New to the forum (which appears to be very useful!). Wanted to start with an intro here in this thread.
50 years
- 4 million CHF liquid assets (3M in mixed bag of div yield and growth stocks, 1M in cash)
- 1.5M CHF in Pillar 2 (will be moving that to a vested benefits account shortly)
- 3.8M CHF house with 1.5M left on the mortgage
- Various other assets (gold, art, 3rd pillar, pensions from other countries, etc.) with a conservative estimate of around 1M CHF
- My wife is 15 years my junior (lucky me!) and works part time in a non-corporate environment - her networth all-in is around 0.5M
- So roughly 9M CHF in net worth in total
I’m in between jobs right now so only my wife is working which means less capacity to expand our assets. It’ll be a nice test for us to live just off of her salary coupled with me sweating the 3M stock portfolio and 1M in cash.
I make that sweat by
- collecting dividends
- writing cash-covered puts
- writing covered calls
Once I am employed again all that income (div / options) will go into savings again and we’ll also be able to save from our combined compensation as we really would not be able to spend our combined salary unless we do crazy things. Target is for me to retire at 55 (so 5 more years), my wife will probably work until 50 (so 15 more years). At that point, we do not want to eat into our assets, we want it to be fully funding our lifestyle just from passive income). Don’t want the hassle of buying / renting out real estate.
I’ve got the large cash amount due to a severance and keeping cash on hand for a downturn as well as the use of the cash to support writing cash-covered puts.
Regarding my 3M CHF stock portfolio - that’s 60 positions and I’ve concluded I want to trim that down to 40 (just sticking to high conviction stocks). I rarely buy stocks direct - prefer to write cash-covered puts so I can get them at a discount (or pocket the premium). Intend to also - for peace of mind and simplicity - gradually during the coming years (once employed again) build a similar amount in ETF’s - was thinking of initially month by month dipping into 2 Vanguard funds focused on non-US stocks (incl. a high div yield ETF) and after the upcoming crash (whenver it comes) taking a substantial position in a Russell 1000 Vanguard ETF to get growth exposure. Should add that my 60 current positions do include a tech ETF and a semic. ETF. Am not into bonds - just don’t have the natural sense to understand those.
The 1M in cash - while I hold that, does anybody have a recommendation on how to hold it safely AND generate income (even if 0.5%) AND have flexibility to dip into it for other purposes?
Re pillar 2, I’ll be opening a Finpension account (2 in fact) and still need to select which ETFs to put the $$$ in. I expect to be employed again in 3 months time or so, so this will not be a long term thing. Any advice?
Ultimately, I will stay in Switzerland for the rest of my life (my wife is Swiss). Life is expensive here but life is also just perfect. If I could design a country from scratch, it would look an awful lot like Switzerland! Hopefully, by the time we both are retired our networth will be around 15M+.