IBKR vs Pillar 3b

[georgewaini]

@branden What is the tax-free part that you mention?

 

[cindergames]

@branden Can you name such a product? Would be interested, if a good 3b product would exist.

 

[bulletproof3]

@georgewaini no no noooo. Forget about 3b.

In Switzerland you don’t pay capital gain tax when you sell your VOO.

With 3b you don’t get the income tax deduction like you would with a 3a. And most importantly your long term returns will be greatly diminished.

He may give you some tax advice but not good investment advice.

 

[quant]

@georgewaini Are you sure your advisor wasn't talking about 3a? Do you already deposit CHF 7056 yearly into an 3a account?

 

[georgewaini]

@quant Yes, pretty sure. I already invest in pillar 3a

 

[evietheturtle]

@georgewaini You might want to look for a different tax accountant... if you even really need one.

This one is clearly trying to sell you a life insurance by abusing your trust.

 

[emekonnen25]

@georgewaini I know people in the comments are saying there are no tax advantages to the 3b pillar, but depending on your canton they do exist. AFAIK, Geneva has 2.2k CHF deduction if you have a pillar 2 pension, 4.4k CHF in not contributing to either the pillar 2 or pillar 3a.

I would say do your research, if you would like a place where you can do "forced savings" by having the monthly amount be taken out of your account + possible tax deductions (esp if you know you're going to be paying wealth tax) + insurance, it might be worth it

ofc in the 3b the returns will be lower since usually a good percentage will be in "guaranteed return instruments" (around 20% maybe??) + plus bank/insurance fees, compared to just setting it in an index fund in IBKR or somewhere else.