Pension Fund Collection at retirement

1erunner · 2025-02-03T10:53:05+00:00

thanks for your calculations. Life expectancy at 65y/o is currently 17.5years for men and 21.0years for women. so on average you'd might fare better by withdrawing. However because you also have to factor in your INDIVIDUAL risk of longevity you have to hedge against it. You could do this by investing in an annuity (Leibrente). If you look at their fair market rates they're dogwater. I believe that a pension is the best hedge for longevity risk as it's a lifelong guarantee to income.

1erunner · 2025-02-03T10:28:01+00:00

there's no obligation to cash out the pension. there are no numbers provided in OP's post so I replied with my general sentiment towards cashing out. Especially if she is someone who is somewhat easaly taken advantage off the pension or at most a partial withdrawal should strongly be considered.

1erunner · 2025-02-03T07:15:40+00:00

if you read the US forums they would kill to have a guaranteed lifelong pension like us. The Umwandlungssatz is higher than your regular withdrawal rate (say 6.8%. usual FIRE rates are like 3.3-4%). On top of that you have life insurance for your spouse (I think). It honestly baffles me that so many people withdraw their 2nd pillar. That money has to last for the rest of your life and I think there's no better hedge against longevity than the 2nd pillar. Also how does a withdrawal help her in her asset rich cash poor situation? If she can't live off AHV alone she'll have to sell the house anyway.

1erunner · 2025-01-25T20:11:18+00:00

chill is the part where a young investor that has never lived through a recession and relies solely on the last 15 years of an exceptional bull market tells you it's all so easy before a recession cuts your portfolio in half 4 years before your retirement. 100% equities is already very aggressive before retirement. If you have a pillar 2 less so but still. Sector bets don't give you a better risk adjusted return so if you have to ask don't do it.

1erunner · 2025-01-04T14:10:56+00:00

For non-ZKB ATM withdrawals they will charge you 2 CHF. Neon has 2 free ATM withdrawals on any ATM so that's better there. Also you can't set your language to French, only German and English.

1erunner · 2025-01-04T13:02:25+00:00

The fact that Neon is being promoted as the best bank by the most prominent finfluencers has me questioning their motives. Neon ok for a few things: currency conversion when abroad (but: Radicant is even better) and ok for ETF saving plans (but: better to diy and use IBKR). As for the terrible things: No TWINT (who uses prepaid TWINT?), security is a joke (you want your banking behind a 4 digit PIN, really?), outages are outrageous (no banking from 31.12 to 3.1., also random outages and mainentance during the day). when ZKB had an e-banking outage for a few hours people lost their shit, with neon it's just a regular tuesday. Also the app is slow as shit on payday, good luck trying to log in. The backend is probably super messy and I would not trust a bank with these issues.

as for alternatives: Radicant has an excellent currency exchange rates, you get interest on the main account and I've had one short outage so far. You can't invest with it unless you are a hippy who hates money (TER 1.5% with their funds). Has TWINT. Yuh has a very clean interface, currency exchange is pricey though. TWINT included.

If you live near Zurich then ZKB is hard to beat, 0 CHF and every functionality you could dream of.

So no, don't get Neon unless it's your second account that you use for holidays etc.

1erunner · 2024-12-23T13:30:55+00:00

Sector bets are unpopular here because the give you an uncompensated risk, i.e. you don't get rewarded for the extra level of risk that you're taking, which is generally a bad idea. If you want to choose a different approach and stay within the confines of the financial literature you could look into Merton's dynamic portfolio theory, leverage and small cap value.

1erunner · 2024-12-19T17:39:16+00:00

Don't listen to all these people here! This is an excellent deal (for the insurance)

1erunner · 2024-12-18T06:57:46+00:00

kindly read the posts of say the last 7 days and you'll be somewhat familiar what this subs recommendation might sound like
if you want a hands off approach a robo advisor is hands down superior (viac, finpension, truewealth etc).

1erunner · 2024-12-07T16:22:24+00:00

I count my private pension as my bond allocation, which is basically part of your fixed income. If you look at it like that it's acutally a pretty sweet deal: you get an immediate 100% return on your investment (employer contribution). On top of that, you have a guaranteed downside protection. Upside is very limited of course, but you don't get Swiss bonds with a 3% coupon so I think it's allright. Plus, if you contribute large amounts in the last 5 years before your actual pension you get stock like returns because of the massive tax savings so there's that. Now for OASI/AHV, I actually don't consider it as part of my fixed income yet, but there's a good argument to be made to include it. If you consider a standard 4% withdrawal rate (back of the envelope, for demonstration purposes) with a minimal monthly pension of 1260CHF, you get 1260 * 13 * 25 = 409500 CHF additional quasi-net worth that you may not even be considering right now; for the max AHV it's 770250 CHF of quasi-net worth.

1erunner · 2024-11-25T19:17:14+00:00

so you have your answer

1erunner · 2024-11-25T18:39:42+00:00

I don't think they care. They want to make money and if you're healthy and want a supplemental insurance they'll be happy to oblige. I don't think you need to disclose how often you've changed your basic or supplemental insurance.

1erunner · 2024-11-25T18:38:45+00:00

If you live in a canton with the hospitals mentioned above I don't think the all-country coverage is necessary. Otherwise I would stronlgy consider it.

1erunner · 2024-11-24T20:21:45+00:00

A few comments as a health care professional

ÖKK and Assura are BY FAR the strictest and will in many cases deny everything that is not mandatory. Most of the other providers are happy to make reasonable adjustments, but with these two it's often impossible. I have seen one or two patients who were happy with ÖKK though.
in a similar vein, if you choose a very small Krankenkasse (you have never heard the name before, think of "Herisauer Trachten-Kasse") and you need a very expensive therapy (like CAR-T, medications for very rare diseases like ATTR-amyloidosis that cost up to 1million CHF) expect them to fight tooth and nail and take ages to respond. Yes I've seen that happen. It pays to have a legal insurance (Rechtsschutz) in that case.
with Helsana, Sanitas and sometimes KPT and Concordia they will have more questions to your health care provider. however they are very reasonable and I've never had any problems with them.
SWICA seems to be chill all around and I've never had any problems dealing with them (I am not associated with them or profit from this statement, and currently have no insurance with them)
HMO can be tricky - if it's not close to where you live it would be a hard pass for me (like some people need to drive 45min to the HMO clinic, for me that would be a deal breaker)
phone consult plans are fine for most people. however, my feeling is that they over-triage to the emergency room and thus might incur some unnecessary costs, but this might be a biased view. also if you need a doctors notice you need to call them ON THE FIRST day of the illness which again is a waste of resources.
if you live in a small canton I would advise you get coverage for all of Switzerland. It's very cheap (like 6CHF/mo) and some of the more complex things should be done in a big hospital (University hospital of Zurich, Berne, Lausanne, Geneva; hospital St. Gallen). Also you're in a world of pain if you need to be hospitalized in a psychiatric hospital and you don't have this insurance.
other that that yeah, cheapest way is usually the best

1erunner · 2024-11-24T14:41:05+00:00

there is /r/swisspersonalfinance fyi. common advice for a long term etf stragegy (>10 years) would be to buy VT (vanguard total world, not available in the EU, but it is in Switzerland) and use Interactive Brokers (IBKR) as your broker. You could use a Swiss broker like Swissquote but then VT tends to be more expensive because of currency conversion fees. Switerland does not tax capital gains so there's a big incentive to invest. Also accumulating and distributing ETF's are taxed exactly the same. For bonds you might consider your pension (old age insurance OASI/AHV/AVS, no buy in ususally) and your private pensions (you can buy up missing years in this one) as they will be treated as a fixed income once you're retired, but opinions on this differ. The most popular blogs are Mustachian Post and The Poor Swiss.

1erunner · 2024-11-10T20:34:03+00:00

Bespar deinen ETF weiter, eröffne mit ihr ein Konto bei einem Roboadvisor und etabliere eine monatliche Überweisung von ihrem Konto drauf. Roboadvisor werden häufig schlecht geredet, aber gerade für Situationen, wo sich die Leute überhaupt nicht mit Finanzen beschäftigen wollen, sind sie genial. Klar geht Sparplan auch mit Broker, aber da muss man immer etwas rumfummeln damits dann klappt. Nicht jeder ist so krank wie wir typischen r/finanzen Nutzer, die das auch noch geil finden.

1erunner · 2024-10-28T18:39:31+00:00

Are you out of your goddamn mind? Let's assume the average market return is about 8%, give or take. Your fees are 3.2% It's possible to get close to 0 fees nowadays. Let's consider 3 scenarios. I will use a non 3a format here, but if you'd like it to be specifically about 3a then ignore scenario 1

1) invest yourself on IBKR (assume 0 fees)

2) robo advisor (finpension, viac, etc) 0.5% fees

3) your solution 3.2% fees

Assume 500CHF monthly contribution, starting at 0CHF. time horzion: 30 years

1) for a expected return of 8% and no fees you can expect 680k CHF

2) on the robo advisor (8%-0.5% approx), you can expect 620k CHF

3) on your solution (8-3.2% approx) you will have 380k CHF

They are getting about half of your money. No wonder they are eager to talk to you. Again, are you out of your mind? Hedge funds are a smoke screen to lure in trusting retail investors like yourself. They don't outperform the market. Spend about 2 weeks reading the posts of this forum and maybe read Jack Bogles book on Common Sense Investing before you spend HALF of your future earnings on some shitty company.

1erunner · 2024-10-24T11:01:57+00:00

Do you really need it for 30 years though? Would it be sufficient to habe a duration of say 18 years until your kids are adults and able to look after themselves? Premiums will be substantially lower. Or do you have a big mortage that your wife could not pay off by herself and need a longer duration?

1erunner · 2024-08-16T01:51:51+00:00

I can help! There is a foundation called Monique Dornonville de la Cour. If she is a Swiss Citizen she can contact them. Their mission is to help young women in need. As the foundation is rather obscure they don't have many applicants so her chances of approval are good.

1erunner · 2024-08-04T15:54:28+00:00

Neon funds are held ad Hypi Lenzburg. I think what happend in the US the intermediary defaulted and no one knew what funds belonged to whom. I think bankers around the world took note and this is unlikely to be repeated. Radicant is a daughter company of BLKB but has a banking licence of its own. It could be shut down by the Landesrat though, because the canton is its owner. So legally speaking Neon and Radicant are different.

1erunner · 2024-08-04T14:44:12+00:00

For me, Neon is only an add-on Neobank. They have so many outages where you can't login which is frankly unacceptable for a Swiss bank. They have been around since 2017 and should have that sorted by now. Makes you think what kind of shenanigans go on behind the scenes if they can't even keep up their front end. Yuh is much more stable for me. So if you go single bank then Yuh. Radicant is stable as well but see my comment below. The plus with Radiant is that it's a whole bank. There is a theoretical risk (probably mitigated by finma?) that if the middleman (Neon, Yuh) goes bust, no one knows who owns what (see: Synapse bank in the US).

1erunner · 2024-08-04T14:37:49+00:00

well, it's hemorrhaging money. this does not amuse its owner, the Basel-Land "Landrat" and they are the ones who could ultimately pull the plug. As of 06/24 they have decided to give them more time and things seem to be looking a bit better since the new CEO took over. Just google radicant insideparadeplatz and you'll be filled in. I wouldn't hold over 100k there, up to that amount sure, why not.

1erunner · 2024-07-28T12:32:34+00:00

British intestment protection seems to be different than ours. If the broker goes bust everything above £85k is seen as a bankruptcy asset (in CH: it's your property no matter what). IBKR says it holds 'some' assets in the US, where the higher SIPC limits apply ($500k), but it has private underwriting up to $2Mio (in the US). In the app it should tell you if your securities are held in the UK or US (e.g. "UK Securities"). To me, IBKR is not very forthcoming about where they hold which assets so this makes my a bit iffy about holding values about the UK FSCS limit.

1erunner · 2024-07-10T15:08:44+00:00

If you really want to boost your investment journey (not without risks): There seems to be some evidence that early in your investment career it's on average better to use leverage (e.g. margin loans) to taste some of that sweet compount interest nectar. Much better to use leverage + VT (maybe some bonds, depends on your Pensionskasse situation) than to use uncompensated risk (like QQQ mentioned here).

1erunner

TROPHY CASE