Mustachians, introduce yourselves!

Hey folks. Nice to meet you all. I’m a 33yr old working in IT. long time lurker who just subscribed. Moved to Switzerland in Jan with my wife and I’m still figuring things out.

Plans:

  • No plans to buy a property in CH
  • Planned to buy property outside of CH, maybe in the next 6 years
  • Planned to reach FIRE in 10 yrs
  • Retire definitely outside of CH

Savings:

  • 90% Etf portfolio
  • 10% Cash
1 Like

Hello Everyone,

Just subscribed to this awesome forum that I wished I had known earlier, but it’s never too late!

I am a french Software Engineer, in my late 20s, living in Lausanne since 2012, where I moved for my first job. I have spent a lot of years accumulating my net worth and decided this year to settle all of this and see how much passive income I could get. I definetly won’t wait until I’m 65 years old to retire, so that’s my goal.

My savings repartition right now is as follows:

  • 15% Cash
  • 25% Managed Funds (UBS)
  • 25% P2P Lending
  • 10% 3rd Pilar
  • 10% Real Estate Crowdfunding
  • 10% Stocks
  • 5% Cryptocurrencies

My plan right now is to rebalance these proportions with more stocks and real estate - I mean real real estate. I want to:

  • Create a lazy portfolio with an automatic rebalancing based on ETFs and Interactive Brokers Platform (because I’m a developer and it’s fun)
  • Buy Real Estate to let (France)

The latter is the hardest for me, as the perspective of spending time to search, chose and deal with all the paperwork is unbearable for me. Hence I will be very happy to learn and share tips on how to go through this with the less pain as possible.
I am also in the process of learning how to construct and chose ETFs for my lazy portfolio. I guess I’m not the first one to do this, so I will dig this forum a bit more for information.

Cheers!

2 Likes

Hey everybody,
Read a lot from this forum, and this website. I’ve decided to subscribe as I will be able to start investing soon.
Middle 30, Freelancer in IT who was able to have 200’000 chf but as debt :frowning: . Bad family decision from my father that impacted me … So the frugal part of fire is already in place :slight_smile:.
I’ve been “forced” to track my expense to spend as little as possible and still enjoying my life. As I’m closing some of my debts, I still put the same amount of money aside but for investing. I’m at 40% theorical saving rates.

Savings side:
I’am already looking for ETFs. I’ve invested in 3a for tax reason.

My recommandation as I can’t on investing :):
If you want an activty that is really fire compatible, I recommend sport climbing. For 300-500.- CHF equipment you are good for a few years :). The community of climber is also well known to spend as less as possible. Less money = more time = more climbing!
Cheers

3 Likes

Hi you all. I’m not sure I qualify as a true Mustachian because I don’t earn an above-average salary and because I did it all in reverse. I was “retired” for the first 30 years of my life in that I worked for myself doing things I loved and only around 50%, with the rest of the time going to my kids and hobbies. I only started working for bosses after moving to Switzerland, but see it as another interesting stage of my life rather than something I want to get behind me. I have 5 kids, am a single earner, and save around 20% of my very average income. Not exactly Mustachian, but not bad considering my responsibilities. I run a blog on avoiding everyday rip-offs in Switzerland: http://swiss-blog.com/

I am a keen follower of this forum, and also enjoy thepoorswiss blog for balance. Glad to be able to share and learn from you all.

4 Likes

Welcome Daniel.
5 kids + 20% savings + very average income… something doesn’t add up :slight_smile:

1 Like

Doesn’t add up? Positively or negatively? I’ll take it as a compliment in the sense that 20% savings is pretty good considering my responsibilities :).

1 Like

Yeah! I don’t have kids, but I suppose that’s not so easy to raise 5 of them with an average income (single) and still save 20%. Good job.

:). I used to save 50% to 70% of my income before I had kids. I’m aiming to optimize at 30%-40% savings within the next 6 months. Will see how that plays out.

1 Like

Hello :slight_smile: New mustachian here…

1 Like

Dear all,

Thanks for the forum and its high information content. I learned a lot here already and finally took the leap to register.

Some info:
-Chemical Engineer working in the Environmental Sector (Wastewater treatment, soon sales of chemicals used in the environmental sector)
-Have been living in France, Germany, the Netherlands, Switzerland, India and Bahrain, permit B holder in CH
-Newly wed with an Indian, no kids
-Combined gross income of about 117.6k, soon to change to 146k (change of job on my side, wife still in a rip-off, but mandatory for architects “Praktikum”.
-Starting a side business for import of textiles and Indian culture (dance/cooking class, import and sales of cashmere products at not rip-off prices) with my wife
-Currently injured rugby player

Networth:
-about 120k in IBKR, 50% VTI, 50% VXUS, where I invest the full leftover every month.
-about 38k in VIAC, fully invested
-now 38k in savings account, but includes provisions for 3a (1x) and health insurance (2x). I pay it yearly. Goal is to have it at 25k (already overshot a bit this year)

Goal, becoming FI in 5-7y.

This year has been busy with the wedding, integration of my wife into Swiss culture (language classes, new life etc.), but we are getting into a more routine path now. after my jobchange soon we would be at about 70% savings rate.

5 Likes

Congratulations and welcome to the community! You set yourself a very ambitious target. Are you counting on your import business blowing up or on very low expense needs during FIRE?

Best,

mmm

Thanks,

So I don’t count on anything, I just typed the numbers on networthify (after my soon to be jobchange) and this is what it gave me.

Basically the axis is:
-low overall living costs right now (between 35 and 40k, still figuring it out exactly)
-once wife passes from Praktikum to real job, savings rate will be blowing through the roof (not yet accounted)
-The side gig will be nice, but we don’t think it will be substantial. The good part is the products are wanted, and no need for much capital to do some sidemoney.
-And FIRE means for me getting independant at a low working rate. Thinking about a community bar with homebrewed beer open twice a week or something, and making educational stuff, so still some income which reduces the risks greatly.

1 Like

Hi all, I am new to Mustachian Forum. I have been following the blog for a while so am delighted to be here and to have found this blog and the forum. I am forty something and want to find independent financial advice. I have been using YNAB for a while now. I really like it but am not 100% sure I am using it to its full potential. Anywho, delighted to be here and chat with all of you guys. :smiley:

4 Likes

Bonjour Nicolas, pourrions nous entrer en contact directement`? je fais un travail de recherche sur le frugalisme et je serais intéressée de vous parler? Mille merci d’avance
Corinne

1 Like

Hello Mustachians,

This my first post in this forum but I’ve been following the different topics for some time already.
I’m Portuguese in my mid-thirties and I’ve been living in Basel for the last 7 years. I’m married and I’ve two children’s, one boy with 3 months and an 2 year’s old girl.
I’ve always lived frugally and invested my savings since a young age. I always wanted to be financially free to take back control of my life but now with all the information out there on how to reach FIRE it has become much more clear to me how to achieve that life goal. Thank you all of you for all the great information in this forum and in all the blogs.

My current net worth is about 675k split as below:

Long term rental Portugal: 70k
Airbnb Portugal: 55k (100k mortgage)
House Switzerland: 145k (630k mortgage)
Crowdhouse: 100k
Pilar 2: 123k
Viac: 73k (mix shares, bonds & gold)
Degiro: 49k (IWDA & IUSN mostly)
Cash: 60k

I’ve invested mostly in real estate in last 10 years after losing about 60% of my investments in the stock market during the 2008 financial crisis. I will increase the portion of ETF’s in my portfolio to about 30% but will always have rental from real estate as primary source of income during FIRE.

My goal is to get to 1’000k net worth by 2024 to start a slow FIRE. I don’t want to stop working and I don’t want to leave Switzerland for now, I just want to work less hours, only do work that I enjoy and take more unpaid breaks to enjoy life with my family.

Cheers

4 Likes

Bem vindo :slight_smile: !
You are really on a good track. Congratulations.

1 Like

Bem vindo!
É sempre bom ver mais portugueses por aqui :slight_smile:

2 Likes

Hey @Rod !
Great job! Could you tell us more about Crowdhouse? What has been your experience? What are the fees? How are decisions with the other owners taken?

I’ve been considering that option to invest in real estate but I’m just worried that

  1. Crowdhouse can arbitrairly increase its fees if their business isn’t doing too well.
  2. If the real estate market collapses it’s going to be very hard to sell such an investment because it would become less desirable than properties in which you could have full control.
  3. If something happens to the building resulting in large expenses (water infiltration, new roof, new boiler, etc.) then it will be very difficult to take decisions with 30 other people with different priorities and level of liquidity.

Hi @triviamaster

I invested with Crowdhouse for the first time in June this year after tracking regularly their real estate opportunities for about one year. I set myself clear conditions on what I was looking for in terms of building and I only invested after finding the ideal opportunity. Some of these conditions were that the building needed to be new, the total gross return of the rents excluding mortgage should be at least 4.5% and that it should be fully rented. At the end I took a share on a 2016 building that is estimated to return 7.1% per year.
Experience: My experience with Crowdhouse has been positive, I’m receiving my share of the distributed return on the monthly basis (6.1% is distributed and 1% stays in a fund for unexpected expenses). The communication, the support and the paper work handling from Crowdhouse has been good.
Fees: They clearly mention their fees on each real estate opportunity. I didn’t encounter any hidden fee during the process. If they decide to change their fees unexpectedly they will scare their regular investors (the trust factor is very important here) and consequently they will slow down their business.There is more and more competition in Switzerland for crowdfunding real estate so I would be very surprise if they do it.
Decisions: So far I didn’t had to make any decision with any other owner. We’re about 40 owners in this building. There is a few co-owners that have significant shares on the building (500k) so ultimately the decisions are made by those larger owners. With that amount invested I would expect that their only interest is to return as much cash as possible so their decisions should be aligned with my interest.
Real estate collapses: With a return of 7.1% per year I should double my investment in 10 year (72 rule). Even if that property collapses 20% in 10 year I would have returned 80% of my investment. Normally the real estate collapses when interest rate go up and in Switzerland rents increase when interest go up so I’m expecting to have a higher rental return to compensate the lost of value of the real estate. My only concern for the future is that there isn’t enough demand to rent all the apartments. There is a few large companies in the area where this building is located, if some collapse in an economical downturn then my annual return will decrease because the tenants will leave.
Large renovations: The building is 3 years old so large expenses aren’t expected, if you invest in an older building than for sure this is a real concern. In case large expenses occur it will first consume the funds that each owner is setting aside (1% per year) and it may also reduce the distributed returns. Only in a very bad scenario you would be asked to invest some of your money.

Overall the experience with crowdfunding real estate has been good. I also own a long term rental, an airbnb and some REIT’s so this is a very good fit on my real estate portfolio for diversification.

2 Likes

Wow I didn’t think it could be this high. You can appeal against your rent if it is “abusive” in crowded cantons, and abusive means the return is only 0.5% above reference rate so at the moment 2%.

By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, vous confirmez avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/