I will soon exit my employer without having another job lined up. I was thinking of moving my pillar 2 over to finpension but just realised it’s not possible to invest more than 85% of the money in equities (e.g. world index). VIAC seems to limit this at 80%. Are there any foundations/banks allowing 100% allocation to equities on a vested benefits account? Nothing in the law theoretically prevents from going to 100% but I can’t seem to find a foundation that allows to do this (I’m not interested in bonds, real estate – just want to have everything in a single world index ETF). Thanks!
Orthogonal to your question, but I’d recommend splitting your pillar 2 into two different vested benefits accounts (e.g. VIAC and finpension).
If you start working again, you can move one vested benefits account to your new employer and in the hectic of it all forget about the other vested benefits account and leave it with the risk allocation you like best.
Nobody will officially recommend doing things this way, but even certified financial advisors will … um, hint? … that you could do this.
If you don’t work again until your retirement age, you can withdraw the two vested benefits accounts in two different tax years, and thereby (probably) lowering your capital withdrawal tax rate.
Yes, thank you, that was the plan; finpension actually now has two foundations, to do the same thing – but again the overall allocation across all vested benefits accounts held, irrespective of provider, seems to not be possible beyond 85% unless I’m missing something.
You can put ReITS, gold and crypto fund in the remaining 14 %
They have Equity 100 (Pension) as a selectable strategy with 99% in stocks, so there should be a way to get over 85% equity, no?
I think if you have another vested benefits account elsewhere you can pinky swear to finpension, that your overall allocation does not exceed 85% equities and going 100% with them.
I vaguely remember reading someone doing this.
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Yes that’s the correct answer. Text from the finpension app:
Do you have accounts or deposits with other vested benefits institutions? Then you can count these vested benefits funds. When consolidated, an equity share of 85% may not be exceeded.
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Forgot to welcome you … 
… and I have another orthogonal question/remark that you surely already have thought about:
What’s your time horizon before either re-entering the job market (and moving one of those two vested benefits accounts to your new employer) or remaining unemployed until retiring and finally withdrawing those vested benefits accounts?
Obviously I’m asking the volatility risk question if you had to move/withdraw at the wrong time … (which of course is a risk that tends to become lower over time, but can be a bitch in the short to medium term).
Mostly I’m just curious, feel free to ignore the question.
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It is possible under certain circumstances.
All your vested benefits may not exceed the exposure of 85% in equites.
Very valid questions and thanks!
Options I’m considering:
-
getting back into enjoyment almost right away, minimising any volatility risk
-
moving abroad but not withdrawing anything till retirement 20 years from now
-
pre-retiring with some possible self-employment, not requiring any pillar 2 to be moved anywhere
In all those cases, I should be fairly immune to any volatility risk. So what I’m hearing is that apart from their own portfolio allocation options, finpension wouldn’t allow - but wouldn’t verify - an allocation beyond 85%, even if I only want to invest in the world quality ex-CH fund.
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this option 1 doesn’t seem “risk free” to me, what if the market tanks and you have to possibly realise the loss while transferring the VBA to the 2nd pillar provider of your new employer ?
Correct, it’s not risk free. Plan is to be fairly confident to have an offer, even if not finalised, before making an allocation decision.
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Hello,
Maybe you can find more details in this article…
https://thepoorswiss.com/viac-vs-finpension-vested-benefits/
https://thepoorswiss.com/viac-vs-finpension-vested-benefits/
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