Yes, I did. I know it works well for under 3% SWR and 60y horizon. What I am wondering is how to then actually measure whether I am on track with retirement DURING retirement. It would be amazing if Firecalc or cfiresim could actually recompute the likelihood of success, given that the first years went in a certain way.
To be honest I have the majority of my assets in my strategic asset allocation (mainly the typical mustachian low-cost ETF’s) at Cornertrader. I only use Raiffeisen as my current account. The amount there is actually around 100k.
The thing that annoyed them is that when I was still working but prepared for retirement, I transferred CHF 470k to max out my second pillar from CT to Raiffeisen and then from Raiffeisen to my 2. Pillar institute. That triggered questions on source of funds from their compliance. Well, I had to be open and they now know I have a large amount at CornerTrader from which I planned to regularly fund the Raiffeisen account (as if I was paying myself a salary).
What I guess is the real source of the trouble: the RM knows I have assets and wants as many of those funds at CT invested into Raiffeisen products
Another reason may be that he just doesn’t like it when my account spikes over 100k because then the bank probably has to cover negative interests (which they don’t charge me)… and such costs may somehow appear on some internal reports he has to then explain.
Anyhow… I won’t buy their stuff, no worries. I know how to handle my assets perfectly well And again… I am quite satisfied with the hands off approach from Neon. I did the same “source of wealth” discussions with their compliance and they are absolutely happy with my situation and have no issues.
What have you done that? Would have been better to buy back each year your pillar 2?
Obviously, you will save money on the wealth tax. But it would have been better to reduce your income tax each year than having 0 only in 2021
Maybe I am wrong but it is my understanding that having no job means I cannot pay into the 2. Pillar anymore. Similar to the third pillar. So I maxed out while I still could.
If I got this wrong then obviously it would have been wiser to pay in yearly…
I’m still in a similar situation (although pre-FIRE, older and no windfall,), so my question is so that to not miss a potential 2nd pillar advantage while still employed.
Why max out 2nd pillar like that?
Paying more than taxable income saves no extra taxes.
Now this money is blocked till 60-65, invested with Finpension or Viac that’s not as bad as it used to be, but still “blocked” and somewhat limited in investment in opportunity.
Only advantage is you don’t pay wealth tax - is that it?
Also it’ll ensure you don’t spend “too much” now, and at least you’ll have this money later, if you do.
Is that it, or am I missing something?
Haha, mainly because I wasn’t calculating with such an early retirement and planned to pay in during later years when my salary would be higher. I was always dabbling a bit in startups and thought that at some point the pay ins would have a much greater effect.
Fork, I ask the question everyone want to ask but noone has the balls to
let us dream, how much was this “windfall”?
I am envious but really happy for you!
Fair question. I am open… it’s a bit above 11M… enough not care about working anymore. I am extremely grateful for this “luck” I had with bitcoin… and I could have more if I didn’t sell yet. But enough is enough and more is simply not worth the risk and the nuisance of working a job I never liked…
congrats man, that’s amazing. Maybe you should write a diary or something during your retirement years from now on and update us on the progress. In any case, credit for withdrawing at the right time and not running after more gains!
That and dividends aren’t taxed either (which changes your total income and could affect your tax rate). You have to weigh to pros and cons of each situation, which will depend on your level of taxation and need for that money. My bet is it’s interesting most of the time (provided you don’t need the money) but that’s just a gut feeling (so worth nothing).
Edit: the difference in taxable wealth and income should also change the mandatory AHV contributions, which is both a plus (less contributions) and a minus if that means you get less AHV benefits. So, once again, a small costs/benefits analysis to do based on each person’s particulars.
really nice to hear this! and I am so happy when something like that happens to a serious person, that knows how to manage money and does not go after 1 minute in a lamborghini shop
I think you should not worry at all, I mean with 2% WR you get surely enough to live a great life!
I have also tried my luck with Bitcoin, but of course during the peak of 2017 (I think I put 8000 euro in them, bought at 14k I think) - FOMO at its best - I gave as a christmas present 0.01 BTC to my brother and my parents. then there was the crash, then the bear years, I have sold, then tried to day trade… you can imagine I do not have any million now just around 3500 euro (perhaps + 1000, I withdraw a little bit from time to time)
Good question, thanks for asking! In these last months a lot happened… from my brother dying to my wife requesting a divorce… it feels like an overwhelmingly emotional year. I was not able to get into my steady state / routine and could not gather any bigger insights yet. It’s as if I won the lottery but it came with a curse… the curse of everying falling apart around me.
There are small glimpses however:
I am part-time building a startup which is coming along nicely and already has some success
I enjoy going to buy groceries when nobody is around. Actually it’s really remarkable how different the demographics are when you go in off-peak hours. When you get into a store the employees almost come running and ask you whether you need something. I rarely experienced that when I was working.
You get accustomed to being “flexible” and start forgetting that your friends are not… Actually… you get accustomed to being RE
I feel this ever growing responsability to do something meaningful with my life. I put that pressure on myself but… I don’t want to die without having done something positive for society. I don’t know what that will be though. Maybe a charitable startup, working for non-profits, …
There is no alarm clock anymore. I wake up when the light comes out.
Weekends were a bliss once, now they are a nuisance. On Saturday all stores are packed, on Sunday everything is closed… Now I really really love Mondays!
Being able to be with my brother every day until his death was a real privilege… to have the time to be so close to family in times of need is reason enough to RE.
Although I live with a 3% SWR I have some basic financial concerns that keep revolving in my head: negative interest rates, where to put my “cash/bond” part, a rally is great but how is the subsequent crash going to affect me etc…
I built a super simple way of monitoring my monthly expenses and keeping me within my SWR
Anyhow: I hope to finally get into a more structured phase of my life. I feel throghout this year events never gave me control. I will surely report back once I gain more proper insights.
I just wanted to extend my sympathies and thank you for sharing your experience, especially this bit, which I’ll keep with me going forward (also as a reminder not to sacrifice spending quality time with our loved ones on the path to FIRE).
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), so my question is so that to not miss a potential 2nd pillar advantage while still employed.