Not-so-long-term investmenst

Investing / Portfolios
1

Dear all,
suppose i have 50kCHF in cash, and i plan to spend it in 2 years.
what would be a mustacian thing to do?

let me generalize this to 0-10 years, which is a time horizon usually below the FIRE-investing.

on very short term, I’d just let it be cash. onthe very long term I put it in stocks. what is in between? bonds? in todays low interest environment?

where does the very short term end?

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Normally, intermediate term bonds would be a good middle ground, but with today’s CHF yields - forget it, central banks killed yields. In EUR and USD situation looks better though, maybe you can find something low risk in 1-2% range

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Here’s a potential 10-20% yielder idea, depending on how hard you’re taxed - Unterstützungsabzug. If you have a retired or disabled relative with laughable by swiss standards pension (under 15k p.a. will do) and whom you 100% trust with the money, you can make him/her a financial aid payment of 6500 CHF per year and write it off your income taxes. 6500 is the deduction for federal taxes, 2700 is the deduction for cantonal and municipal taxes in ZH (varies in other cantons), the payment must be at least size of the deduction for each tax level to claim the corresponding deduction. Must be done by an official bank transfer with confirmation, and swiss tax authorities can ask for some income confirmations too.

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Couple more small ideas:

  • prepay your expenses in advance - some businesses would give you a discount for it. For example. Assura gives 2% if you prepay insurance premiums a whole year at a time, so on average you’re getting like a tax free 1% return on investment here, if that’s something you can be bothered about. Don’t overshoot though if there’s a chance you might not need the service and there’s a no refund policy in place
  • generously prepay your taxes. In ZH, they’re paying 0.5% interest now on balances above the eventual final tax bill you’d get, tax free. If you prepay way too much they might return the money right away to avoid playing bank for you
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that’s some cool concepts, off the main stream investment. thanks for sharing!

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If you have room to spare, you can buy non perishing items for 2 years worth in bulk or pile up when they are discounted in your usual shop. You easily get 10-20% return depending on where you usually shop.

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Does this person need to live in CH?

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No.

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Reading the wegleitung from the Zurich tax office you only need to provide a declaration from such person that (s)he got the money:

“Wenn Sie einen Unterstützungs- abzug geltend machen, haben Sie mit der Steuererklärung eine Bestätigung der unterstützten Person über Art, Zeitpunkt und Höhe der erfolgten Unterstützungen einzureichen”

and that in addition proof of the transfer might be requested:

“Auf Verlan- gen sind ausserdem die Zahlungsbelege (bei Zahlungen ins Ausland Post- oder Bankbelege) vorzulegen.”

Nothing is said about providing information about the person’s wealth or income (or mental/physical state for that matter, but that is specified in the vegleitung as a requirement: “welche infolge körperlicher oder geistiger Gebrechen oder aus anderen objektiven Gründen erwerbsunfähig oder nur beschränkt erwerbsfähig sind.”)

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