Hello all! Been a reader for the past few months, this is my first post, let me introduce myself.
I am turning 30 in July this year, been working in Nyon since 2016, live between the Valais and Lausanne. Since beginning to work I’ve been living from salary to salary, often spending more than I actually made, while still sending the maximum amount to my 3rd pillars (more on that later). As I am turning to the 30s, I would like to live without having to see red numbers in my bank accounts!
I am looking to invest the mustachian way for my future!
I make CHF 90k per year, and after my recurring expenses (which I greatly cut since the beginning of the year) I am now left with approximately CHF 1 - 1.5k/ month, versus 400-500/month a few months ago (so I’m on the right track!)
Right now my main dilemma are my 3rd pillars, which I’d like to transfer to VIAC, here the backstory:
In 2016 I opened a 3rd pillar savings account at my bank, UBS very last minute (in december), where I put the maximum amount in order to deduct on taxes for my 1st professional year. It had an interest rate of something like 0.1% interest if I remember. My advisor at the time only offered me this option eventhough I told her I was young, liked risk and wanted best returns for my retirement, now that I think about it I dont understand why she didnt offer me a custody account tied to a fund (but their costs are very high for this). I found the 0.1% low and was told banks were always low compared to other institutions, but offered more freedom and flexibility.
So in 2017 I searched online, and found a “courtier”, so I went on and signed two 3rd pillars, convinced to go the insurance way because I wanted to “maximize” them with better interest rates compared to the bank’s savings account:
Retraites Populaires - a pension fund combined with life insurance:
I pay CHF 4768/ year into it. The interest rate varied between 0.5 to 1.0% since
In case of life when I hit retirement in 2055, CHF 197’171.00 are guaranteed
Zurich Assurance Life insurance tied to a fund, the excedents are currently reinvested into CH0116274009 “Leveraged Certificate on SMI”:
I pay the rest of CHF 2000/year into this one.
Guaranteed at the age of retiement in 2055 are CHF 58’050.10. They then present it in 3 scenarios:
“low return” 3.75% = 118’594
“medium return” 5.50% = 187’736
“High return” 7.00% = 274’489
At the time I took the Retraites Populaires one was the safe investment, and the zurich one was where I took risk for higher returns, all the while profiting from the split in order to save on taxes once I hit retirement. Unfortunately at the time I thought it was either bank or insurance. What are your takes on the two above?
Unfortunately at the time I was unaware of better products, such as custody funds or VIAC.
I opened an account and contacted VIAC, and they told me they would take care of transferring the funds over to them, all I have to do is fill out a form. Have any of you done this type of transfer directly with VIAC? I though it only worked between bank institutions, and not with insurances, but VIAC said they’ve done it with all types of institutions. Also do you advise I transfer both to VIAC?
Both of my pillars are “renewed” on the 1st of june 2020, so am I too late for this year? I cant find any delay for cancelling, both contracts however state that I may “rebuy” the policies once the first year payment has been made. I contacted both by email to see what the conditions were, and if the form sent via VIAC suffices. I dont mind “losing” some money if I change, as I want to max return with VIAC. I just want to avoid surprises. So any advice is appreciated.
I think its already enough for my first post I will share the rest once I managed to clear this up! Thanks in advance for any advice!
Look forward to sharing/ reading and meeting you all!