Hi all Mustachians!
I am new to this forum (and forums in general), but recently I’ve been a heavy reader of your posts. Through your effort and passion for sharing knowledge, doubts, insights and considerations I have been able to answer most of my questions on Investing in general.
I just want to truly thank all the community here, and I hope there is chance for me to contribute as well from now on.
My story
I am 28y-old. After my studies in CH (2013-2018) and during them I had 2 main interships in MNCs, and currently fully employed indet-period, with nice prospectives for the future career. I am into mgmt for a MNC in machinery equipment. Gross ca.90’000, residence TI canton.
My pillar 3a + personal investments story
I am now approaching the topic for the 1st time in my life and to start with, I spent the last 2 weeks learning (overview level) finance.
from all the materials I’ve been reading, I am planning to start a pillar 3a and investments within the end of the year.
My idea is to:
-
1st WORKFLOW
Start asap 5 separate 3a accounts with possibly 5 separate providers (Finpension, Viac, (other 3 best currently? )).
I have theoretically 37 years ahead. No plans so far to buy property in the future, in a couple of years I’ll investigate the topic. Mandatory for me is to be able to switch provider as a better provider offer (and opportunity-cost-wise) joins the market; invest the full tax deductible amount (currently permit B, in 2023 permit C, current expected tax return CHF1400); reinvest the tax return each year in private investments (talk about this later). -
2nd WORKFLOW
Apart from the CHF6883 for pillar 3a, I’d like to put at work another ca. CHF24’000/year + yearly 3a tax refund with a broker. I realistically plan to open this workflow from ca. Jan 2022. This won’t be trading. This would ideally be a strategy of mid-term investments with a cost-averaging of ca.24K yearly budget to allocate with flexibility if, when and how strategically worth it.
*First questions: do these previous points turned up your noses? Anything you would consider already wrong/improvable? *
Second question: having 5 different providers would allow me to start fully split. I know that in the future I can merge 2 accounts, but never split. That’s why… Further more, if today I would have providers A, B, C, D, E (being A most competitive and E least competitive) and tomorrow the new provider F is the most competitive in the market, I would transfer the account with E into F provider, keeping the others untouched. Is this generally a good idea?
Instead, if I would open 5 portfolios with Finpension only and 2/5/10/20 years from now the provider “F” is better, then I would be forced to either move all of them to F or to stay with Finpension. Is that correct or I missed something?
- Products considerations:
For pillar 3a, I would prefer to stay with proposed solutions rather than customize portfolios (unless you guys know that they are really under-performing/under-optimised solutions).
I read a lot on the Finpension and Viac 100ish solutions and I find them attractive.
I am unsure on whether 100ish or 80ish solutions would be my favourite ones. I have influences from my father (long time investor) about preferring the 80ish (with ca. 20% on bonds), but I don’t know. Looking for your thoughts here.
Finally, again I’ve been given from my father 3 funds name suggested.
They are:
Wellington Global Quality Growth Fund USD Class S Accumulating Unhedged
Isin: LU0629158030
CPR Invest - Global Disruptive Opportunities Class A EUR Acc
Isin: LU1530899142
Morgan Stanley Investment Funds - Emerging Leaders Equity Fund A
Isin: LU0815263628
If I would private investing (IB/Degiro/etc.) in products as similar to them as possible (or even on them directly), what standard/customized strategies with pillar 3a should I follow in order not to double invest on the same securities? I would not like to increase overall strategy risk just by using different money workflows that rely on 100% same products… I hope I’m being clear.
My target:
If my pillar 3a accounts overall in 37 years would perform an avg. yearly price return of ca. 7 (%) I would be satisfied (I mean…if more absolutely better )
Thinking long-term, what would you consider a fairly confident idea of yearly%return?
Thank you all for your contributions, comments, answers and questions to me that I will gladly reply to give more clarity.
I look forward to you guys.
Cheers
Lupeter