Invested 3a Pillar counts as low or high-risk asset?

Hello fellow Mustachians,

many thanks for sharing all you experiences and know-how. I have started my investment journey start of 2018 and have been passively enjoying this forum a lot. Start of this year I thought it would be time to actively participate as well starting with some questions for 2019.

- Do you guys count invested 3a Pillar within your low-risk part of asset allocation?
- Since I now have 3 accounts investing into index funds, I imagine it difficult to rebalance next year. Is it enough to only track the low-risk to high-risk ratio of your portfolio and rebalance accordingly?

My portfolio details are appended below. I would very much appreciate any input on my intended portfolio moves for 2019.


Situation until now:

CT: 25k CHF

  • VT Developed World: 80%
  • VT Emerging Markets: 20%

3a Pillar: 26.5kCHF

  • UBS Vita-Invest World


  • 50k CHF high cost Fund
  • 12k CHF as cash backup

To do in 2019:

Turn 31 this year

CT: No new investments

IB: Sell high cost Funds and create new portfolio with Interactive Brokers

  • VTI US Total Stock Market: 40%
  • VEA Developed Markets exUS: 35%
  • VWO Emergings Markets: 15%
  • VSS Small Cap exUS: 10%

3a Pillar: Move Pillar from UBS to VIAC and create own portfolio

  • SPI Extra: 35%
  • SMI: 2%
  • World exCH, unhedged: 35%
  • World exCH small cap, unhedged: 15%
  • Emerging Markets: 10%
  • Cash: 3%

80% of savings will be invested in IB & VIAC.
20% of savings will be saved on bank to increase low-risk asset allocation within portfolio.

Why add VSS?
VEA already covers small cap, or you want to overweight it for a reason?

Hi dbu, you are absolutely right. Realized the overlap in funds and will consider reducing to 3 ETFs.

Any comments on 3a Pillar? I assume most people regard it as high-risk asset since it is almost all invested in stocks?

The 3a can and should be relatively high-risk, because it’s very long term, 20-30 depending on when you start.

When you get closer to retiring to can begin to shift towards more bonds (Your age in % is the rule of thumb). With VIAC you can do that in a very comfortable way.

I tried to highlight a scenario where one can keep her emergency cash in 3a (see this thread) - in that case it would be the least risky. The main point being: look at all your assets incl 3a. Calculate investment and tax cost for each solution (inside or outside 3a). Then allocate where it’s optimal.