Financial advice - what to do in my situation (medium-time investments?)

[jah122]

Hi everyone,

I am a bit unsure on how to manage my money, and I would like to hear your advice.

I'm in my early 30s and working in Switzerland since 6 months (B permit), and I have 2.5 years left on my contract. The contract is non-renewable (I work in a swiss university) and the only way for me to remain in Switzerland would be a career change, which I plan to do. I am currently alone but my gf will join me in 1.5 years; she wil need to find a job here. This information might be useful later.

Going back to money advice, I just managed to put enough money in my emergency found and time has come for me to start investing. Following the general advice here, I put some money in VT and CHSPI, but I am now questioning if this makes sense for me given my "uncertain" situation. I won't surely need these money for 2/3 years, after that I don't know for sure. If I don't find immediately a new job here after my current contract (which may be since I will need a career change to do that), I can use unemployment insurance for as much as I can, and after that I will be forced to go back to my home country (EU).

Hence my question: given the "long" lifespan of ETF investing (10+ years, right?), do you think it makes sense for me to continue putting money in them? What else could be better for me in my situation?

I was thinking about 2-3 years bonds, problem is I don't have a lump sum to put in them now as I save from my salary which I get month by month. Savings account have very low interests (2% max, as far as I could find) so are not very interesting. I'm genuinely without ideas.



Thanks a lot to everyone who will help me.

 

[cinbol]

@jah122 While ETFs can be great for long-term growth (think 7 years +), they may not be the best option if you anticipate needing the funds in a few years.

Considering your timeline of 2-3 years, short- to medium-term investment options would be more suitable. Since you don't have a lump sum to invest in bonds at the moment, you might want to explore other options such as:

High-yield savings accounts: While interest rates may be low, they provide a safe and easily accessible option for your savings.

Certificate of Deposit aka Term Deposits: This could offer slightly higher interest rates compared to regular savings accounts, but your money would be locked in for a specific period.

Short-term bond funds: These offer higher returns than savings accounts and can provide some diversification, but still carry some risk.

Given your uncertain situation, it's important to prioritize liquidity and capital preservation over potential returns.

 

[jah122]

@cinbol Short-term bond ETF funds sound interesting actually, thanks. Are they taxed as income (as for bonds), or as stocks (so no tax)?

 

[cinbol]

@jah122 See the comments of this post.

https://thepoorswiss.com/bonds-funds/

 

[oktheology]

@jah122 Given your specific circumstances, it might be beneficial to consult with a financial advisor who can provide personalized advice based on your goals and risk tolerance. They can help tailor a strategy that addresses your short-term needs while also considering your long-term financial goals.

Another consideration could be to diversify your investments by spreading your money across different asset classes. This approach can help reduce risk and optimize returns. You could explore a mix of short-term bonds, high-yield savings accounts, and maybe even a small portion in ETFs for long-term growth potential.

Since you mentioned the uncertainty of your situation and the possibility of relocating back to your home country, it's important to ensure that your investments are liquid enough to access in case of any unexpected events or changes in plans.

Additionally, staying informed about the financial markets, economic trends, and investment opportunities can also help you make more informed decisions about where to allocate your funds.

Remember, it's crucial to align your investment strategy with your specific goals, risk tolerance, and time horizon. Taking a conservative approach while remaining flexible and adaptable to changes in your circumstances can help you navigate this period of uncertainty more effectively.

 

[jah122]

@oktheology Is this answer automatically generated?

 

[oktheology]

@jah122 What part makes you think so?