I’m 22 years old, yearly salary of 72,500 CHF, and I’m still living at home, maximizing my savings which I invest into VT only since January 2024.
I’m able to save around 3’500-4’000 CHF per month, and I have 70’000 CHF already invested in VT ETF (with a cost basis of 61’000 CHF).
Other than that I have a 1 ounce Gold Krugerrand coin which has appreciated nicely in the last 10 years and I intend to keep.
I feel pretty happy and secure with my current investment strategy in VT, but I often get this nagging feeling that I should increase my risk, especially considering I’m young and have time on my side.
My main question to you all: if you were in my position, what would you do differently? Would you keep things as they are or make adjustments? Specifically, would you:
Start contributing to your 3a now? → Wouldn’t it make more sense till I have a higher Salary and then pay in retroactively?
Adjust your asset allocation to take on more risk, or do you think staying in a broad, diversified ETF is still the best choice? → I will keep VT of course, but other than that?
Any other general advice for someone in my position who’s trying to balance long-term growth with financial security?
I will still max out a 3a online bank account but not an insurance product.
You investment strategy is almost set and forgot.
I will invest in myself first. I am not sure if you have completed all your studies but aiming with a master degree or double degree could be the good time to maximise the chance to get a high position later.
You should find a field you love and not a job you want to retire asap.
your situation reminds me a bit of my situation about 20 years back. The good thing is that you have a healthy mindset and you will be good financially. In my view, its now time to focus on three things:
Make sure your family doesn’t somewhen start to think you were cheap. Its absolutely fine to stay with your parents at 22, but that is no long term strategy
Let your investments GROW with Time
Enjoy live beyond just saving and investing
My proposal: Make sure you pay your parents a fair share on rent, and give them an outlook that they can plan a bit ahead. Some parents enjoy the kids to stay aroung longer, others enjoy when they can have private times again in their flat ;). No need for action ow, but just have an open and proactive conversation.
Think about what you want to do long-term, in terms of passion and job. Be it that you proceed with a professional certification, go to university or just continue where you are. The fact is that you have a very decent salary for your age, and that you maintain savings discipline. This is a good indicator that you will be financially and workwise successfull no matter what. Hence, you can now take this cushiin of security and think about how your future career should look like.
Enjoy live, you don’t need to live on 20k when 22. I don’t mean that you put on your spendipants long term, but given where you are - how about taking 3-6 month language studdies somwhere at a nice place? It helps to get a clearer view from live and how you want to live it. It further gives your parents some breather now so that they start missing you, in case you later on e.g. return back to their home as you proceed with University or Studdies that keep you from leaving home for a longer time.
Ultimately… enjoy live! And don’t invest into 3rd pillar right now. IF the legal changes proceed, which is unlikely but could still happen, it would be a mistake to invest in your 3rd Pillar unless your salary was north of something about 120k.
You’re off to a great start. Just one thing for the future: Don’t get too attached to that savings rate. Eventually you should move out and start your own life. It will temporary kill your savings rate, but it’s worth it.
Do what you want, because in the end that’s what you’ll do anyway. Go on, FNGU is waiting for you
The truth is that few are ever in your situation, 22 with tons (relative to what most people not born with a silver spoon up their ass have at that age) of money invested and a very good salary, so even if you tone down your saving substantially it’ll have time to grow very nicely. If you’re Swiss then the filling the 3A is always a great idea, if you’re not then it’s more debatable.
Basically it takes 10 years of contributions before compounding starts doing any heavy lifting, and 20 years is the time it really takes off. Problem is when you’re 40+ like eg me, 40+20 = 60 years old, which (in my opinion) life is kinda over, the good bit anyway.
Essentially it’s very unlikely that anyone will become any kind of rich via vanilla index investing and compounding in less than 20 years, but you could be, so I’d say to you there’s no need to take more risk, if anything I’d tone down your saving and enjoy more. I’d give all the money in the world to be 22 again!
* Preferably on a medium with a longer decay time than an electronic hardware wallet. I hear paper lasts several decades, acid free probably lots longer.
I will look into Bitcoin but generally I am not comfortable with crypto, maybe a 2’000 CHF allocation to bitcoin similar to my Gold allocation.
Also the fun thing is that I didn’t change my lifestyle to achieve this savings rate, so it’s not like I changed my needs, I am lucky to always have had a savings mentality, even as a child.
7 Likes
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, tu confirmes avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/
Durch das Lesen und die Teilnahme an diesem Forum bestätigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
