I am thinking about switching to value and selling VT. I feel that the growth cycle is distorted compared to reality, and a massive correction could occur (also election year in 2024).
On the other hand, values seem to be in a buying zone. In this regard, I am reflecting on whether I should sell the VT and reposition VTV.
You might also be interested to look into AVUV for US AVDV for international and AVEM/AVES for EM for smaller caps value.
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2024 would be year of major expenses for us, since we make downpayment for a House.
Plan is quite simple
- Pay in to Pillar 3as
- Raise cash by increasing savings
- Invest bonus into VTI/QQQ (80/20)
- Replenish Pillar 2 which was withdrawn for home purchase
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Thought I’d share my plans for 2024 here as well, sort of as a commitment to follow through with it no matter where the markets are headed 
- Max pillar 3a with VIAC
- If there’s an upswing, sell some of my crypto on the way up
- Reduce cash positions (only keep an emergency fund going forward)
- Sell my position in an actively managed fund (TER is eating my profits up)
→ Put it all into VT, maybe some QQQM (90/10) and grow the position steadily
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my turn for keeping a commitment in 2024:
Cash pile
- comfortable at the current levels (about 1 yr living expenses)
Stock pile
- pulling trailing stops on the high flyer growth picks
- buying more of the value picks if they tank
- admitting that I’m not better than the market and slowly DCA-ing into VOO
3a pile
- Opening a 3rd account with Finpension at a not-yet-determined strategy
Crypto pile
- I’m pretty risk-averse for crypto, so I’ll let my miniscule BTC asset appreciate into the moon
“wife” pile:
- keep pushing her into VT DCA like nothing happened
“Me” pile:
- splurging for a newish fancy tracktoy/family wagon that is absolutely unnecessary but it’s such a heartburn that I gotta have it like #johnnybravo
I see some chaising of past performance.
What happened with all these people who wanted to buy energy in 2022?
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they saw QQQ swoosh by like there’s no tomorrow 
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People who bought high? Probably holding on until the recession and oil stocks tank so that they can sell low…
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Im going to introduce some margin (20%) to my portfolio to get a bit more home bias and a small portion of a chf hedged etf. Scott Cederburgs study and the Rational reminder podcast episode inspired me to that. I’ll also add some managed futures in kmlm (hail ictax for zero tax on that) and will add a portion of RSSB
it’ll probbably end up looking like this:
| 75% | world factor tilted (1/3 small cap value and combo out of Avantis (for US and EM) core + scv and Dimensional (For developed ex US) core + scv etfs (AVUS/AVUV/DFIC/DSIV/AVEM/AVEE) |
|---|---|
| 15% | home bias SPMCHA |
| 10% | world chf hedged ACWIS |
| 10% | RSSB |
| 10% | trend following KMLM |
This will come out as:
| 130% | 110% | 10% | 10% |
|---|---|---|---|
| total leverage | Stocks | Bonds | trend |
Margin will be 20%
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Stop deceiving myself and switch the stocks market benchmark to: MSCI ACWI IMI Net total Return in CHF, as calculated by MSCI, adjusted for inflation in Switzerland.
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Do you have formula or something I can paste in my google sheet? 
Hi! Can you explain this better ?
(I’m also happy to read any link related to this.)
I assume he makes buy ins with the dividend income. The dividends increase taxable income and the buy ins decrease taxable income.
Exactly as Burningstone mentioned. Its just mental arithemtics for me, instead of re-investing dividends, I take the sum and buy into 2nd pillar, since I have a) high margin tax due to high income b) big available voluntary purchase. My thinking is simply the dividend pot grows as I keep getting older and I pay more into the 2nd pillar, over time. With 41% current margin tax rate and good pension plan, it makes sense for ME.
The same as it was last year, keep a cash pillow, max 3A in Finpension (and transfer to Finpension from insurance company with 45% loss), keep buying.
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Pretty much unchanged except that I can increase my contributions in 2024 somewhat:
- Max out pillar 3a
- Continue to invest in 3 funds portfolio (80% vwrl / 10% vfem / 10% chspi)
I think about possibly decreasing emerging markets vfem from 10% to 5%, as the index is clearly lagging behind world and swiss indexes. Seems like throwing money out of the window and I have somewhat lost my hopes it will eventually come back. Any thoughts on this?
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I am quite a newbie, hence I’ll stick to what I started doing last year:
- keep buying VT with what’s left of my monthly salary
- max the VIAC account I opened last year (Global 60/cash, 'cause I am not sure how long I’ll stay in CH)
I have a couple of outstanding issues to take care of, though :
- what to do with my first 3a account (1.4% fixed)
- decide if I want to buy a Swiss ETF (home bias yes/no)
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Correct me if I’m wrong, but by being invested in VWRL you have some emerging markets in that index already (~10%). → 10% out of 80% allocation is 8% of your portfolio. Additionally, you have another 10% of your portfolio in VFEM, giving you a total of 18% exposure to emerging markets.
You could sell your your whole stack of VFEM and put it all into VWRL, giving you about ~9% exposure to emerging markets (which is much more reasonable in my opinion).
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I’m uncertain about the accuracy of the numbers you’ve presented. It’s advisable to verify the weighting and specific allocation of VWRL and VFEM. There might be overlapping investments in the same companies between the two indices. A single allocation to VWRL seems more suitable for simplicity and cost efficiency, as the percentage appears likely to be lower than 18%.
I see the same upsides in KMLM as you. I also think the 1% ER is offset by the zero tax basically. Say compared to a Bond fund with for example 3% yield, where 0.75% is already going away to taxes.
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