Advice needed: 75k on a PF current account

[anviet212]

Hello!

I am 38 years old, living in Geneva, and earn 105k/year (gross).

I've never been particularly interested in managing my finances. However, my partner and I are planning to buy a flat within the next 5 years.

The only step I've taken so far is opening a 3a account (Postfinance) with 14k in it.

I currently have 75k in a current account (Postfinance).

I would like to invest part of this money. While I'm not completely risk-averse, I want the majority of the investment to be on the safer side.

What would you do in my situation? I am open to any suggestions, including changing banks, investment strategies, etc.

Thanks!

 

[vinniesdad]

@anviet212 The 3a account you might want to switch to VIAC or Finpension which offer good 3a products at a lower cost than Postfinance (message me if you want a referral code for slightly improved conditions). Might save some money.

The 75k you can place in a savings account in another bank for 1.7%+ return. If you want to diversify a bit, you could put a quarter of the amount into a swiss stocks ETF such as SPICHA which should slightly increase your estimated return. Trading ETFs with Postfinance is cost efficient (individual stocks not so much: high commissions).

 

[cgomez]

@anviet212 Saying that all of your saved money is sitting at Postfinance already implements that you are not really interested to manage your finances .

If you want to invest it within the next 5 years no stocks eft, i agree with that.

Have you ever went through your monthly expenses to see how much money you could save extra per month?

 

[anviet212]

@cgomez Thanks! I need to go through monthly expenses. Unfortunately, for the moment I am not saving much (a kid, high rent..). But I am sure I can do better

What options would be better than Postfinance? Any recommendation?

 

[cgomez]

@anviet212 WIR and bank Cler are offering 1.75 or 1.8% Zins on the Sparkonto atm, not sure what you get at pf.
That should be a no brainer.
Paying taxes in advance also gives you a good % of Zins.

And a total yes to a “Budgetplan”, the earlier the better.
My brother bought property and they went over the finances later again, so now he is trying “cheap” coffee

 

[charismaticlady]

@anviet212 With less than 5 years, there is not much you can invest in Switzerland. The best would be to keep it in a savings account. However, if your horizon is more than 5 years, then please invest in an index fund or ETF with Interactive Brokers (cheap but complicated) or Degiro (a bit more expensive but easier) or TrueWealth (a bit more expensive but super easy).

 

[empta]

@anviet212 If you are willing to take the risk of exchange against USD or EUR, I would suggest some bonds expiring within the next 5 years. You might enjoy a solid 4.5%/year and you will have your money back just in time to buy that flat. In the meantime you might wanna pray for the CHF not to get stronger.

 

[bananapitt]

@anviet212 Gold

 

[mamak]

@anviet212 The PF 3rd Pillar funds suck. They are active funds with high TER costs. Close it and move to FinPension or Viac. Since you are young I would opt for a 100% stock fund. Same for the 75k sitting on your bank account. Open an account on IBKR and buy a low cost world diversified US domiciled ETF (like VT). One of the great benefit of living in CH is that you won't pay any capital gain tax (and you will also get tax credit for taxes paid on dividends in US). Have a look at the blog: thepoorswiss. PS. Neon bank offers some kind of free ETFs even if costs are higher than IBKR
Don't buy the apt. It's not a smart investment in CH.

 

[deegee823]

@anviet212 If you want short terms invest with a good returns, there is real estate crowdfunding platform (dunno if I can give names?) that give you some opportunities to invest several thousand for a short terms periods. (5 to 6% apy for a 14 to 24 months investment periods)

 

[iceqube]

@anviet212 While it might not be the most conventional advice, I'd recommend dividing your investments into thirds: one part in your bank account, another in a debt fund, and the rest in an index fund. If the market experiences a downturn, consider shifting more of your investment into the index fund.
Feel free to DM if you want to discuss more.

 

[austins3991]

@anviet212 I'd consider throwing a few k into crypto also. You'd be surprised what even a few hundred francs can be if put on the right shitcoin

 

[vinniesdad]

@austins3991 A few k of shitcoins seems too risky for this person’s risk profile I think

 

[squirrel09]

@anviet212 Bitcoin