Question about the 3rd pillar

[toesockshoe]

Hi guys,
Been wondering for a moment if it’s worth it makin a 3rd pilar or just invest in more ETF?
Most of the proposals i got have an expense ratio of 1.5% to 2.0% and with an interest of 3.7% that is a good interest it comes down to 1.7%-2.2% so i am just protecting my money from inflation (assuming 2% inflation)… what do you guys think and can you share a bit of your experiences?

Thanks

 

[p4z]

@toesockshoe I do invest all my 3a in ETF with VIAC and I remove 7K a year of tax because it’s 3a so I make money twice

 

[toesockshoe]

@p4z Can you explain it?

 

[rodron]

@toesockshoe What they say. It's a type of 3rd pillar that let's you allocate your 3a capital to stocks. So it's the best of both. That's what I meant with "why not both".

 

[toesockshoe]

@rodron Wow that’s genius! Sorry i didn’t understand i’m still young and learning so the if i invest the max possible in a 3a pillar i will be reducing my taxes and gaining more interest …. Can i chose what ETF to invest in or it’s VIAC that does it? Do you have any more tips for me

 

[escuej1]

@toesockshoe Here's a tip: Use the search function in this sub.

 

[toesockshoe]

@escuej1 How can i do that?
I’m new to reddit also

 

[rodron]

@toesockshoe You can choose a strategy, eg eco-friendly, region focuses etc. Not individual ETFs or stocks, but it’s very good and there are only marginal fees compared to a typical Swiss depot.

 

[toesockshoe]

@rodron Ok so you don’t have an regular 3rd piller with an insurance for example?

 

[rodron]

@toesockshoe Uh, never do the insurance one. Read up on it in this sub. It’s basically a scam.

 

[toesockshoe]

@rodron Ok, thanks for the help!
How can i read the «sub »?

 

[rodron]

@toesockshoe Just google „pillar 3a insurance scam?“ and it will pop right up. Also blogs etc

 

[toesockshoe]

@rodron Ok. But how do you know VIAC is not going to disappear in a few years…they are pretty recent from 2017. What make you trust them?

 

[cindergames]

@toesockshoe Way enough time to invest your 3a money 100% in the stock market. The expense ratio with the two solutions I mentioned is below 0.5%. You even profit from tax optimized pension index funds.

 

[rodron]

@toesockshoe Why not both?

 

[toesockshoe]

@rodron Because the interest that i get in etf investments is pretty high compared to 3rd pilar. And the management fees in ETF are very low (0.09%…)

 

[angelsoverme]

@toesockshoe So make a Pilar3 at Viac or Finnpension and invest your Pilar3 in ETFs.

If you pay quellesteure, it‘s not always beneficial to do it. You can only get tax back if you ask to declare your tax (as Swiss people are obliged to do) instead of paying quellesteure.

 

[cindergames]

@toesockshoe How old are you? If you have 15 or more years to go until retirement, you can invest your 3a pillar in index funds, for example with Viac or Finpension. That way you can profit from the tax reduction and from the stock market. If you have less years, you'll need to think about asset allocation, but Viac and Finpension also offer portfolios with bonds, Viac even cash.

 

[toesockshoe]

@cindergames I am 22

 

[toesockshoe]

So you think it’s better i invest in bonds or Viac rather than a 3a pillar, right?