I recently moved to Switzerland, I’m 30 years old, I still have no 3rd pillar, and live with my girlfriend. We have no kids, we both work and our financial situation is in good condition, we are able to save 1-2k CHF every month.
Besides that, I have an apartment in my home country, which I’m planning to sell. The value of the apartment is around 230-250k CHF and I have literally zero clue on how to start to invest it. I was checking around on the internet but regarding taxation, brokerages, pillars, I’m kinda lost but I’m sure I don’t want to turn to UBS or some shitty bank for their shitty products for financial advises…
My main goal with the investments would be a buy and forget style, and after some years (5-10), I’d like to retrieve some amount for it for personal uses. Apart from that, I wish to have a small business, an LLC.
I wanted to ask your help in getting me up to speed in terms of investing it before I sell the apartment.
Do I get it right, that I should open an IBKR account to toss most of the money for investment into ETF? If so, should I go for dividends or accumulating ones? Could I use this capital as a capital to start an LLC instead of down payment?
Should I go for third pillar? I have varying health conditions and I’m afraid I wouldn’t live until the age of 65.
Any help is much appreciated, if I’m clearly wrong with something, I’m also happy if someone points that out for me.
It depends on a lot of factors and what you aim to do. Maybe you want to put some into your pension to get tax benefits and save for the long term. Or Pillar 3a to get deduction and accrue tax free. Or invest in a taxable account and pay tax to maintain flexibility.
5-10 years is still on the shorter end of time horizons for stocks, you’d need to throw in some bonds to protect your ability to withdraw the amount you want during that timeframe. Exactly how much is a harder assessment to make. What part (in %) do you expect to want to withdraw and how critical is it that you can do so (can you postpone it for 5-10 additional years if the market conditions aren’t favourable when you want to do it?)
The small business should also be taken into the picture: what initial investment would be needed? Would it reduce your income if it takes a few years to take off or doesn’t pan out or would it be a thing you’d be doing 100% out of your current day job time? When do you expect to launch it and how successful do you expect it to be?
Doesn’t matter, in switzerlamd you get taxed for accumulating funds the same as for distributing funds. The tax authorities treat accumulating funds as if they distribute the amounts that are accumulated.
What amount is “some”? That’s really important for your investment strategy as e.g. stocks can have enduring periods of 10+ years of decline in the worst case.