My corporate career is done and I’m on to self-employment. With a US and Swiss passport (single no kids), what do you recommend for long-term inflation-beating returns for rolling over my pillar 2. On a risk scale I’d say I’m 4 out of 5 (high risk). It’s sitting in a Kantonalbank and I’m looking at pension or market investments there - but how do I find other options? It needs to be simple as it will sit there for 15+ years. Thanks for any tips or advice. Links help!
both finpension and viac offer a wide range of funds in their vested benefits products.
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Hmm, I assume you mean for vested benefits? Not quite sure what the options are and if beating inflation is even possible.
I guess you’ll want to avoid PFIC, so that rules out all the usual options with equity, assuming this kinda works like 3rd pillar there’s probably no option beyond a bank vested benefits (with 0% interest). Maybe check the default fondation (FZK Vested benefits accounts - Stiftung Auffangeinrichtung BVG), that may or may not trigger PFIC.
Ideally you’d cash it out to avoid those headaches.
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This issue is that all those funds are not suitable for US folks (they need US domiciled funds to avoid tax issues).
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Would this likely be the same as my Kantonalbank holding this with same low return? Or what would be the advantage of going here to the link you shared?
Cashing out would have direct tax implications, right?
From what I understand your Kantonal bank (or postfinance, etc.) is considered just an interest bearing account and is fine for PFIC.
(but I’m not an expert, you might need to find some CH/US tax advisor at some point)
You’d pay swiss tax (usually fairly low amount), afaiu on US taxes you might have to pay on the capital gain (the employee/employer contributions should have already been declared/taxed while you were working if you did thing as expected).
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OP, you can find few relevant discussions on this forum searching for “PFIC”.
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