Hi all
after years of silent reading, this post triggered me to create an account to reply
I am one of those 14000 people with sitting cash in the postfinance. In my case, a little over 200k CHF after 6 years living and working in Switzerland (age 30)
I see that some are a bit shocked that there are people pilling money without doing anything with it. Keep in mind that for some people investing is presented as a super dangerous risky crazy thing to do throughout their life / environment. I am actually surprised that there are âonlyâ 14000 people with that amount sitting and not more. In my opinion we shouldnât forget that this (great) forum is a bit of a bubble of investors and not a representation of society. If you are here you are already thinking about doing something with the money. I remember when a work colleague explained me about the 3rd pillar, I thought that it was some dangerous wall street stuffâŠ
In my case, this year I decided to start investing only to realize that it is not as hard as it may seem when you read online and that learning by doing is much better than learning by reading. I was very afraid of Interactive BrokersâŠI actually found it quite user friendly when I starting using it (Webtrader) I should have started earlier (before I only had my 3rd pillar) but I started when I started and now I invest 3k CHF per month (VT through IB)
But what about those 5,5 years without investing? I canât go back in time⊠therefore my 200k in the bank. I donât want to start investing 10k a month to compensate, but I will slowly keep increasing the monthly contribution I make (started with 2k, now I put 3k, will probably move to 4k soonâŠ)
Just wanted to present myself and hopefully give the point of view of someone who wasnât a natural investor but (very slowly) became one
Welcome to the fold! Itâs never too late to start. All things considered you are in a very stable position to start investing. Think about how much cash you really need and when you might need it. That will help you to decide your personal asset allocation.
After you have invested for a couple of months or youâll notice that itâs not as mysterious or dangerous some people might think or say. The easiest (and a relatively safe) thing you could do is to immediately max out your 3a account for this year. Just make sure the 3a provider is a reasonable one.
I donât feel confident enough to start investing as heavily as 10k a month, but every 3 months I am increasing my monthly investment by 1000 (started with 2k, now 3k, thinking about 4k monthly)
I also feel (from looking at the trends) that this last year was a bit more chaotic than usual (with the huge drop in March and then the rise until maximum historical levels) so this turbulence makes me want to avoid huge lump investments right nowâŠ
I am also observing how I psychologically react. Since I started it has only gone positive, but how will it be when I experience a whole year of red numbers?
Hovewer, I want to point out that the faster you invest, the better the result will be in the majority of cases.
I always find it good to read of Bob, the worst market timer in history.
Only 3k per month is really, really slow, especially if you also save some money.
I would really recommend that you think about investing 10â000 or 20â000 per month. I assume that you donât need the money in the near future. So it doesnât really affect you, if there is a drop in the near future.
I would guess that you would be better of if you invest everything now and there is a huge 50% drop than with the rate of 3k per month.
Just do what you are comfortable with. It might be that youâll look back and wish youâd have started more aggressively as soon as possible (as it happened to me), but the most important thing is that you build your confidence at a pace you can sustain.
I am also in the same boat as you. However, for some random reason, PF has decided to not charge me negative interest rate for now. Luckily I started investing 2.5 years ago otherwise I would have lot more than 200K right now. I do regret not being bolder during the crash, but I take heart in the fact that I still invested a decent chunk unlike some seasoned investors who cashed out.
I think it only applies to people that have no other services with them (3A, E-Trading and maybe even credit card would save you from negative interest)
Looks correct because I have my 3a with them and didnât receive any notification. Next payment I will open a new one with VIAC but will probably keep this one in PF. Must be looked in detailâŠ
You might be entitled to a Plus account as well (usually costs 7.50.- I think), which gives you free withdrawing at any atm worldwide (that does not charge itself).
I had my 3A there as well, but itâs too much cost if invested in shares.
Liquidity is not specially important to me. I of course want to have cash in the bank to cover even a couple of years period, but certainly not as much as now. This super liquidity is just the result of 5 years without investing in anything.
Itâs something difficult to avoid: a system is built, and a few decades later the conditions have changed so much that it holds only in a distorted way.
Not sure why that is relevant unless your goal is to buy property. Owning real estate is not a necessity. Rent prices tend to go up lot slower in Switzerland.
Anyways, obviously saving cash and not doing anything with it is not a good idea.
1 Like
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
Durch das Lesen und die Teilnahme an diesem Forum bestÀtigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
