My (32, F) goal is to become financial independent as soon as possible and to be in a position where I don’t feel like I have to work as much as I can all the time while enjoying some of the finer things in life (i.e. traveling comfortably).
I moved to Switzerland almost 10 years ago to complete my graduate degree. After several years of financial hardship, I started my own business and it has been rather successful for the past 5 years. However, as with any business, future success is not always assured. Initially, I just deposited all my money into my account until I was rather uncomfortable with the amount that I had in the bank (especially after reading that the president of the Swiss Federal Bank said that having a substantial amount of money in the bank just means that you are losing money daily). As such, I started to look for options to invest my money. I contacted a financial planner who charged me quite a bit and referred me to discretionary fund manager in Jersey who would have charged me 2.5% of my total assets annually so that they would invest my money for me. I quickly learned that this was significantly more than the normal rate after consulting with other firms in Zurich, since most of them were charging less than 1% per annum. When I checked their proposals, however, I saw that they would not allow for any customisation and that they would just be investing in ETFs for me since I did not have at least CHF1 million. With that information, I just decided to just do the investment by myself through IBKR. I have dabbled with IBKR before but I was never comfortable with putting in most of my assets in the platform and investing but now I am just diving in head first (and hoping for the best).
While I am married, our finances are completely separated and so I will only be discussing my income and expenses in this thread.
Pillar 3a (VIAC, Sustainability 80): 130,000
IBKR: 385,000 (VT: 52%, CHSPI: 20%, VWO:1.5%, VOO: 4.5%, Individual Stocks: 4%, Cash: 18%)
Property Abroad: 120,000
I do not have any debts but we do own an inexpensive car. I plan to invest 10,000 every month (ca. 30% of income) to ETFs this year as well as maximise my 3a (35,280CHF). If I have any leftover funds, I plan to invest this into ETFs as well. My savings rate is difficult to determine because my income varies monthly but it ranges from 10,000CHF to 40,000CHF per month. I would be comfortable investing 40-50% monthly but I have just allocated 10,000 monthly to ensure that I don’t stray, if that makes sense. My set monthly expenses are the following:
Apartment Rent and Utilities: 1100CHF
Office Rent and Utilities: 2000CHF
Health Insurance: 550CHF
Business Expenses: 500CHF
- Considering the volatility of my business, does it make sense to aggressively invest in this way? Is this even considered aggressive at all? (Information: I am in the service sector and I am being paid by the hour. If clients stop coming or do not come as often, I will lose a huge part of my income).
- I still have cash in IBKR and considering the volatility of the current market I am not sure whether I should just buy all of the ETFs now or wait it out and take advantage of DCA. I know this has been repeatedly discussed on the forums but I guess my question pertains more to the current volatility of the market.
- Would you have any suggestions for optimisation? Am I on the right track?