I just set up my account for this forum and introduced myself over here. So I thought why not make a post right away to get things rolling!
Before diving into the actual topic / question of my post I first want to provide you some background about my current situation:
I’m 26 years old and work in Web Design both part-time (40%) and as a freelancer (60%). Since I’m earning more than SFr. 21’150/year at my part-time gig, I’m also connected to a “Pensionskasse” (2nd pillar) and I’m not allowed to put more than SFr. 6768/year into 3a. Giving up my part-time gig is (currently) not an option.
Now since things are going pretty good - both at my part-time gig and as a freelancer - I’ve made quite a decent income last year and will be in the same situation for this year. What I had to learn the hard way: high income also results in higher taxes. Well, I knew about it beforehand but was still very surprised about the actual number that I had to pay for 2017.
So I thought about how to lower my taxes and invest more money for my future at the same time - after subtracting my maxed out pillar 3a, freelance expenses, etc.
The 2nd pillar seems like a pretty good option for that. But to be absolutely honest I’m not 100% sure if it’s a good option and how much I should / can buy every year. I read through several articles online (for example https://www.123-pensionierung.ch/de/pensionskasse/pensionskasseneinkauf/) but I’m still not quite sure about how this all works.
- So basically would you recommend doing volunary 2nd pillar purchases to lower taxes?
- How / where can I find out if I’m allowed to do so and how much am I allowed to buy every year? How much does actually make any sense?
- Is there anything else I need to pay attention to, regarding voluntary 2nd pillar purchases?
- Are there any other ways to lower taxes you would recommend, in addition to 2nd pillar, 3a and daily business expenses (like food, travel, etc.)?
As I already mentioned, I’m still trying to figure out this whole FI thing. I’m sorry if these are some very basic questions and even more so if they were already answered in another post. I’d be very grateful if you could point me into the right direction if that’s the case.
I’m really looking forward to your answers.