I am in the fortunate position of being offered an early inheritance from my parents of 50K GBP which is roughly 55K CHF. I would like to have your input on what to do with this cash.
My initial thoughts are to max out the Pillar 3A each year over the next four years for my wife and I. My concern is what to do with the remaining cash while it is waiting to be put into the pillar - keep as cash? invest it?
We would probably like to purchase a house within the next 5-10 years so the VIAC 3a and mortage offering looks very appealing.
Married, both 32yo, no children, living in Geneva
Both working 100%
Combined income 225K
Many thanks in advance for any advice
Maxing 3a each year is a no brainer to me, every year. Especially in a high(er)-tax canton like GE. For a full year, I personally preffer bi-monthly/quarterly 3a payments to DCA but it depends on the individual, strategy and outlook.
Consider your outlook on GBPCHF, in which currency you want to keep the money. If your live centers in CH, then CHF is a no brainer (plus I doubt GBP keeping even the current 1.11 exchange rate mid-term).
Think if you can make self-purchases to 2nd pillar and you’d like to pledge them to morgage provider with house purchase, again a not small tax benefit and the 5+ year timeline works for you here. Depends on many factors including your pension providers performance and your ability to self purchase into the pension.
The remainder and interim, a savings account with the current 1.5-1.8% CHF/pa until a decision is made is prudent. Go from there, if you do term-deposit, bonds or equities and lump sum or DCA. But 3a and calculation if 2nd pillar is worthwhile tax saving would be my first steps. I’m guessing your margin tax rate must be aproaching 40%.