WestCH, long-time lurker and first-time poster here.
I’m 32y old, not married, no kids and worked the last five years in the financial industry as a HNWI client advisor for an international Swiss bank. Beginning of may this year, I will leave my current employer and make the step into self employment as an independent asset manager for a multi family office.
With the change of job comes the fact that I will have my pension fund paid out to a vested benefits account. I do not have to transfer my previous pension fund assets to my new employer’s fund. For this reason, I have opened a vested benefits account with valuepension and plan to have the money invested long-term using a 100% equity strategy.
The (emotional) challenge
Now I have the question of whether I should invest the money through a lump sum or steadily increase the equity allocation over the next few months. Valuepension does not allow cash allocation, so I would have to ramp up the strategy over the months from 100% (or 80%) bonds to 100% equities (rebalancing takes place on a monthly basis with valuepension).
Despite my professional background, this is an emotional decision for me. Because theory teaches us that 75% of the time you are better off with a lump sum than investing the amount in a staggered manner. But my professional experience in the past has shown that most investors also prefer the staggered approach to a lump sum investment, although there is no empirical reason for this. Additionaly, just going by volume, this is my largest investment “pot”.
How would you go about it?
To complete the context, you will find below an overview of my assets:
- Savings Account: CHF 55’000
- Private account: CHF 19’000
- Swissquote: CHF 8’000 (VWRL, UBS ETF SLI) → I just started to invest this month, because I was not allowed to have a custody account with other providers than my employer before and I was not willing to pay the fees.
- 3a: CHF 39’000 → transferred to finpension, 85% equities as of next week
- 3a: CHF 3’000 → Second account opened as of last week, also at finpesion. 85% equities
- 2a: CHF 66’000 → planned to invest 100% in stocks as this money will not be touched even for home ownership.