Invest 200k in one month, am I still a private investor?

[quadriger]

HI all.

I realized I was keeping money in the bank for nothing, and after reading the mustachian post I decided to invest most of my saving (leaving what I’d need for a year in case in cash) in stocks.

I am concerned about taxation, because of the rule:

2. The total volume of transactions (sum of all purchases and sales) does not represent, per calendar year, more than five times the amount of securities and holdings at the beginning of the fiscal period

I’m not completely sure what it means, but given that I had only 3k CHF in stocks last year and this year I’ll be adding more than 200k CHF, I wanted to ask here.

Thanks in advance!

[jay]

@quadriger

the amount of securities and holdings at the beginning of the fiscal period

In the German original this is “des Wertschriften- und Guthabenbestands zu Beginn der Steuerperiode”. I.e., this includes your cash amount and thus, simply investing all or most of your cash is never an issue.

In general, you don’t have to worry at all if you’re a buy-and-hold investor.

[quadriger]

Thanks @jay, that’s very helpful. That’s what I thought but I wasn’t completely sure. I feel more reassured now

[nabalzbhf]

To go back to the original post, make sure you understand what kind of volatility you’ll be facing, and if that’s the right amount of risk for you.

What matters is whether you sleep well at night, even when it’s down -40%.