Thank you in advance for your expert advice !
It’s okay, I’m ready.
After being fooled for 6 years with a 3rd pillar insurance at 6,800 CHF/year, I decided to switch to VIAC or Finpension!
Especially since I am already invested in the stock market on my side via ETFs
I have two options:
- close the 3rd pillar and suffer a loss between the payments and the surrender value.
Then opening of 5 3rd pillars anywhere
2/ reduce the payments as much as possible and let this 3rd pillar run
Then opening of 4 3rd pillars anywhere
What are the data I have to compare to know which is the most interesting solution between both ?
With my wife, we plan to become a cross-border worker (France or Germany), but only in a few years (40-50 years old, we are 30)
With this in mind, is it still relevant to go through another 3rd pillar system ?
Have a nice day,
Thank you again,
Just to share the pain for some encouragement. I made the same mistake early this year (yes, more painful because there have been plenty of posts warning about this). I just got out of the trap this month losing nearly 4,000fr of surrender value so… bite the bullet and move on. I suggest don’t reduce, just get out.
An example calculation from MP:
Thank for your feedback and sorry for your losses !
Well my question is not about continue or stop investing 6800/y in this 3rd pilar, I am already convinced in stock markets. But :
A] Would it be better to
- a. close, withdraw everything, big losses, and ciao
- b. reduce prime amount at 100/y (or sth else), reduced losses on long term
B] What about this topic in the context we’ll probably will live in a border country in 10-20 years
You have to determine the current (and/or future) surrender value and make an assumption for performance of your alternative VIAC/finpension portfolio.
We can’t advise you or answer that question without the figures.
(as a side note, being unable to easily determine the current surrender value for any well-diversified investment vehicle investment would be a huge red flag for me)
unless a detailed calculation/ simulation (excel is your friend) tells otherewise, clearly cancel the life insurance, and transfer the money to the 3rd pillar robo advisor depot of your choice.
then open 4 more depots. contribute only to those until they reach the value of your first depot.
I ask my insurance 2 different things :
- the current surrender value
- police change if I stop pay their prime
I will post all of these data here
Have a nice evening !
I finally ask my insurance to get all data to analyze it (cf lower)
Currently, two contracts :
1 - A surrend value from an old contract, from 2020 to 2056, without any payment additionnal per year
2 - A new contrat from 2020 to 2056, 6500 paid once a year, can be reduced to 100/y minimum
I analyse all possible options with these contracts :
“Perf.” ratio is Earnings(=capital-cotisations)/cotisations
Finally, the conclusion is quite obvious…
- risk pays
- Contrat 2 has to be reduced or stopped
What are your thoughts ?
Have a nice evening !
Thanks, great thoughts !
In other words, Stop 1+2 ?