How do you deal with your parents retirement planning?

[jesuslovesmel]

@chuatnhat What is it ?

 

[chuatnhat]

@jesuslovesmel What is what?

 

[jesuslovesmel]

@chuatnhat VZ

 

[chuatnhat]

@jesuslovesmel You can take that question to google (or read the other comments that answer the question already) instead of asking people

 

[jesuslovesmel]

@chuatnhat I could. And every post on Reddit could be a Google/library search. Every question people ask could be a personal research. Why do we botter talk each other you're right ! Seriously you could use the time you spend on your mean message to answer me

 

[hellopeople]

@jesuslovesmel Vermögenszentrum

 

[jesuslovesmel]

@hellopeople Okay thanks !

 

[ben77]

@jaz2001 Should not that discussion have happened like 20 years ago?

 

[bod2411]

@ben77 Yeah 5 years is not really early.

 

[michunt]

@ben77 A lot of the decisions (e.g. withdraw second pillar or not) dont need to be made early. Its maybe not about how to build wealth, rather how what they have can best serve their needs in retirement.

 

[strobertofsalzburg]

@jaz2001 It depends on their situation: I did the same with my parents a few months ago and here are the keypoints :

• they will have 1st pillar revenue
• they will both choose 2nd pillar revenue
• they will reimburse the whole mortgage
• they won't invest in anything (Swisslife already tried to propose them to transfer their 3A into one of their shitty products)

Basically, they want to enjoy retirement and don't want to stress themselves.

 

[forwardslider]

@strobertofsalzburg I mean they could totally invest into some nice dividend ETFs. Seeing how easy that is you can even help them set it up. These ETF are very stable and pay out a decent dividend that helps cover the loss of income. There would also be bonds for super stable income.

 

[escuej1]

@forwardslider VHYL or whats your pick?

 

[forwardslider]

@escuej1 I prefer SCHD (I invest monthly 33% VOO, QQQM and SCHD)

SCHD did 50% past 5 yrs while VHYL did 10%

 

[escuej1]

@forwardslider Well, it wouldn't be for myself but a part of my dad's pension money.

Performance is not that important but nice to have and he will not open an IBKR account (assuming yours is only buyable on there).

 

[forwardslider]

@escuej1 I mean if performance doesn’t matter you could also check out a REIT like $O. They pay consistently dividends (monthly even) at around 5.5-6% with current price. Performance has broken down a bit since COVID and inflation + interest hike.

 

[escuej1]

@forwardslider I'll let him know. Thanks for your time and tips.

 

[bod2411]

@forwardslider Why do for a Dividend ETF? You'll just pay income taxes...

 

[forwardslider]

@bod2411 Since they are retired they don’t have any income and therefore will pay very little on it. For me personally it’s more diversification (it’s not like 3% yield is huge) but the overlap between VOO and SCHD is super small.

 

[bod2411]

@forwardslider

Since they are retired they don’t have any income

That's just not true, 1st Pillar and 2nd Pillar are both income.

And almost no deductions.