in turn makes you miss out in the market with them…
Viac confirmed to me that a transfer to Viac, to be executed on the first working day of the year, would be invested by them on the same day. Only problem is Postfinance: It effectuates payments on the 2nd working day, so your money then lies uninvested for ~1 month.
If you pay on December 31 instead of January 1, you will be able to invest the money on the market for a whole year longer. The difference is not big though, and we’re talking about 6700 CHF.
On 3a accounts, those ~6.8k can be paid in every calendar year. No point doing it at the end of the year - no transfer to the next one possible (they have to return it) or the money has not been invested for 1 year (if no payment until december 31st.).
You can’t pay in december for january.
Either you don’t understand me or I don’t get you.
What I’m talking about is investing 6700 now into e.g. VT, and in december you can invest your december salary into VIAC. If you invest in VIAC already at the start of the year, your money will be invested in a fund with a higher cost and bias toward Switzerland for a whole year longer.
Isn’t the whole point of 3a to deduct it from your income on the tax statement, in order to pay less tax? So logically you should buy in at the latest moment possible? Or am I missing something?
It’s me - your logic is sound. Sorry for the confusion.
Edit: Your post has shown me that the “pay your 3a as early as possible” mantra does not necessarily make much sense. Interesting.