Saving and investing for retirment for a silver fox

[glina]

@Nena

I’ve been reading a few of the guides, but I don’t seem to make head or tails of it.

But where do I start?

I guess none of the answers above provide an easy to follow solution you may have expected. The reason is simple, it doesn’t exist.

I’ll drop some bullet points, ordered by priority which I would use to approach your retirement planning.

1. Forget 9000 CHF/month. Unless you have already accumulated the capital Julianek has quite accurately calculated, it is highly unlikely you can save that much.

2. Your retirement spendings are likely going to be lower than they are now as well as the tax load will be lower. Try to make a more realistic plan. How about 6000 CHF? Can you arrange your life to live on that in 10y from now? If your investments yield better, great! Best if you start reducing costs now, so you can profit from savings later.

3. Your AVS and Pillar 2 contributions will likely account for around 3500-4000 CHF in expected retrement payouts. You can easily pull these numbers from AVS and your Pillar 2 insurer. This will give you an idea what kind of gap you have to fill and then act. You may only need to get 2000 CHF from your investments. Sounds much easier, doesn’t it?

4. Did you invest in Pillar 3a? If not, it is never too late. The provider of choice around here is VIAC (www.viac.ch). Considering your investment horizon (10y) I would recommend a more conservative approach. The Global 60 strategy would be my pick. The majority of returns will come from tax savings.

5. Speaking of tax savings, when you pull out your Pillar 2 statements, see if you have room for voluntary pay-ins. These can also be tax deducted and I would certainly consider this option to reduce your tax load as you approach retirement. Tax savings are guaranteed returns on capital (unlike stock markets).

6. I’m not sure I’m reading you correctly, but you may be reluctant to go into the world of stock brokers and individual purchases of financial securities. Perhaps you are the right client for a robo-advisor such as True Wealth ?

[OogieBoogie]

As you see from the diversification of the comments, there are some things you need to think about and dive into this topic of accumulating wealth, retirement planing and figuring out how much can you save on a regular base monthly from now on (did you mention a number?). Why you need to get informed - because there will be decisions and responsibilities only you for your specific situation can judge correctly and you need to own those decision.

Would do the following.

• inform yourself by reading financial books, forums or watching Youtube channels.
• pay off any credit cards you might have.
• create budget with the spending and money you can put aside from now.

Read the “Stock Series” by JL Collings, it might answer some of your questions and fears.

Stock Series | jlcollinsnh

If you are frugal, you can put 50-100k per year a side. But the answers to that can only be shown by your budget numbers. The first few years the money will come anyway from your monthly savings. Once you have >300k then you will see a yearly jump by the investing returns.

Use a calculator tool and see how much your monthly save money might bring you with e.g. 7%. Be aware that with your short time horizon of 10 years, those average % number might be totally wrong.

Look out for a bank or broker, where you can invest your money. Preferably holding the cost side very cheap. Normally the classic banks are expensive and online banks cheaper. Most people here are using Interactive Brokers.

Compound Calculator:

Compound Interest Calculator - The Calculator Site

[xorfish]

You should receive around 28k PA from old age insurance, you should also receive a estimate from your current pension fund how much you will get.

Then should look at your current net worth. How much have you saved until now?

You listed a budget, but food, groceries, car and travel are missing. Why do you need 9’000 per month? With 160k per year gross, you currently net less than 9k per month after taxes.

• You need to get a clear picture of how much you spend
• You need to know your net salary after taxes.
• You need to look how much you will get at age 65 from your pension and old age insurance
• You need to list all your current net worth

Then we can assume that your expenses stay the same and calculate if you will have enough in retirement and if you need to invest some money. We can also look if your current spending is sustainable or if you need to reduce at least some of your expenses.

But without the mentioned information it is not possible to look if you have enough money in your retirement.

[1000000CHF]

@glina

Polish are naturally frugal :-).

I also don’t go crazy about savings. I pay my mortgage, own a car, eat and drink whatever I want, have awesome vacations with my son and an average of 4000-4500 CHF/month (taxes included) in spenidng is more or less in the right ballpark.

Same nationality, same family situation and same numbers here. Although when I was more hardcore in the beginning, I was keeping it as low as 3500 with two dependants. But it was a bit non sustainable long-term - at least to me.

[dom.swiss]

Hi @Nena
I second @xorfish for his advice on laying it all on the table. Pick someone you trust and discuss your finances with them. People in this forum are quite advanced with certain topics. If a dyscalculia is bothering you, formulas won’t work for you. There is also some FIRE people who coach for money. These few hours in a non-intimidating environment could be well spent.