I have a quick question. My goal is to retire with an annual income of 120k… this being Switzerland, me living in Zürich and I having a family.
My original plan has always been “ah well, with a capital of CHF 4.5m and a SWR of 2.667% I would have the 120k. From that I can pay all my taxes and living expenses. Taxes shouldn’t be much higher than when I work.”. Now I found out about the capital tax which is a major hindrance which I stupidly didn’t consider.
I built a nice Excel Spreadsheet and found out that I would need CHF 7m to retire on an annual income of 120k in Switzerland. That was a shock! That’s almost double what I planned for.
120k income (assuming the worst, everything is dividends) from CHF 7m results in -> 16’879k capital tax, 10’266k income tax, 2’714 church tax (that I can get rid off), local multiplier of 119% -> 62.1k in taxes per year! That halves my income!
I know this is a calculation assuming the worst. No deductions whatsoever. But I have always been the cautious type. Is this in line with your expectations? Or did I forget some other costs that would pull my required principal even higher?