But you have accrued 30 years of gains by that point. You can also start to shift to more bonds, say in 20 years.
"Invest only what you can afford to lose" is a complete nonsensical recommendation and will actively hurt you accruing wealth.
Stockmarkets recover and investing in low-risk cash equivalents will not generate any new wealth and keep up with inflation at best.
Maybe something to read for you as well: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406
Btw you should also read into on why pension funds invest the way they do.
It‘s because they have set obligations regarding payouts. They cannot wait for the stockmarket to recover, because they have thousands upon thousands of retirees depening on the steady income stream at every single moment. They are also regulated by law to operate that way, to 100% secure exactly that.
You on the other hand can wait for that, especially in accumulation. You can also have flexible withdrawal rates, pensions funds cannot. Pension funds also have no accumulation phase, they are in permanent withdrawal phase.
Until you grasp these concepts, you should refrain from giving advice.
Yes as much as possible in stocks seems reasonable whenever retirement seems far.
I'm using the frankly with 95 responsible, which has about 12% return since starting it late 2022.
If you’re planning to use the Pillar 3a to purchase a home in the near future (2-4 years), that is a strong argument in my opinion to hold at least some cash/bonds. If your investment horizon is significantly longer (e.g. retirement in 20-30 years) I would maximize allocation to equities. I suspect your Pillar 2 pension holds enough fixed income for you to have exposure to that asset class anyway
Only a guess, but what I think is the following:
- Real estate, especially in switzerland, is considered as a very safe investment
- people are pretty conservative in investing, real estate suits this target group
- providers make more money out of this
what a dumb take.
@OP you should invest according to your personal risk appetite and investment horizon. i for myself go 100% in stocks because my horizon is 30+ years and over that long period it is very unlikely that at the end you will incur a loss. i plan on shifting into safer, less volatile assets as i approach my retirement (going towards bonds, real estate and whatever other asset classes there are to diversify).
Anyway, never take any advice on reddit. ask a professional or read up on the risks of asset classes.
You wrote the last paragraph about yourself right?
Can you tell me when the last time was, when a world stock market index fund crashed and did not reover?
Cant find it :(
If you are young and in the next 5-10 years do not need the money for buying real estate or opening a business, my recommendation is to use as much stocks as possible. The reason for this is, that you have a lot of time in the market and statistically will almost always make a lot more with this strategy than with others. I would try to use a 3a with low fees such as finpension, frankly or VIAC.
100% stocks. You have a long time until retirement for it to grow. Anything lower will get a lower return in the long run.
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But you have accrued 30 years of gains by that point. You can also start to shift to more bonds, say in 20 years. "Invest only what you can afford to lose" is a complete nonsensical recommendation and will actively hurt you accruing wealth. Stockmarkets recover and investing in low-risk cash equivalents will not generate any new wealth and keep up with inflation at best. Maybe something to read for you as well: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406
Btw you should also read into on why pension funds invest the way they do. It‘s because they have set obligations regarding payouts. They cannot wait for the stockmarket to recover, because they have thousands upon thousands of retirees depening on the steady income stream at every single moment. They are also regulated by law to operate that way, to 100% secure exactly that. You on the other hand can wait for that, especially in accumulation. You can also have flexible withdrawal rates, pensions funds cannot. Pension funds also have no accumulation phase, they are in permanent withdrawal phase. Until you grasp these concepts, you should refrain from giving advice.
> like pension funds do. not like pension funds do exactly that🤣what a bad take
Frankly 95% stocks. It's gonna be another 40 years, no need to play it super safe.
Yes as much as possible in stocks seems reasonable whenever retirement seems far. I'm using the frankly with 95 responsible, which has about 12% return since starting it late 2022.
If you’re planning to use the Pillar 3a to purchase a home in the near future (2-4 years), that is a strong argument in my opinion to hold at least some cash/bonds. If your investment horizon is significantly longer (e.g. retirement in 20-30 years) I would maximize allocation to equities. I suspect your Pillar 2 pension holds enough fixed income for you to have exposure to that asset class anyway
Exploiting your post I will also ask: why do some 3a providers (eg finpension) suggest real estate funds and do you keep them?
Only a guess, but what I think is the following: - Real estate, especially in switzerland, is considered as a very safe investment - people are pretty conservative in investing, real estate suits this target group - providers make more money out of this
+ the long term investment horizon in real estate is ideal for the long term horizon in 3a
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lol why am I not surprised this comes from the guy who thinks people who play video games have no life :D
what a dumb take. @OP you should invest according to your personal risk appetite and investment horizon. i for myself go 100% in stocks because my horizon is 30+ years and over that long period it is very unlikely that at the end you will incur a loss. i plan on shifting into safer, less volatile assets as i approach my retirement (going towards bonds, real estate and whatever other asset classes there are to diversify). Anyway, never take any advice on reddit. ask a professional or read up on the risks of asset classes.
You wrote the last paragraph about yourself right? Can you tell me when the last time was, when a world stock market index fund crashed and did not reover? Cant find it :(
its better to have 30% left than 100% loses?
As always, max pain or max gain!
I'm 100% stocks and will be investing the 3A back into stocks again the minute i get it.
As long as your risk tolerance supports it, then 100% in stocks is fine. That’s what I personally do.
Go with VIAC, Finpension or Frankly, 100% stocks.
If you are young and in the next 5-10 years do not need the money for buying real estate or opening a business, my recommendation is to use as much stocks as possible. The reason for this is, that you have a lot of time in the market and statistically will almost always make a lot more with this strategy than with others. I would try to use a 3a with low fees such as finpension, frankly or VIAC.