As your next vacation will soon be here, I thought it would be great to help you save a few tens or even hundreds of Swiss francs!

And I’ve nominated…

Card fees abroad!

Whether you’re planning to go on vacation to the Amalfi Coast in Italy, the Atlantic coast in France, or even the cooler climes of Germany’s Black Forest, you’ll have to pay for things in euros…

Likewise, if you’ve gone off to spend a three-month sabbatical cycling to Scandinavia or China (and yes, we Mustachians have rock-solid calves!), you’ll have to pay in a currency other than your usual CHF.

And if there’s one thing that traditional Swiss banks dream of doing, it’s emptying your wallet with card fees abroad!

What card fees are there when paying in a foreign currency?

You’ll find there are various bank fees when you pay for something in a different currency to Swiss francs.

1. The exchange rate

First, there’s the interbank exchange rate (also called “mid-market rate”). This is not in itself a fee, as this rate corresponds to the average “gross” rate at which banks exchange currencies between themselves, often for very large amounts. This rate does not have any margin or commission added. It’s the real exchange rate that you’ll find on websites such as Google or xe.com.

The bad news for us: banks rarely use this exchange rate, and instead use other rates.

The notorious exchange rate that can cost you a lot of money during your vacation abroad!

VISA and Mastercard rates
In general, banks use the Mastercard exchange rate (Mastercard calculator here) or Visa exchange rate, depending on your card issuer. Even though this exchange rate is close to the interbank rate, it already includes a small markup of around 0.5% maximum.

Exchange rate margin
But on top of this Mastercard or Visa rate, Swiss banks generally apply what is called an exchange rate margin, also known as exchange rate markup.

On your bank statement, if this information is transparent, you’ll sometimes also see mentioned “currency processing fees” or “exchange commission”.

This conversion markup added by banks to the interbank rate usually varies between 1.5% and 2.5%!

2. Fixed fees on transactions in foreign currencies

In addition to this exchange rate margin, some Swiss credit card issuers and banks then add fixed fees of around CHF 1.5 or CHF 2.5 per foreign currency transaction.

These fees are certainly applied to ATM withdrawals abroad, but it’s become less common for banks to apply them to transactions in a foreign currency.

3. Payments in CHF abroad (DCC)

And lastly, there’s our friend “DCC”, “Dynamic Currency Conversion”.

This is the trick that our bankers have found in order to “reassure” you into paying in your preferred currency (the Swiss franc), and ripping you off with new fees in the process…

You remember the last time that the Argentinian or Quebecois or German waiter handed you the terminal to pay, and you had the choice of paying in EUR or CHF (or any other currency combo)? Well, that’s the DCC model in action.

The notorious Dynamic Currency Conversion (DCC) in action

In practical terms, if you choose to pay in CHF (instead of the local currency), this is what happens:

• The local payment terminal provider doesn’t use the Mastercard/Visa conversion, but applies their own not very favorable exchange rate along with potential fees (with a markup that can be from 4% to 8% on top!)
• And there’s a risk that your bank nevertheless considers this transaction to be “foreign”, and applies its usual fees!
• So it’s doubly to your disadvantage

The general rule to follow is therefore ALWAYS pay in the country’s local currency to avoid hidden fees, and benefit from the Visa/Mastercard or other rate which is more advantageous.

Practical examples with payments in a foreign currency

Let’s imagine that we’ve got an exchange rate where 1€ gets you CHF 1.20, here’s what it would cost you for payments of 1'000€, 5'000€, and 10'000€ respectively:

Comparison of conversion rates for 1'000€, compared to the interbank rate:

Comparison of conversion rates for 5'000€, compared to the interbank rate:

Comparison of conversion rates for 10'000€, compared to the interbank rate:

Depending on your family situation and frugality, we’re talking about savings of a few tens of Swiss francs, or as much as several hundred francs!

And that’s without even doing anything with these savings!

Invest these savings and earn CHF over 10 years

Let’s start from the premise that over one year, you spend around CHF 10'000 in foreign currencies (vacation by the beach, weekends, internet purchases, and so on).

As you’re a Mustachian, you invest all savings in the stock market to make them grow while you’re sleeping and going about your business.

By investing these CHF 353.50 of bank card fees every year for 10 years, you’ll end up with CHF 5'240 more in your account in a decade! Thanks to compound interest :)

The best Swiss cards for paying the least

So, then comes the question of choosing the best bank card in Switzerland for paying the lowest exchange fees on your purchases abroad.

The best card for paying the least abroad: Bank WIR's Bankpaket top

Here are the exchange rates used per card, ordered from the best card to the worst:

1. Bank WIR debit card: interbank rate
2. Wise card: interbank rate (except if you don’t have enough in the currency, in which case they charge a 0.43% conversion fee — but you just need to plan in advance and always keep enough in the currency with which you want to pay)
3. Revolut: interbank rate on business days (up to 1'000 USD per month, then 0.5% commission), and a markup of 1% on the exchange rate on weekends
4. neon debit card: Mastercard exchange rate marked up by 0.35% with the “neon free” plan, and no exchange rate surcharge with the “neon plus” plan (CHF 20/year, if paid in a single installment for the entire year)
5. Yuh debit card: markup of 0.95% on the exchange rate
6. Certo! One Mastercard: markup of 1.5% on the exchange rate
7. Swisscard Cashback: markup of 2.5% on the exchange rate

If you regularly pay in a foreign currency, I therefore recommend that you open a Bankpaket top, and enjoy the benefits of their Mastercard debit card with its interbank exchange rate that doesn’t have any exchange rate margin.

The MP family’s choice

Our main Swiss bank has been WIR Bank since 2025. Thanks to their Bankpaket top, we benefit from the best exchange rate (with no surcharges) on their debit card for all my purchases in foreign currencies. This fits in well with our minimalist lifestyle as it allow us to carry only one card with us at anytime.

The Bank WIR Mobile Banking app for tracking all my foreign currency purchases with my Debit Mastercard

Conclusion

You just need to make a small smart choice (i.e., choose the best payment card) in order to easily save several hundred CHF per year on your payments in foreign currencies. And if you get in the habit of investing these savings, that’s several thousand francs that will end up in your pocket over the next ten years, with no additional effort.

So, before packing your suitcase for your next vacation, think about having a look at your bank card. A small change today, and you’ll travel with a lighter load tomorrow!

FAQ

Mastercard or VISA exchange rate?

With Visa and Mastercard cards, the exchange rates are very similar. The difference between the two exchange rates is less than 0.5% and, importantly, it varies according to the currency and the day of the transaction. Therefore, sometimes it’s Mastercard which is best, sometimes it’s Visa… but nothing significant over the long term.

And so, the choice between Visa or Mastercard shouldn’t be made on this basis. What really counts is to check the other fees linked to your card (like the exchange rate margin and the fixed fees per transaction).

PS: And if you run an LLC or Ltd in Switzerland, I wrote a dedicated comparison for business owners: Best business credit card in Switzerland 2026.

The boring middle is that long stretch in a FIRE journey where nothing spectacular happens anymore.

In practice, it’s discipline without the dopamine.

No more dopamine from cutting another expense, because you’ve already optimized everything. No more dopamine from opening a new IBKR account, because you already have yours. No more dopamine from getting CHF 50 as a welcome bonus after finding the best Swiss bank account, because that’s already done.

What’s left? Pure discipline. For a good ten to fifteen years.

I joined the FIRE movement in 2013. And this boring middle, I experienced it head-on. Except that, looking back, I didn’t just “get through it.” I spent years chasing replacement dopamine hits, until I found something much deeper.

Here’s how it played out for me.

2013-2015: the phase where everything is new (and exciting)

It all started with a simple goal: buying our own home. That goal made us realize this dream would stay just a dream if we did nothing about it.

And one thing led to another: we discovered YNAB for budgeting and its forum, then mrmoneymustache.com, then the FIRE movement, and then… I launched mustachianpost.com to document my FIRE journey in Switzerland. And here we are today.

The goal we set back then was to reach CHF 2'156'000 in net worth and become financially independent by age 40. If you’re wondering what I include in net worth, check out my article How to calculate your net worth in Switzerland.

Those first two years were pure euphoria. Every week, a new optimization. Every month, another expense we’d cut. Not all at once, because some had to wait until a contract ended, like our car insurance for example. It must have been late 2015 when we finished optimizing everything. But the dopamine was flowing. Every action gave a visible, immediate, rewarding result.

Our net worth went from CHF 48'500 in early 2014 to CHF 207'000 in early 2016.

When you’re in this phase, you think it’ll keep going like this forever. Spoiler alert: nope, it won’t…

2016-2019: the plateau and the first doubts

Once all expenses were optimized and the best investments were in place, we only had one variable left to increase: income.

That’s exactly what I did. I focused hard on increasing my salary. I gained knowledge in all kinds of fields, which helped me grow my skills and my pay. On one hand, it wasn’t boring at all, because I was constantly learning.

But on the financial side? The boring middle was rearing its head.

Nothing new to optimize. No more “quick wins.” The automatic transfers to IBKR went out every month like clockwork.

In terms of net worth, we were at CHF 217'000 in early 2017. CHF 292'000 in early 2018. And CHF 347'000 in early 2019.

It was going up. But slowly. Too slowly for a dopamine-hungry brain that had known the quick gains of the optimization phase. And also, too slowly to reach our FI goal of CHF 2'156'000 by age 40!

And that’s when something interesting happened.

In the middle of a hike at Schwarzsee, when you can't see the start or the finish

2019-2020: the mirage, COVID, and a blog reader

Around 2018-2019, I had the feeling that the goal was less than a decade away. And that’s a vicious psychological trap: when you sense it’s “close”, your brain starts believing it’s like tomorrow, or next month.

Except it’s a mirage. A mirage that moves one step further away with every step you take toward it.

And COVID in 2020 didn’t help. My motivation was really up and down. Some weeks I felt on fire (no pun intended), and others, my financial independence goal seemed so far away…

But in late 2018, something decisive happened. I met Thomas, a blog reader who was investing in rental real estate (hi Thomas if you’re reading this!)

Seeing him do it, concretely, inspired me to take the leap. We bought our first rental property. Then a second one. Then a third, which we still own today.

And I noticed a pattern that keeps repeating in my journey: what triggers me is seeing someone else go for it. It inspires me. And that’s one of the reasons I still run this blog, with my articles, my book, my programs, my net worth updates. Because the email feedback confirms the same thing: it inspires readers to take action. The virtuous circle.

Our net worth reached CHF 606'000 by the end of 2020.

Real estate had given me new fuel. A new source of dopamine. But was it really the right one?

2020-2025: value investing, or dopamine disguised as strategy

In 2020, I got into value investing. For five years, I followed company analyses through a paid newsletter, tracked undervalued stocks, hunted for bargains.

It was cool. Intellectually stimulating. And most importantly, it gave me my dopamine fix. Every purchase of a cheap stock was a little hit. “Look at this company at 0.6x book value. So awesome!”

But looking back, it was a lot of distraction for not much gain. Rental real estate had become my real “investment” dopamine source, with much better returns. And value investing, despite an honest 8.1% annualized return over 6 years, had become noise in my strategy. So I ended up stopping value investing to focus on what truly mattered.

The lesson I take from this: when you’re chasing dopamine in your finances during the boring middle, it’s a signal. A signal that something is missing elsewhere. Not in your portfolio, but in your life.

And while I was chasing those dopamine hits, something deeper was building in parallel, without me fully realizing it at the time.

What truly carried me: finding meaning before reaching FI

Writing is a passion I’ve had since I was a kid. I lost it along the way after high school, and this blog helped me rediscover it. In 2016, I made the conscious decision to commit to it. And since then, it’s only grown, fueled by reader feedback and the concrete impact of my words on real people’s financial decisions.

The blog and all the related projects gave me something that neither real estate, nor value investing, nor any return could ever provide: a deep sense of purpose. A reason for being.

Even if today I had to blog full-time (I mean without being FI, to earn a living), I wouldn’t see it as work. Writing articles, books, sharing what I learn. That’s what feeds me.

And looking back, every decision I made over these 13 years reinforced my goal, one way or another. Increasing our income. Increasing our returns. Finding creative ways to cut expenses even further. None of it was wasted. Even value investing taught me what I didn’t want to do with my life (read: being dependent on dopamine hits).

Our net worth grew significantly between 2021 and 2026, going from CHF 606'000 to CHF 2'146'000 at the start of this year. The snowball effect of compound interest in the stock market, combined with real estate and our growing income, did the rest.

Exponential growth is only visible in hindsight. In the moment, it’s a desert.

The view over Schwarzsee, when you realize how far you've come

And that’s exactly what turned my boring middle into something bearable: having found meaning alongside the financial machine that was running on its own.

What I wish someone had told me at the start

The boring middle in the FIRE movement is very real. Like in any long-term project. A professional skier aiming for the Olympics doesn’t get there in 3 months or even 3 years. It’s the project of a lifetime.

And the FI journey is the same.

I would have loved to know these three things at the start of my journey:

1. Be aware that the boring middle exists

The first step is simply knowing it’s going to happen. Naming it already takes away some of its power.

You’ve optimized all your expenses, chosen your investments, automated your transfers. And now? Now you wait. For years. And that’s normal. It’s actually a sign that everything is working well.

“The boring middle in the FI movement is a sign that you’re on the right path to financial independence.”

2. Find what feeds you for the post-FI life

The best advice I can give, beyond chasing raises and better returns (because yes, that’s still what’s making me reach FI soon), is to keep some of your time for exploring what feeds you on a deeper level.

And no, you won’t find it by mindlessly scrolling TikTok or Instagram. That’s too passive. Maybe 5-20% of your inspiration can come from there. But the rest, you need to practice. You need to be in the doing. You need to test in your real life whether you’ll enjoy doing something beyond 3 seconds of dopamine-boosted video.

3. Write down your “why” (and say it out loud)

Something you should dig into from the very start of your FI journey is the “why” behind this adventure.

I have the genes of a disciplined person. But without a strong “why”, “being free and independent” in my case, all the discipline in the world would have vanished after 4-5 years. I know this because I felt it in 2019-2021, when motivation was up and down and the goal looked like a mirage. What kept me from giving up wasn’t discipline. It was the “why” behind it.

My “why” is to be free and independent. Writing is what I do with that freedom. The two feed off each other, but it’s the “why” that keeps me on course when the sea is calm.

Because your “why” is what keeps you going when the dopamine stops flowing.

Your turn now

If you’re in the thick of the boring middle of your FI journey, or if you feel it coming, do one simple thing: write your “why” in the comments below.

Not for me. For you.

Expressing it to others is a first step toward making it real. And sometimes, that’s exactly what you need to cross the desert without getting lost.

He’d read my review of the Bankpaket top where I mentioned that the CSV export was a plus for syncing with YNAB.

Except in real life, Bank WIR’s CSV has a problem: the “Payee” field always starts with “Einkauf Debitkarte” (debit card purchase), followed by the date, the time, and only then the merchant name… Very readable, thanks engineers…

So YNAB can’t automatically recognize the payees.

But I found a simple technique to fix this:

Step 1: download the Excel file from Bank WIR e-banking

Log into Bank WIR e-banking, click on your “Bankpaket top” account, then click “Export to Excel”.

The Excel file of Bank WIR transactions (Bankpaket top)

This downloads a file called “Kontobewegungen-30.03.2026.xlsx”.

Step 2: prepare the file in the right CSV format

Two things to do:

1. Select all cells in the “Credit” and “Debit” columns and remove the currency formatting (replace it with “Number”) to avoid messing up YNAB later
2. Save the Excel file as CSV. For example on Mac, I use Apple’s “Numbers” app. I open the Excel file, then go to “File” > “Export” > “CSV”. This avoids format bugs down the line

Exporting the Excel file to CSV format in Numbers on Mac

Step 3: convert the Bank WIR CSV to YNAB format

Next, run the CSV file through the CSV to YNAB converter.

It’s a tool mentioned in the official YNAB documentation, so it’s reliable (and secure since your data stays local and doesn’t get sent to some random server).

The YNAB-recommended tool to convert your CSV file to the right format

This gives you a clean file formatted for YNAB.

Then you’ll want to remove all previously imported transactions by deleting the rows from the date of your last YNAB import down to the bottom of the file.

Important note: for the date, I use the “Buchungsdatum” (= “Booking date”) column from Bank WIR’s CSV export. You might prefer using the “Valutadatum” (= “Value date”). It doesn’t matter. What matters is being consistent between each import, otherwise it’ll desync your old transactions on future imports if you switch which date column you use.

Step 4: clean up the Payee names with an LLM (Claude or ChatGPT)

Open the converted file in a spreadsheet.

The Payees column looks like this:

Einkauf Debitkarte 07.02.2026 12:34 Bistro GmbH Kartennummer: XXX
Einkauf Debitkarte 08.02.2026 09:15 Migros Zürich Kartennummer: XXX

Thanks a lot, Bank WIR software engineers…

So you copy the entire Payees column (without the “Payee” header), paste it into your favorite LLM (I recommend Claude as of this writing). For pasting, on Mac, use command+option+shift+V to strip the formatting.

Then use my prompt below at the bottom of this article ⬇️.

It’ll return the entire list of cleaned Payees!

Result:

Bistro GmbH
Migros Zürich

Simple, fast, and saves you from cleaning line by line.

Then copy the clean list from your LLM.

In your CSV, place your cursor on the first cell of the “Payee” column, and paste again with command+option+shift+V (to strip formatting).

Step 5: import into YNAB

Import the cleaned CSV file into YNAB as usual. Your Payees are now recognized, and YNAB can do its automatic categorization thing.

Importing your transactions into YNAB via CSV file

A bit tedious, but it gets the job done. And it’s only once a month on my end, so it’s fine…

Why Bank WIR is worth it despite their so-so CSV

You might be thinking it’s annoying to have to fiddle with the CSV every time you import. I get it. But remember why you chose Bank WIR in the first place:

• Free account (personal AND joint)
• Free Debit Mastercard for each co-holder
• Interbank exchange rate with no markup on all foreign currency payments
• 24 free ATM withdrawals per year, including abroad

No other Swiss bank offers this combo. The 5 minutes of CSV cleanup per month is a price I happily pay to have access to the best Swiss bank.

And if Bank WIR ever improves their CSV export (one can dream!), this step will disappear on its own.

If you see any improvements to my process, I’m all ears ;)

YNAB Payee cleanup prompt (for Bank WIR CSV source):

# Bank transaction cleanup

You are a bank data cleanup assistant. When the user provides a list of transactions, apply the following rules **line by line**, never deleting any line.

---

## Transformation rules

1. **Achats carte de débit** (debit card purchase) — Replace the entire line with the merchant name only (the text after `Achats carte de débit <date>`).

2. **Crédit TWINT** — Keep only: `Crédit TWINT [First Name Last Name] [phone number]`.

3. **Bonification with date/time** (format: `Bonification DD.MM.YYYY HH:MM`) — Replace the entire line with the merchant name only (the text after the date/time).

4. **Débit e-banking** (multi-line block) — Keep only the text from the first line after `Débit e-banking `. Remove subsequent lines in the block.

5. **Bonification entre guillemets** (multi-line block, e.g.: `Bonification "..."`) — Keep only the text from the first line after `Bonification `. Replace `CSS Kranken-Versicherung AG` with `CSS`. Remove subsequent lines in the block.

6. **Votre ordre de paiement** (your payment order, multi-line block) — Keep only the text from the first line after `Votre ordre de paiement `. Remove subsequent lines in the block.

7. **Salaire/rente** (salary/pension, multi-line block) — Keep only the text from the first line after `Salaire/rente `. Remove subsequent lines in the block.

8. **Ordre permanent** (standing order) — Remove all transaction lines following a line containing `Ordre permanent (X transactions)`.

9. **Bancomat** (ATM) — Remove ` Numéro de carte: ...` at the end of the line, keep the rest intact.

10. **Débit TWINT** — Remove unnecessary "¿" characters, and keep only the Swiss phone number, not the long number after it (example: "Débit TWINT ¿, ¿¿¿¿¿, +41791234567 0400123456789098" => "Débit TWINT +41791234567"

---

## Absolute rules

- ❌ You must **never delete any line** — even if a line is identical to a previous one, it is kept and transformed the same way.
- ✅ **One transaction per line**: after each rewrite, add a line break so there is only one transaction per line
- ✅ **Mandatory verification**: after processing, compare the number of input lines and output lines. They must be **strictly identical**. If not, flag the discrepancy before providing the result.

---

## Response format

Return only the cleaned list (with a line break between each transaction), followed by a confirmation line:

✅ Input lines: X — Output lines: X — OK
or
⚠️ Input lines: X — Output lines: Y — DISCREPANCY DETECTED

My name is Victor. I’m 46, married, no kids, and I live in Geneva.

My path to financial independence started at La Poste (Swiss Post), where I’ve been working for 29 years.

I’m now FIRE with a net worth of CHF 2.35M, a monthly budget of CHF 3'880, and a work rate reduced to 30%.

How Victor reached FIRE in Geneva in 24 years

One goal: become a millionaire and stop working by 45

When I was 18, I made a decision: I wanted to stop working and live off my own income by 45 at the latest.

The trigger was simple. I didn’t want to end up like my parents, my family, and my friends, who had spent their entire lives working hard for a tiny pension, at an age where they no longer had the energy, or sometimes even the health, to enjoy it…

As a teenager with no experience and very little information (in 1997, the internet barely existed, and the FIRE movement was unheard of), my reasoning was pretty straightforward:

• What do you need to stop working?
• You need to be rich!
• And what does it take to be rich? Become a millionaire.
• So CHF 1 million became my target.

I did a very basic calculation to check if it was realistic:

• If I stop at 45, I’ll have 20 years left until official retirement.
• So with CHF 1'000'000: CHF 1'000'000 / 20 (years) / 12 (months) = CHF 4'166.66/month

… to live on until retirement. After that, I’d receive the AHV/AVS + 2nd pillar + 3rd pillar.

At the time, I had planned to move back to my home country (Portugal), where that amount would have been more than enough, since CHF 1'000 per month was already a fortune there. But I didn’t know what inflation was yet… Nearly 30 years later, that same amount doesn’t look quite as impressive!

Frugal since childhood, investor at 18

I’ve always been frugal. Even as a kid, I used to sell my toys to make money. I saved everything I could, and I had this rule that was part of how I was raised:

You only buy something if you have the money for it.

Unfortunately, I grew up learning about money through hard work, but not through investing… and that’s something I really missed out on.

At 18, as I was heading off on my first holiday without my parents, I told them:

I’m going to buy an apartment.

And when I came back, I had actually bought my first property (in Portugal).

One of my favorite beaches in the Algarve (Portugal)

From there, I kept working and working… until I owned 5 apartments (one in Portugal, two in France, and two in Switzerland).

In the meantime, I also started investing in the stock market.

Working 7 days a week to reach financial independence

I had one thing on my mind: reaching financial independence.

So I worked non-stop. During the day at La Poste, in the evening as a DJ, and in my free time, any honest job that paid.

I was working so much that I became a frugalist without even trying. I simply didn’t have time to spend money hehe (great savings hack, by the way!)

Pretty quickly, I met my future wife… who had a completely different outlook on life.

She lived in the moment, enjoyed every second, without worrying too much about the future. Her father had a stroke at 37, so she knew life could change in an instant.

I like to compare my goal to a long road trip.

A kind of Geneva-to-Portugal drive, with highways, back roads, detours, traffic jams, obstacles, forks in the road…

Every route choice could either shorten or delay the arrival.

How a sabbatical convinced me to go down to 30%

Just before turning 40, we took a 6-month sabbatical… and that was the turning point.

Pure bliss!

Freedom!

No more constraints.

No more work stress.

That’s when I decided to sell everything.

After long negotiations with my wife (I decided to listen to her, wives are always right ;)), we made the best decision of our lives.

Me when I started my 6-month sabbatical!

When the time came to decide whether we’d fully embrace financial independence in Switzerland, we didn’t stop working entirely as planned. Instead, we reduced our work rate to the bare minimum: 30%. We work one week per month.

This allows us to avoid paying all social contributions at 100%, and to stay affiliated with a pension fund.

And most importantly… We have 3 weeks off every month!

I like to say:

I work 12 weeks a year… and I have 40 weeks of holiday.

78% savings rate and CHF 1.8M accumulated

FIRE became a reality 5 years ahead of my goal (vs. stop working at 45), despite all the criticism and doubt from the beginning.

Like many others in the FIRE community, I often heard:

• “You’ll never make it…”,
• “In 6 months, you’ll have changed your mind!”,
• “It’s impossible…”

Even institutions like VZ looked at me wide-eyed when I presented my plan. (I probably paved the way for MP ;))

A few days ago, as I was preparing this article, I recalculated my numbers…

Over 24 years of working at 100%, I earned approximately CHF 2'300'000 at La Poste (I have every single pay slip since the first one ^^, and a trusty old Excel file).

And I managed to build up a fortune of CHF 1'800'000, which means an average savings rate of 78%!

Not bad for someone without a university degree.

I’m living proof that if you want it, you can do it. Nothing is impossible!

Nothing is impossible. Where there's a will, there's a way.

I started as a postman, then completed 2 apprenticeships and several internal training programs, and ended up as an administrator.

My FIRE life in Geneva today

Our FIRE life in Geneva today? I’m fulfilled, and so is my wife.

We do what we enjoy.

She’s a community interpreter. She accompanies patients who don’t speak French to their medical appointments. She feels useful, she learns something new every day, and she often comes home moved by life lessons.

Because, yes, we are rich… as long as we have our health. Everything else has little value.

As for me, I work my one week per month at a Post Office counter.

I bring good energy, a bit of lightness, and it keeps me grounded. It reminds me how lucky I am to live the rest of the month on my own terms.

On the side, I’ve built a business as a deal finder in real estate (my passion), as well as in several related fields.

I’m also an investor in real estate club deals, and I still invest in the stock market, recently through IBKR and in solid ETFs, thanks to MP.

Too bad a blog like this one didn’t exist back in my day…

And especially a blog focused on investing for people in Switzerland, which is truly unique. Thank you, MP, for the excellent work and all the great tips shared!

I love this idea of not always needing more

MP: “Thank you, Victor, your story is inspiring! Because, yes, it is possible, and you are the proof :)”

Here’s a quick summary. You are FIRE in Geneva with:

• CHF 2.35M net worth
• a monthly budget of CHF 3'880
• and a work rate reduced to 30%

Reading through your story, here are the questions that came to mind."

Our budget, and the reality of being FIRE in Geneva

Are you really independent if you still work?

MP: “What do you say to people who tell you that you’re basically just part-time, since you still work?”

I tell them I can stop whenever I want (financially, since I’ve more than doubled my original target). It’s simply a personal choice, carefully thought through with my wife, because she’s not yet ready to stop working entirely from a psychological standpoint…

Monthly budget: how much does our life in Geneva cost?

MP: “How much do you spend per month? What’s the breakdown by budget category?”

I spend about CHF 3'880 per month. We live, in general, very simply (true frugalists), even though I’ve never kept a formal budget, and I’ve never really deprived myself of much!

That said, without knowing it, I had been following at least 90% of the FIRE movement’s principles, haha (I had a good laugh when I read your book last June).

Here’s a summary of our fixed monthly expenses:

[1] Everyone must be thinking: “There’s no way you pay that little in rent!” And they’d be right. In this neighborhood, a 4-room apartment typically goes for CHF 3k to 4k (and just to be clear: 6th floor, dual-aspect, with a balcony ahah). The parking spot alone is at least CHF 300/month!

The truth is, being FIRE in Geneva with CHF 800 rent is possible thanks to a cooperative housing unit from the Confederation. Since I work at La Poste, I’m eligible. And the cherry on top: even if I leave the company, I can keep it for life (only a 10% increase is applied).

This was my little 'Paradise': the garden of the apartment I owned in Geneva

And on the income side:

[2] Varies depending on mood and how much time we spend in Geneva (CHF 30k to 60k/year)

MP: “Do you have a safety net (emergency fund, how many months of expenses)?”

Yes, my safety net is a minimum of CHF 100'000 for unexpected costs… and especially to treat myself :)

Net worth and investment strategy

How our CHF 2.35M net worth breaks down

MP: “What’s your current net worth (breakdown in %: real estate, cash, ETFs, etc.)?”

Our current net worth (my wife and I) is approximately CHF 2'350'000.

Here’s how it breaks down:

[3] Too bad MP’s blog didn’t exist in 1999 when I signed up for it…

Real estate investments in Switzerland (10% minimum)

MP: “What returns have you had on your real estate (cash flow, capital gains, rental yield)?”

I no longer own any rental properties. When I did, I was targeting around 10% return.

Today, I invest in renovation/resale projects or in participatory loans. I still aim for the same target of roughly 10%.

ETFs and the stock market in our financial strategy

MP: “How do you invest in the stock market today (what strategy, percentage in ETFs, how much per month)?”

I invest in the stock market through three ETFs (VT, Swiss, European). I only just started buying ETFs (thanks to you, so a big thank you again! I had never dared before…)

I plan to buy three:

• VT (global)
• Swiss (CHF)
• European (EUR) (as I have 100K in euros that I’d like to put to work)

I plan to buy around 10k per quarter of ETFs, on autopilot. And when there’s a “sale” hehe, I’ll make one-off purchases.

The goal: reduce idle cash and grow our wealth.

A typical week now that we’re FIRE

MP: “What does a typical day (or week) look like during your 3 weeks of ‘holiday’ (schedule, activities, rituals)?”

When I’m in Geneva, my days never start before 9am (mandatory rest!). Then it’s about an hour for a leisurely breakfast, like at a hotel. Between 10 and 11am, I turn on my phone… and the day begins :D

I go for a walk at Parc Bertrand (minimum 30 minutes), then have lunch with friends, clients, or my wife.

In the afternoon: I either wrap up my tasks or go for a walk in nature, depending on how I feel.

We have dinner around 7 to 7:30pm, then the evening is free. We try to get at least 8 hours of sleep, so lights out before midnight.

On holiday, the rhythm is a bit different. We might get up earlier if something is planned, but we stick to our rest routine. Breakfast is sacred (minimum 1 hour). Then: total freedom!

We love beaches, hikes, museums, and local traditions. Always outdoors, if possible!

One of our amazing trips: San Francisco and its Golden Gate Bridge

MP: “What pleasures do you allow yourself (travel, restaurants, expensive hobbies, vs. simple everyday things)?”

I don’t deprive myself of anything, because as we say: “I’ve worked hard enough to deserve it!” But once a frugalist, always a frugalist, I think…

So, we look around, we compare, we find deals:

• Leave on Tuesdays
• Outside school holidays
• Optimized car rental searches (cancel/rebook if the price drops)

The Palácio Estoril Hotel, a stunning 5-star property

Here are a few of our little luxuries we indulge in:

• Beautiful hotels (tip: say you’re on your honeymoon, and you’ll often get upgraded or find a surprise in your room)
• House rentals
• Eating well and healthy (with the Yuka app)

FIRE as a couple, and what other people think

Let’s talk budgets and finances as a couple

MP: “How does your couple handle the different views on money and the future (you being very FIRE, her being more carpe diem)?”

We’ve been together for 22 years, married for 2 (yes, I made her wait a long time!). I told her one week after we met: “I don’t want marriage or children.” But since only fools never change their mind, I married her.

Unfortunately, we didn’t have children.

She’s the love of my life. Without her, I probably would never have made it. She’s the one who endured and sacrificed so much, and she’s the one I want to enjoy the rest of my life with.

Today, everything is simple. Money is no longer an issue, but I have a duty to make sure she never runs out, and above all, to make her happy.

How people react when you cut your work rate to 30%

MP: “How did your family and friends react when you went down to 30%?”

My family and friends reacted with total disbelief. And yet, I could have stopped entirely! I think they never really believed it was possible.

And the cherry on top: the successful negotiation to work only 1 week per month!

MP: “Do you ever feel like an outsider or misunderstood in your social circle?”

Often… The rare times I’ve told my story, people thought I was making it up!

Very few people understand our lifestyle.

I’ve been told:

• “Is your thing some kind of cult!?”
• “Yeah right… Prove it!”

Today, I don’t talk about it anymore. I just say I work a little and that I’m an investor in my spare time… I completely understand why you want to stay anonymous, MP!

MP: “Have you ever had doubts or moments of financial fear? How did you deal with it?”

Yes, ever since I was 18, from the moment I set that goal. And even after reaching it. A bit like you, without fully realizing it. To reassure myself, I more than doubled my original target…

And I’d say it’s only been about a year since I’ve truly felt at peace with it.

The world is in such bad shape, people are harsh, the planet is suffering… so the only thing that worries me these days is health: for my wife, our families, and our loved ones.

Stay in Geneva or move abroad?

MP: “Are you planning to stay in Geneva or move (Portugal, elsewhere)?”

Great question.

We’re both Swiss citizens.

We live in the best country in the world, but the cost of living and social contributions (AHV/AVS, health insurance, etc…) for someone who is FIRE really make you think.

We’re considering splitting our time between:

• Switzerland (I’m keeping “the gem” that is my apartment, because it’s worth more than a maximized AHV/AVS!)
• And abroad (Mallorca, which we love, or Portugal as a bit of a default option)

The stunning Playa de Muro in Mallorca

But if we were to leave, we think we’d like to end our days here.

And apart from that, we just want to make the most of life, and above all, try to stay healthy.

MP: “Do you think about passing on your wealth (inheritance, helping family, philanthropy)?”

I do think about it, yes… I wrote my first will at 30.

Like you, I believe money should be used to enjoy life.

If there’s anything left, my heirs will split it.

I donate to a few charities, but I prefer to help directly, by assisting there in person.

3 lessons after 24 years on the path to financial independence

MP: “What was your biggest sacrifice to reach your goal?”
Working relentlessly for several years, 7 days a week. My record: 32 hours straight!…

MP: “What was your biggest stroke of luck?”
Buying my apartment in a development zone in Geneva:

• Bought at CHF 5'851/m², sold 10 years later at CHF 12'500/m²
• That’s +213%!

MP: “What advice would you give to your 18-year-old self if you could go back in time?”
Nothing is impossible! If you want it and you put in the work, you’ll get there. Educate yourself, become the best in your field. And if you want to become FIRE, buy the book “Free by 40 in Switzerland” by Marc Pittet and follow his blog… (just to be clear, I’m not getting paid for this ahah!)

Here is a recent example, with Tania’s email:

Hi Marc,

Thanks again for your article on the best 3rd pillar. For my part, I haven’t taken the plunge yet, because it would cost me CHF 300 to close my current 3a, so I don’t really know if it’s worth it…

And also, I’m wondering when is the best time to switch? Because right now, it’s May, and I’ve already paid in almost the maximum pillar 3a amount for the current year (around CHF 6,000)… or if I just change my strategy with my current 3a provider, might that be enough?

Anyway, lots of questions, and a bit of choice paralysis and, well… I still haven’t done anything. Also, I’ve got about CHF 50,000 on my 3a at the moment. And I’m 36.

What would you do in my place?

Thanks in advance if you have time to reply to my email, I know you get a lot.

Tania

Let’s take each of Tania’s questions, one by one, and answer them in detail.

I’m going to deliberately use numerical examples based on realistic but simplified assumptions, with a long-term horizon typical of pillar 3a (several decades), and annualized returns net of fees (not guaranteed, as usual).

How much does it cost to switch pillar 3a?

Switching pillar 3a comes with different fees depending on the provider. There is no single statutory fee. The choice is up to the provider.

In general, these fees for switching pillar 3a provider range from CHF 0 to CHF 500 from everything I’ve seen.

Tania told me that BCV (her third pillar provider) would charge her a termination fee of CHF 300.

So I asked her how much her 3rd pillar was yielding, and then made the following calculation:

• Pillar 3a capital: CHF 50,000
• BCV annual fee: 2.63%
• finpension annual fee: 0.39%
• Difference in fees: 2.24% per year, or CHF 1,120/year.

In other words, her CHF 300 exit fee would be amortized in just 3 months.

Suffice to say, she didn’t think much further ahead.

It’s a recurring principle in investing: fees can (very!) quickly eat away at your returns.

When is the best time to switch your pillar 3a?

The best time to switch to a better 3rd pillar is yesterday. It’s not technically possible, so the second best time is today.

From a tax point of view, it makes no difference whether you’ve already paid all or part of the maximum 3rd pillar amount into one institution, and are transferring your entire 3a to another. What counts is the amount of your pillar 3a payments over the whole year.

In Tania’s case, if she has paid in CHF 6,000, and moves to VIAC or finpension, then pays in the remainder of the maximum pillar 3a amount (CHF 7'258 in 2026), she will be able to deduct both these amounts from her taxes as she remains within the legal limit.

In her question, there’s also a hint about returns and fees. Knowing that her third pillar is not the best third pillar in Switzerland (according to my 2026 comparison), every day that goes by, she forgoes part of her potential return net of fees. It’s as simple as that.

So the best time to transfer her pillar 3a is now.

Switch 3rd pillar provider, or just change your investment strategy?

This is indeed a legitimate option: why bother creating a new 3a account, transferring your old 3a, then closing it. All this, when maybe you can “just” change your investment strategy.

Here again, there are a number of pitfalls in the path of someone taking their financial future into their own hands:

• Management fees generally don’t change if you change your strategy. So even if your new investment strategy is closer to the best 3a pillars such as finpension and VIAC, fees will continue to eat away at your returns over the long term (several decades).
• TER and retrocession fees (when applied) also quickly add up, especially when it comes to in-house funds, compared to ultra-optimized index funds where you don’t have to pay TER, and even less retrocession fees (= commissions paid by the funds to the bank that distributes them), inherited from old banking distribution models from the last century.
• Overall performance, which includes all these fees, is generally under-optimized in these other funds. And that’s why Tania’s third pillar is not in my top 3 of the best 3a pillars.

Although changing your 3rd pillar investment strategy (rather than changing your 3rd pillar) is a good idea, it’s actually a false one, as you’ll remain sub-optimal in terms of final performance.

An example is worth a thousand words. Please note that the returns below are average annualized returns, fees included, representative of what we observe over the long term with typical equity allocations for a pillar 3a (and not promises of future performance).

Tania assumptions:

• Initial capital: CHF 50,000
• No additional payments
• Annualized returns, fees included:
  • Current 3rd pillar (95% equities): 3.6% p.a.
  • Best 3rd pillar (99% equities): 6.9% p.a.

This example is deliberately simplified, with no additional payments, to isolate only the impact of fees and investment strategy on existing capital.

With exactly the same starting capital today, the difference in yield alone is enough to create a difference of over CHF 26,000 after 10 years. With a pillar 3a, fees and strategy count for much more than you might think.

Why we do nothing, even when we know what to do

I don’t blame Tania for being stuck in inaction.

It’s called choice paralysis. Too many open questions, too many possible options. The fear of taking an “irreversible” action. And all this in the midst of an already busy life with her job, her family, her activities…

That’s also one of the reasons why I started this blog: to document my journey in the hope that it might give my readers enough information to take action on each subject I tackle.

In reality, doing nothing can also be explained by the fact that it's much more fun to go hiking at Seerenbach Falls towards Lago Mio than to compare 3a pillars ;) (photo credit: Melanie Obergfell)

FAQ switching pillar 3a

What is the maximum 3a amount for 2026?

The maximum amount that can be paid into pillar 3a in 2026 is CHF 7'258 for salaried employees, and CHF 36'288 for self-employed workers.

How many 3a accounts do you recommend I open?

I recommend that you open five pillar 3a accounts so that you can reduce your tax bill as much as possible when you withdraw from these accounts, especially if you are highly taxed and still several years away from the time of withdrawal. I recommend that you read my article on this subject: Tax savings in Switzerland thanks to staggered withdrawals from pillar 3a.

Are there any restrictions on transferring my 3a?

No, there are no legal restrictions preventing you from transferring your pillar 3a from one pension fund to another.

The only thing you may have is a contract clause indicating a penalty (the so-called exit fee) to be paid if you break your contract before a certain deadline (6 months at some cantonal banks, as far as I know).

Is your recommendation also valid if I have a mixed 3rd pillar linked to a life insurance policy?

Ahhhh, poor you… you got fooled too… YES, my article is even more valid if you’ve been scammed by the mixed 3rd pillar. I advise you to act even faster to limit your losses.

And in the specific case of pillar 3a life insurance, I recommend you read this blog article: Close your pillar 3a life insurance without further delay!

Conclusion: what I would do if I were Tania

Here’s what I would do if I were in Tania’s situation, and therefore not with one of the two best 3rd pillars in Switzerland (see my 2026 comparison):

1. I would create an account with one of these two best 3a pillars
2. I would download the transfer form from their website
3. I would send this signed form to my current 3rd pillar
4. The transfer would then take place automatically
5. If not automatic, I’d also ask for my old 3rd pillar to be closed, so that my financial life would be in order (if this is not done automatically after the transfer)

And all this, even if I had to pay several hundred Swiss francs in exit fees to my current 3rd pillar pension fund.

After that, I’d feel relieved of a mental burden for the next 20 years (all this reminds me of my early days!) And above all, I’ll be thanking myself for having made this choice several decades from now (I can confirm that’s what I’m already experiencing right now).

TL;DR: I no longer report every IBKR micro-transaction in YNAB. From now on, I update my accounts once a month, with 1-2 correction transactions, and my net worth remains accurate.

When I started investing in the stock market with Interactive Brokers, I wanted to report every single transaction in my YNAB budget app. And when I talk about transactions, I’m talking about my own, but also those implicit in stock market investments via an online broker:

• Transaction fees
• Exchange fees
• Gain/loss due to exchange rate fluctuations
• Withholding tax for each ETF/stock
• Dividends for each ETF/stock
• Etc.

And I also regularly updated the value of my IBKR portfolio in YNAB, in line with stock market fluctuations.

At first, I thought it was fun. And accurate.

It looked like this (note the number of transactions for one month only):

My Interactive Brokers transactions (very) detailed in YNAB

As you can see, I reported everything from my Interactive Brokers statement.

But after several months (years?!), it started to get boring and time-consuming beyond belief.

All that for what?

For me to use:

• the Interactive Brokers “Statements” feature, which is very comprehensive and answers all my questions about my transactions over the years (you may also be interested in this article: How to see how much money I make with Interactive Brokers)
• the IBKR Mobile app, which lets me track the value of my portfolio as often as I like

So I’ve changed my way of doing things since 2021. And drastically so.

My “Tracking” accounts for IBKR have not changed in YNAB

Between what I did before and what I do now, my IBKR accounts in YNAB have not changed.

I mimic what’s on my favorite broker in the form of a “Tracking” account:

• An account named “IB - Cash” for my IBKR Cash account (in CHF)
• An account named “IB - Investments” representing my IB brokerage account where my ETFs are stored

The wording of my Interactive Brokers accounts on YNAB

Note: a “Tracking” account in YNAB corresponds to an account for which you cannot budget what it contains (like my Interactive Brokers investment accounts). Conversely, my Swiss bank account is a “Cash” account in YNAB. Indeed, I can use the cash in it to assign it to categories in my budget.

Simplifying the monitoring of Interactive Brokers accounts in YNAB

Now here’s my process when I reconcile our IBKR accounts to track our YNAB budget at the beginning of each month.

On our “IB - Cash” account in YNAB, I note in this order:

1. All incoming and outgoing transfers from our Swiss bank account to our IBKR Cash account on the date they actually took place (so that it’s correct in my bank account transaction tracking)
2. Purchases or sales of ETFs grouped in a single transaction
3. Dividends received grouped in a single transaction (on the last day of the month), just because I like to have this information available in my YNAB ;)
4. A single reconciliation transaction on the last day of the month to match the IBKR balance with the YNAB balance (this transaction is mostly negative, as it includes all the fees mentioned above)

⬆️ You'll notice that my YNAB screenshot above is the same height as the previous one, except that it covers six months instead of just one (from our Interactive Brokers 'Cash' account)!

And on our “IB - Investments” account, I note:

1. A single reconciliation transaction on the last day of the month to match the total amount of my Interactive Brokers investments with the balance of this account in YNAB

Update only once a month (vs. much more regularly before) of my YNAB account for my ETFs on Interactive Brokers

FAQ about Interactive Brokers and YNAB

Does this tracking method distort my YNAB budget?

No, because IBKR accounts are “Tracking” ones, and don’t impact actual budgetable money.

What is the “Reconciliation Balance Adjustment” transaction in YNAB?

This transaction is the result of YNAB’s practical account reconciliation functionality.

You click on a “Reconcile” button, and YNAB asks:

• Is the current balance of your account (“IBKR - Investments” for example) equal to XYZ?
• You answer “No”, because the stock market prices have changed on your “IBKR - Investments” account
• YNAB asks you for the current balance of this account
• And bam, YNAB inserts an automatic transaction (the famous “Reconciliation Balance Adjustment” line) with the correct amount to reconcile IBKR with your YNAB :)

Conclusion

This new process is much simpler and above all much faster for the monthly monitoring of my IBKR accounts on YNAB. And it still allows me to track my net worth every month, with the exact amount from IBKR.

And you, how do you keep track of your Interactive Brokers accounts (or any other online trading platform) on YNAB?

PS: if you use Bank WIR and struggle to import your transactions into YNAB, I wrote a dedicated tutorial on importing Bank WIR CSV into YNAB.

Also, I’m talking to more and more readers about their journey towards their own financial independence, which helps me make my journey even more concrete, and I love that.

All this means that, even after 12 years of blogging, I’m even more motivated than ever at the idea of embarking on another year of writing and sharing.

The FIRE Mustachian Post blog in 60 seconds

Mustachian Post is a Swiss FIRE blog launched in 2014, which today accumulates over a million page views a year and nearly 10,000 subscribers.

In figures, here’s how it looks:

• 12 years of existence (2014-2026)
• 49 articles published in 2025
• 1'123'913 page views in 2025
• 9,564 newsletter subscribers in total
• 65% open rate for each newsletter
• 3,519 books sold in total (bestseller, that’s it!)
• Focus 2026: public launch of FI Planner

12 years of FIRE blogging in Switzerland: what really matters

Why I’ve always preferred transparency

Whether we’re talking about my net worth and monthly savings rate, or the amount of the blog’s income, I’ve always wanted to be as transparent as possible on the blog.

Why is that?

Because it makes everything more tangible, and more inspiring.

I was talking about this with one of my reader buddies who asked me:

But Marc, aren’t you afraid of making people jealous? And that some people won’t come back to your blog after reading such and such an article with crazy figures?

I retorted:

Are you jealous when you read these figures?

He replied:

Oh no, clearly not. On the contrary, it inspires and motivates me to talk to another Swiss entrepreneur who thinks the same way I do!

So my answer was:

That’s it! That’s exactly why I’m so transparent: to inspire readers. To bring them value. And the advantage of this strategy is that those who stay (like you) are the people I want to talk to and who inspire me in turn, because transparency naturally speaks to certain profiles!

What still motivates me after more than a decade?

I’ve also had other readers ask me about my motivation for continuing to write after so many years.

I could sum it up for you in a testimonial I received recently:

Tristan's FIRE testimonial, with the increase in his net worth (what makes me happy is that I get several like this every month!)

Clearly, in addition to writing out of passion and the fact that it’s my side-business (the selfish side of things, that is), what’s most pleasing is to see the concrete impact my articles have on readers. I often share those feedbacks with Mrs. MP, to help me realize that, yes, I’m the one who’s being written to!

So, in theory, we’re in for another good dozen years at least :)

What I’ve learned from this, if you want to set up a blog like this too

There are two main guiding principles that got me where I am today:

• Quality: add value to others, sincerely, and it will be returned to you a hundredfold.
• Consistency: publish regularly. If one week you don’t make it, that’s okay, you’ll pick up your pace the next week. And you never give up.

And I speak from experience when, in 2015 (a year after I started), I had very little feedback on my blogposts (whether via comments or email)… it was a bit like a long desert crossing. But I told myself that I had to keep at it, that I had to write my articles one after the other, and that inevitably at some point, word-of-mouth would kick in if I followed my two guiding principles.

The result? In 2026, I find myself with over a million views a year, and almost 10,000 people who receive an email from me every Thursday to help them achieve their own financial independence in Switzerland.

So yes, there’s certainly a bit of survivorship bias and a bit of luck in terms of timing (arriving at the right moment with the blog in the FIRE topic), but without these two guiding principles, whatever happens, I wouldn’t be here writing these lines.

Mustachian Post blog 2025 review (projects and products)

My book “Free by 40 in Switzerland”

In 2025, my book “Free by 40 in Switzerland” became a bestseller in Switzerland. Even if it’s just an ego-flattering number, it feels good.

To mark the occasion, I’ve discreetly updated the cover:

And like every year, what makes me even happier than a “National Bestseller” banner is this kind of feedback from readers:

Marine's testimonial about 'Free by 40 in Switzerland'

Kim's testimonial about 'Free by 40 in Switzerland'

Investment programs (in the stock market and real estate)

After releasing version 2 of my programs in 2024, I mainly added various FAQ items and provided support to several participants in “Personalized” mode:

Tatel's testimonial about my beginner's program for investing in the stock market in Switzerland

Testimonial from Thilo about my program for investing in rental properties in Switzerland

If you are interested, the links to the latest version of the program are here:

• Beginner’s program for investing in the stock market in Switzerland
• Rental real estate investing program in Switzerland
• France rental real estate investing program (from Switzerland)

[New for 2025]: Interactive Brokers and Saxo Bank Challenge

I had almost forgotten that it was in 2025, but I also launched two free challenges for the online trading platforms Interactive Brokers (IBKR) and Saxo Bank.

Indeed, many readers are not yet investing, not because they lack conviction, but because they are afraid of making a mistake or feeling lost when faced with these trading platforms.

To alleviate this dual stress (tools + money), I have created two free gradual exposure challenges, based on Interactive Brokers and Saxo Bank demo accounts, with daily micro-tasks to familiarize yourself without risking a penny.

If you too want to finally take the plunge, you can sign up for the IBKR challenge, the Saxo challenge, or both. The first email will arrive immediately after you sign up.

Interactive Brokers Challenge:

Saxo Bank Challenge:

Mikaela's testimonial about the IBKR challenge

Private newsletter “Club MP”

I don’t talk much about this part of the project, even though it plays an important role.

In the private newsletter “Club MP” (subscription), I share more raw and immediate information than on the blog. In particular, I documented the purchase of my second rental property in Switzerland, as well as each of my stock market moves.

I also publish the complete evolution of my net worth, with figures to back it up, without any filters or anything.

Here’s an example so you can see if you’re interested:

MP net worth in November 2025

By the way, a big thank you to everyone who supports my projects through this “Club MP”, and for the quality of the discussions we have behind the scenes. 🙂

YouTube channel and alternative formats

In 2025, I didn’t post many videos on my YouTube channel MP.

However, I did release one from the previous year that was very important to me, featuring Fabienne and Benoît from Novo-monde. Their journey is truly inspiring, they are very down-to-earth, and I greatly enjoyed our conversation. I have fond memories of it.

There was also another interview that I wanted to publish as a video, with Jean-Pierre Danthine, an internationally renowned economist and former vice president of the Swiss National Bank (SNB). In the end, it took the form of a written transcript. The format has changed, but the content remains, in my opinion, particularly rich and interesting. Here is the link if you are interested: Interview with Jean-Pierre Danthine, former SNB Vice-President.

More generally, my need to remain anonymous makes the video format less natural for me. I will probably continue to publish videos in the future, in line with what I have done so far, but without making it a priority.

And then, very practically speaking, video takes a lot of time: preparation, recording, editing, publishing… In 2025, between other projects and time constraints, I simply couldn’t produce as much as I would have liked.

FIRE blog statistics after 12 years

Traffic and page views

Number of page views on the Mustachian Post blog: part of the decline in page views (-12%) is linked to changes in search habits (answers directly via AI tools such as Claude)

Both the number of page views and the number of visitors to the Mustachian Post blog declined in 2025, mainly due to the arrival of ChatGPT and similar technologies

Newsletter: growth and open rates

27% growth in the number of subscribers to my newsletter (while maintaining a very high open rate of 65.4%)

Frequency and volume of publication

49 articles published on my Mustachian Post blog: an impressive record, as in 2020, which also explains the other growth figures (there's no secret to it ;))

Forum Mustachian Post

The Swiss FIRE community continues to grow, with as many posts, visits, and page views as ever. I would like to take this opportunity to thank our moderators: Julianek, Dr.PI, and dbu

Mustachian Post blog income and expenses

Revenues, expenses, and profits of the Mustachian Post blog between 2014 and 2025

I can only be grateful for the success of what I once called “my little pet project”, which gradually turned into a fine entrepreneurial adventure. After all, you don’t get something for nothing, when I see how many hours I spend on it in the mornings (“5am club”!) and at weekends.

As for expenses, they are increasing proportionately (notably due to the printing costs of my book), but I’ve managed to keep them well under control, thanks to AI automation that saves me time and money.

Ethics, independence and business model

Since 2020, I’ve taken the time to reiterate my position on a central issue: the link between profit and ethics.

My aim has never been to “make cash at any price” with the blog, at the risk of losing readers’ trust. And I know this all the more because I’m the first to unsubscribe when I feel that a piece of content is becoming biased towards money.

Especially since, as time goes by and my blog grows, the opportunities are always bigger in terms of profits. I mean, I think I could have reached 500kCHF by 2025 if I’d accepted all the affiliate offers. But that would be very short-sighted, because I think that by 2026 (OK, let’s say 2027) I wouldn’t have had any loyal readers, and the site would have become an “ad bar” like so many others… no thanks!

Why I refuse sponsored articles

Because every week I receive requests for sponsored articles. I’ve always refused.

On the one hand, because such content is rarely relevant to Switzerland (casino gambling in the US, articles sponsored by dubious European services), and on the other, because they inevitably skew the message. The day an article is paid for, the line between information and marketing becomes blurred, and that’s precisely what I want to avoid.

Affiliations, transparency and trust

When I use affiliate links, I always mention them explicitly. If I forget, I’m counting on you, dear reader, to let me know.

I’ve also always refused exclusivity clauses proposed by certain banks or platforms. My comparisons (such as the best Swiss bank) are only of value if they remain honest, even if this means earning less commission.

And I’m not even talking about the idea of reselling the e-mail addresses of newsletter subscribers: NEVER!

Recommend only what I use

Finally, I’ve always followed a guideline that makes all my decisions easier: I only recommend financial tools and services that I use myself, on a regular basis.

Above all, I never try to impose my choices. When a reader tells me that he prefers to stay with Raiffeisen because it makes sense for his family with the free museums, I respect that decision. After all, it’s these exchanges that fuel my own thinking.

Outlook for 2026

Increasingly useful articles for Swiss readers

My first focus for 2026 will be to provide you with increasingly high-quality articles. Both in terms of the subjects I cover, and the way I write.

Then, my second focus will be to guarantee an article every Thursday, with perhaps a 2 to 5 week break between summer and the Christmas vacations.

Public launch of FI Planner

Another big moment of 2026 is going to be the public launch of our fiplanner.ch service, our Swiss financial independence tool to calculate your FIRE date.

Patrik and I are very excited that as many people as possible can benefit from it. I’ll tell you more about it in the next chapter.

FI Planner: the project I’m focusing on for 2026

Why a Swiss FI Planner was needed

Initially, the idea was born out of a very personal frustration with the common use of the 4% rule to find out how much one can be financially independent. This rule is still relevant to get an initial idea, as the order of magnitude it provides is generally correct, and I myself continue to use it as a benchmark, even today with FI Planner.

In Switzerland, on the other hand, it is often applied as a final decision-making tool, without taking into account the essential structural elements of the Swiss system, such as AHV, the second pillar, capital withdrawals or taxation, which evolves according to life stage.

In fact, that’s why I went to VZ for 10 hours of consulting on a simulation specific to my situation, about a decade ago.

The famous table representing my financial independence plan in Switzerland

Except that in practice, the closer I get to financial independence, the greater the need for precision. With my updated data ;)

Because at this stage, a simple approximation becomes psychologically insufficient, even if it’s correct on average. Of course, no tool can eliminate the mathematical uncertainty of future returns; FI Planner is no exception.

So I tried to build my own calculator on Excel, but it was tedious… and I ran out of time, so I never finished it…

So that’s what I (and many other readers of this blog) were missing: a tool designed from the outset for the Swiss context, enabling us to rely on a tried and tested calculation model, rather than a rough transposition of models designed for different pension and tax systems. This dimension is largely psychological, but it is central to the FIRE movement, as taking early retirement means wanting to be sure of not running out of money due to hasty or approximate calculations.

Where FI Planner stands today

We started discussions with Patrik, my co-founder, in the early summer of 2024, and then it all came together:

• Q2 2024: oh, we have the same idea! Would we get along well on such a joint venture? Come on, let’s give it a try!
• Q3 2024: Prototyping
• Q4 2024: Testing the proto myself (🤯, so good, and addictive!)
• Q1 2025: Onboarding of the first 3 customers (Early Adopters)
• Q2 2025: Onboarding of 15 other customers (Early Adopters)
• Q3 2025: Creation of web application (thanks again to Patrik!)
• Q4 2025: Early Adopters switch to web application
• Q1 2026: Finalization of the payment module so that everything is automated from A-Z

FI Planner web application version (before new design implemented): entering your data

12-month target

Our goal with FI Planner by the end of 2026 is to have 100 repeat customers, happy and motivated to have finally found their financial independence planning guide in Switzerland.

And this in a 100% automated way (which is not the case at present, as we still have to manage payments manually in particular).

Talk to you in a year ;)

FI Planner web application version (before new design implemented): simulation result

Would you like to be kept up to date with FI Planner news?

We’ve created a dedicated waitlist and newsletter for those who want to stay in touch with FI Planner’s development (including when we open the doors to waitlist subscribers, on a first-come, first-served basis).

You can sign up directly via our FI Planner website.

Thank you

And I still have to thank you, because everything I’ve just explained wouldn’t make sense without you, dear blog reader.

Whether you’ve been following me since early 2014 or more recently, a big THANK YOU from the bottom of my heart.

I’ve transferred my assets to a vested benefits account with finpension. What happens when I start a new job? Am I forced to send this money back to the pension fund of my new job?

And often, the next question comes up:

What about my two vested benefits accounts (splitting)? Do I have to merge them and repatriate everything, or can I leave some or all of it invested in the stock market until I reach FI (Financial Independence)?

Good question. Here’s the simple answer.

The short answer

Yes, by law, your vested benefits must be transferred to your new employer’s pension fund.
But no, you don’t risk any penalties if you leave your 2nd pillar in a vested benefits foundation such as finpension or VIAC.
It’s a gray area: the rule exists, but nothing and no one will punish you if you don’t apply it.

What the vested benefits rules really say

The law stipulates that assets must be transferred to the new pension fund.
But there are no penalties (to my knowledge) for someone who leaves their vested benefits where they are.

The legal text is located here in the Federal Law on Vested Pension Benefits in Occupational Retirement, Survivors’ and Disability Pension Plans (SR 831.42). Article 4, paragraph 2bis states exactly:

If the insured joins another pension scheme, the vested benefits institution shall pay the pension capital to the latter in order to maintain the pension. The insured person must notify:

a. to the vested benefits institution that he is joining a new pension scheme;

b. to the new pension fund the name of the vested benefits institution and the type of pension plan.

Some people simply tell the new fund that they have used their funds to pay off a mortgage or start a new business… and that’s the end of the discussion.

In a nutshell:

• The rule exists.
• The penalty is not.

So even if you can leave a vested benefit credit while you’re working again, this is neither provided for by the spirit of the system, nor recommended.

Can I leave my vested benefits account with finpension or VIAC?

Yes, many people do, for one simple reason: money works much better in shares in a vested benefits scheme like finpension, for example, than in the new employer’s BVG fund.

As long as nobody asks you specifically “transfer me X CHF now”, you can leave your assets invested, work, and make babies via compound interest.

What if you have two vested benefits accounts (for splitting)?

If you can avoid merging your accounts, avoid it.

Why not? Because splitting:

• optimizes your retirement withdrawal (less tax to pay), as it is made in two different tax years
• allows you to manage your assets in two different foundations (with two different investment strategies, for example)

Which is the best vested benefit account to optimize your 2nd pillar (Mustachian recommendation)

For long-term vested benefits, I currently recommend finpension (you can read here my comparison of the best vested benefits account in Switzerland).

It’s the only provider that lets you:

• Invest your entire assets (compulsory AND extra-compulsory portions) 100% in global equities, with passive investment
• Use two vested benefits foundations for tax splitting
• Have a head office in the canton of Schwyz, which is highly advantageous for withdrawals from abroad.

VIAC remains an excellent second option, but for maximizing your net return and optimizing your taxes, finpension comes out on top.

Mustachian disclaimer

As usual: I’m not a professional financial advisor. All the content of this article is to explain to you what some people do. And, mainly, this article is for entertainment purposes only. So you can’t sue me if you’re messing around with your 2nd pillar. I hope you hear me.

After all, this feedback shared by blog readers is not fraudulent. In fact, you’re not evading taxes, since your BVG pension assets (2nd pillar) remain in the global system (i.e., vested benefits). It’s just that it’s more optimal in terms of performance, because you can choose how you invest this money (which ultimately belongs to you).

FAQ vested benefits account and changing employer

Do I have to transfer my vested benefits when I change employers?

Yes, the law provides for a transfer to the new pension fund, but there are no penalties if you keep your assets in a vested benefits account.

Is it illegal to leave my vested benefits with finpension or VIAC (even if I get a new job)?

No. It’s not an offence. The law describes a mechanism, not a penalty.

Can I keep two vested benefits accounts even after changing jobs?

Yes, splitting is still allowed and optimizes your final withdrawal.

Can the pension fund force me to transfer my assets?

Yes, if they explicitly identify you as having untransferred vested benefits.
In practice? Very rarely.

Does leaving part of your 2nd pillar in a vested benefits account reduce the insurance coverage of your current pension fund (disability, death)?

According to the Swisscanto study on Swiss pension funds in 2025 (507 funds), 29% of institutions apply the defined contribution model for all benefits, a proportion that is declining (they specify that “its share is decreasing in favor of the dual primacy model”). Conversely, around two-thirds use a “dual primacy” model: old age is based on contributions (= the savings portion), while risk benefits (including disability) are calculated on the basis of the last annual salary.

In other words, as long as you are affiliated with a pension fund through your employment, insurance coverage is calculated in 71% of cases on the basis of your insured salary, regardless of the LPP capital you have retained in a vested benefits account. However, please note that if your fund is one of the 29% of institutions that still operate on a defined contribution basis, disability coverage may depend on your BVG savings, and a vested benefits transfer may reduce your disability protection.

Conclusion

If you want to optimize your 2nd pillar and boost your FI strategy, letting your vested benefits work in equities (via an optimal financial institution like finpension) may be a more attractive option than sending everything back into your new employer’s pension fund (and its very meager returns).

And you, did you leave your vested benefits account invested after a job change, or did you transfer everything to your new employer?

Yes, there is such a game: Ciao CASH. It’s a Swiss card game that lets you talk naturally with your children about savings, consumption, debt and even investing.

The game’s biggest strength: it teaches children about the relationship between money and happiness!

Why learning to manage money early changes everything

Teaching your children to manage money between the ages of 5 and 15 encourages healthy financial habits in the future (savings, no debt, etc.).

The scientific literature ¹ confirms what seemed logical to me: “The most important policy lesson from our research is that financial education can be effective. [aka has a real impact on children’s future].”

The same economic paper states: “Intervention success depends crucially on increasing education intensity and offering financial education at a teachable moment.”

A concrete, quantified example (if I’d been taught even more about managing my money)

For our example below, I’ll be basing myself on the pocket money figures recommended by the association Budget-conseil Suisse (see my article “How to manage children’s pocket money in Switzerland?”).

So let’s imagine that, from the age of 6, I put aside 50% of everything I receive (pocket money, odd jobs, birthdays).
And as luck would have it, my parents invested this money in the stock market for me with an annual return of 7% (and as soon as I’m old enough to understand investing, I continue to do so).

Years go by.

At the age of 18, I have CHF 3'370. It’s not so much the amount that counts here, but rather the habit of saving.

Then, I start my working life at 20, with no other assets to speak of. But I already have:

• the reflex to save 50% of everything I earn
• the habit of investing in the stock market
• and above all, time on my side (decades)

Then my first salary arrives.

CHF 5'000 a month for my first job. Then it slowly but surely increases.

Compound interest does its job, and I find myself a millionaire at… 34 years old! Without effort, because it’s a habit for me.

And imagine: that’s without any summer jobs. No job bonuses. No division of expenses if you’re a couple or sharing a flat. No continuing education to further increase my salary. Not becoming an entrepreneur. None of the above. Just an ingrained habit taught to me by my parents.

In a table, here is what happens when you set aside 50% of all your income since you were 6 years old and invest it in the stock market:

So yes, I really wish someone had taught me the 50% rule when I was 6… :)

So that’s all the more reason to find ways to teach our kids about money.

How did we come across Ciao CASH?

While reading about the Swiss Money Week in a newspaper, I came across an article mentioning a certain Sébastien Bétrisey from the Swiss National Bank. He is responsible for the Iconomix community in French- and Italian-speaking Switzerland. Iconomix is the Swiss National Bank’s educational program for economics and social sciences in upper secondary schools.

I thought it would be interesting to meet him in the context of the blog and our desire to instill the best financial education in our children.

One thing led to another, and he told me about Ciao CASH. So, without missing a beat, I brought the game home, and here we are with this article.

As he explained, Ciao CASH lets you talk about money as a family, from different angles:

• Consumption
• Saving
• Debt (bad…)
• Investment (good)
• Life decisions that have an impact on your finances

And all this without complicated numbers, just the mental framework.

Why I wanted to test Ciao CASH with my kids

I’ve seen the economics courses my kids have had, and while it’s a good foundation, it was pretty theoretical.

And then when you’re in class, you might not dare broach certain subjects out of shyness, or because it’s not in the family context.

But with Ciao CASH, you have the main concepts of personal finance, AND the fun aspect.

Well, when my children said to me “Oh, but we know it, we’ve already played it in class… “, it kind of stopped me in my tracks :D

However, they seemed to think that in class, it was a bit boring, whereas with us, it sparked many really interesting discussions. I’ll come to that in a moment.

What exactly is Ciao CASH?

Ciao CASH is a game for teaching children about money management.

The main features are:

• A Swiss card game
• Two to six players (ideal scenario: 4-5 players per deck of cards)
• For children aged 10 and over
• Not moralizing
• Deliberately not too detailed

You have different types of cards:

• “Money” (for income)
• “Desire/Surprise” (for unexpected events, both positive and negative, just like in real life)
• “Loan” (not good! haha)
• “Character” (optional card to spice up the game with different personalities who have specific desires to fill)

The different card types in the Ciao CASH game

The game aims to accumulate as many points as possible. The points are comprised of money and happiness points! And it’s this latter concept that’s key, compared with Monopoly, for example, where the focus is solely on capital. This allowed us to discuss the important link between money and happiness with our children. And that’s priceless!

What Ciao CASH triggered in our kids

“I’m out of this loan! Life is great!”

I think that’s THE sentence that stuck with me the most. When one of my children finished paying off all his debts at one of Ciao CASH’s first games, and exclaimed ultra-positively, grinning from ear to ear:

I’m out of this loan! Life is great!

Or how to talk about debt and spiraling indebtedness without being moralistic :)

“I’ve been to University, now I get extra pay!” at every turn

Another aspect was the discussion around studies. Because, in the game, if you opt to study, you get to draw more cash cards. Every turn. Suffice to say, my kids loved studying (virtually at least, ahah!)

Afterwards, I told them about the entrepreneurial path, which could be even more fruitful. More great discussions to be had.

The 'Money' cards from the Ciao CASH game

And I was also able to discuss the principle of “always thirsting to learn”. I told them about my own case where, at one point in my studies, it became uninteresting. I was even put off reading. Until I came across non-fiction books about business and things like that. And that helped me a lot in my career, in addition to my studies. I used to explain to my oldest that it was an investment in oneself.

That’s the kind of discussion I enjoyed having with my children.

And many other financial concepts

There are many more concepts in this game. I’ll leave it to you to discover them, such as:

• The randomness of life with “Surprise” cards
• The real estate investment aspect, which is expensive in the game, but pays off handsomely (just like in real life ;))
• Frugality is also subtly addressed, with the example of a “hiking in a tent” vacation, vs. an expensive all-inclusive vacation. I love it!

Frugality illustrated in the Ciao CASH game, including different types of vacations

What surprised me most as a parent

The most surprising thing for me as a parent was the number of topics of discussion we had with our children. And also the depth, because we often made the connection with how Mrs. MP and I acted in daily life, our frugal lifestyle, our aversion to debt, the overconsumption we see all around us. And also investment.

I realized the other surprising point when the children had to choose between short-term pleasures and long-term strategy. In the first part, we let them make their own mistakes. And by the second part, we were guiding them to help them win. And that’s where the game makes all the difference: you don’t say it as a “parent” (aka moralizing your kids), but on the contrary you do it to help them win. As a result, they love it, and above all, they listen to you!

And really, the part where my youngest naturally exclaimed that he was debt-free, that’s when I thought we were on to something.

Do I recommend Ciao CASH to parents?

Yes, I would 100% recommend Ciao CASH to parents with children aged between 8-10 and 14-15.

It’s an excellent basis for discussion. And you need to complement it with other techniques like pocket money and budgeting. As they grow older, you can also move to a real teen bank account in Switzerland to make all this even more concrete.

One point to bear in mind: if you don’t agree as a couple on the subject of money, you’d better get your act together first, so that you can talk consistently to your kids. Because if you don’t, the interesting discussions won’t just be with your children ;)

We laugh a lot about these 'Surprise' cards in the MP family (note the famous 'free' smartphone...)

FAQ Ciao CASH

Is Ciao CASH suitable for playing at home?

Yes, Ciao CASH is suitable for family play, even without the school context. On the contrary, I find that children can let loose more and can contextualize discussions by playing with their parents.

How long does a game of Ciao CASH last?

A game of Ciao CASH usually lasts about 30 minutes.

At what age should kids start playing Ciao CASH?

From experience, I’d say from the age of 8-10 upwards, so that children understand the basic mechanisms very quickly.

What languages are available?

The game is available in French, German and Italian.

Where can I buy Ciao CASH (and how much does it cost)?

You can buy the Ciao CASH card game by sending your order to ciaocash@plusminus.ch. The price of a Ciao CASH game is CHF 17.50 (including postage).

Do you have a detailed description of Ciao CASH?

Yes, you’ll find under this link a detailed description of the Swiss game “Ciao CASH” (in German).

What stock market investment strategy do you recommend for children?

You can find the stock market investment strategy we use for our children in this article: “How to invest for your children?”

Conclusion

Frankly, Ciao CASH is a really good card game. It lets you teach your kids the basics of money management. And as we all know, this is one of the fundamental keys to long-term financial success.

And if a simple deck of cards can provoke this kind of discussion at the age of 10, I think we often underestimate our children’s ability to understand money.

So I recommend Ciao CASH 100% if you’ve got kids of your own, to turn them into worthy Mustachians who’ll achieve financial independence by the time they’re 25-30, rather than waiting until they’re 40 like me ;)

If you have any other games like this to teach your kids about money, I’d love to hear from you (via the comments section below, or by return email)!

As I answer each time the same thing to these emails, I told myself that I was going to make it an article to which I could redirect future requests.
I also specify here that I am not going to go into details about what is the stock market, shares, etc. I’m saving that for my Swiss Investor Program which is now available:

Also, just so I don’t look like a financial advisor (reminder: read the “Disclaimer” section at the bottom of the page), I’m going to pretend that I’m starting to invest myself today, and that I’m writing to that famous MP. At worst, I will file a complaint against myself :P

Hi MP,

I’ve been reading your blog and other resources on the net for several months now in order to begin investing on the stock exchange. I’m going to start with CHF 10'000 and then I’ll put a monthly amount between CHF 500 and CHF 1'500 depending on the period.

What would you do if you started today, but with all the knowledge you’ve acquired since 2014?

Thank you for your time,
Marc Pittet

My answer to such emails is a list of questions to make sure that the person has the same mindset as me, as well as a similar investor profile:

• Are you willing to leave your money invested in the stock market untouched for 10-15+ years?
• Are you around 7-10 on a risk scale of 1-10 (1 = I’m afraid of losing even CHF 5, and 10 = I’m strong enough not to sell anything even if my portfolio is at -50% lows during crises)?
• Do you only want to spend a maximum of 15-30 minutes per quarter on your investments?
• Do you have a safety reserve in cash that will allow you not to sell a stock market investment in case of a hard blow?
• Are you going to invest several thousand francs of initial capital and then several hundred or even thousands of francs per month or quarter?
• Are you between 20 and 40 years old?

“Yes to all your questions!” Marc Pittet answered me.

If you too, dear reader, answer “Yes!” to all these questions, then you can continue your reading because my long-term investment method may suit you.
If you have answered “No” to any question, then I recommend that you do not continue reading as you may take more risks with your savings than you are able to bear.

Simple and effective stock market investment strategy

The strategy recommendation to today’s “Marc Pittet” would be a portfolio of index ETFs. This means passive fund management, to pay the least amount of fees, and more importantly because historically it beats 75%+ of actively managed funds.

In particular, I would recommend myself a portfolio with three ETFs, “Boglehead” style:

• 1 global index ETF up to 55% (to take advantage of the overall performance of the markets)
• 1 Swiss index ETF up to 15% (to keep part of my capital in the currency where I live)
• 1 bond ETF up to 30%, or even less if you want to be aggressive until your 35-40 years old (to protect part of my capital from the high volatility of stocks)

I consider my 2nd pillar as a “bond” (because it is more or less secure, at least more than shares normally) as part of my net assets. So historically I have never invested in bonds at the moment.
If you’re in your early twenties and you don’t have any money on your BVG, I would say that it’s not a big deal and would recommend you to put everything in shares because you can afford to be more aggressive during your 20-30ies (remember, this is just the opinion of a guy on the internet!).

Concretely, that means I would invest my CHF 10'000 like this:

• CHF 8'000 in the global VT ETF that you can buy in USD (if you use Interactive Brokers or Saxo Bank, see below), or in the VWRL global ETF which can be bought in EUR or CHF (if you use DEGIRO)
• CHF 2'000 in the Swiss ETF “UBS ETF (CH) SMIM (CHF) A-dis” which follows the SMIM index consisting of the 30 medium sized Swiss companies (because I don’t want big companies like Nestlé which are already in my global ETF)

My very concrete example of a portfolio in the middle of a coronavirus crisis, just to make sure we agree on what are the variations we should be able to withstand :)

UPDATE 03.11.2025: I recently adjusted my investment strategy, so I recommend reading this alongside: => “Why I’m switching from Bogleheads to 100% stocks”.

“What if we are in a coronavirus (or Trump tariffs) crisis or a bull market?”

The question that often comes next, regardless of the type of market (rising or falling), is:

“Hey but MP, the market’s gonna crash, I hear it everywhere, it can’t go up like that for much longer. What would you do if you were me?” Marc Pittet wrote to me in 2017.

Or again:

“Hey MP, I told you, it’s 2020, and the famous coronavirus stock market crash is here, I’m hesitate to get in now. Or wait a little longer to enter when it’s at the bottom of the hole? What would you do?”

My answer is always the same whether we’re in a bull market in 2019, or a coronavirus crash in 2020 (or subprime mortgages crisis in 2008-2009, or the dotcom bubble crash in 2000-2001): you can’t predict the future. So you can’t beat the market. So your most precious ally is time. So, start now! And don’t get out.

That’s the best way to be successful in the stock market in the long run, and all the empirical financial studies prove it.

“What about real estate, P2P loans, gold, oil, cryptocurrencies, and value investing?”

Now, you’re gonna have to trust me until my epic guide for the beginner swiss investor comes out.

In the meantime, the answer to your question is that everything you’ve listed is:

• Either too risky
• Either it’s too time consuming
• Either it’s not necessary for a successful portfolio

“What if I have CHF 50'000, or even CHF 100'000, I put in all at once?”

Regarding the strategy of dividing the amount into three index funds, yes I would do the same regardless of the amount to invest.

As for whether to put all at once or not, there are several schools. Some advise to spread the investment over several months so as not to get in at the worst moment and smooth the whole thing out. Others say that in the long run it doesn’t make much difference. The numbers and research on this dilemma are unambiguous, and I’ve summarized them in my article on dollar cost averaging.

If I had CHF 100'000 to invest today, I would therefore invest it all at once.

“OK, I want to start now. Which online broker do I choose?”

“I saw that Swissquote had a great advertising these days, they seem to rock! Would you choose that too?”, Marc Pittet asked me.

Ah, marketing bullsh**…

To make a long story short, my online broker recommandation to date is very simple (all the details to come in an upcoming “Best of Online Broker 2020 for a Swiss investor”):

• Interactive Brokers is the best online broker for Swiss investors
• Choose DEGIRO if you prefer a broker based in Europe rather than the U.S.
• And if you absolutely want a Swiss-based online broker, then choose Saxo Bank (<= CHF 200 brokerage fee refunded using this link, applied within 24 hours of the initial funding)

What are you waiting for to get started?

“MP, I’m still scared to death of the stock market. Can’t you please take me by the hand?”

I received this feedback many times after publishing this article. That’s why I decided to create my first (paid) online program.

It’s for you if you’re a complete beginner who wants to start investing in the stock market. And above all, by understanding 100% what you are doing!

All information about this 100% Swiss program made by a Swiss can be found here:

PS: If you are a seasoned investor, don’t hesitate to explain via the comments’ section below the investment strategy you’d share with those around you (family, friends, etc.) as I just did. I’m sure we all have a lot to learn from each other.

PS bis: for financial compliance reasons, please note that investing involves risk of loss.

The new neon Analytics statistics are extraordinarily powerful! A sort of integrated Excel pivot, ultra-recommendable for those who don’t know their monthly expenses and want to analyze everything and know where their cash is going. By category, by month, by year, by heaviest “cash drainer”… I’m completely in love. So yes, I manage my budget with neon :).

You know me: I’m still an unconditional fan of YNAB to manage my budget. But I also know that everyone has their own way of budgeting, and that it’s not the tool itself that’s important… but the one that really helps you move towards your goal of Financial Independence (FI).

Some people love YNAB. Others prefer a simpler system, integrated directly into their bank. And that’s just fine.

That’s why, when I read Jean-Sébastien’s message, I asked him if he’d be willing to share his experience. His approach is different from mine, and that’s precisely what makes it so valuable: another concrete way of managing your monthly budget, optimizing your savings and making progress towards financial independence in Switzerland.

In the hope that his story inspires you to take control of your finances and see how neon Analytics can help you optimize your budget, too, I’ll hand over the keyboard to Jean-Sébastien.

How I discovered neon Analytics (FI path in Switzerland)

Hello to all MP blog readers. I’ve just celebrated my 45th birthday. I’m employed in Zurich and have been working in Switzerland for 10 years. I rent my home.

I grew up in neighbouring France, in Moselle, near Luxembourg and Germany. That must play a part in my integration in Switzerland: we’re educated in a very Germanic and structured way over there 🙂

Like all readers of the “Mustachian Post” blog, I aim to achieve financial independence as soon as possible. More specifically, I would like to take early retirement at the end of 2029, just before I turn 50!

In my case, not to be idle or show off in a Lamborghini, but to be able to plan my future freely and serenely.

For me, FI will be an opportunity to do what I want, when I want, at my own pace: sports, tourism, helping others, doing DIY stuff, and creating projects. I also want to continue learning and passing on my knowledge. And emotions. All this in an attempt to become a better person who can choose their battles.

And it was in this context that I finally discovered neon Analytics.

A Lamborghini? Hmmm, no, I'd rather reach FI instead!

Why I started using neon Analytics to control my spending

I’ve never been a big spender; I remember as a kid, I used to store my pennies in a tin box, instead of splurging them on candies 🙂

Then, as much as when I was a teenager working during the school vacations, or when I became a young working adult, I never splurged. I was very careful about spending, but never quantified what “being careful” meant. No figures, no tracking, no targets.

I satisfied myself with the bare necessities, with a little extravagance for my travel, parties, gifts and sports budget categories. After all, I had to live out my twenties!

But, once again, no tracking!

I estimate retroactively that I was saving roughly 10-20% of my income; my most reliable indicator: I never took out a single loan.

Later, with the advent of online bank statements (around 2000, if memory serves), I slowly started compiling monthly statements in Excel and making embryonic analyses.

It was cumbersome, with random copying and pasting… I was terrible at Excel, but above all: I had no vision. Even less discipline and method. Basically, I was content to stay in the black at the end of each month, and nothing more.

Around 2010 (at the age of 30), I became aware almost overnight of the importance of saving and investing, thanks to a Canadian friend. He, like many North Americans, had long been convinced that he had to rely solely on himself and his investments to ensure his retirement. Just the day before, I was naively dreaming of the guaranteed pension I’d receive from my sweet, well-meaning country, ahaha.

My friend had long been convinced that he had to rely solely on himself and his investments to secure his retirement.

Anyway, from that day on, I refined my budget and expense tracking Excel files; the online banks also improved their export tools (CSV, for example), and I also improved my Excel skills… It was cumbersome, time-consuming, but it brought results. Perhaps it was during this period that an app like YNAB would have been useful; but I didn’t know about it!

On a beautiful morning in early 2020, full of sweetness and caressed by divine light, I discovered the Swiss online bank neon. Initially, I was looking for a free, simple card to make online purchases, without having to enter the numbers of my UBS card at the time (I didn’t even know what a debit card was!)

Then I got interested in neon’s Spaces (budget pockets) and the neon Analytics feature (spending statistics).

And then my life turned upside down.

The day it all changed 😁

How neon Analytics analyzes your spending and increases your savings rate

So, of course, as powerful as neon Analytics is, it’s still a tool. And like all tools, if you’re not interested in it or don’t use it, it’s useless.

It’s not a magic tool that does everything by itself, like a dumbbell left in a cellar: muscles won’t come on their own.

neon Analytics (part of the July 2025 update of the neon mobile application!) has swept away all my Excel files, which were a bit of a pain to run and exploit.

When you want to get your FI moving as quickly as possible, you know you have to save (and then invest) as much as possible. But what are we talking about? How can I increase my savings rate?

Well, yes, you can increase your income by keeping your initial expenses the same. It’s a compulsory path, but a long one, and not necessarily easy or guaranteed.

Much more immediately, you can (you must) reduce your expenses.

But which ones? By how much?

This is where the neon Analytics magic happens: after helping neon associate an expense recipient (for example: “SBB”) with one of your customized categories (in this case, the “Transport” category), in a matter of seconds you can analyze the structure of your expenses, either by recipient (SBB), or by category (“Transport”, a category in which I also have my insurance and scooter-related expenses), by week, by month, over 6 months, by year, and even by “Custom” period.

It’s at this point that the sniper (or butcher) in every FI padawan steps in to wipe out any recurring expenses deemed unnecessary!

What? 10% of my monthly expenses are linked to this thing that’s of no interest to me? Out of the way!
What? 3% recurring for this? Can I kill this expense, or reduce it with an alternative? Let’s do it!
Whaaat? CHF 400 in monthly meals since the start of the year? Are you serious?
And so on, you get the idea.

Navigating in neon Analytics is immediate, fluid, and the default ranking is descending… a tool which I consider perfect. 😍

Again, it’s just a tool. The dumbbell that stays in the cellar, blabla, is useless.

neon Analytics, and Spaces, are simple yet very powerful tools, if you have the will to use them to achieve your FI.

neon Analytics: automatic consolidated spend identifications, over different time intervals, either by category or by recipient

Why I decided to manage 100% of my budget with neon (and abandon my other bank accounts)

To avoid biasing and distorting spending analyses (I’m not in politics, after all), there’s no point in making certain expenses via neon and others via different banks (I also have a Yuh bank account and Revolut, as a backup, just in case).

So I went from two UBS accounts, 3 accounts in France, to an exclusive migration to neon for all financial flows, so that neon Analytics can analyze 100% of my expenses without bias.

Of course, there’s a very small surcharge on vacation payments in EUR, in my case, we’re talking about 10-20 CHF/year (0.35%). I can live with that, given neon’s added value overall. (update as I was finishing writing my article: I’ve just switched to “neon plus”, and while it’s no longer free, it’s the cost of a pizza a year, for many advantages, including neon Analytics, and on top of that, I no longer have random exchange fees).

And ditto, I have all my income transferred to neon, to have a complete view of my flows, how many expenses compared to my income, which neon Analytics allows you to visualize, OBVIOUSLY. 🙂

How neon Analytics helped me cut 20% of my expenses and automate my budget

As a result, in iterations over 1 to 2 months (consolidation by category, recurring payment destinations), neon Analytics has enabled me to gain a finer knowledge of my expenses, refine and above all optimize my budgets, cut a bunch of superfluous expenses, and, de facto, increase my savings rate. I’d say I’ve cut around 20% of recurring expenses.

Nothing that couldn’t have been done with pencil and paper, but then again, I still prefer to have my clothes washed by a machine rather than having to beat them myself in a lake washhouse.

I’d say I’ve cut about 20% of recurring expenses!

Once the expenses deemed superfluous have been eliminated and the budget is well established (how much for rent, how much for LAMal, how much for future travel, how much for future healthcare costs, how much for my future clothes or sports equipment, etc.), that’s when neon’s Spaces can shine.

As soon as my salary arrives, automatic transfers feed these Spaces for the coming month, followed by a transfer to my online trading platform (“Pay yourself first!” as the saying goes). Then, as the month progresses, I release funds from my Spaces to the checking account to pay for day-to-day expenses. This way, you control your spending.

For the first 2 months, I recommend that you plan a little more ahead, as your knowledge of expenses won’t be perfect yet.

And since automatic transfers have been made to “F-U Money” accounts in advance, there’s no remorse about splurging a little now and then! (woah that state-of-the-art egg cup on Galaxus 🤯)

Optional, but recommended, a “safety net” Space is useful for really unexpected expenses (professional expenses, a mobile phone or computer that suddenly decided to leave us…)

neon Spaces: my different budget spaces in the mobile app

Except for the “Health” Space, the ideal month is one in which the Spaces end at 0, after transfer for investments. This is an indicator of a well-controlled budget.

The impact of neon Analytics on my financial life and my next steps towards FI

In the 5 years I’ve been using neon, I’ve lost weight, my back no longer hurts, my hair has grown back and many beautiful women surround me.

On a more serious note, neon Statistics and Spaces are two basic but super-powerful tools for making life easier and concreting the ABCs of personal finance: spend less than you earn and pay yourself first. Both are indispensable tools if you have the vision.

Many adults don’t do this, and that’s a big mistake. It’s also something to show and teach teenagers. And the excuse of heavy and complicated Excel files is obsolete, thanks to neon Analytics.

My vision of financial independence? A calm, zen, beautiful and serene place... Swiss nature basically

neon also offers investments, but I prefer to use an outside broker (see MP’s comparison of the best trading platform), which is cheaper.

Personally, my ritual savings are invested in my 3a pillars and ETFs, capitalizing if possible. The lack of diversification into other assets (cryptos, rental property, crowdfunding, etc.) may be criticized, but that’s not the subject of this blog post. Every month brings me closer to my theoretical FI date…

To reach Financial Independence, you need to have invested your money. To invest, you need capital. To have capital, you need to have saved money. And that’s exactly what neon, my (beloved!) neobank, is helping me to do.

And you, what method do you use to plan your monthly budget and achieve financial independence as quickly as possible?

FAQ neon Analytics

How does neon Analytics work?

neon Analytics automatically analyzes your spending by category and recipient to help you visualize where your money is going.

Does neon Analytics help to reduce expenses?

Yes. By showing your recurring expenses, you can quickly identify unnecessary costs and adjust your budget.

Can I use neon Analytics to track my savings rate?

Yes, by comparing income and expenses, you can estimate your savings rate and track its evolution.

How many Spaces can I create in neon?

A maximum of 10 Spaces can be created in neon’s mobile banking application. And you can choose any name you like for each category.

Is neon Analytics free?

Yes, neon Analytics is free for anyone with a neon bank account.

Is neon enough to manage a complete budget?

Yes, on one condition: you must have all your income and expenses processed through neon. Between Analytics and Spaces, it covers budget tracking, optimization and organization.

As I began scanning my documents, I faced the problem of how to organize everything without getting lost!

I was looking for an efficient digital filing system for my scanned documents that was both minimalist and universal, accessible on any device.

Reader Eltharion actually asked me about it:

Hi MP, can you share your folder structure with us, please? I’d like to start doing the same, but I lack structure!

So here’s how I organize my digital files so that everything stays clear, and quick to find at all times.

My Mustachian filing philosophy

The purpose of my structure is simple:

• Minimalist: as few folders as possible, with as much logic as possible so you can find your way around every time
• Simple: use the standard folder and file system on any computer or smartphone (to avoid the need for complicated software, )

Basically, I want to be able to find any file in 10 seconds, from anywhere on Earth (with an internet connection).

My folder structure

So here’s how I organize my digital folders and files:

_Finances
├── Swiss accounts
├── US accounts
└── VZ

_Real Estate
├── 1 - Switzerland
│ ├── 1 - Buildings
│ ├── 2 - Potential buildings
│ ├── 3 - Meeting notes
│ ├── 4 - Calculators
│ └── 5 - P2P loans
└── 2 - Abroad

_Taxes
├──
├── 2023
├── 2024
└── 2025

_Companies
├── Company A
│ ├── 1 - Administration
│ ├── 2 - Bank
│ ├── 3 - Fiduciary
│ ├── 4 - Taxes
│ └── 5 - Contracts
└── Company B

_MP
├── _Salary statements
├── 1st pillar
├── 2nd pillar
├── 3rd pillars
├── Administration
├── Military
├── ID
├── Resumes and cover letters
├── Diplomas
├── Office des poursuites
└── Passport

_Mrs MP
└── Same as MP

Home
├── _Mortgage
├── Local administration
├── PPE administration
├── Heating
├── Land documents
├── ECA
├── Electricity
├── Internet and telecoms
├── Notary
├── Liability insurance
└── Serafe

Liability insurance

Greeting cards

Kids
├── _Kid 1
│ ├── ID
│ ├── Passport
│ └── School
├── _Kid 2
│ └── Same as kid 1
├── Family allowances
└── Childcare

Miscellaneous invoices

MP Family
└── Parents or Siblings
└── Cover letter support

Mrs MP Family
└── Same as MP Family

Medical
├── Health insurance
├── Medical records
└── Medical bills

Car
├── Fines
├── Auto insurance
├── Traffic permit
├── Expertise
├── Invoices
├── Driver’s license
└── Vehicle tax

N.B: I translated each file from French to English directly in my article, so the alphabetical order (correct in French) is not preserved here, which is normal.

As you can see, I try to have only maximum 2-3 levels of depth. And I name each folder as simply and briefly as possible, so that I can find my way around even on my smartphone where I don’t have much reader space in portrait format.

My folder and file naming rules

I have a few naming tricks, both for folders and files.

The basic principle to understand first: any file system sorts documents and files alphabetically.

Folders

• I use the symbol “_” in front of each favorite folder, so that it’s at the top of the list
• If I want to control the order of all my folders (as with real estate above), then I prefix each folder with a number “1 - ABC”, “2 - DEF”, etc.)

Files

• I write the date first, in reverse, so that it automatically sorts my files in alphabetical order
• Then I indicate the invoice issuer
• Then I indicate the type of document (invoice, certificate, etc.)

For example: 2025-03-28_smile_insurance_invoice.pdf

Or: 2025-10-12_bank_wir_tax_certificate.pdf

The ultimate aim of these techniques is to automatically sort all folders alphabetically AND files chronologically.

Other conventions

As you can see below, I use underscores instead of spaces.

I also try to use short names wherever possible, for legibility on computers and smartphones.

Bonus: for anything involving contracts or files with multiple revisions, I usually suffix documents with “_v1”, “v2”, or even “_final” to help me find my way around.

Tools for archiving my files

Here are the tools we use to digitize our archives:

• Cloud storage: Apple’s iCloud
• Backup: Apple iCloud (we used to use Dropbox, but we’ve optimized our subscriptions by grouping the whole family at Apple)
• Scan: “Adobe Scan” mobile application (used to be Evernote’s “Scannable”, but their app is now paid for)

Mustachian checklists to keep the system clean

Paper mail

My mantra: Scan → File → Tear.

• Scan every document received as soon as possible (or store it in your tray if you don’t have time)
• File the PDF in the right iCloud folder (with the right naming)
• Tear up and recycle the paper version (except for the rare original documents you need to keep)

Digital documents

My mantra: Download → File → Archive.

• Download any invoice or certificate received by email immediately
• Files the file in the right iCloud folder
• Archive (or delete) the original email

Monthly reminders

• Check that paper tray is empty
• Check that the mailbox contains no more unscanned documents

FAQ electronic archives

Why not use a NAS and save on backups?

I could use a NAS (like Synology), to manage my backups myself. I’d save a pretty penny a year, and I’d be more sovereign.

That’s what I used to do. But it was always a worry of something to maintain. And what if the house caught fire or we were burgled. Then you had to think about safeguarding the safeguard…

I got fed up with it one day, and decided to migrate everything to the cloud so that I’d never again have to worry about losing a backup of our files, or even worse, our children’s photos.

Why not use an OCR system?

One question that comes up a lot, and that I ask myself, is why not use an OCR system (for “Optical Character Recognition”) so that I no longer have to name and sort my folders and files.

iCloud doesn’t offer this feature yet. It’ll surely come one day.

But, even if I were to use Google Drive (which offers OCR search by default), I’d still like to keep the system ultra-simple, local and future-proof, without having to depend on a third-party service or subscription (should this feature ever become chargeable).
My goal: to keep everything readable and accessible on any device, today or 10 years from now.

But if the geek in you knows of an innovative solution that could help me, don’t hesitate to share it with me via the comments below!

Conclusion: your turn to get your digital life in order!

In the end, this digital filing system has saved me an incredible amount of time and a real sense of serenity.

I’m no longer afraid of losing a document, nor do I need to rummage through piles of paper, and everything is instantly accessible from anywhere in the world. Mrs MP really appreciates it too!

It’s minimalist, efficient, and above all sustainable: a true Mustachian mindset applied to digital.

But everyone has their own habits and tricks! If you’ve got a different system, an idea for improvement, or a cleverer technical solution, share it in the comments below.
I’ll be happy to update this article with the best digital organization suggestions.

After extensive research in 2014, I started with a portfolio of ETFs composed mainly of Swiss stocks and bonds ETFs and… global stocks ETFs in “CHF hedged” mode…

Rereading these lines, I think I’ve come a long way…

At one point, I even wondered whether I shouldn’t invest in specialized ETFs. Short answer: no!

Lots of choices… and too few answers…

Then in 2016, I ended up adopting the Bogleheads strategy, simple and effective: your age as a percentage of bonds, and the rest in stocks (one part in world stocks and the other in Swiss stocks).

But the more the years went by, the more something bothered me.

After several readings, I decided to switch to 100% stocks for the rest of my life.

My investment portfolio before: Bogleheads

After much procrastination and feedback from readers in the know about stock market investing, I set out with a three-fund Bogleheads portfolio in 2016.

The Bogleheads strategy is based on a simple allocation: your age = bonds part, the rest in stocks.

For example, at 35: 35% bonds, 65% stocks.

The idea behind such an allocation is to be aggressive with lots of stocks (aka equities) when you’re young and in the money accumulation phase, and to have less volatility as you get older when your income may decline with retirement.

Jack Bogle, father of passive (or index) investing, which will give rise to our beloved ETFs

What I liked

• Simplicity (~15 min per quarter)
• Proven effectiveness over the long term for a “lambda” investor like me (as a strategy based on index funds in the form of ETFs)
• Easy to understand (your age as a percentage of bonds, and the rest in stocks)
• Less volatility (compared to 100% stocks)

What bothered me

• Overall return limited by bonds
• Share-bond correlation less and less effective due to persistently low interest rates (bonds no longer really play their role as a cushion in the event of a crash)
• Lack of coherence with my long-term FIRE vision (the older I get, the more the Bogleheads strategy pushes me to reduce risk, whereas I intend to invest for decades to come, even once I’m financially independent, and that I certainly intend to make money with my personal projects and other real estate investments).

In short, my typical Bogleheads allocation of “65% stocks and 35% bonds” provided stability and reassurance, but frustrated me by seeing some of my “sleeping” cash lying around in bonds.

N.B. I should rather say that the closer I got to actually investing in bonds (because until then, my second pillar already covered the bond portion), the less I could get used to the idea of leaving money sitting in a bond ETF…

The trigger for my new investment strategy

My mind changed after reading one book in particular: “The Simple Path to Wealth” by JL Collins ²:

The 'The Simple Path to Wealth' book, by JL Collins

And this video “The Most Controversial Paper in Finance” by Ben Felix also impacted my choice:

JL Collins’ logic is crystal clear: bonds don’t protect you from the real risk, which is missing the opportunity for more yield over 30 or even 40 years.

Also, age matters less than the FI phase you’re in (accumulation or consumption of wealth). Because if you’re working until 55 by choice, then you’re going to want to put all your savings to work in stocks as much as possible, knowing that you’re still earning cash (in salary). There’s no need to have more than 50% in bonds in this period!

Regarding Ben Felix and the economic paper “Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice”, in a nutshell:

• If you accept the ups and downs of the stock market (aka stock market volatility)
• AND if you understand that the market doesn’t always reflect the true value of companies
• AND if you also understand that the global market always goes up because ETFs are self-cleaning (bad stocks come out of the indices mechanically AND automatically, and are replaced by better companies)
• => then, you’ll want to get the maximum possible return… with a 100% stocks portfolio!

In short: there was no longer any reason for me to remain restricted.

My investment portfolio now: 100% stocks

So I chose a 100% stock allocation, ultra-simple and consistent.

My current portfolio

Why this choice

• Superior performance over the long term
• Total simplicity: a single ETF, no rebalancing
• Psychological alignment with the level of risk that I can support
• Less fees, fewer products, more freedom

What I assume

• Higher volatility
• Sharper corrections (-50 to -55% in the event of a major crisis ³, versus -20 to -35% with bonds in the portfolio)
• Full confidence and positivism in global growth, despite all the events along the way

Bonds can be good

A quick reminder of what a bond is, if you’re new to the blog: it’s a loan to a country or a company. And so, by definition, it’s a risk too (loss, in the event of default by the borrower). On the other hand, it’s actually less volatile than stocks, because the income (interest) is known in advance, and prices move much less on a daily basis.

The older you get, the harder it can be to say to yourself “I’ll find a job again easily if the stock market falls” (although we Mustachians will always be active in one way or another until we die).

So yes, in that phase, bonds can play a role. But not for the yield, no, just to sleep easy if you’re really running out of cash.

But until then, I’d rather rely on Mustachian creativity and resourcefulness than on bonds with low (or even negative…) interest rates.

The philosophy behind this portfolio change

This is not an impulsive decision, but a logical evolution.

Over the years, I’ve come to understand that:

• The “reassuring” diversification of bonds is of little use once you’ve got your emotions under control
• The real danger comes from inaction, not volatility
• Time and consistency beat any complex strategy

As Warren Buffett sums up in his 2024 annual letter to shareholders: “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses.” In other words: cash protects, but doesn’t grow your wealth.

And that’s exactly what I’ve come to realize: as long as I can sleep soundly with volatility, I might as well let 100% of my money work in productive markets.

In other words: 100% stocks, 100% confidence, 0% complexity.

And what about the 2nd pillar in all this?

A small detail that is often overlooked: when you build your wealth in Switzerland, your 2nd pillar acts in part as the bond component of your assets, as it is invested conservatively, generally with a low proportion of equities (often between 25 and 30% depending on the pension fund).
You pay a portion of your salary into it every month, and this money is invested in an ultra-conservative manner.
In other words, even if your personal portfolio is 100% stocks, your overall wealth is not.

This “forced” 2nd pillar already creates a natural balance in your asset allocation, without you having to hold bonds yourself in your securities account.

Aside: once I reach FI, I will transfer my entire second pillar to the best vested benefits account, choosing a 100% global stocks strategy. So yes, as I get older, I will further increase our risk profile to maximize our returns.

And no more SMIM ETFs (Swiss stocks) either!?

No more SMIM, exactly.

The SMIM, which groups the 30 largest medium-sized Swiss companies (aka mid-caps, situated between small SMEs and SMI giants like Nestlé, Roche or Novartis), weighs next to nothing on a global scale.
To give you an idea: the entire Swiss market (SPI) represents around 2% of the world’s market capitalization, and the SMI only 5% of this 2%, or barely 0.1% of the world’s total.

In other words, in a global portfolio like VT, the “natural” share of Swiss mid-caps is virtually nil.
Putting 10% of your portfolio in them is like overweighting them by around ×100 compared to their real weight in the world.

And the Swiss market is:

• very small (only a few dozen listed companies)
• highly concentrated (Nestlé, Roche, and Novartis account for over 50% of the SMI)
• not that much diversified by sector (industrials, healthcare, consumer goods, financials)

So, rather than “correct” this bias with yet more Swiss, I opted for absolute simplicity:

100% global stocks via VT, and basta.

I already have enough CHF in my real life (income, cash, repayments); no need to add more in my investments.

And when I’m FI (= financially independent), I’ll simply keep a CHF cash reserve of about 1 year’s expenses to cover short-term needs.
This makes more sense than artificially overweighting the Swiss market, which would only increase risk without offering any significant advantages, in my opinion.

I am aware that I am losing a little in terms of currency hedging and tax advantages on Swiss dividends, but in the long term, these differences remain marginal compared to the gains in simplicity and consistency.

What does that mean for your portfolio?

Perhaps you’re still at the “Bogleheads strategy” stage, or already tempted by “full stocks”.
No matter what: the important thing is to understand your horizon, your risk profile and your convictions.

And, above all, to start investing today! (I have this article that may help: How would I invest CHF 10'000 in the stock market if I were starting out today?)

I’ll say it again here: a Bogleheads portfolio is still perfect for many investors. And a thousand times better than a stock picking portfolio.

Ditto: SMIM is not inherently bad. It’s made up of some very fine companies. It’s just that, based on my analysis and understanding of the stock market to date, it no longer makes much sense in my investment portfolio.

Conclusion

Moving to 100% stocks via my global VT ETF is not a leap in the dark; it’s a natural evolution when your horizon exceeds several decades.
Today, I sleep better with a portfolio that’s simple, logical, and aligned with my Mustachian philosophy: fewer products and lower fees, for greater yield and freedom.

And you, are you staying with a Boglehead strategy, or joining the 100% stocks team?

I often discuss this topic with new readers of the blog.

It often starts like this:

But MP, it’s much easier to invest in the stock market with a robo-advisor than to have to invest on your own, isn’t it?

Indeed, yes, it is.

And the question I ask you in return is: “What’s it worth to you?”

In summary: a robo-advisor is easier to get started with, but investing yourself will save you much more money in the long run thanks to lower fees and optimized taxation.

Investing with a robo-advisor, or investing yourself?

When I began my journey towards financial independence in Switzerland in 2013-2014, I quickly realized the power of investing in the stock market on my net worth.

With compound interest, I was going to be able to achieve my goal of stopping working at 40.

But before that, I asked myself: “How do you go about investing in the stock market?”

Because ideally, I’d have liked a turnkey solution like this:

1. I make a transfer from my Swiss bank account to an investment platform.
2. And boom, it automatically invests in the stock market for me

The reason for this was that I was afraid of clicking in the wrong place. Or worse: choosing the wrong ETF.

We call this type of turnkey investment platform a “robo-advisor”. It’s very simple, and devilishly effective for growing your wealth on autopilot.

But at the time, robo-advisors only existed in the United States. So I chose the “invest yourself” option, even though the simplicity of a robo-advisor would clearly have tempted me.

But today, there are a plethora of robo-advisors in Switzerland too.

What is a robo-advisor?

A robo-advisor is an online investment platform that automatically manages your portfolio using algorithms. In concrete terms, you answer a few questions about your profile (horizon, risk, objectives), then the robo-advisor invests your money in diversified portfolios, often made up of ETFs, and rebalances regularly without you having to intervene.

Here is a comprehensive list of robo-advisors available in Switzerland to date:

• findependent
• finpension Invest
• Inyova
• Selma
• Swissquote Invest Easy
• True Wealth
• VIAC Invest

True Wealth started the robo-advisors movement back in 2013. But at the time, the process was still largely undigitized. The general public really embraced these products starting in 2016-2017 (with fully digitalized registration and onboarding).

Other financial players followed suit with the digital age of 2017-2023.

What does “DIY investing” mean?

Investing in the stock market by yourself involves opening an account with an online broker (such as Interactive Brokers, Swissquote or Saxo) and managing your investments directly. Most retail investors choose ETFs for simple, low-cost diversification. This approach requires more knowledge and discipline, but can significantly reduce costs and optimize taxation in Switzerland.

DIY stands for Do It Yourself.

But if you’re reading this blog, you’re a Mustachian. So you’re a lifelong learner, rather than a self-indulgent one who lets life be your guide.

Also, when I say “more knowledge and discipline”, that’s not that hard either:

• For skills: just read my article in conclusion
• For discipline: we’re talking about a click every 1-3 months in less than 5 minutes. We’ve seen worse (like staying motivated to work out :D)!

History of the emergence of online brokers

In a few key dates, here’s how investors started buying stocks and ETFs online, and how the market has evolved since then:

Direct comparison: robo-advisor vs. investing yourself

Before talking about fees — and your potential savings! — I want to show you all the angles of these two ways of investing in the stock market:

Advantages and disadvantages

Advantages and disadvantages in a nutshell:

Robo-advisor

• ✅ Simplicity (everything is automated)
• ❌ Higher fees (0.5-1%/year)
• ✅ Forced discipline (automatic rebalancing)
• ❌ No tax optimization (loss of US WHT)

DIY investment

• ✅ Very low fees (~0.06%/year + 1-2USD per transaction)
• ✅ Total control over your portfolio
• ✅ Tax optimization possible (WHT US recovery)
• ❌ A little more time-consuming (ETF selection, monitoring, rebalancing)
• ❌ Discipline required (avoid emotional mistakes)

Which solution for which profile?

Complete beginner

• You want to invest without worrying
• You don’t (yet) have the knowledge or time to learn

A robo-advisor is for you: it’s a simple, disciplined way to get started.

Frugal / curious / optimizing (Mustachian!)

• You like to understand where your money goes
• You’re sensitive to costs and tax optimization

Investing yourself (DIY) is for you: you keep control and reduce your costs (and therefore increase your profits!)

Hybrid case

• You want to get off to a good start
• Then, when you’re more comfortable, you’ll switch to DIY investing to optimize fees

This is the path taken by many readers: starting out with a robo-advisor, then switching to DIY.

Examples with figures: Robo-advisor vs. DIY investing

Sarah and her husband have been Mustachians for 3 years now. She’s the one who set up a budget that saves them around CHF 3'300 a month (or CHF 10'000 a quarter, or CHF 40'000 a year).

The couple are now confident enough to venture into the stock market. So she wants to know what we’re actually talking about when we say that robo-advisors are more expensive than investing yourself in the stock market.

She saw on my blog that the best Swiss robo-advisor offers total annual costs of 0.48% of the total amount of the portfolio.

And she also read in my comparison of the best trading platform in Switzerland that the best broker would cost her around CHF 14.46 per year for a diversified portfolio of 2 ETFs (1x Global/World ETF and 1x Swiss ETF).

She puts all this information into an Excel file, assuming an annualized return of 7%:

Simulation over 10 and 20 years: Robo-advisor vs DIY

Reformulated into one sentence, this information amounts to saying:

Would you like to earn CHF 100'000 in 20 years, with only one click to make per quarter? (or how to get rich the lazy way ahah!)

And that’s without mentioning the tax optimization of being able to reclaim US withholding taxes!

FAQ

Should I invest myself or through a robo-advisor? Investing yourself costs less and yields more, but a robo-advisor is still ideal for getting started without stress.

What is the best robo-advisor in Switzerland? The best robo-advisor in Switzerland is currently finpension Invest. finpension offers the lowest fees and the best return optimization.

Conclusion: investing yourself or via a robo-advisor?

Both approaches work. But the difference is what you keep in your pocket: CHF 100'000 in 20 years!

The robo-advisor is the perfect way to get started without the stress of clicking in the wrong place, while testing your psychology about stock market fluctuations.

Then, once you’re confident, you can start investing on your own (DIY) to keep your taxes under control and your costs to a minimum. This is the quintessential Mustachian way.

But above all, the most important thing: start today. Yesterday is too late. Tomorrow, you’ll find an excuse.

Here are some useful links to help you move forward:

• How I’d invest CHF 10'000 in the stock market if I started today)
• Comparison of the best online trading platforms (for Swiss investors)
• My complete guide to Interactive Brokers (IBKR) for investing yourself (the best online broker I’ve used since 2016)
• Comparison of the best Swiss robo-advisors, if you prefer an automatic solution to get started

As usual, I used the best health insurance comparison tool in Switzerland on the official website of the Swiss Confederation “Priminfo” (and not Comparis or anything else that puts sponsored items in between results that you can quickly get screwed over).

In a nutshell: how do I change my compulsory health insurance in Switzerland?

Simply follow these four steps to conclude your new compulsory health insurance policy and terminate your current KVG/LAMal insurance:

1. Check how much you’re currently paying in health insurance premiums
2. Compare on priminfo which is the best health insurer for your personal data
3. Subscribe to the new insurer (if you can find a cheaper one)
   N.B. normally, the new insurer will ask you what your current health insurance is, so that they can send them a confirmation of affiliation, and so that your cancellation request can be accepted (see next point).
4. Send a cancellation letter (see template below) to cancel your current health insurance by registered mail
   N.B. wait until you’ve received the confirmation email from your new insurer (you usually receive an application confirmation email a few minutes after registering online with the new insurer).

Example of my new health insurance subscription with Assura

Reminder: health insurance choice of the MP family in 2025

Readers who have been following the blog for a long time know that we have been with Assura for several years now.

Then, in 2022, we switched to KPT, which had become the cheapest insurance for 2023.

And we switched again in 2024 to Visana (for us adults). And the children went to CSS.

This was the most frugal option we could find with our search criteria, namely:

• Mr MP and Mrs MP: deductible of CHF 2'500, family doctor model (to be able to choose our family doctor and not have him imposed on us)
• Children MP: deductible of CHF 0, family doctor model also

And in October 2024, we shopped around again. We switched back to Assura for us adults. The children stayed with CSS, which was cheaper. So we paid the following monthly basic insurance premiums to Assura and CSS:

• Mr MP: CHF 352.95
• Mrs MP: CHF 352.95
• Kid MP 1: CHF 116.45
• Kid MP 2: CHF 116.45
• Total health insurance in 2025: CHF 938.80/month

Using health insurance comparison tool priminfo

So I went to enter my info and that of Mrs. MP and the kids on the official federal “Priminfo” website to compare health insurance premiums:

Entering my information on priminfo

Best Swiss health insurers results for Mr. and Mrs. MP

You can also sort the list by deductible amount

Ditto, we compare health insurance premiums for MP children

Comparison of MP children's health insurance with a CHF 0 deductible

Verdict health insurance premiums 2026 for the MP family

The results of this year’s comparison are obvious:

• ✅ Assura PharMed: We stay with the good old Assura basic insurance we’ve had for many years. PharMed gives us the free choice of our family doctor, but restricts our choice of pharmacies (we have to go through Assura’s partner pharmacies, and we have one near us, so all good).

Assura (PharMed) remains the most frugal insurance for Mrs MP and me in 2026.

• ✅ CSS Hausarztversicherung Profit (MP children): Our children will remain with CSS, as it is simply the cheapest basic insurance (compared to Helsana or Assura).

That’s what we’re talking about in numbers, monthly:

• Assura + CSS / MP family 2025: CHF 938.80
• Assura + CSS / MP family 2026: CHF 984.20
• Difference = CHF 45.40 more to pay each month!

It’s less crazy than the 25% between 2023 and 2024, but we’re still talking about a 5% increase 💸

But if we had been with CSS for us adults and stayed there, we would be paying CHF 62.60 more per month!

So, by switching to a new health insurance company in 2026, we would save CHF 751.20 per year (= 62.60 x 12).

And over 10 years, by investing this amount in the stock market via my favorite broker Interactive Brokers, that would make us CHF 11'121 more in our pocket!!!

All this is for the small effort of sending a registered letter to cancel my health insurance and filling in a small form to take out our health insurance with Assura for 2026!

That’s about 1 hour and 15 minutes of work, for a very nice yield in the end!

Sample letter to cancel KVG/LAMal health insurance

If you also want to cancel your KVG/LAMal health insurance (valid for all health insurance companies), here is a standard insurance letter that you just have to fill in, sign, and send by registered mail to your health insurance before 30.11.2025:

Download sample cancellation letter for health insurance (in German) >

Download sample cancellation letter for health insurance (in French) >

I must insist that you send this letter on time, otherwise your request to cancel your basic insurance will not be considered…

Conclusion

Honestly, it’s nice not to have to go through all those health insurance procedures again… But every time I compare health insurance plans, I feel nostalgic, because it reminds me of 2013 when I optimized all my health insurance contracts to become the Mustachian that I am today :)

And a little note about KPT then Visana: even though I’ve cancelled with them, I can confirm that it’s only because of the health insurance premium, because it’s always gone well, and I’ve always been very satisfied.

And you, are you cancelling your KVG/LAMal health insurance this year? If so, with whom? With the family doctor insurance model or another? And also, do you have any opinion on Assura, Visana, or CSS?

FAQ

Cancellation of supplementary insurance

You can normally cancel your supplementary health insurance at the end of each year, giving 3 months’ notice (i.e., by September 30 of each year at the latest).

What is the Federal Health Insurance Act?

It’s the law called “KVG” in German and “LAMal” in French. It regulates the benefits of the compulsory health insurance.

After all, you can’t blame yourself, knowing that this kind of personal finance subject isn’t covered in school… ¹

As much as we hear about GDP or the world economy, if we choose the option “Economics” in the Compulsory Cycle, we don’t talk about budgeting or how to build a private pension plan via pillar 3a.

So, as here on the blog, we all want to become financially independent one day or another, so it’s important to make sure we’re clear about the basics of the Swiss retirement system (aka Swiss pension system).

Introduction of the Swiss three-pillar principle

The Swiss pension system is based on three pillars:

• 1st pillar: basic insurance (public)
• 2nd pillar: occupational benefits (private)
• 3rd pillar: individual pension provision (private)

The basic aim of the Swiss pension system is to guarantee financial security in retirement, as well as in the event of disability or death.

This three-pillar model has been enshrined in the Swiss Federal Constitution since 1972. In concrete terms: Pillar 1 was introduced in 1948, Pillar 2 in 1985, and Pillar 3a in 1972.

It’s a combination of public funds (a common pot into which everyone pays something), occupational pension plans (deducted from everyone’s salary), and, optionally, individual pension plans (which you may or may not choose to set up for yourself). The latter is tax-advantaged to motivate the Swiss to put money aside for themselves.

1st pillar: old-age and survivors insurance (and disability insurance)

The 1st pillar corresponds to the state pension scheme, also known as Old-Age and Survivors’ Insurance (OASI), managed by the Federal Social Insurance Office.

It covers vital needs in the event of retirement, disability, or death.

And if you don’t reach a minimum income, then you may also be entitled to supplementary benefits (EL/PC) to supplement your OASI pensions and cover your basic living expenses.

So, let’s say you’ve never worked (so no OP) and never contributed to pillar 3a, this social safety net prevents you from ending up on the street in extreme poverty, and guarantees you a minimum income.

Let’s be clear: even if you’re very frugal, it’s going to be very hard for you to live in Switzerland on OASI alone. The OASI’s minimum pension is CHF 1,260/month, and the OASI’s maximum pension is CHF 2,520/month. This amount depends on your average annual income.

OASI contributions (= 1st pillar) are compulsory for anyone living or working in Switzerland.

Also, the money in this 1st pillar does not belong to you personally. It is managed by the OASI compensation funds (under the supervision of the Swiss Confederation).

2nd pillar: occupational pension benefits

The 2nd pillar is occupational pension provision, governed by the Federal Law on Occupational Pension Schemes (OP) for old age, survivors, and disability.

I hear people say to themselves, as I did when I first started working:

Ah, but that’s that, the OP/LPP! Thanks, MP, for the explanation :)

The purpose of the 2nd pillar is to supplement the 1st pillar’s Old Age pension to maintain the usual standard of living in retirement. And given the amount of the 1st pillar, I suggest that the 2nd pillar will provide you with a substantial additional income for retirement. Well, especially for those who are not frugal and rely solely on it to live beyond the age of 65.

All Swiss employees with an annual salary in excess of CHF 22,050 are covered by the 2nd pillar. This means that contributions to the 2nd pillar are compulsory for salaried employees in Switzerland (self-employed persons can join voluntarily or not).

To be clear: the second pillar is money in your name, contributed by you and your employer, which is invested and capitalized. Although this money is in your name, it remains under a form of legal guardianship by the State until retirement (except in special cases such as purchase of primary residence or moving abroad) under current Swiss law.

3rd pillar: individual pension provision (aka private pension provision)

The 3rd pillar is the individual provident fund, which supplements the benefits of the 1st and 2nd pillars.

It offers savings and insurance solutions to bridge income gaps at retirement or in the event of death.

The 3rd pillar is divided into linked 3rd pillar (3a) and free 3rd pillar (3b), with tax advantages for the 3a. This private provident scheme is encouraged by the Confederation and cantons, through possible tax deductions for greater financial security after the age of 65.

The financing of the pillars of the Swiss pension system

The 1st pillar is financed respectively by employees and employers (who each contribute a share of their salary via a direct deduction from your pay slip as AHV contributions), the self-employed (who also contribute according to their income), and the State and VAT who supplement with a contribution (federal subsidies, to balance the system).

We could say that the 1st pillar falls within the public “domain”, since the money is collected and redistributed via a collective system managed by the Federal Government.

The 2nd pillar is financed by contributions from workers and employees. So it’s private money that you and your employer set aside each month for your future retirement. As mentioned above, the OP is compulsory for all Swiss employees.

The 3rd pillar is financed by individual contributions. It is optional.

The advantages of the 3-pillar system

We hear a lot of people complaining about our three-pillar system and all the politics that surround it. But if you look at it with hindsight, AND compare it with other countries around the world, it’s really not as bad as they say.

I’ll list below the main advantages I see, from the point of view of a Swiss lambda citizen (because a Mustachian might be even more independent in the way he applies it):

Advantage 1: Diversification of income sources in retirement

• 1st pillar (OASI): basic income based on solidarity, which reduces the risk of poverty.
• 2nd pillar (OP): forced savings linked to salary, creating retirement capital.
• 3rd pillar: individual freedom, tax optimization, investment choices.

This avoids putting all one’s eggs in one basket (e.g., only the State or only the private sector).

Advantage 2: Mix of solidarity and individual responsibility
The 1st pillar mutualizes risks (intergenerational solidarity). The 2nd and 3rd encourage individual responsibility and capitalization. It’s a flexible balance that “reassures” society while leaving room for personal initiative.

Advantage 3: Attractive tax incentives (especially pillar 3)
Pillar 3a allows deductions from taxable income, which is a real frugal lever for optimizing your savings rate. Buying into the 2nd pillar can also reduce taxes (if used properly, i.e., as close as possible to the legal retirement age). For a Mustachian, it’s a way of boosting speed towards early retirement while respecting the pension fund regulations.

Advantage 4: Protection against certain life risks
Pillars are also insurance: disability, death, surviving spouses, orphans’ pension, etc. It protects your family if you’re no longer around (and you were the only one who knew about personal finance…). It completes the FIRE logic, where you want to limit the big risks of “game over”.

Advantage 5: Stability and predictability
The 3-pillar system has been in place for a long time (iterative creation between 1948 and 1972), and is well accepted politically. OASI pensions are (relatively) guaranteed. And pension funds are regulated and supervised by FINMA. All this gives our beautiful country of Switzerland a certain legal and economic security.

Advantage 6: Flexibility of use
Even if everything is relative, you can still be a little flexible with your pension capital:

• The possibility of early withdrawal (real estate purchase, independence, going abroad).
• The choice of more dynamic investments with certain 3a products (ETFs, equities).

This allows you to remain (partly) a player in your own strategy, and not just a passive complainer against the state.

Conclusion on the 3-pillar principle

The Swiss pension system is based on three pillars: basic insurance, occupational retirement pension, and individual pension.

The main objective of the Swiss pension system is to guarantee financial security in retirement, disability, and death..

The three pillars of the retirement pensions work together to provide a comprehensive pension plan.

I’m not familiar with all the world’s pension systems, but I have to say I’m pretty satisfied with them overall. In any case, it’s quite balanced (like any Swiss thing!)

And you, without getting too political (I’ll delete comments like that, just so you know), what do you think objectively? Also, if I’ve missed any important points on the subject of retirement in Switzerland, let me know in the comments below.

FAQ 3-pillar system

Is it really worthwhile to contribute to pillar 3a?

The short answer: yes!

The detailed answer: you can save around 1,000 Swiss francs a year in taxes by paying in the maximum 3a amount each year. If you also invest in the stock market these savings, then it becomes a very, very good financial plan.

Also, you can invest your pillar 3a in the stock market, which is even more financially attractive.

What are your 3rd pillar recommendations MP?

I keep an up-to-date 3rd pillar comparison on this link. I update it every year to guide you through the plethora of private pension plans, with a lot of crappy products between them.

Which vested benefits account will you choose once you retire early (FIRE)?

As my FIRE date is approaching, I took the time to do a detailed comparison of the best vested benefits in this article. Unsurprisingly, it includes the same modern candidates that revolutionized pillar 3a.

Is accident insurance (UVG) part of the 2nd pillar (OP)?

No, accident insurance (LAA) is not part of the OP (2nd pillar), even though the two are often managed by the employer and confused by the people.

If you’re an employee: your employer must insure you against occupational accidents, and (if you work >8h/week) also against non-occupational accidents. So it’s indeed job-related.

If you don’t have a job (FI, no activity): you’re no longer covered by your employer’s accident insurance. You must then cover yourself via your LAMal (health insurance), by adding “accident” cover to your basic policy (this is compulsory if you don’t have an employer).

Imagine, the last blogpost was in 2023!!!

So it was tough during the past 3-4 months, as I’ve been itching to prioritize other articles over this one…

Why is that?

Simply because I’m getting closer and closer to FI (“Financial Independence”).

I’m almost financially independent…

I have to write it down to start believing it: “We’re going to be FI soon!!!”

This FIRE goal ¹ has been so far away for the past decade, I could hardly believe what I saw in YNAB when I last updated our accounts:

Our net worth in YNAB (beginning of September 2025)

So, yes, we’ve passed the 90% mark of our goal to reach CHF 2'156'000 in net assets.

For newcomers, I arrived around this number in the first place via the 4% rule. Then, I made an appointment with VZ in 2015 to have a much more precise simulation, taking into account all the Swiss specificities. And that’s how I arrived at my new fetish number for over 10 years now: CHF 2'156'000.

And knowing that I have a real estate project (presented in this article) that will soon come to an end, in addition to other earnings from our salaries and other side gigs, it could be that we’ll pass this fateful mark sooner than expected… suspense!

As the saying goes: “Don’t count your chickens before they hatch.”

Nevertheless, it’s becoming more and more concrete, and the psychological aspect accounts for a good 60% as opposed to 40% for all the financial issues involved.

But…

FI yes, but RE (retire early)… Really?

As we pass the symbolic 90% mark for our goal of financial independence in Switzerland, we’re making great strides with our Swiss FI planning tool with Patrik.

The results screen of our 'FI Planner' web application (currently being finalized before official launch)

But anyway, the tool also confirmed to me that all the real estate I’ve invested in so far isn’t… liquid. What a surprise!

So, as we don’t want to sell our home (this scenario was favored by VZ at the time), and we have part of our wealth in rental property, this would technically mean that all told (liquid and non-liquid wealth), we’d need to reach around CHF 2'600'000 (instead of CHF 2'156'000).

A comical aside: one of the close-to-reality simulations gave me CHF 2’651‘000 as the FI target… :D

All this to say: yes, we’d be FI on paper at CHF 2'156'000 if we sold all our real estate (including our home, by becoming a tenant again).

But now that we’re almost there, we can pretty much say with certainty that our decision is made, and that we want to remain homeowners.

The next question is logically…

But what are you actually going to do, MP?

It’s a pity in a way that I’m not just an employee, that I only have two simple ETFs, and that we’re tenants. That way, it would be simpler and more representative.

But would it really be representative?

Not so sure…

Because, when I go through all the readers’ emails, I can see that everyone has this or that parameter that changes a little: a self-employed husband, young children (or who are finishing school very soon), a wife who has US nationality and not Swiss (and that complicates things quite a bit), or an Italian or Portuguese husband with a life plan to return to live in his country of origin once he reaches FI, and so on.

So, on the contrary, our current situation with Mrs MP is a good illustration of the fact that there are as many situations as there are people on the road to FI.

On our side, the potential choices I imagine:

1. We both continue our jobs until 2 years from now, as planned, and this way we maximize our liquid assets (and, potentially, if all real estate is up in the meantime, this gives us a big cushion in almost “Fat FIRE “ mode)
2. Mrs MP continues to work for 1-2 years in order to be psychologically ready (because yes, that too is a reality to be taken into account in the plan), and I stop before 40 while continuing to pay myself a salary for two years via real estate (which I’ll be stepping up) and some new projects linked to the blog, to ensure that we reach 2.6M at 40 years old
3. We’ll stop working together in a year’s time, and we’re confident enough in our entrepreneurial side projects to reach 2.6M in the following 1-3 years, in “Barista FIRE” mode, kinda

A little bird tells me it’ll be between plan 1 or 2, knowing our need for financial security and the psychological aspects that go with it (leaving a job, impact on social life, etc.) Yet, we’ll mostly live with the flow, and adapt as we go along.

But the reality is: it’s getting closer!

As an aside, I can already hear the FIRE police laughing: “Muahaha, what a liar that MP is, that’s not early retirement!!!! You’re either both on a beach with cash falling from the sky, or everything you’re saying is BS, period!” I recommend you change blogs if you’ve just said that to yourself ;)

Finally, some action, after a dull moment of boredom

Anyway, all that to say that we’ve still got a little over 2 years to go before I live up to the title of my book, and a lot can still change. In any case, it’s super interesting to get to this part, because, honestly, it’s been lacking action for the last 3-4 years (apart from rental real estate).

Because it was cool in 2013-2015: optimizing all our expenses, maximizing our income, etc., it was also exciting.

Then, we had the purchase of our home, which kept us busy for 1-3 years.

Then the blog grew, and along with it my real estate business.

But becoming financially independent is a long road. And I have to admit that the lack of concreteness, and of simply having to follow a “Earn -> Save -> Invest” thread, was starting to get long since the post-COVID period.

So here we are: we’re now entering the planning phase of the change from employee to financially independent, and I’m looking forward to sharing the challenges of the next few months with you (did someone say mortgage?!)

CHF 450'000 in two years?

Um, MP, if I understand correctly, you think you can earn +450'000 Swiss francs in net worth in two years? Please tell me your secret!

Ahaha, you’re taking the words right out of my mouth. Because if I’d read that in 2013, I’d have had the same question as you!

And yet, the explanation is simple:

• The effect of compound interest is crazy. When there’s a small jump in the value of the VT ETF by +CHF 2, my Interactive Brokers brokerage account shows us +CHF 15'000. And when it’s more violent, like in April (Trump tariffs), we lose 70kCHF over two months, then +CHF 67'000 again between last June and August.
  • Yes, we’ve now exceeded CHF 900'000 invested in the stock market, and we’re closing in on the million mark! So things are moving fast at the slightest positive jolt
• I’ve got a fifth real estate project in the pipeline, which will also help us to reach our target of 450kCHF quickly
• And then there are our salary increases and various bonuses
• And the side blog activity on top of all that (with my programs, my book, and soon FI Planner)

So, re-reading this list, I’m not too worried that it’s going to go up nicely, and quite quickly!

And as I always say: at first your money adds up slowly, but when compound interest really starts to kick in, it really boosts your net worth!

We've gone from CHF 48'000 to CHF 1'000'000 in 9 years, and we're going to go from 1MCHF to 2MCHF in 4 years 💰

Side note: you can follow the evolution of my net worth and savings rate in real time (updated monthly) on this page.

Conclusion

So much for my journey to financial independence! It gives me great pleasure to be able to share all this with you, who’ve been following me since the beginning (it’s been over 10 years already!)

I’ll give you a more complete rundown of all my current projects in a future article in this “Journal” series, but for now, I wanted to keep the focus on the fact that it’s getting closer… that it’s becoming concrete… and that it’s all a bit stressful (in a good way)!

And you, are you close to being FI? Or do you feel like there’s still a long way to go?

For my part, I’m starting to look into it, as my date of financial independence is gradually getting closer and closer. Because, as with all my personal finances, I want to optimize my tax situation as much as possible.

Indeed, the taxation of 2nd pillar capital withdrawals varies from canton to canton (as local tax authorities are responsible for setting those themselves).

2nd pillar tax calculation: four different methods depending on your canton

Why make it simple when you can make it complicated? Each canton applies its own method of calculating tax on capital withdrawals:

1. Fixed capital withdrawal tax rate: GL, SG, TG and UR

Simple and effective, you have a fixed percentage regardless of the amount of your capital withdrawal. As you will see in the table below, there are changes depending on the amount withdrawn, as the federal tax share increases proportionally (see point 2).

2. Proportional tax rate (to the income tax rate): Federal, AG, AI, GE, LU, NE, NW, OW, SH, SO, VD and ZG

Imagine you live in the canton of Aargau, where lump-sum benefits from pension funds are taxed in proportion to the income tax rate (~1/3). You have CHF 200'000 in LPP that you want to withdraw, and the tax rate in the canton of Aargau for such an income is 8.5% (single person). For the cantonal portion, the calculation will therefore be: 8.5% x 1/3 = 2.83%, then CHF 200'000 x 2.83% = CHF 5'660. Municipal tax and federal tax must be added to this (the latter also works on a proportional basis), as they are taxed separately.

3. Tax rates using the annuity rate system: GR, SZ, TI, VS and ZH

Like the proportional rate, this system is also based on income tax, but as if you were drawing your pension benefits in the form of an annuity. It’s a little more complicated, but the result is the same: the higher the pension fund capital withdrawn, the higher the taxes.

4. Progressive tax rate (separate from income): AR, BE, BL, BS, FR and JU

This second-pillar tax is progressive, but completely separate from the income tax scale.

So much for theory. Now for the practical.

2nd pillar capital withdrawal tax amount in 2026

You know how much I love finpension for their financial products, which are optimized down to the last detail. On top of that, they provide a lot of free documentation about the Swiss pension system.

So rather than reinventing the wheel, I’m posting a screenshot of their complete table of all the tax amounts for retirement capital withdrawals from your 2nd and/or 3rd pillar, depending on your canton:

List of tax rates for lump-sum pension fund withdrawals, and/or pillar 3a withdrawals (source: finpension)

Whatever happens, you’re going to want to optimize your taxation on your capital withdrawal in most cases.

Staggering 2nd pillar lump-sum withdrawals (pension fund)

If you live in the cantons of Glarus, St. Gallen, Thurgau or Uri, staggering your capital withdrawal will be less attractive, as only federal taxes will be proportional to the income tax rate. And the latter is a smaller proportion (but hey, there’s no such thing as small savings!)

In all other cases, it makes sense to spread your BVG capital withdrawal over several tax years.

Why should you do this?

Because, quite simply, you’ll pay less tax.

Let’s imagine a fictitious and simplistic example where you want to opt for a BVG capital withdrawal of CHF 500'000. And let’s assume that the proportional tax is progressive in this way:

So let’s see how the progressivity of the capital withdrawal tax affects the money you have left over after the total withdrawal, depending on whether you withdraw over 1 year or 2 years:

💰 Withdrawal in 1 year (CHF 500'000)

💰 Withdrawal over 2 years (CHF 250'000/year)

In conclusion:

By spreading your withdrawal over two years, you save CHF 11'750 in taxes thanks to the progressive rate structure.

Moral: when it comes to 2nd or 3rd pillar withdrawal, tax timing can have a major impact on what you keep in your pocket. And personally, I’m not against keeping CHF 11'750 to grow myself, rather than giving it to the taxman ;)

Especially as we’re “only” talking about cantonal taxes on the 2nd pillar in our fictitious example, but to that you have to add federal taxes (also proportional), as well as taxes on any withdrawals from your pillar 3a capital.

Withdrawal of 2nd pillar capital over a maximum of two years

The next question is: why not withdraw my 2nd pillar capital over more than two years?

The answer is simple: it’s the law!

As much as you can withdraw your pillar 3a capital over five consecutive years (see my detailed article on staggered withdrawals of the pillar 3a), that’s the maximum number of years allowed by law. And to be precise, the law states that you can withdraw your pillar 3a at the earliest 5 years before AVS retirement.

As for the tax on 2nd pillar withdrawals, the maximum number of withdrawals is two (= in two different years).

Or, to be more precise, BVG law states that when you take early retirement (or even normal retirement), you can transfer your BVG capital to not one, but a maximum of two different vested benefits accounts. This is known as splitting.

Once we've sorted out the tax details for the lump sum payment of my pension plan, we'll be off hiking again! (at the Blue Lake in Arosa) (Quelle: valais.ch/en)

⚠️ Important note: this splitting into two vested benefits accounts can only be carried out when you leave your job and transfer your pension funding assets to a vested benefits institution. This is THE thing to not forget to do when you become FI.

Then, when you want to withdraw the money from your vested benefits, it’s either take it all or take nothing. So, since you’ll have two vested benefits accounts, you can spread your withdrawal of 2nd pillar capital over a maximum of two years.

Good to know: your pillar 2 and pillar 3a capital is added together for tax purposes

When you make a capital withdrawal from your 2nd pillar, the amount withdrawn is added to any capital withdrawal from the 3rd pillar, and taxes are then calculated on this total amount. So you want to take both your 2nd pillar and your pillar 3a into account when you optimize your withdrawals for tax purposes.

As a general rule, it’s recommended that you withdraw your 3rd pillar capital before the official retirement age (because if you want to do so afterwards, you’ll need to prove that you’re still working, which isn’t the case when you’re financially independent), and your vested benefits capital (= BVG capital) after the legal retirement age (because you don’t need to prove that you’re still working for the latter).

Which is the best pension institution for a vested benefits account?

In our case of financial independence, we’re going to retire much earlier than the standard legal retirement age. This means that our 2nd pillar capital will have to be transferred into a vested benefits account until we can withdraw it when the time comes.

As with all other financial services, there is a plethora of solutions available, many of them bad ones, with lots of charges to pay for the famous Porsche of our banker friend or so-called financial “advisor”.

So I’ve written you a detailed comparative article to find out which is the best vested benefits account to date. And, spoiler, there’s one player in particular who’s really gone the extra mile to get this splitting right, and all automated!

FAQ on 2nd pillar withdrawal

What should I do with my vested benefits account if I change employers?

When you change employers, the law states that you must transfer your vested benefits account to your new employer. But this is a gray area. I explain my reasoning in this detailed article: What to do with your vested benefits account when you change employers.

Conclusion 2nd pillar withdrawal tax

Because of tax progression (the fact that the larger the amount of your 2nd pillar capital, the higher the tax), you’ll want to optimize your tax by staggering your BVG capital withdrawal over two years (the maximum possible within the current legal framework of the Freizügigkeitsverordnung, also known as FZV).

There is an exception for the cantons of GL, SG, TG and UR, where the tax on the withdrawal of pension capital is flat-rate. But you can still save a few hundred francs. Indeed, the federal tax on capital withdrawals is progressive anyway (but that’s a small part of the taxes to pay).

So, as an aspirant to financial independence, when you retire (very) early, you will transfer your BVG capital to two vested benefits accounts with two separate foundations, then withdraw each of these accounts over two separate tax years.

This tax planning will save you several thousand or even tens of thousands of Swiss francs.

And yourself, how do you plan to make your 2nd pillar capital withdrawal?

Headline photo credit: pexels.com

Thanks to books:

• I started with an apprentice’s salary of CHF 1'500. Then I exceeded CHF 10k per month.
• I built up this blog and my projects to generate hundreds of thousands of CHF.
• I invested CHF 860,000 in the stock market from scratch.
• I’ve bought 5 properties.
• And most importantly… I’ve also gained in health and depth in my interpersonal relationships.

But I face a recurring problem with my reading: which book to choose next from the hundreds I have stored in my “antilibrary”?

What is an antilibrary?

An antilibrary is a library of unread books, deliberately built up to remind you of everything you don’t know… and to serve as a storehouse of knowledge when you need it.

The aim is to fill it with any book that sparks your interest. Without worrying about having “too many” books to read.

One of the principles behind antilibrary to solve my problem of “which book to choose” is to wander around your bookshelf, and let the books fight for your attention and curiosity. And so you choose the one that pulls at you the most at any given moment.

Except that I regularly have too many professional and personal projects on the go AND in parallel (and this may be one of the roots of the problem… “The One Thing” anyone hehe?)

As a result, I always have trouble choosing my next book…

A few years ago, rather than picking at random, I thought I’d better structure my reading choices by quarter.

The reading quarter focus

A reading quarter focus is the act of choosing a subject or area about which you’re going to read several books in a row.

This focus of attention will enable you to do three main things:

1. Better retain what you read, because you’ll be digging deeper into a subject rather than jumping from one book topic to another
2. Deepen your understanding of the subject, because you’ll be reading complementary and contradictory things that will force you to think about the subject and ingest the information
3. Give yourself time (3 months) to put the concepts you’ve read into practice, so you can anchor what you’ve learned in your routine

And so, last Sunday, as I finished a quarter of reading about SaaS (for our FI Planner tool under construction), I wondered what I was going to focus on after the summer vacations…

So I listed all my areas of interest these days, being specific and concrete.

For example, if I’m looking to meet more people in real estate to find more rental property opportunities, I’ll make a note:

• By the end of December this year, I will have met 10 new people active in real estate development in the district of the canton where I live — rather than vaguely describing: “meet people in real estate in the canton of Vaud”
• To do this, I need better knowledge of networking and how to break the ice when talking to new people for the first time

I’ve done this same exercise for each of my current projects, listing all the interesting things I could learn, and thinking back to all the books I could read…

But, once again, I felt overwhelmed by all the choices…

That’s when I came up with this simple 3-step method to decide what I was going to focus on for the next three months.

My 3-step method for choosing what to read next

For each of the topics you want to delve into during your next reading term, you need to ask yourself these three questions (1 = not very much, 5 = a lot):

1. Impact — In 6-12 months, would this topic greatly accelerate your results? (1 to 5)
2. Energy — Are you curious about getting into it now? (1 to 5)
3. Timing — Can this subject wait 3 months? (1 to 5)

Then, you multiply the three scores. And the highest score wins.

For example, in my case:

• For real estate networking: Impact 5, Energy 3, Timing 5 = 75 → priority.
• To improve technical aspects of my blog: Impact 3, Energy 5, Timing 3 = 45 → this can wait.

Enter ChatGPT and my antilibrary

Then I wrote the following message in ChatGPT:

Next quarter I want to focus on networking, specifically how to break the ice when approaching new people. I have all the books below in my antilibrary. Can you tell me which ones would be useful for my goal? And if you see others that are even more relevant, let me know too! /// [Copy and paste your book list here…]

And ChatGPT has come up with a top 3 list of the best books for my learning goal. Check! ✔️

So I’ll let you try out this method for yourself, and in the meantime, I’ll get back to my learning and personal enrichment (on all levels).

What about you? What’s your method for choosing your next book… or do you leave it to chance?

PS: if you’re lacking inspiration these days, I recommend my “Top 10 personal finance books”.

Credit header image: Unsplash

At that time, she wrote to me:

I’m a real beginner who has never invested in the stock market (mental block, substantial expenses in recent months due to a move). Would this program be aimed solely at short—to medium-term investment, or would it also cover long-term investment, such as the third pillar?

Today, she has taken control of her 3a pillars AND has begun to invest CHF 20,000 in the stock market.

Then, as our discussions progressed, I learned that she was also a very frugal person who lives on a budget of CHF 30,000/year in Geneva!

I won’t tell you more to avoid spoiling you, but I couldn’t resist interviewing her on the blog!

Thank you in advance, Laure, for sharing your inspiring story with us!

Why I got started with the FIRE movement

I can’t say there was a single trigger for my frugality. Rather, it was a combination of education and luck that steered me in this direction.

From the age of 16-17, I started working at odd jobs. My parents and grandparents always advised me to save what I earned, and they opened a bank account for me. I grew up in a supportive middle-class family: I was never asked to contribute to rent or health insurance until I had a real salary. On the other hand, I was responsible for certain expenses, such as my mobile subscription (as simple as possible) and my personal activities (travel, sport, going out).

I was always taught to keep a budget, to track my expenses and to work for the experience rather than for the salary. This has given me a vision where money is important, but not central.

When I left the family cocoon, I was extremely lucky: an inexpensive apartment in downtown Geneva, with a balcony. Even in times of inflation (COVID, war in Ukraine), my rent and utilities remained stable AND much cheaper than what my friends were paying.

Taking time out to cook (one of my hobbies)

For health insurance, a major expense in Switzerland, I opted for the maximum deductible and the lowest premium. I’m lucky enough to be in good health, which I maintain through sport and a simple diet (thanks to Aldi and Lidl). As for extras (clothes, trips, outings), I have friends abroad with whom I can stay, and I’m not a fashionista, so I buy during sales… which last all year round nowadays thanks to online stores!

Then, a realization pushed me on the road to financial independence: the debates on pensions, in Switzerland and in France. I don’t have any French roots or any particular attachment to this country, but the question of pensions is of great concern to me. I have no confidence in the OASI/AVS/AHV, and I think that my generation will retire at 67-68. But I have two physical jobs. I can’t see myself doing them at that age. I also see my colleagues who are teachers or exhausted educators, but unable to take early retirement due to a lack of means. I don’t want to put up with that.

A frugal childhood and a healthy relationship with money

Ever since I was a little girl, I’ve been careful with my spending. I quickly learned to manage my first pocket money.

My family weren’t spendthrifts, and our priorities were health and travel, which opens up the mind. In fact, for me, travel is one of the best ways of spending money to discover a new culture, or to visit family abroad.

Thanks to my grandparents, I got into the habit of writing down “what’s coming in and what’s going out” at a very early age. This small gesture had a huge impact: I soon had a clear vision and awareness of my personal finances. To this day, I find it one of the best pieces of advice I’ve ever received.

Proactive worrier, alternating between sports and projects

So my name is Laure, I’m just over 30, and I’ve lived in Geneva all my life. I have two jobs: one as a civil servant, the other in the sports world. I love my city, its international character, its activities and its airport.

As my job suggests, I’m passionate about sport, but also about cooking. I love going for walks in the mountains or the countryside, even though I’m more of a city girl at heart.

I didn’t go into university with much conviction. I was an academic, but with no real vision of the future. I didn’t project myself much.

Hiking the Salève in the middle of the week (because yes, sport is free in Switzerland!)

We often talk about it with my friends. We think that our generation was raised by a generation that saw the University as a Holy Grail in terms of social and salary recognition, but times have changed. Today, none of my friends is 100% satisfied with their work and, above all, with their studies.

Character-wise, I’m an anxious person. I think a lot about life’s choices and about the future in general. The climate of the last few years has been hard to cope with, so I don’t read the news in order to preserve myself. But I’m also dynamic: I’m often told that I’m proactive, that I initiate projects, that I mobilize. I like movement, challenges, and ideas.

Overcoming my fears and taking action

As I read more about the FIRE movement, I came to understand that investing was one of the keys to achieving financial freedom. However, the 2008 crisis left its mark: as a teenager at the time, I saw my parents under constant stress. This instilled in me an anxiety about investing in general. I have a primary fear of losing money on the stock market..

In 2020-2021, in the middle of COVID, I discovered MP’s blog. I read a lot (I need to understand everything before acting), but panic prevailed: what if I made the same mistake as my parents in 2008? So I didn’t dare. Too afraid of doing the wrong thing, of losing out on the stock market. What’s more, my two jobs don’t expose me much to digital tools, so investing online seemed impossible.

It was also difficult for me to project myself at the time. I was just starting out in “adult life”. And I had a lot of unanticipated expenses, despite the fact that I had a far-sighted side that looked into things as much as possible. And that’s without mentioning the unstable climate during the pandemic. It took me several years to reflect, observe and… watch my savings swell. Three elements finally tipped the balance:

• The growth of my savings — which had been dormant with no return
• Meeting my partner, who was already invested in the stock market and ready to support me
• A benevolent environment, with friends who were present, attentive, and without taboos (and who understood and supported my choices)

So I opted for MP’s personalized program (to learn how to invest in the Swiss stock market) to have maximum psychological support, and a follow-up that listens to my anxieties. I know it’s quite an investment, but it was particularly important for me to have this kind of support, knowing my anxious personality.

At the same time, I immediately spoke to my friends, who supported me in their own way (some following the same path as me and others encouraging me, but watching from a distance as they themselves have their own barriers with their money).

Breaking the money taboo has considerably reduced my anxiety and helped me a lot with my mental blocks.

Thanks to this double net (relatives + program), I followed each step, then clicked on “Buy” at Interactive Brokers without trembling or any doubt, reassured by my safety cushion and the FI simulation tool MP is developing with Patrik.

Today, I continue to apply my anti-stress strategies: checking my portfolio only once a month, ignoring anxiety-provoking news, staying almost absent from social networks, and surrounding myself with a small, caring circle.

Verdict: by following each step of the program to the tee, I was able to buy my first ETF with Marc’s help… and that of my partner!

My first results: 20,000 Swiss francs invested in less than a year

Today, I can say I’m proud of how far I’ve come. I started investing in August 2024, and have already invested around CHF 20,000 in the stock market (in April 2025). My 3rd pillar is well funded, thanks to my annual payments and the transfer of my old UBS account to VIAC. I even plan to make additional purchases next year. My goal is to continue to save and invest aggressively over the next few years.

I love learning new things, like investing in the stock market or real estate, but also my partner's language

My life today: between discipline and freedom

My life remains challenging despite the psychological progress I’ve made. I’m still anxious by nature, and the vagaries of life and the market always make me jump when I get too close to them. At the moment, I’ve realized that when the market goes down, it’s the “Sale” period… I try to buy 1x/month, putting down a sum that varies according to my monthly savings.

For me, regularity will make the difference in several years’ time.

From an investment point of view, we’re also thinking about buying a property to rent out. So I’m studying MP’s course on real estate investing in Switzerland. I know it’s going to be a long job, and I’m wondering and stressing about it when I see the prices in Geneva and the surrounding area, but I’m trying not to get discouraged.

Going to see Lake Louise in Canada (where I have friends)

As far as frugality is concerned, I try to stay within my budget, which means I don’t spend a lot unless I really need to. For example, this summer my partner and I are going to Canada to see some friends, and this will be the first time I won’t be able to stay at my friends’ home. But I’m not worried about these expenses, despite the high inflation in North America. I know that you have to enjoy life and that this month will be a little more expensive and less consequential in terms of salary, but that’s part of life.

My monthly budget

For my budget, I use a spreadsheet called “The Line”, a Canadian brand that I discovered thanks to a Youtuber who makes videos about finances.

I’ve broken down my expenses into four main areas:

• Bills
• Everyday expenses
• Investments (not totaled as an expense, but as an investment, but I note it in the document anyway)
• Savings

I allocate a budget that can vary from month to month for each category. Here’s a rough breakdown of my expenses for one month.

Monthly bills:

• Rent: 200.- (rent shared with my boyfriend, who earns very well, so he pays most of it, even though the rent is really low for the Geneva market)
• Health insurance: 460.- with the highest deductible at Helsana (I’m in good health at the moment, so that’s enough for me)
• Mobile phone subscription: 20.- (with Wingo, unlimited calls in Switzerland, really good value for money)
• Serafe: my partner covers this expense
• Annual total = 680 x 12 = CHF 8'160

Everyday expenses (amount per month):

• Shopping: 240.-
• Restaurant: 120.-
• Drinks: 10.-
• Coffee: 10.-
• Electricity: 0.- (my partner covers this expense)
• Clothes: 20.- (I haven’t bought any clothes yet this year, and it’s early July)
• Self-care (sports and/or hairdresser): 120.-
• Household: 50.-
• Leisure: 30.-
• Professional development: 0.- (I’m lucky that my employer invests a lot in my education)
• Health: 120.-
• Gifts: 80.- (I always anticipate birthday and Christmas presents)
• Transport: 0.- (my employer pays for my public transport pass)
• Annual total = 800 x 12 = CHF 9'600

Monthly investments

• 3rd Pillar VIAC: 605.-
• Interactive Brokers: 1'000.-
• Annual total = 1'605 x 12 = CHF 19'260

Monthly savings for my projects

• Travel: 800.-/month (I got a nice salary increase, so I’ll try to stick to it since it’s something I love and care about)
• Annual total = 800 x 12 = CHF 9'600

Excluding investments, here’s what it looks like in terms of total expenses:

• Total monthly budget: CHF 2,280
• Total annual budget: CHF 27'360

UPDATE 15.08.2025: as mentioned by some readers, we forgot to mention taxes. So far, Laure has paid around CHF 8'580 per year in taxes.

Final word

Discussions about money in Switzerland really need to be normalized. It allows us to see each other’s financial trajectories, to give each other guidance and support, and thus to overcome psychological blockages over time.

Notes from MP

Financial education

Like Laure, I’m so grateful to have been lucky enough to have had my parents educate me about money. The simple act of writing down all my savings in a savings notebook (what a memory!), not spending everything you earn, let alone living beyond your means. Learning that money doesn’t just fall from the sky…

That’s also one of the reasons why I write this blog: to share this knowledge with people who weren’t as lucky to have it via their parents.

Stock market investing: go for it!

Rereading Laure’s story about her fears and doubts about investing in the stock market brought back so many memories…

I remember the first time I came across Mr. Money Mustache’s (MMM) blog and getting a huge shot of inspiration. But it quickly wore off when I realized that everything he said was made for the US… Which online broker to choose, which ETFs to invest in in Switzerland, etc…

Then I read another MMM article about investing being the key to becoming FIRE. And then another blog post.

Months went by. Until one weekend, I motivated myself to finally get into the stock market! Well, with the wrong broker and the wrong ETFs, but hey, at least I made some progress! And today, I’m not far from having invested 1 million Swiss francs!

So: don’t wait, just go for it! Because the information is out there, it’s your own psychology that you have to deal with. And I agree with Laure that it’s important to know how to surround yourself with people so that you don’t feel alone during stressful moments (opening an account, buying your first ETF, when the stock market goes down, etc.).

By the way, if you want to test the broker I use without risk, I’ve got two “Challenges” (free) for you:

It’s good to talk about budgeting and frugality again!

I missed talking about budget intentionality.

If that’s ever your case too, let me know via the comments or by replying to any of the newsletters, and I’ll try to plan more articles like this in the coming months.

Oh, and before I forget… let’s talk about the “Yes…But”…

YES, she’s frugal on paper… BUT in real life, it’s her partner who helps with that, and the good fortune to have found low rent in Geneva!

Dear Mr. YesBut: you’re absolutely right that her living circumstances contribute to her frugality. You should also know that Laure is well aware of this; she told me: “I’m well aware that not every Swiss person will be able to afford a rent as low as mine, with the quality of accommodation I have. I realize that I’m in a minority in Geneva, and that luck played a huge part in this.”

And above all, on the other hand: even if you add a Serafe for two (= 335.- per year divided by 2 = 167.50), and half the electricity (= 180.- per year = 90.- for Laure), and half her rent (= 1'500.- per month divided by 2 = 750.-), then her annual budget of CHF 34'217.50 is still very (very) correct.

For the curious: her apartment is a 4-room (75m2) with balcony at CHF 1,500 in Geneva! Bravo to her for finding such a gem. 👏

So rather than making excuses, take a look at some of her spending habits that could inspire you to be more frugal in your life.

And you, what do you take away from Laure’s story? What inspired you?

In this article, you’ll learn why “timing the market” is a very costly illusion… and discover THE only effective and accessible way to get rich with the stock market, without stress or crystal balls.

I hope I’ve clickbaited you into this article for once, as it’ll help to share a little wisdom with all those who think there’s such a thing as a miracle solution.

And when I say “those”, I’m including the 20-year-old version of me! Because at 20, I was a victim of that fantasy. I’d just started earning my first salary, and I regarded the stock market as a dangerous business, reserved for professionals. The result? I didn’t invest. Zero. Nada. For fear of making a mistake. Today I realize that it was probably my biggest financial mistake.

And maybe it’s the same for you, because when you don’t know anything about the stock market, the only thing you can think of is all those movies or stories about people who bought “at the right time”, and became rich overnight.

And these stories make so many headlines, it makes a lot of people want to buy.

But if you take away the luck, there’s not much left of those stories… and the hope of becoming rich one day evaporates for you.

Except… there is a better time to get in and out of the stock market.

But before we talk about good timing or crashes, we need to lay the groundwork. Because if you don’t understand what the market really is, everything else will be a blur.

What is the stock market?

Before going any further, I think it’s useful to clarify what we mean by “the market”.

People often associate the stock market with representing the actual companies behind the shares, when in reality it’s just a place (virtual today) where thousands of investors (like you and me) buy and sell shares in companies, called stocks.

The market is simply all the investors in the world buying and selling shares based on what they think the future holds.

But why is the stock market so volatile?" You ask.

Stock market volatility

It’s important to understand that the price of a share doesn’t always reflect the true value of the company behind it.

Because the market (i.e., all the world’s investors with their respective beliefs) is a bit like a crowd at a soccer match: one goal and everyone goes wild, one mistake and there’s panic. This crowd, like the market, often reacts to emotion, not common sense.

In real life, this translates into a new president of a big country who’s a bit whimsical, and everyone panics. And so everyone thinks the future is going to be very dark forever. And so everyone wants to sell their shares fast. This increases the supply of these shares, while there’s less demand. And so share prices fall.

The next day, the weather’s fine, the whimsical president has been replaced by someone a little more level-headed and with a long-term vision, and suddenly everyone is hopeful about the future. And everyone wants to take advantage of this wonderful thing called the stock market to make their money grow.

Everyone wants to buy. This time, there’s more demand than supply, and stock prices soar.

Ben Graham called this effect “Mr Market”: a manic-depressive trading partner who offers you a different price every day, depending on his mood.

When I first read such an explanation, it was a “Eureka” for me!

In fact, in the short term, the stock market (and the value of every share you can buy on it) in no way represents the true value of the companies behind it. In the long term, yes. But not in the short term.

Once again, the point is that the market is emotional, not rational. And that’s THE reason why you shouldn’t try to predict it.

The dream of becoming rich overnight

Reading my explanation below, I’m also willing to entertain the dream that you could very well buy shares for CHF 100,000 one day, and sell them the next for CHF 150,000.

Do that four or five times in a row, and you’re rich!

Except that predicting when to buy or sell a share at the best time is like saying you can guess the collective mood of 150 to 250 million private investors worldwide at any given moment (and that’s not even mentioning banks, pension funds, and other institutional giants).

By way of comparison, the EuroMillions asks you to find 5 correct numbers out of 50 and 2 stars out of 12. The result: 140 million possible combinations.

Personally, I prefer to take control of my own destiny rather than leave it up to chance!

Good luck then with market timing. Especially since you have to time it not once, but twice: when to buy, then when to sell ;)

So, believing you can time the market is a bit like believing a YouTuber who tells you he knows the right numbers for tomorrow’s EuroMillions. If you don’t believe him about the lottery, why would you believe him about the stock market ;)

The best time to buy shares on the stock market

But then, this best time to start investing in the stock market that you’ve been telling me about is just a lot of hot air, MP!

“It depends”, I reply.

It depends on whether you want to make a fortune overnight. If that’s the case, then yes, I do NOT have an answer (because it’s impossible to predict the market).

But if you want to be (multi-)millionaires in just ten to twenty years, then YES I do.

The answer? Start now.

Yesterday’s impossible. And tomorrow’s too late (because you can’t know if it’ll be better tomorrow morning or tomorrow night).

The only last option: now. Right now.

It’s all so logical once you’ve understood the mechanism of the stock market and its volatility.

That's a lot of times in a row when you have to get lucky to get rich with market timing...

That’s the real magic of the stock market: you don’t have to be a genius. You just have to have a plan, apply it, and let time do its work. It’s simple. It’s slow. And that’s what makes this method accessible to anyone who dares to start.

In any case, I’d advise you not to do what I did in my twenties… I used to say to myself: “OK, I’m just waiting for the right moment to start to invest… “ (you know, when it’s more stable… or when I’ve read a few more articles.) And that time never came. Until I realized that this is exactly the trap.

And when to sell on the stock market?

Your role as a new stock market investor is not to fall into Mr Market’s trap. Not to let his mood swings take you for a ride. Because while Mr Market is being a drama queen, companies are working. And in the long run, it’s their true value that comes through.

So you NEVER sell.

The only exception is once you’ve become FI (Financially Independent). That is, when you have enough money to pay your living expenses.

At that point, you’ll use some of the dividends from your ETFs, and potentially also some resales of your ETFs, to cover your annual expenses.

But that’s it.

For the rest, you behave like a long-term investor. You let your wealth grow via your money invested in the stock market. Forever. At least for the rest of your life. That way, once you’re dead, you can pass it on to your children, or donate it entirely to a charitable foundation, or whatever your values and beliefs dictate.

My failed history with the stock market…

So there you have it: my biggest failure wasn’t buying or selling badly.

No. My mistake was even worse… doing nothing. Staying frozen, paralyzed by fear.

And today, I can tell you with certainty: not investing at all is already losing money.

If I’d invested from the age of 20, even with a few mistakes along the way, my fortune would already be a lot further ahead today. But hey, it’s never too late. Even less so for you reading this ;)

Conclusion

If you’ve been too lazy (argh, I sound like my pre-teens…) to read the content of this article, here’s a summary for you who want to get rich in the long term:

• When to buy on the stock market: now. Not in two hours, not tomorrow, not next month. Now is the best time.
• When to sell: NEVER! Why? On the one hand, because as a Mustachian, you want to make a living from your returns (dividends, resale of a few ETFs), and on the other hand, you don’t want to spend your days trading (because, on top of that, speculating on the stock market will definitely lose you money — re-read the comparison with playing Euromillions above; I promise it’s short, clear, and fun, so you can’t get lazy!)

I’m counting on you to pass this article on to as many people around you as possible, so that they too can get that “Eureka” feeling, and start building their fortune. And if possible, share it with all the young people you know, because you’ll be giving them a priceless gift: time for their compound interest to grow into millions of Swiss francs over the next 10-20 years!

To go further

• 🎧 My interview with Jean-Pierre Danthine (former SNB Vice-President): to understand the stock market in layman’s terms, through the eyes of an internationally renowned economist
• 📖 My article on starting to invest in the stock market (the most widely read on the blog)
• 🧭 My program to start investing in the stock market with peace of mind (100% Swiss)

What if my financial independence plan falls through because of my mortgage?

Let me explain: when I reach financial freedom, that means I’ll have enough money coming in from my investments to pay my current expenses as well as my recurring expenses (monthly or yearly).

Except that most of this income will come from my stock market returns (and rental returns to a lesser extent), and not from a salary.

And this last point is a problem.

Not for me.

But for the bank that’s lending me the money for my mortgage. Indeed, this bank assumes that the norm is to be salaried. Even as an entrepreneur, it’s much harder to get a mortgage than it is to get a monthly salary.

Side note: It’s stupid when you think about it, because behind an employee, there’s also a company that can go bankrupt — just like that of an entrepreneur. Even more so than the solo entrepreneur who fights for survival every day. But hey, I’m not going to change the system or the banking rules, let alone the FINMA rules….

To be more precise, when I renew my mortgage, the Swiss bank will check that:

• My expenses do not exceed 33% of my gross annual income (including mortgage interest)
• The mortgage value does not exceed 80% of the estimated value of the property (that’s OK, because real estate in Switzerland has risen sharply since our initial purchase)
• We have a stable income (like the last 3 pay slips)
• We’ll be able to amortize the second mortgage in 15 years or before the legal retirement age (65) (corresponding to anything over 66% of the value of the property, so generally ~14-15% if you’ve borrowed 80% of the amount of your house)
• We don’t have too many debts such as leasing or other consumer credit

The problematic line in my case (= someone who’s going to be FI), is the stable income…

Banks are very used to lending to salaried employees, since this is the norm (~85% of the working population in Switzerland!!) But when it comes to lending to entrepreneurs (unless income is very stable over several years), it’s a different matter.

And I’m not talking about rentiers (aka financially independent folks). Well, that’s what I need to find out: is an annuitant with a good million or two sufficiently considered solvent via his income (from the stock market, real estate, and other investments)? And above all, at what cost? Does the annuitant/rentier/FI-person have to invest his money with the lending bank at enormous cost…? No, thank you!

But all that remains my hypothesis for the moment, because maybe, there are plenty of smaller or private banks that are more open-minded than the average.

My mortgage options once I’m FI

So I’ve been thinking about my mortgage options once I’m financially independent:

1. Create a limited company (AG or GmbH), then invest my stock market assets via the latter, receive my dividends and other ETF sale’s money, and pay myself all this as a fixed salary (N.B. this isn’t necessarily the wisest from a tax optimization point of view…)
2. Set up a company with my side activities (blog, real estate, etc.) and pay myself a salary. This is one of the most likely solutions, but I’m trying not to have to work at all (for money), and also to fit in with the reality of as many readers as possible, who may not have any idea of an ancillary activity that pays a salary
3. Take out a fixed mortgage for 10 or 15 years, and then, in year 12-13, find a job for 2-3 years (err…) to meet the banks’ requirements (heuu, is this a financial independence blog or…?!)
4. Sell our home, and go back to renting so no one bothers us (we still have to provide the landlord with wages to prove our solvency, but I think a simple screenshot of my Interactive Brokers account should reassure him pretty quickly :D)
5. Talk to Hypotheke.ch or Resolve, as they have much more open-minded partners, who might come up with other creative solutions rather than just my last three payslips
6. Keep my VIAC mortgage in SARON and crossing my fingers that the bank doesn’t contact me one day to update their compliance requirements…
7. Lend money to myself via my Interactive Brokers margin account (and risk personal bankruptcy if the stock market takes a huge dive… unless I build up such a huge amount of capital in the meantime that it works out easily)

And I’ve ranked these options according to the probability of acceptance by the bank on one axis, and what it implies for my personal freedom on another axis:

Mortgage renewal solutions when you're FI (Financially Independent)

I can already hear people telling me that renting is the ultimate solution. Fair enough. But for me, it’s not so much a personal freedom, because I want to remain an owner… so it forces me to make a choice I don’t want to make.

My plan A and my plan B

The biggest problem is that I currently have a mortgage in SARON, and nobody asks me whether I have a salary or what… So I’m very tempted to say nothing, and make it my plan A.

But realistically, to sleep soundly, the solution that seems most reliable to me is to talk early enough (like 6 months or 1 year before taking early retirement) with Hypotheke.ch and/or Resolve. That way, I can ask them what they can offer me and on what terms. One of the fears I have is that they won’t accept my pillar 3a invested 100% in stocks as collateral… but hey, if that’s the price to pay, it’ll still be cheaper than a bank asking me to put a million with them as an investment… with astronomical fees!!!! That would be my plan B..

Conclusion

My concern with this whole mortgage/bank/financial independence thing is that I won’t be able to check off all the compliance boxes, not that I won’t be able to pay them. After all, I could buy a whole building if I wanted to!

So I’m thinking of paying the necessary fees to Hypotheke.ch and/or Resolve to have an analysis “as if” I were going to have to take action, and see if they really can find me a solution. And if they do, then I’ll be reassured.

But whatever happens, I’ll stay with my VIAC mortgage in SARON for as long as possible; that is, until they redo their due diligence and tell me they’re no longer OK to finance me, and then I’ll move on to my plan B.

Got another idea?

As you can see, I’ve been thinking about all this lately. It’s not for tomorrow, but it’s getting closer as time goes by.

So, if you went through it or soon will be, I’d be very interested in discussing with you (and obviously debriefing it all in a future blog post). You can contact me via the comments below or by replying to any of my newsletters.

How about an example? Is it possible to achieve long-term stock market growth without burning down the forests you love so much?

And another? Wouldn’t degrowth (i.e. intentionally reducing economic output) be more in line with a frugalist vision of the world?

Meeting with an internationally renowned economist

It was through various podcasts that I came across Jean-Pierre Danthine. Who better to answer such questions than an economics professor, who is also former President of the Paris School of Economics, AND former Vice-President of the Swiss National Bank?

You’d think that talking to him would bore you to death and you’d understand nothing… but on the contrary, what I liked about him is that he explains and popularizes economics in a way that’s intelligible to the average person. Phew!

And above all, what attracted me most was his success in talking about economics, capitalism, planetary limits and so much more, in a scientific way only, and never in a political way!

Let’s go with the interview.

Jean-Pierre Danthine’s presentation

MP: “Can you tell us a little about yourself, your background, and what you’re up to these days?”

My name is Jean-Pierre Danthine. Basically, I’m a professor of macroeconomics and finance. I began my career by teaching for a few years at Columbia University, before joining HEC Lausanne. Initially, I taught mainly macroeconomics, but my research has always been at the interface between macroeconomics and finance. So, quite naturally, I gradually turned more towards finance, also in line with the needs of the faculty.

I stayed at HEC Lausanne until the end of 2009. At that point, I was appointed to the Swiss National Bank (SNB). I first became head of the third department, then was appointed Vice-President, in charge of the second department. This led to my appointment to the Executive Board, the trio of technocrats responsible for steering the country’s monetary policy. I held this position until mid-2015.

I forgot to ask Mr. Danthine if he had visited the SNB's gold reserve...!

Then I became President of the Paris School of Economics, a position I held for six years, until around 2021. At the same time, I also joined the École Polytechnique Fédérale de Lausanne, where I created and directed a center called Enterprise for Society, or E4S. I ran it until mid-2023.

Since then, I’ve been Honorary Director of the center. But I’m still fully involved in thinking about its objectives, its mission and the resources it can mobilize. This center, which brings together EPFL, the University of Lausanne and IMD, aims to help society make a successful transition to a more resilient, inclusive and sustainable economy.

Capitalism

MP: “What book would you recommend to understand both the positive and negative aspects of capitalism, without any political bias?”

The answer is that I don’t know any. Obviously, the real question is: what do we mean by capitalism? I have the impression that, for many people, it covers very different things. As far as I know, there is no accepted definition, at least not from the point of view of economic theory. In fact, it’s a term that’s not really used in that context.

So, capitalism… For some, it’s synonymous with neoliberalism. For others, it’s simply a market economy. Some will insist on asset ownership, on individual property. But I don’t have a definition of capitalism that says that’s what it is.

I think that, for my part, I would say that at the heart of capitalism, there is indeed this notion of ownership. But this ownership doesn’t have to be individual; it can very well be collective. The idea is that the owner takes care of what he owns, and that in a world of owners, we all end up better off.

If we adopt a very broad definition, the owner can be the community, a group of people, a foundation… It can take many forms. Another way of looking at it would be to say that capitalism is a form of economic organization that aims to preserve capital — that’s the idea behind the etymology of the term. And on that, I quite agree.

But for me, capital isn’t just physical capital — machines, buildings, etc. — it’s also human capital. It’s also human capital, social capital and natural capital. So if I say that capitalism is a system that aims to preserve, even develop and grow, our collective capital — be it physical, human, social or natural — then yes, I consider myself a convinced capitalist.

But I don’t know of any book that clearly explains the strengths and weaknesses of this vision of capitalism. So no, I don’t have a very formal answer to that question.

MP: “Can we have a capitalism that doesn’t destroy the planet AND doesn’t make us malicious to each other?”

I’ve already answered that question, in a way, by saying that my vision of capitalism is precisely one that seeks to maintain natural capital. And in a world like today’s, where GDP is rising, where wealth is increasing, where physical capital is growing, where human capital is progressing — insofar as it can be measured — social capital, on the other hand, is more problematic. The world is becoming increasingly polarized, so there are undoubtedly questions to be asked at this level. Even if, in reality, we don’t have very clear measures for assessing it.

What we do have very clear measurements of, however, is that natural capital, for its part, is in decline, and here we have a real problem, which goes against, I would say, my definition and vision of capitalism.

Why do we manage to naturally develop physical capital, and even human capital? Because there, interests are relatively well aligned. In the case of natural capital, however, this is not necessarily the case. There are externalities, or what we call “missing markets”.

If capitalism relies on the existence of markets to function properly, these markets must exist. But there is no market for preserving nature in 50 years’ time. There is no “natural market”. So, mechanically, I’d say that capitalism in this area needs to be supplemented. The market needs to be accompanied by intervention — to ensure that this capital is also preserved. Today, we’re not there yet.

Our natural capital, encountered on a previous hike

Does capitalism make us malicious to each other? It’s an interesting question. If we go back to Adam Smith — who is, basically, one of the great thinkers behind economic thought in the XVIIIᵉ century — he championed this idea of the invisible hand, an extremely powerful intuition, which was, incidentally, confirmed by some very important theorems later on.

But in this vision, within the framework of competition or the market, producers and consumers are partners. There’s a form of implicit cooperation. And I think that’s what we’re missing today, in a capitalism that has perhaps gone beyond what we would like it to be, and which is perhaps insufficiently regulated.

What underlies a lot of what I’ve just said is that when there’s no market, there has to be another form of regulation. It has to come from the community, the state, or some other representation of the community. Insufficiently regulated capitalism can indeed lead to antagonism, polarization and the feeling that the system makes us malicious towards each other. For me, this is a perversion of a well-understood capitalist organization.

Stock markets

MP: “Why do we say that markets always recover?”

I think the real answer, without going into detail, is that the market follows the growth of the economy. If you take an indicator like total market capitalization divided by global GDP, you’ll get something that statisticians would probably call stationary.

And then there are big fluctuations. At times, we see stock market booms, then crashes. The real economy, on the other hand, is much more stable. But over the last 200 years, it has grown steadily. So, if we make the connection, it means that, over the long term, the market follows the development of the real economy. And as long as we remain in a growing real economy, if we’re patient enough, we can expect the market to eventually recover.

The reality is that this recovery can sometimes take a long time. There have been 20-year periods when the stock market made nothing. It’s happened. So, if you’re very patient — let’s say 50 years, since the Industrial Revolution — you can say that markets always recover in the end.

After that, it’s not necessarily something very comfortable for someone my age, for example. My horizon may not be as long as that. But that’s the reality.

MP: “Why are there bear and bull periods? Can you explain it as if you were talking to my 15-year-old child?”

I think the key point is that the level of the market depends on what the economy is producing today, but above all on what we anticipate it will produce in the future. And here we enter a field of uncertainty. We anticipate: will this company continue to develop well in a year’s time, in five years’ time? Will a company in difficulty today be able to recover?

So we focus a lot on a horizon of one, three, five or even ten years.

Since we don’t know what the future holds, sometimes we can be optimistic… and sometimes, much less so. What happens, in fact, is that when you’re in a climate of optimism, you tend to stay optimistic. And when the mood is pessimistic, you tend to stay pessimistic.

So markets have this propensity to go through phases: phases of optimism, of bullishness. And then, all of a sudden, it’s a bit like a balloon… something punctures it, and it deflates. Then we realize that we’d all gotten a little too excited about something we thought was fantastic… which, in reality, wasn’t so fantastic at all. Worse still, we discover that something has happened to change all that.

Market ups and downs, as seen through the eyes of our favorite VT ETF

Take a concrete example: everything seemed to be going well, and then a gentleman named Trump starts making catastrophic decisions. We thought everything was running smoothly, and then overnight, this gentleman makes decisions that, for everyone else, will instead create instability. And so, the market turns bearish.

MP: “Why do we say that markets always “go up”? How can we be “sure” of this in economics?”

It depends a lot on the growth of the economy. Still, we’re in a world where we’re beginning to wonder about this fundamental growth.

These questions are, for example, linked to the fact that today, if we really want to look reality in the face, we can see that the globalization factor — which was linked to a certain trust that people had in each other — is changing.

We spoke earlier of malice, but for a long time, there was this basic trust: we could each specialize in our own field. This meant accepting that we couldn’t do everything on our own, but that by working together, on a global level, we could achieve a much more effective result than if each country tried to do everything on its own.

Since the 80s and 90s, this phase of globalization has been extremely positive for economic growth. Today, however, we are witnessing a reversal: for geopolitical and ideological reasons, we are entering a phase of fragmentation. We’re gradually unravelling mechanisms that we know have been highly favorable to growth.

Logically, this should make growth less dynamic, even leading to phases of stagnation… and perhaps even decline for a time.

And of course, this would have an impact on the markets, for the reasons I mentioned earlier.

MP: “What impact does taking environmental issues into account have on this statement (the fact that the economy is still growing)?”

That’s good, because actually, in the previous question, I was talking more about a short-term perspective, with deglobalization. If we take a longer-term view, we’re talking about environmental issues.

There are in fact two extreme scenarios — and we’ll probably end up somewhere in between. The first is a business-as-usual scenario. In this case, global warming, climate-related disasters, loss of land productivity… all these will impact on our ability to generate growth in the future. This could lead to stagnation, or even decline.

Conversely, the other scenario is one where we decide to take the bull by the horns and tackle global warming, climate catastrophes, biodiversity loss and declining land productivity. We know that technology will help us in this transition… but it won’t help us all the way. Not completely.

Which means that, in some cases, we may have to curb our desire to consume a little. And that could have an impact on measured growth — on GDP, in short.

L'Étang de la Gruère <3 — if you know of any other places like this in Switzerland, I'd love to hear from you! (photo credits: j3l.ch © Gerry Nitsch)

Let me give you a concrete example: mobility, with aviation. Today, this sector is booming. It has taken off again, and is still going strong. We’re even back above pre-Covid levels. If you look at Boeing or Airbus aircraft production figures, it’s impressive. So are the figures for airports. Except that all this is totally incompatible with respect for planetary limits.

So if we really decided to face the issue head-on, it would mean accepting that we’ll be flying less.

There are different ways of achieving this. But if we took the right decisions, we’d be flying less. This would mean that the aviation sector — Airbus, Boeing — would produce fewer aircraft, and generate fewer salaries. Airports? The same thing. Of course, the money would undoubtedly go elsewhere in the economy. But a whole sector of the economy would stagnate or even shrink.

I have to say I’m not a great believer in that — unfortunately. But, theoretically, we can see that the impact could be negative on growth.

Economic growth

MP: “Does economic growth necessarily imply material consumption? What is the link between the two (if there is one)?”

The first thing to understand is that growth figures are essentially linked to our ability to do better with the same resources. In other words, growth could come from working more and more, or using more and more machines to produce what we want to produce.

It’s true that if we always had more machines, there would be growth — that’s what economic theory says. But that would be absurd. Because machines depreciate. If you have too many machines, they end up costing a lot to maintain and replace. It’s a bit like with the roads in Valais: if you build too many, after a while they become too expensive to maintain. Then we say we’ve gone too far.

It’s the same for the economy in general. If you have too many machines, it no longer makes sense. And on a macroeconomic scale, we can see that in developed countries, or in those that have reached a level of development known as the “steady state” — a certain equilibrium — growth no longer comes from having more material things. It comes from having better ideas.

And when we understand this, we also realize that consumption, in terms of GDP, is increasingly immaterial. And that the future will undoubtedly go in this direction. We already have a lot of computers — do we need twice as many per person? The answer is no. We’re even tending towards a concentration of equipment. We’ve gone from a time when many people had two cars, to a time when, for many, that no longer makes sense.

Yet incomes continue to rise. And these incomes are increasingly used for immaterial expenses: culture, travel, personal care… things that are not material.

So, the answer is no: economic growth does not necessarily imply increased material consumption. We’ve probably even reached an absurd point in our developed countries, where material consumption has become so sacralized that we want more and more of it — even though we can see that it adds nothing to our satisfaction or happiness. It’s a cultural problem.

From an economic point of view, there’s nothing to say that having two iPhones will make you happier, or that you absolutely have to buy a new iPhone every year. It just doesn’t make sense.

So no, growth doesn’t necessarily mean more material consumption — that’s quite clear.

Now, how do we change the pace? Maybe your movement is one way: telling ourselves that we can be a little more frugal, and realizing that we won’t be any more unhappy as a result. Maybe we could even work a little less, or use our money differently. And all this is perfectly compatible with economic growth. It’s even totally compatible with economic theory, which has never said that the aim is to maximize growth.

MP: “What’s your take on degrowth? Put another way, is growth a bad thing?”

It’s true that the degrowth movement starts from a different vision. It’s not a question of “what do we want to achieve”, but rather “what must we do to respect planetary limits”. It’s the idea that resources are limited. Only a slightly utopian economist would believe that growth could be infinite.

But I’ve answered that a little: growth isn’t necessarily linked to material resources. It also comes from our ability to do better with the same resources, or even with less. So the idea that “finite resources equal impossible growth” isn’t necessarily true. The real question is: do we have to respect planetary limits? And here I come back to what we said at the beginning: we absolutely must preserve our natural capital, for ourselves and for future generations.

Today, technology doesn’t allow us to do this with “business as usual”. So something has to change. There’s a pessimistic view that says the only solution is degrowth — because growth would mean too much consumption, too much pollution. So if we decrease, we’ll be moving in the right direction.

I think we need to be a bit agnostic on this. For me, the objective is not to decrease. The goal is to respect planetary boundaries. You have to be intelligent, stop consuming material goods absurdly, stop thinking that you always have to work more to earn more and consume more.

Will we ever get there? I don’t know. But what is certain is that respecting planetary limits is an imperative. And if we do it intelligently, I think we can continue to grow — at least, if we measure that growth correctly. The aim is not to shrink. The aim is to respect planetary limits, to be intelligent, to preserve our level of well-being, and to enable future generations to enjoy the same level of well-being. That seems obvious to me.

The objective is not to decrease. The objective is to respect planetary limits, to be intelligent, to preserve our level of well-being, and to allow future generations to benefit from the same level of well-being.

Will this lead to degrowth? I think not, in the long term. Will there be phases of slower growth? If we really want to be serious about respecting planetary limits, then yes, undoubtedly.

I gave the example of aviation: if we fly less, there will be an impact. So yes, there could be phases where growth will be slowed, or even negative. In fact, even today, growth is sometimes negative — so a fortiori, this could also be the case in this context.

Investment performance and diversification

MP: “Is it still possible to expect an average annualized performance of 7% from a global ETF, while respecting global limits? Why not? And if not, what return (%) can we expect?”

What I’ve just said implies that I won’t have a very precise answer to give. I think that if we could count on an average performance of 7%, as we’ve seen in recent years, this would probably not be a good sign. It would mean that we’re not doing what we need to do to respect global limits. Precisely because respecting these limits should, in some areas, mean slowing down.

Why would this be? Because the technology we need isn’t yet available. That’s why. But it’s also possible that we won’t do anything, and that we’ll continue to have this type of performance for some time to come.

So what’s going to happen? We’ll have global warming, disasters, major population movements, less and less productive land. All this can only lead to lower yields in the long term.

So I’d say we’re in a world where we’re facing a fork in the road. Whether we go left or right, in the medium term, I wouldn’t bet on yields comparable to those seen over the last 30 years, for example.

Now, what figure should we give? I don’t know. Because it will depend on our ability to be intelligent in the way we manage all this.

It’s not just a question of technology. Yes, there’s technological innovation that can help us, but there’s also the way we govern it all, the human management, the general governance. And here, we can either do it the stupid way, or try to do it a little more intelligently.

MP: “For the average Swiss, I’d recommend investing in a World ETF to be as diversified as possible (risk reduction), while getting the best possible performance.
What’s your economist’s view of such a portfolio, including environmental issues?”

My point of view as an economist — and more precisely, as a professor of finance — is very clear: maximum diversification is the only thing an individual investor can really do.

Maximum diversification is the only thing an individual investor can really do.

Don’t try market timing, don’t try stock-picking. Maximum diversification is really the right starting point. That’s the basic strategy we should be building on.

ESG investments, good or bad?

MP: “Are ESG ETFs a good investment vehicle (from an economic point of view)?”

Yes… I’d like to say yes, but today, in fact, we’re not very convinced of the way ESG ETFs have been implemented. So it’s a bit hard for me to say that ESG ETFs are absolutely preferable to World ETFs.

I think that, particularly if you’re environmentally sensitive, it might be wiser to set up a World ETF for, say, three quarters of your portfolio. And on the remaining 25%, target investments that are really going to have a positive impact on the transition to a new form of economy. But it’s not easy to do, I have to admit. And I find that, from this point of view, intermediaries — who should be helping investors like you and me — aren’t doing enough yet.

It’s a bit of a vicious circle: these intermediaries say they’re not offering more options because there isn’t enough demand yet. On the other hand, they also have a fiduciary duty: their objective is to meet the expectations of their customers, who today are primarily interested in returns. Many people would be willing to invest in a more sustainable way… as long as there were guarantees that this would not harm their return. And today, it’s very difficult to guarantee this, for obvious reasons.

Take my ESG, so I can take even more fees from you!

The world is changing. We’ve seen it: a number of ESG ETFs, for example, have excluded the oil and fossil fuel sectors. But when the price of fossil fuels rose sharply, these ETFs found themselves in trouble with their clients. The same applies to the arms industry, for example.

So it’s not obvious at all. And I don’t think intermediaries have yet found a truly convincing solution that would enable investors who don’t want to spend all their time on it, to make choices that really make sense.

That said, there is one question that needs to be asked. Today, we live in an extremely uncertain world. And the question is: as much as the strategy you defend — being 100% invested and then forgetting about it — has been very valid in the past, today we may be faced with a real paradigm shift. Which might be worth having a small, much safer investment pocket on the side, just in case things go really wrong.

And here, I don’t have a ready-made answer. It’s a very difficult question. Because the problem we face today, as clear-sighted investors, is that there are huge risks… which may well never materialize. What we call low-frequency risks.

And how do you protect yourself against these risks? The problem is that if you try to protect yourself from them, and they don’t materialize, you’ll lose out. And you could be for a very long time, precisely because these risks are so rare.

So I think it’s a question you have to have somewhere in the back of your mind. And it can lead you to think that certain recommendations that were very pertinent in the past - and that have worked well up to now — might not work so well in the future.

Divestment strategy?

MP: “Is the divestment strategy (exclusion of certain industries/companies) effective in supporting environmental objectives, as a private investor?”

The answer is no. In fact, there are very few examples where a divestment strategy has actually proved effective.

If, behind this strategy, there’s the idea that we’re going to “turn off the tap “, that when we invest we’re giving money to a company to do things we don’t like, and that by stopping investing, we’re going to prevent it from continuing… well, it doesn’t really work like that.

Because when you sell, someone else is bound to buy. And even if, in extreme cases, a company were to find itself limited in its financing via the stock market, it would still have access to other sources: private markets, bond markets, bank loans. There are plenty of alternatives.

For such a strategy to have any real impact, all investors would have to agree. But that’s totally illusory.

The reality is that what we’re seeing is that disinvestment strategies are mainly a way of making ourselves feel better. You feel better when you use them, but they are not effective on their own. And they often lead to unbalanced portfolios, with risk-taking different from what it would normally be.

Disinvestment strategies are mainly a way of easing one’s conscience. They are not effective in themselves.

They are not the right way to act. The best approach would be to join an investors’ club that takes concrete action: by taking part in board meetings, intervening at shareholders’ meetings, influencing company strategy to steer it in a different direction.

An individual investor can’t do that alone. It has to be done collectively.

Financial education and environmental issues

MP: “How can education in personal finance (budgeting, saving, investing, etc.) help solve environmental problems?”

I think it’s important to have a minimum of financial education. In particular, this fundamental idea of investment diversification is absolutely essential. It’s part of a form of humility: we know so little that we have to accept diversification.

And it requires a certain level of education, especially given the prevalence of scams and misleading advertisements. We regularly see people who have put all their eggs in one basket — a basket often offered by someone who isn’t necessarily honest, or even competent, but who knows how to express himself very well. Avoiding such situations is obviously crucial to your financial health.

If you’ve managed your finances badly, the end of the month will come first. But if you’ve managed your affairs well, you may be in a position to think more about global issues — including the end of the world.

And then, once you’ve built up a healthier financial situation, you’re probably in a better position to open up to other issues, such as environmental problems — beyond mere financial survival.

It’s often said that there’s a conflict between “the end of the world” and “the end of the month”. If you’ve managed your finances badly, the end of the month will take precedence. But if you’ve managed your affairs well, you may be in a position to think more about these global issues — including the end of the world.

Frugality vs. growth (to achieve financial independence)

MP: “What do you think of the paradox of financial independence (FI), which encourages thoughtful consumption (no unnecessary material accumulation, frugality and the pursuit of a happier, richer life) while relying on capitalism and the stock market to finance a free life (= not having to work for money, not “not working / doing nothing on the beach”) — where growth is necessary?”

I think growth is useful, of course, it makes things easier.

But with a standard of living like the one we have in Switzerland, we can organize ourselves very well with minimal growth. In fact, we’re already in that situation to some extent. Per capita growth in Switzerland is not very high, compared to the 5, 7 or 8% we’ve seen in China, which is still a developing country.

I think the important point is that we can organize an economy — a capitalist, market-based economy, with stock market operations — that is perfectly compatible with modest growth. And it’s absolutely not incompatible with more thoughtful consumption, with frugality.

You'll take a bit of Mustachianism, won't you?

It might be a slightly different economy from the one we know today, but it’s definitely doable.

Again, I’m making a distinction between the common view we have of capitalism — which is often misunderstood — and the view I’m proposing, which is much closer to economic theory. It’s a means, a dream, a result of our imagination, of our ability to do better.

But it’s not a goal in itself. The goal is precisely to live a happier, richer life.

MP: “Is passive income from investments (one of the pillars of the FIRE movement) incompatible with the environmental challenges we face?”

Passive income… you mean annuity income, as it were? Is that what you mean? Rather than income from work?

Yes. So no, I don’t think it’s incompatible. Now, it’s true that not everyone can live on an income from work. Some people have to work. And I think that’s an important point, because in a comfortable society like ours, there’s perhaps too much of a tendency to believe that money falls from trees, that all you have to do is help yourself.

No. People have to work. Value has to be created. It doesn’t grow on trees. So I think we need to keep a certain balance. To imagine being able to live on passive income alone for the rest of your life is to depend on the work of previous generations. It’s all very well to benefit from it, but it’s not sustainable on a large scale.

I think that as much as possible, everyone should contribute to the collective effort of creating value for society. Of course, everyone has his or her own dispositions, skills and characteristics. But contributing can also mean making capital available, because you’ve been particularly frugal, for example. Making capital available is also a form of contribution. So it’s not just about work, it’s also about capital and financial resources.

But I think we’ve reached a period where it’s perhaps a little too easy to assume that everything will continue to go well, even if we don’t contribute. We’ve become a little complacent with this idea. And I think we’re entering a phase where this will no doubt be called into question.

We sometimes think that simply taxing the rich will solve the problem. But that’s not true. We need continuous value creation. And in today’s world, which is a little less cooperative than it used to be, some of the advantages we enjoyed in the past are no longer there. This should encourage us to be a little more proactive, to make sure that everyone contributes to this collective effort.

MP Notes

I’m a materialist AND a capitalist!

When I saw the film “Minimalism” (available on Netflix), I was struck by economist Juliet Schor’s commentary:

We’re too materialistic in the everyday sense of the word, and not materialistic enough in the true sense of the word. We need to be true materialists, i.e. to really care about the materiality of goods.

Since then, I’ve considered myself a materialist. It’s provocative, and sparks interesting conversations in my circle.

After my discussion with Jean-Pierre Danthine, I can now add to this statement: “I’m a materialist AND a capitalist.”

Because if we want our economy to be sustainable over several hundred years, every business owner (including his land and his use of natural resources) must cherish and take care of his capital.

This goes very well with my frugal approach to life, where you make conscious, quality purchases. Purchases of tangible or intangible goods (because even intangible goods have an impact on nature) made to last.

Bye bye Temu and Shein, and hello frugal lifestyle!

And all this reasoning is not incompatible with economic growth and increasing people’s happiness, quite the contrary! I think I’ll be continuing the blog for a while (no, no, I didn’t doubt it, but this reminder with a global perspective is welcome).

Do you know a good book on capitalism?

I find it hard to believe that there isn’t a good book on capitalism that doesn’t start getting political right from the preface… well, I didn’t do much research myself, I was counting on Jean-Pierre ;)

In any case, if you have such a book in store, contact me by email or via the comments with pleasure!

Producers and consumers are partners!

Speaking of global perspective, I really liked the part where Jean-Pierre talks about economic relations.

Any business should add real value, as if it were a partner to its consumers, and not an extractor wishing to maximize its profits without thinking too much about the consequences (ethical, environmental, integrity, etc.), in a smoke-and-mirrors mode.

I’m thinking here of ad salesmen such as Meta, and to the Tiktok, Temu and Shein again.

If I take my blog as an example, it resonates with my long-term strategy vs. accepting the requests for ad placements or crappy links I get every day… and yet there’d be a ton of cash to be made, and I can tell you I’d already be financially independent. Well, no, not really. Because I don’t think I’d really have any readers left, and such a short-termist approach would have sunk my blog a long time ago.

Two buddies who have figured out a lot of simple things AND terribly effective when applied over the long term and at all personal and professional levels (photo credits: CNBC Television)

Another example is my first real estate deal club, which I’m currently setting up. One of the founding principles is to align my own interests as closely as possible with those of the investors. I’m not inventing anything, I’m just borrowing the precepts of mentors such as Warren Buffett (invest your own money alongside shareholders in “skin in the game” mode), Charlie Munger (“show me the incentives and I’ll show you the result.”), and Jack Bogle (Vanguard doesn’t seek to maximize profits, but to reduce costs for its investors, as they are the owners of the company). So it simply means no unnecessary management fees, and a stake at least as big as each investor.

Markets always go up

I recommend reading this article if you want another perspective on the subject.

Oh, and a necessary reminder: markets always go up for the index investor (as with the VT ETF), not for the stock-picking investor. Indeed, a VT ETF benefits from automatic self-cleansing thanks to its intrinsic indexing system: bankrupt or declining companies are removed from the index, replaced by better-performing ones.

Growth and planetary limits

I agree with Mr. Danthine when he says that money not spent on materials would go elsewhere in the economy, and growth would not stop.

I’m more optimistic than he is (rightly or wrongly, time will tell). Whether it’s nature, a law or a new environmental market system, human behavior adapts to constraints. We saw this clearly during COVID.

If we could no longer fly tomorrow, I’m not sure that the slowdown in growth would be that great. Most of it would be transferred. Private individuals will look for and find other ways to enjoy their leisure time. Ditto for business travel; companies will have more cash to reinvest in more useful things than business trips that could be made via Zoom.

Again, this is just one hypothesis (from an optimist) among many. Time will tell who’s right. And as usual, we’ll certainly be somewhere in between.

Degrowth, not necessarily a solution

Without politics nor dogmatism, I loved this sentence: “You have to be a bit agnostic about it. The objective is not to decrease. The goal is to respect planetary boundaries. You have to be intelligent, stop consuming material goods absurdly, stop thinking that you always have to work more to earn more and consume more.”

Obvious? One still had to have the intellectual baggage to explain it so concisely.

7-8% return?

Maybe I’m too optimistic (or less armed with knowledge of macroeconomics), or maybe I’m younger and still too idealistic, but I don’t necessarily think that growth is going to fall as much as Jean-Pierre Danthine predicts.

My vision tends more towards a redirection of wealth towards more intangibles, when the majority of the population realizes (forced by nature reclaiming its rights or some other environmental law forcing a change in behavior) that over-consumption is neither healthy nor desirable for any human, and that there are other ways to be happy — in the long term (and not on dopamine shots scrolling to infinity!) More sustainable ways. And these things will generate economic growth.

Just to be clear: no, it won’t be easy to maintain some growth while respecting the Paris Agreements. But if we reallocate capital intelligently and rely on the green transition as a driver of innovation, there’s no reason why that growth can’t remain solid, or even be strengthened in the long term.

Let’s talk about it again in 50 years!

Diversification, diversification and diversification (of your investments)

If you still needed “official” proof from a “real” economist (vs. a random Swiss blogger) to confirm everything I say in:

• this article on how I’d invest CHF 10'000 if I started from scratch today
• my book
• or my program that allows you to start investing in the stock market in a few weeks by understanding what you’re doing

… so here it is from a real, official economist: “Maximum diversification is the only thing an individual investor can really do.”

ESG and divestment, yes… but no!

I understand the intention behind ESG and divestment. But personally, I prefer to stay invested in all companies worldwide, through a well-diversified portfolio (or should I say through the one and only: the VT ETF). And using my time to make a real impact. This blog is one example. Others, once FIRE, choose to work in sustainable companies. And the bravest (or the least afraid?) jump into impact entrepreneurship with both feet.

My conscience grumbles a bit sometimes, but it gets over it. I want to act where it’s proven to work. Not just do what most people do to ease their conscience… when in the end, it doesn’t change a thing. Nada.

If you want more details on this subject, I recommend this article that is still valid today.

Conflict between the end of the world and the end of the month!

This quote really resonated with me about the raison d’être of this blog and all my related projects. I’m going to add it to my Ikigai:

I help you breathe financially at the end of each month, so you can invest your time where it really has an impact.

More clarity in my paradox of the rentier life

To become a retiree living off passive income, you have to work. You don’t get something for nothing. And once you’re financially independent (= FIRE), you continue to contribute to making the world go round by making your capital available. It’s also a form of contribution.

Summarized by Jean-Pierre Danthine: “it’s not just about work, it’s also about capital and financial resources.”

Or how to get more clarity on many of my human paradoxes.

I’d like to thank Mr. Danthine again for giving me so much of his precious time, as he’s working flat out on the end of the world :)

And you, what do you take away from this interview? (as usual, in constructive and apolitical mode, please)

Here is some news of what has happened since our last update in August 2024.

Traveling

In September, my partner and I hiked 2 weeks in France, making progress on our Santiago de Compostela hike. We hiked from Le Puy en Velay to Figeac, close to 300 km.

Hiking on the Santiago de Compostela

We departed from Zurich on the 1st week of September!

At first, we had planned to hike all the way until Spain (about 6 weeks needed), but after 2 weeks, we were tired (you sleep in a new place every night), and we missed home.

Tracking our progress along the way 🙂

Missing home and family

We then spent mid-September to the beginning of November at home, relaxing into the winter months and connecting with friends over early fondues.

I then spent all of November in France with my family — 2 weeks at my sister’s place while she was on medical leave after a surgery, and then 2 weeks with my parents. This is the first time in 7 years that I have stayed so long in France and close to my family. The last time was in June 2017 when I was recovering from a burnout, which was definitely not as fun! I could not have done that without this mini-retirement — having the time to stay with family without stressing out about work, or checking emails, or even taking meetings, etc. It was also a great time to spend with my niece (3 years now), and build new memories with her…

Enjoying winter with my family

We also took advantage of my presence there to indulge in one of my passions: decluttering!! We didn’t leave any drawer untouched and decluttered both my sister’s and my parents’ houses. From a financial standpoint, this also allowed for my mom, my sister, and me to do some clothes exchanges (second-hand clothes trading for the win!) and even sell some of the things that didn’t serve them anymore, making them a bit of extra money before Christmas!

I want to point out that at that point, the market was still performing well, and my net worth kept on growing, reaching CHF 1'576'791 by the end of November 2024.

Back home, we then enjoyed December to February at our home in Thalwil, with my parents and then my sister and her family visiting us.

Magical snowy hike in Albis on January 1st with my parents who spent New Year's Eve with us!

One month in Australia and… a stock market crash!

As of February 20th, 2025, my net worth reached an all-time high of CHF 1'614'196, which had me very excited and confident as I prepared for my one-month trip to Australia.

Two adorable love birds, pretty much all over the east coast

With this positive thought in mind, I left for Australia on February 29 until April 2, and while I watched the market dip and dip and then dip even further, I still enjoyed the vacation, not trying to be frugal. It may be the only time I go there, I didn’t want to NOT enjoy it to the fullest — I have worked too hard these past 10 years to not fully enjoy it.

We landed in Melbourne and traveled the southern coast for a few days, then made our way up to Sydney and the famous Jervis Bay, saw Tasmanian devils in Tasmania!, got stung by jelly fishes in Gold Coast close to Brisbane (nothing too bad, just a slight burn for an hour), met Koalas, Kangaroos and Wallabies, and even saw one giant spider (luckily, the last day of our trip!!)

Koala napping in a Koala reserve #LifeGoals

Financial recap for 2024

2024 has been better than I expected from a financial point of view, ending the year at CHF 1'562'060 versus CHF 1'497'602 after my final Google paycheck at the end of April. And that is after paying still large taxes in 2024 and all my annual expenses — which were a bit higher than predicted as we traveled more than usual, of course, and didn’t refrain from fun activities:

• CHF 45'635 without taxes
• CHF 81'512 with taxes

Expected expenses for 2025

I predicted 2025 expenses to be the same or maybe up to 50k CHF before taxes, as we are doing two big trips (Australia in March and Brazil planned for July), but I expect the taxes to be much lower.

View on Great Ocean Road, South West from Melbourne

The highest expense remains housing (22k CHF for my share of the rent), but one thing we didn’t want to do was having to leave our lovely flat, so that is an expense that will stay for a bit longer for sure, unless we decide to move to a cheaper place in the future.

Portfolio allocation adjustments

Some changes I have made to my portfolio in January 2024:

• Sold all my bonds (IGLO) and invested in IMEA (iShares Core MSCI Europe UCITS ETF EUR) instead to add a slight European bias. Though at this date, my portfolio is still mostly US-based (70% including retirement funds)
• Sold most of my Google stocks (I went from 30% of my portfolio to less than 5% now), and invested in VGT (Vanguard Information Technology ETF) instead. So still very tech-heavy, but adding some diversity (also considering Alphabet is not part of VGT, but still part of my other ETFs)

Financial strategy when you’re FIRE

My spending/financing strategy this year has been to:

1. Try to reduce many of my costs (phone bill, medical insurance, overall fees, etc.)
2. Still keep 1 year’s worth of expenses in cash — in my current account

I had initially kept up to 2.5 years of expenses in cash, but reinvested 70k CHF into my portfolio in December 2024. The strategy decided in January of this year was to keep enough cash on my cash accounts for this year’s expenses (similar to the 2024 strategy).

While this may not have been the optimal solution for 2024 in retrospect (as the market grew), I am feeling very reassured with this strategy for 2025 as the market is diving. I didn’t want to have to touch my portfolio during this career break, so I will keep taking out what I need from my cash accounts, and if I need some extra money by the end of year, then I will take out my dividends for these extra months (~15kCHF in dividends in 2024).

I had reinvested all my dividends last year, but I plan on not doing that this year so I can have that extra cash at the end of the year. Same — the best strategy may be to reinvest them as soon as possible, but let’s say that’s what I am most comfortable with for this year :) On the positive side, this means I don’t need to take out money from my portfolio at a loss. On the negative side, I don’t have any available cash to inject into the market while it’s so low! “Gain some, lose some,” I guess…

Sunday's hike with friends, Kilchberg

At this point, though (April 2025), all my 2024 gains have vanished 😱 and my net worth is back down to CHF 1'360'253, lower than when I left Google in April 2024. I am not panicking, though, as my cash strategy (to pay off my annual expenses) is working great, and I still intend to get back to work in September. I also don’t intend to reverse my decision to extend my mini-retirement until September, as we have many new plans for the summer: we plan to hike again for 2 weeks on our hike to Santiago de Compostela in May, and then travel to Brazil in July to visit family and friends.

Maybe I hope for the market to stay down until I get a new income to invest in the market? Though, I’d be happy if it came back up quickly, I don’t think we can say what the short term future will look like there!

Unrelated note: I have also changed banks from BCGE to Migros Bank to reduce fees, and I have been very happy with that so far!

My learnings after one year off work

Not being busy is a gift

I really enjoy NOT being busy. I wake up without an alarm when my body feels fully rested (usually 8 hours of sleep), enjoy my morning coffee with my partner in front of the lake, and then read books (already 6 books since the beginning of the year), watch TV (though I am trying to be “productive” there and watch many shows in German to improve my language skills) or listen to podcasts, catch up with friends, take care of my plants, etc.

Having full control of my day/week/month is very appreciated!

I want flexibility in my next job

I DO NOT want to get back to a full-time role with low flexibility (not remote or hybrid, etc.)

I do maybe ~3 hours of what I would call “corporate world related activities”, which translate into career coaching for friends and former colleagues (continuing the coaching I was doing at Google, and coaching new people), as well as helping a friend’s startup optimise operations.

My favorite hike views to be honest... Just greenery, quiet, and shade!

And I have found these to be net positive in my “standard” week. This is also giving me inspiration for future career steps: who I want to work with, what I want to work on, where, and how much I want to work!

Let’s see what September brings in that regard.

I may try geoarbitrage

While I love Switzerland, I am open to geotargeting and relocating to a cheaper country in the coming years.

Not only would that reduce our expenses, but I really miss the thrill of changing countries, discovering a new culture, and starting again from scratch.

I always thought I would be changing countries every 5 years or so, but I arrived in Switzerland too early, and it’s true that Switzerland would remain the top quality of life one can find in Europe.

And yet, after one month in Australia, the idea of moving again (in Europe) is increasingly enticing.

Even more so now with the market decline…

No regret!

Even with the market decline and my net worth dropping by 15% in barely over one month, I don’t regret taking this time. I have never felt so relaxed, centered, and content in my life!

Another article?

If Florence is still up for it, I would like to follow her journey in one or two years, to see how she moves forward. Will she really need to work for money? Or will the market recover enough to extend for some more months (once more)?

The first part? The part where you have fun optimizing everything to become frugal, doing your budget calculations, and counting how much you can save each month to buy your freedom a few years down the road.

But very quickly, as I explain to them, you start thinking more deeply about your purpose.

This usually happens within a year at the latest once you’ve got everything in place, from your well-thought-out budget to automating your stock market investments.

You may have a dream of spending your time traveling, sipping cocktails in the Caribbean, but as all the studies prove over and over again, after a while (after 3 weeks, 6 months, or even 1-2 years), you get bored, because every human needs meaning in life.

And that’s when you start really wondering:

What are you going to do the day you don’t have to work to earn money?

That’s when a handy tool can help you figure out what will make you rich both externally and internally over the long term: finding your Ikigai.

What is an Ikigai (meaning)?

Ikigai is your reason for getting up in the morning: where what you love, what you’re good at, what the world needs, and what can make your money intersect. Basically, it’s about finding a balance between pleasure, utility, and meaning in your life.

The concept of Ikigai to find meaning in your life

The concept is rather simplistic, but it allows you to visualize in one place what your future could be.

Ikigai example of MP

If I were to fill in my Ikigai today, it would look like this:

PASSION / What I love

• Writing and sharing useful ideas (blog, book, newsletters)
• Testing tools and building efficient systems (FI Planner, programs)
• Optimization and efficiency (money, time, freedom)
• Helping people take back control of their financial lives

I love to see someone say “Oh yeah, I too can become financially independent!”

SKILLS / What I’m good at

• Simplifying complex subjects (Swiss taxation, investing in the stock market)
• Create clear comparisons (brokers, banks, vested benefits, etc.)
• Automate/structure processes
• Build an engaged community (readers, forum)

I like to simplify what’s scary by going through and clearing the brush first so that you’ll want to take action afterwards.

MISSION / What the world needs

• Clarity in the jungle of personal finance in Switzerland
• Realistic inspiration (no YouTube spiel about how to become a millionaire by the age of 20…)
• Simple tools for planning their independence
• Concrete alternatives to “subway-work-retirement at 65”

I provide my readers with the keys to independence, rooted in the real world of Switzerland.

PROFESSION / What I can get paid to do

• My book
• My programs
• My FI Planner tool
• My club deals in Swiss real estate

I can monetize what I create without losing my independence (i.e., having to work for a salary).

The Ikigai, a useful tool during AND after FIRE

When we aim for financial independence, we tend to see life in two phases: the first, where we work, save, and optimize everything to reach FIRE, and the second, where we’re finally free. But this binary division can quickly become a dead end if you don’t know what to do with your freedom once you’ve achieved it. That’s where the Ikigai comes in.

The Japanese concept of Ikigai is an invaluable tool, both for finding meaning during your FIRE construction phase and for giving your life a clear direction once you’re free.

Ikigai's origins are said to be on the island of Okinawa in Japan (source: Encyclopædia Britannica, Inc.)

As you move towards financial independence, Ikigai can help you choose a career or projects that are in line with your values. You can then move towards your goal without burning yourself out in a meaningless job, and already enjoy a form of inner freedom along the way. You work to earn money, yes, but you find pleasure and impact in it, and that changes everything.

And once you’re FIRE? Ikigai saves you from the emptiness trap. Because once the constraints are lifted, you need a new compass. By reconnecting with what makes you tick, you can reinvent your free life with intention: whether you’re creating, transmitting, traveling, or committing yourself, you’re no longer doing “nothing” - you’re living life to the fullest.

How to find your Ikigai (concretely)

You don’t need to spend a month in Japan or isolate yourself in a Tibetan cave to find your Ikigai ;) In fact, you can start today, at home, with a notebook or on Notion.

I suggest a simple 4-column method in which you list:

What you like to do

→ What makes you lose track of time?
→ What excited you as a teenager?
→ If you had a week off, what would you do (excluding Netflix)?

What you’re good at

→ What do people come to you for help with?
→ Do you have any skills that you underestimate (but that others value)?
→ What do you do naturally well, without forcing yourself?

What the world needs

→ What problems around you (or in society) affect you?
→ Are there any causes you could get involved with?
→ What would you like to change if you had a magic wand?

What you could get paid for

→ Among all this, what do others value?
→ Are there things you already do for free that could be monetized (without selling your soul)?
→ Are there any role models or people who already make a living from something that speaks to you?

Once you’ve jotted down the answers, let the whole thing sit for exactly 7 days.

Then, once this week is over, reread your notes with a clear head. And observe: do one or two projects stand out? A recurring theme? A recurring desire?

That’s your starting point. You don’t need a perfect answer. Your Ikigai is a course, not a straight line.

And you, what’s your Ikigai?

Moreover as he is 33, and should be FIRE around 40 years old. Sounds familiar ahah!

Without further ado, the keyboard is yours Konrad!

Konrad’s background

Thanks for having me, Marc.

As you said, I’m 33 years old, married, and living in the canton of Zurich.

My wife and I have way more hobbies than time to practice them. We’re into anything mountain-related—cycling, skiing, paragliding and many other things in between—and we love traveling too.

Right now, I work 90% in technical sales, and the other 10% is split between traveling and running our side project Climbfinity (special code for MP readers at the end of the article!) It started as a personal goal — to cycle all the mountain passes in Switzerland — but then we turned it into a scratch map to help other cyclists discover new routes.

My wife works full-time as a computer scientist, and she is pretty passionate about cycling too.

Cycling in the Swiss Alps with my wife

Discovering the FIRE movement

It was the COVID pandemic that actually led me to discover financial independence and all that goes around it.

Back in 2021, we saw a lot of our friends getting into investing — or, well, gambling with crypto. I am a FOMO guy. It got me thinking: “Maybe we should put our savings to work too?”

As I started reading about investing, I stumbled upon the FIRE movement. The idea of retiring decades earlier than usual was pretty eye opening.

Your blog played a big role in that journey — so, thanks for that!

After playing around with compound interest calculators, I realized early retirement wasn’t just a dream. It was actually achievable. That’s when we decided to go all in, invest our savings and work towards financial independence.

At first, we invested not just in globally diversified ETFs, but also in a few American tech stocks, which performed reasonably well. We also tried our luck with companies focused on hydrogen infrastructure and the metaverse — both turned out to be pretty bad choices.

Putting our investments in order

We were always reasonably good at saving, so we weren’t starting from scratch.

We had been setting aside about 30% of our net income, originally with the goal of buying a house. It’s a cultural thing — we both grew up in Poland, where homeownership is at 90%. So we did not think there was any other way. But property prices in our area were (and still are) insane.

At that point we decided that any future pay raises would go straight to savings instead of lifestyle upgrades.

We had been setting aside about 30% of our net income.

That said, 2022 was rough. We had just invested most of our savings when the market crashed. And to make things worse, as mentioned above, we were still in that “let’s pick stocks and beat the market” phase, which made it extra painful. But we didn’t panic, stayed invested, and learned some valuable lessons — mainly, don’t get emotional about market fluctuations and don’t try to outsmart the system.

Mountainering in the Swiss Alps, and not caring about the stock market's ups and downs!

These days, we stick to world ETFs and keep things simple. We sold almost all individual stocks and invested in Vanguard Total World. After all, wise people say that the simplest and most boring strategy is coincidentally the most effective one.

Our learning: don’t get emotional about market fluctuations and don’t try to outsmart the system.

The only exception to a world ETF are stocks of our employers, which are both listed companies — we can buy these at preferential terms. This constitutes less than 10% of our portfolio.

The remainder is invested in:

• Vanguard Total World (55%)
• Third pillar 3a (12%, via VIAC Global 100)
• 2nd pillar (23%, we have no say how this money is invested)

Boosting our way to FI

I actually still have the original 2021 spreadsheet where we first realized financial independence was possible.

It’s crazy to see how much the numbers have changed since then. I really underestimated how much our net income would grow over time (40% since) and what percentage we’d be able to save (going from 30% to 60%).

Travel in Africa

We also found many ways to optimize everyday expenses — things like cutting unnecessary subscriptions, finding cheaper/free alternatives to services we used, buying a used car instead of leasing one, and tweaking our insurance plans. These savings are de facto sponsoring the doubling of traveling time (compared to 2021).

But on the flip side, I also realized we would need 25% more capital than I initially thought. Inflation, taxes, and some unrealistic assumptions about what we’d be willing to compromise on in retirement all played a role in that.

Our financial independence goal shifted from 45 years old to 41!

The good news? Overall, our financial independence goal shifted from 45 years old to 41, and we’re currently somewhere between 25% and 35% of the way there, depending on different scenarios — like where we end up living, how much we travel, and whether we have kids.

Our plans for the future

Life’s pretty good. We both enjoy our jobs, we travel for two months every year (outside of business trips), and we’ve managed to turn our passion for cycling into something that brings in a bit of extra income.

Our savings rate is expected to hit 60% in 2025 — our highest yet. We travel more, start many new hobbies, and most importantly, we feel in control of our finances.

In the context of FIRE, I started thinking more and more about the day after, rather than just the financial aspects – where we want to live, how to make sure we have friends and family around and how to actually spend the extra free time in a fulfilling way.

The day after? Paragliding in the Swiss Alps could be one of our activities!

One big realization? Buying property in our area doesn’t make financial sense. I ran all the numbers, spent hours playing with spreadsheets, and realized it is 25% more expensive than renting. Our Polish families will probably never accept this decision, but well, we agree to disagree.

As for the side business — “Climbfinity” is now bringing in over CHF 2'000 per month. So far, this is not life-changing money, but it helps speed up our financial independence journey and, more importantly, it’s been a super rewarding project. Helping cyclists discover new mountain roads has been really fun, and we are about to get some cycling friends on board and expand the idea to more countries.

Turning a hobby into a business

Marc: “Can you tell us more about how you turned your hobby into a business — how did that happen?”

Yeah, so, it all started with my love for road cycling and mountains.

Climbing mountain passes is something cyclists enjoy, but after ticking off the obvious ones, I found myself struggling to discover more and keep track of where I had been.

So, I made a list of all the passes in Switzerland above 1'000 meters. That list turned into a map, and eventually, I turned the map into a scratch map. I printed one, framed it, hung it in my living room and took 2 years to cycle all the (remaining) passes.

'Climbfinity' map half-completed in our living room

Friends saw it and loved the idea — one even told me he could think of ten more people who would buy one. That’s when it clicked: this could actually be a business.

I put together a simple business plan, found a supplier to print the maps, and set up an online shop using Shopify platform.

And that was it — “Climbfinity” was born.

For now, my wife and I handle everything — packing, shipping, customer service — but as the business grows, we’ll need to outsource some of that.

If anyone is considering launching a small business, I’d say go for it.

The great thing about starting an e-commerce business in Switzerland is that it’s super easy. You don’t even need to register a company or collect VAT until you achieve CHF 100'000 of annual revenue.

You also don’t need a massive investment to start. I put in around 2'500 Swiss francs, and that was enough to get things going.

If anyone is considering launching a small business, I’d say go for it — it’s a lot of fun and the risks are low! If you’re passionate about something, chances are others are too — even if it sounds as niche as cycling mountain passes.

FIRE is more than just numbers

To conclude, I’d say don’t overcomplicate things.

For me, FIRE isn’t just about extreme frugality or retiring as soon as possible – in fact, we are not yet sure we want to quit our jobs completely once we are financially independent.

It’s about having the freedom to live life on your terms.

Stay consistent, don’t stress about market ups and downs, and focus on what actually makes you happy on the way there. And don’t forget to think about the day after you get there.

And finally, if you’re into cycling, definitely check out our scratch map! 😉

Notes from MP about Konrad’s story

Buy or rent? Do the math!

I completely agree with Konrad’s argument that buying a home seems like the obvious choice for many.

Except that in Switzerland, it’s not always the best financial decision. Before jumping into a purchase, take the time to run the numbers and analyze the situation objectively. I’ve already covered this topic in detail here: “Buy or rent in Switzerland?”.

Your decision shouldn’t be dictated by social pressure or outdated beliefs (thanks, Dad, and your “Real estate is the only safe bet!”). As a Mustachian, we want to use every franc wisely. And sometimes, not buying is actually a way to accelerate your financial independence.

Finding your “Why”

Financial independence isn’t just about stacking up a pile of money and spending your days lounging on a beach. Once the math and financial mechanics are in place, a much deeper question emerges (some say it takes between 3 months and a year after retiring): what comes next? Why do you want to be financially free? What do you actually want to do with your (free) time?

This is a crucial question to ask yourself as early as possible in your FIRE journey — not only to ensure you’re on the right path, but also to keep your motivation strong during the boring middle. It’s also the main theme of my next book.

One useful tool for this reflection is the Japanese concept of Ikigai — finding the balance between what you love, what you’re good at, what the world needs, and what can make you money. The FIRE movement isn’t just about math — it’s also quest for meaning in itself.

Your life, your rules

Konrad’s story perfectly illustrates my motto: your destiny is in your hands. He chose a path that truly fits him, ignoring conventions and external expectations. Buying a house just because “everyone does it”? Bad idea if it doesn’t make sense for you. Following a default career path? Same thing.

Being in control of your life means making decisions based on what’s truly important to you. Once again, the FIRE movement isn’t just about money — it’s a philosophy: building an intentional life that aligns with your values and desires.

Just start, begin small

People often think they need a perfect plan before launching a personal project.

Mistake!

The most important thing is to just start. My blog, for example, was supposed to be a three-month experiment… and 11 years later, it has led to a book, an incredible community of over 3,000 members, and many other projects.

If an idea excites you, go for it.

Test, adapt, and let it grow over time. Worst-case scenario? You learn something. Best-case scenario? You build something that changes your life.

“Simple and Boring” investing: the key to success

It sounds counterintuitive, but the best way to invest is to do less, not more. I often feel tempted to be more active, to chase “smart” opportunities. But reality is harsh (and backed by countless economic studies): the simplest and most boring strategies are the most effective.

Vanguard Total World, an optimized pillar 3a, solid diversification… and that’s it. No need to time the market or try to outsmart it. The more you complicate things, the more mistakes you’ll make.

The power of frugality

One of my biggest “Eureka!” moments in financial independence was when I discovered the concept — and power — of frugalism. People often talk about increasing income to save more, but the real magic lies in optimizing your expenses. And when I say “magic”, it’s because this is something you control 100% (unlike getting a raise).

Also, a reminder for newcomers: spending less doesn’t mean depriving yourself. On the contrary, it means consuming more consciously. The result? A chain reaction of benefits — more cash left at the end of the month to invest in the stock market, better health, and a positive impact on the planet. What more could you want? 😉

MP readers’ code - “Climbfinity” scratch map

And there I am, at this bus stop. And just across the street, there’s a forest. A forest that seems to call me every morning.

And whenever I’m in such a situation, I imagine that day.

That day, I’ll still be at that stop, dressed like I’m heading to work, laptop bag in hand. But this time, I won’t get on the bus. I’ll watch it drive away, then cross the road, and walk toward the forest.

Just for a short one-hour walk. And maybe, before I even realize it, it’ll already be noon. Or 6pm. Who knows.

Realize what? That I did it! I’m financially independent.

I’ve played out that scene in my head so many times. Over and over again. That bus stop has become my crossroads. My turning point. Neo’s red pill.

One day, I’ll take the other path.

And until then, I use this anchor to stay the course toward my long-term goal. My FIRE. My freedom. My real life.

What’s your bus stop? The one that you pass by every day… and one day will watch you head off toward freedom?

This prompted me to survey all the blog’s readers in order to find out if this was a recommended solution.

Here are all the responses I received, as well as my conclusion at the end of the article, as well as a special Hypotheke.ch promo code for blog readers.

😃 Daniel D.

I believe that the provider Hypotheke.ch is one of the best in Switzerland.

I always look at their homepage when I want to get an idea of the current offers. My subjective opinion is that this provider is one of the most independent in the sector. The majority of the other comparison sites are linked to a provider (insurance or bank).

I had a telephone call with one of the Hypotheke.ch team around 3 years ago (unfortunately, I can’t remember his name, it might have been Mr Schubiger).

At the time, we were looking to remortgage with UBS.

We had an offer from UBS with a 0.6% margin for a Saron mortgage, so the Saron rate & then the bank margin of 0.6% on top.

I had briefly explained our financial situation over the telephone, the mortgage amount, etc. He immediately explained to me over the telephone that he believed that this was a very good offer and that I should accept the UBS offer. Which we did.

For me, this contact was very positive. We must have spent 20 minutes or more on the telephone. He listened to me quietly, asked me some questions, and gave me his evaluation. It is highly likely that another provider would have immediately invited me to an appointment and then tried to “sell” me their service.

It is very likely that I’ll get back in contact with the provider if we want to renew our mortgage in the future.

🙂 Jakub W.

I was looking for a mortgage in October/November 2024, and I decided to use MoneyPark and Hypotheke.ch at the same time.

Overall, it was a good experience — communication was fast and professional, and they offered good rates from Migros Bank.

Unfortunately, I think they lacked a bit of flexibility and the capacity to manage more complex cases like mine — I already have a mortgage, and different banks interpret this in different ways (in terms of debt burden and income).

In the end, they weren’t able to get me a suitable offer, and I went with MoneyPark and UBS.

😃 Lukas S.

I took out my mortgage with Hypotheke and can confirm that it’s a very good service.

Here’s an overview of my experience:

• Conditions: SARON with a margin of 0,49%. It’s the best offer I could find on the internet, and they also offered me this rate without any issues.
• Online process: The process is based on an entirely automated work flow in which several pieces of information must be provided. This does require some effort, but it is in line with what is required by other brokers.
• Support and completion: Once you’ve submitted most of the documents, they contact you and complete the formalities with you. The transfer from the old bank to the new one went smoothly without any issues.

In my case, everything went perfectly, and I can definitely recommend them. I worked with MoneyPark for my in-laws’ mortgage a year earlier, which was also a very good experience. I’d say the two are as good as each other.

MP: “It’s interesting what you say about MoneyPark, as other readers have been a lot less positive since they were bought by Helvetia. MoneyPark or Hypotheke.ch, do you really view these two companies as comparable?”
The commercial model of Hypotheke.ch seems to be that they have agreements with companies that want to outsource searching for new customers. I ended up with Bank EKI, a cooperative bank which is very small, and which only has two branches. Hypotheke.ch appear to have an agreement with them to offer very good conditions in exchange for exclusivity over searching for customers for them.

Moneypark is different in this context. They have different partners, but seem to work on a non-exclusive basis. This was really good for my in-laws’ case, as the advisor looked for the best conditions based on their very specific situation. I think we were lucky with this, as the advisor we worked with was very customer-focused and probably sometimes even willing to make an additional effort above what was required of them from the company’s perspective. In short, I wouldn’t expect that to be the norm with Moneypark.

How the Hypotheke.ch service works in 3 simple steps

🤷‍♂️ SB

I’m sharing my notes with you from my contact with Hypotheke.ch (Michael Bader), in May 2024:

• They are fairly active in German-speaking Switzerland.
• Currently, it’s not possible to get a mortgage offer for a rental investment building, but this should change in the coming weeks.
• At best, they could perhaps obtain -0.1% on SARON and -0.2% fixed.
• By Mr Bader’s own admission, it’s not worth changing because the gain would only be around CHF 100 per month maximum for the debt of CHF 500'000.
• In addition, the change isn’t free: you need loads of documents, some of which require you to pay a fee to obtain them.

I should point out that my situation is somewhat unique with a villa of 3 apartments in Montreux, which had to be remortgaged before my main residence in Fribourg. Hypotheke.ch wasn’t particularly interested in financing the rental property in Montreux…

I also looked into using VZ, but what annoyed me with them is that there were also intermediaries (internal), and they required powers of attorney to be signed. As I don’t really like giving up control, particularly at this level, I didn’t pursue this route.

As a public worker, BCBE’s offering for Publica policyholders is much more beneficial for me. Offer applicable to members of the APC–BCBE.

😃 Petra G.

Yes, I took out a mortgage with Hypotheke.ch, and I’m very satisfied with them!

I read a review of Hypotheke.ch in the Tages-Anzeiger.

I needed to remortgage in 2021. I registered with Hypotheke.ch, I looked at their offers, and I accepted one: a mortgage from SGPK (St.Galler Pensionskasse) over 10 years at 0.65%.

I’d never have found it by myself, as I didn’t know that pension funds also provided mortgages.

It's not very well known that pension funds provide mortgages

😃 André G.

I remortgaged with this platform.

I have nothing negative to say.

Twice with no problems and fast.

It’s also possible to call Hypotheke advisors to clarify any questions.

😃 Manuela H.

Yes, I had a good experience with Hypotheke.ch (but I ended up going with another provider).

Hypotheke.ch is without doubt a very good provider. Depending on your situation, you can get better offers elsewhere as Hypotheke.ch is entirely automated (and therefore is less able to adapt to your specific needs).

From what I understood, one of their founders was previously at VZ Vermögenszentrum, and, together with an IT-savvy cofounder, they’ve built a web platform capable of automatically generating mortgage loan offers.

Their business model consists of offering users an easy-to-use platform for uploading all the necessary documents and providing them with an immediate response confirming whether they meet the requirements of one of the providers in their network based on the information provided. Their involvement is minimal, but if you contact them by telephone (they’re really nice), they can help you and know exactly what you need to change to meet the minimum criteria of an offer. They also have some pension funds in their network, which are not included/available with other brokers.

However, if you have specific/additional collateral (for example, an apartment already owned with another mortgage tranche), they have limited room to maneuver to make changes or reflect that in one way or another in their offer. I get the impression that a customer advisor in a bank or insurance company has more room to adapt the offer to your needs in this specific case. Overall, I liked the Hypotheke.ch team and I recommend them to my friends.

What I’m not sure about: the time when you search for a financial partner and the point at which you fix the mortgage rate can be very different (in my case, the difference was 6 months), and it was obviously advantageous for me to wait as long as possible to fix due to the expected decisions by the BNS. I’m not sure that they (or their partner) are very flexible when it comes to adjusting/lowering the rate up to the day of fixing.

What is sure is that Hypotheke.ch is definitely better than the big competitors (Moneypark now belongs to Helvetia), as they try to understand your situation and help you as best they can to obtain the best offer they can get for you.

In summary, they are undeniably good with competitive rates, an efficient online procedure, and a great team. It’s only if you have specific requirements for bespoke solutions that there can be competitors to take into consideration.

The founding team behind Hypotheke.ch

😃 John Galt

My bank (UBS) initially gave me a ridiculous rate despite me having been a good customer for 9 years!

I therefore used Hypotheke.ch and my friend has too over the past three months. I received very good support and offers which had no initial fees or obligations. Claudio was also able to negotiate the conditions after the first offer was approved, when my bank woke up and made a competitive offer to keep us — but the bank recommended by Hypotheke.ch made us an even better offer!

Verdict: I highly recommend Hypotheke.ch.

😃 Friedrich M.

I took out a mortgage through their intermediary at the end of last year, and I must say that I’m very satisfied with their service.

The central service worked very well.

How the Hypotheke.ch service works

It’s very quick and easy to get real mortgage proposals:

Fill in your personal information and details of your property in Switzerland

Input your income and the value of your assets in Switzerland

Configure how you want to structure your mortgage

In this tab, I've got the mortgage proposals that come through without changing my parameters

In this other tab, I've got mortgage proposals that will come through if I change certain parameters (I can also call Hypotheke.ch to ask them for help in real time)

The user experience is very straightforward and efficient. I’d prefer a design that’s a bit more modern but, in the end, for taking out a mortgage or renewing a mortgage once every X years, that’s a minor detail.

MP conclusion regarding using Hypotheke.ch for your mortgage in Switzerland

Frankly, I’m amazed to have received so many positive, even very positive, opinions.

Let’s be honest: as a Mustachian, we’re demanding and meticulous when it comes to anything related to personal finance.

I hope that the Hypotheke.ch team will be able to manage its growth while maintaining this level of customer service. But in fact, I believe that this mindset comes from the cofounders, who have a long-term vision (rather than short-term in wanting to sign contracts at any cost). I like that!

I also really liked it when Lars Schultz (their CTO and one of the three cofounders) told me when we were chatting about the English version of their site:

I personally like our service, as we can talk freely about (almost) everything with our customers, as we work hard to ensure that everyone (the customer, the mortgage broker, and us) gets treated fairly.

If I had to remortgage today, I’d request a proposal for a SARON mortgage from:

• VIAC (WIR Bank)
• Hypotheke.ch

Then, I’d make a comparison table with all the criteria mentioned in this article (it’s not just the rate that counts!), and I’d choose the best mortgage.

Promo code Hypotheke.ch

FAQ Hypotheke.ch

Is it possible to use a 100% stocks 3a pillar for indirect amortization?

The majority of non-bank lenders accept this type of collateral, i.e. pension funds, investment foundations and insurance companies.

However, they won’t take 100% of the value of this type of 3a pillar into consideration, due to the risk inherent in stock portfolios. Therefore, if you have CHF 100'000 in your VIAC or finpension account, some lenders will only count it as 60 or 80'000 CHF for collateral.

How does Hypotheke.ch make money? What do I have to pay as a customer?

For a standard case, Hypotheke.ch customers don’t generally have to pay anything, as the broker’s commission usually covers all their expenses and fees.

In almost all the cases they’ve had up to now, the customer even receives cashback on top (in cash, paid directly into your bank account). This cashback is communicated transparently in their tool, even before the customer provides their email address.

The way they work is very simple: they calculate the fees for each case, based on the mortgage amount and the duration of the contract, in the same way as most mortgage brokers calculate their commission, except that their fees are a bit lower.

As their fees are always calculated in the same way, where the mortgage is taken out is irrelevant to them.

Then, the customer receives the difference between the commission and Hypotheke.ch’s fees in the form of cashback. If this ends up being nothing or if the fees are higher than the commission, the customer will have to pay the remaining fees, but they are usually practically zero.

The cashback or the remaining fees are always clearly indicated before the customer chooses an offer.

The only situation in which they request (partial) fees is if the customer withdraws after a clearly communicated stage, which is quite late in the process.

Why would banks and other institutions want to work with Hypotheke.ch?

The mortgage lenders on the platform also benefit from their unique process because, in general, they only submit an application to the one lender chosen by the customer.

This is contrary to the traditional process, which consists of submitting an application to several lenders with the intention of obtaining an offer from each of them, which only one of them will end up having accepted.

The application is checked and complete, ready to be signed off by the lender, as the Hypotheke.ch teams have already checked that the application fulfils the lender’s criteria.

They told me they have a very high conversion rate for applications submitted to their lenders, as they check the information given by their customers against the official documents provided in support.

Is Hypotheke.ch available in French?

Unfortunately, they don’t currently have the necessary resources to be able to offer their services in French.

It’s obviously on their to-do list, but up to now, they haven’t had the time to do it and as they’re a small company, they really need to concentrate on their core work.

But they are aiming to provide multilingual support during the coming year (2025). English should be fine on the telephone with their advisors, but their online content has not yet been fully translated.

Do I have access to all the Hypotheke.ch offers without having to pay?

Their mortgage rates are calculated instantly for more than 30 mortgage brokers, so the customer is always able to choose the best offer, and everything, except the name of the mortgage broker, is available for the customer while remaining anonymous.

In order to communicate the names of the mortgage brokers linked to the offers, they request the customer to identify themselves by providing and confirming a mobile telephone number.

How long has the Hypotheke.ch service existed?

They started developing their app in 2016 and founded the company in January 2019.

I’m glad to have persisted with the blog over the past 11 years, as I start to get more and more of them from readers.

The keyboard is yours Becky.

Hey Marc! I feel like I am still floating as if in a dream… but let me introduce myself before I share what happened.

(By the way, the header photo above was taken on the 1st day I was FIRE, at Lake Staz near Saint-Moritz!)

I’m Becky, and here is my background

I live in Switzerland on the shores of Lake Zurich. I grew up in the US, and spent about half my adult life so far there, then came to Switzerland 17 years ago (in 2008).

The original plan was to be in Switzerland for only 3 years! But the natural beauty and endless opportunities for outdoor adventures made it clear to me that this is a great place to stay.

Luckily, I was able to quickly find a job here at a global reinsurance company in Zurich to make it possible to stay. Even though it was right in the middle of a financial crisis (in 2009), they needed more people at the time with my background (risk management). My university degree is in mathematical statistics, and I trained in the US and worked as an actuary, which involves applying quantitative analysis and long-term projections to address financial questions – or as I like to say:

Using mathematical logic to solve finance-related puzzles.

Working as an actuary is quite a good career in many ways including financially, providing a stable income, plus the training was all financed by my employers, so I never had to be weighed down by financial loans for my additional studies.

It’s also a very interesting career, which is a nice combination of analysis and communication, as a big part of my job included providing training and other sessions to explain complicated technical items in an understandable way.

After 30 years of working as an actuary in the financial industry, I decided to leave the corporate world. It wasn’t an easy decision since I had a good job at a good company with great colleagues. But I decided I wanted more time to do the things I love with the people I choose to do them with, and to move into a phase of doing different kinds of projects.

I’m 53 years old (“Fifty-three and financially free” has a nice ring to it doesn’t it!) and live together with my partner who is Swiss.

He is 65 and recently retired.

We enjoy doing a multitude of activities together in the great outdoors, including hiking, biking, running, kayaking, snow sports, and climbing/via ferrata. We are active in a local choir where I play piano as accompanist and we both sing, and we are also active in the local community volunteer activities. He has six grandchildren, and as they get older we enjoy taking them on various adventures as well.

Our music choir where I play piano

My father lost his job… and taught me an invaluable lesson!

When I was in high school, my father lost his job and we thought we might have to move to a different city, which I was quite sad about since I was very active in the band and other music groups in my school.

Luckily, he got a job with a company that trained him to work with clients about investing, and he taught me then what he learned – including the general motto to “Pay yourself first”, i.e. set aside money for investing before spending it, and investing in diversified, low-cost index funds with long-term perspective.

I am very thankful that he taught me these important fundamentals when I was at such a young age!

When I started working, I immediately applied this saving and investing approach, and I also maximised all employer-provided benefits. In the U.S. there are typically no pension funds like in Switzerland, just mainly some tax-deferred savings plans where the employer would sometimes match a portion, and which we needed to invest our savings ourselves each time we changed jobs.

To invest it, I just followed the structure I learned from my father; that is, buy low-cost index funds with a high-risk tolerance since it’s for the long-term, and then leave it alone. I didn’t even look at my brokerage account balance – just kept adding to it whenever I could.

My money goal was always to be financially independent and not to have to rely on my parents or anyone else.

I just knew I wanted to have options.

I had a scholarship for my university studies, and I worked as a math tutor to earn spending money. I started working in a corporate job as soon as I could after university so that I could start saving and investing, with the main goal being that I could make my own decisions on how to spend my money even if my parents disagreed with my decisions. This was very empowering at the young age of 22!

It was basically engrained in my mind that I need to save for myself since the government will not be providing for me.

And if for some reason I lost my job like what happened to my father, I wanted to have options and not to have to make changes I wouldn’t want to make just for a new job.

I thought I might want to take a break from corporate work at some point, perhaps a sabbatical, or possibly to work part-time, or maybe even to change into a different kind of work that would interest me in a different way but might earn less. I didn’t really know what exactly my long-term goal was, I just knew I wanted to have options.

Travels and struggles to invest as a US citizen

Even though my goal was to maximise savings and investments, I also knew it’s important to enjoy life in the current moment, especially since we never know what might happen in the future.

Maybe we’re not healthy enough by the time we retire to even enjoy the money we’ve saved.

It doesn’t make sense to be so frugal that we save everything for some future time at the expense of any enjoyment now. A continual challenge is finding the right balance for saving vs living now.

I love being above the fog on a weekday hike ;)

Luckily, I never was a shopper or had expensive hobbies like collecting cars or something like that — I have a lot of hobbies which don’t cost a lot of money, including hiking, biking, or playing music.

There are so many amazing things one can do, especially here in Switzerland in the great outdoors, that don’t require a lot of money. (As MP says/writes so well, “The best things in life are free”!)

I’ve also done a lot of traveling all around the world and experienced a lot of things such as climbing Mt Kilimanjaro or hiking in Patagonia and Alaska… Even though it has reduced the amount of money I could save, I don’t regret it at all as the experiences are priceless.

[…] the long-term growth made up for a lot of the challenges.

For me, as an American living and working overseas, another struggle has been sorting through the financial requirements and limitations. When I wanted to invest, I had to send the money from what I earned from my job here in Switzerland to the U.S. to be allowed to invest in index funds for many years. Luckily there is a large choice of good low-cost investments there (such as Vanguard) so the long-term growth made up for a lot of the challenges.

Once I was able to invest in Switzerland ¹, I had a lot to learn about the different investment options including brokerage firms, how to find the best available ETFs, and the different tax optimising strategies available here. Even though it has taken quite some time and energy, I really enjoy learning about these different topics. If I had learned about the MP site earlier, it could have possibly helped me go into FIRE even sooner!

And then the decision to actually become FIRE

The big trigger that led to me finally doing it – to become FIRE (or on fire as I like to say 😊) – was when my partner retired in March this year.

He’s 12 years older than me, so I knew it would happen at some point, but I didn’t expect the feeling it would create would have such a strong impact on me.

Before he retired, we were both working and had a similar daily rhythm. After his retirement, that all changed, when suddenly his time was free, and he could choose how to spend it. Of course this made me quite jealous! He would be planning a hike with friends on a nice sunny weekday, when the weather was perfect, while I had to go into the office for a day full of meetings. I realised I really wanted to have more freedom to determine how to spend my time as well.

What a freedom feeling! (Day 2 of FIRE — Hiking Bernina Tour trail above Lake Diavolezza in Engadin)

Also ever since the COVID years — a time when many of us were contemplating the meaning of life and work — I’d been wanting to try some different kinds of work that I felt were important to me. As is often the case, these alternative paths would not provide such a financial stability as I had enjoyed from the corporate work, but nonetheless I felt the inner push to take the leap and give it a try.

These feelings motivated me to fine-tune my analysis of my personal finances to better clarify how much I have and how much I need. I had heard of the 4% rule many times, but I had never really focused on it for myself until now – I had just focused on “save as much as possible” while still living a good life.

I updated and enhanced my spreadsheets and ran a few different scenarios.

I updated my budget and clarified my cashflow needs, including buffers for unknowns and future changes (just as I would do in my actuarial work 😊), and compared it to my total asset balance. And lo and behold, it confirmed I had reached (or exceeded) the 4% rule. What an exciting feeling!

‌It confirmed I had reached (or exceeded) the 4% rule!

This confirmed my decision to leave my corporate job, so that I could have more freedom and flexibility to do the things I want, as well as to pursue some different types of work that are important to me and make me feel I can make a difference. Even if the new work and activities do not earn nearly as much as my previous job, it is a good feeling to know my cashflow needs are covered by my investments.

Fine tuning my finances before taking the plunge

I have applied the Do It Yourself approach to investing, i.e. investing it myself via an online brokerage company into low-cost index funds or ETFs.

I did it this way since it saves money by avoiding high banker fees, plus I like doing these kinds of things myself. Honestly, at first, when I was in my early twenties, it was quite scary to make my first investments myself online, but each time it got easier. I have always made sure to maximise tax-efficient options when feasible such as the pillar 3a.

Setup your investments, then forget about them and go cross-country skiing! (photo taken near Einsiedeln)

I have set up a “bucket system” ² for myself so that I have cash bucket available for immediate and short-term needs, a medium-term investment bucket for mid-term needs, and most of it in the long-term investments.

As a rule, I do not look at my investment portfolio regularly. But I must admit after my first month of FIRE, I checked and totaled up my assets and compared them to the month before since I was curious 😊

The increase was very positive, so that was a good start! Of course, I know it will go up and down in the future and I am prepared for that.

I’m now 53, and financially free!

Life feels incredible!

I still wake up sometimes thinking it must be a dream. I love getting to decide how I spend my time each day, and in general I feel much calmer. I have so many activities which I like to do, so I still feel very busy – but in a positive way.

The topics are those close to my heart – e.g. music, volunteering, helping in the community, as well as simply spending time in nature or riding my bike over the beautiful Swiss hillsides.

Biking in the Swiss mountains 🏔️

I still need to use my daily planner and other online tools, even more than when I was working, to organise and plan all my activities and coordinate schedules.

If I feel I’m too busy, it’s my own fault since it means I planned too much! I still have to say “No” to some things and make priorities since time is not limitless. And sometimes, we just decide spontaneously to go hiking in the mountains or in Ticino where it’s more often sunny, so it’s nice to keep time open for that.

I was already quite active with many volunteer activities, and now I’m thankful to have more time to spend on them. One of my favorite volunteer activities includes regularly bringing groceries to and spending time with a 90-year-old lady who lives alone.

I’m happy to have more time for music and planning things for our choir.

For a local club/association, I lead workouts as well as hikes in the mountains.

To me, it’s always been important to get active in the local community, especially as a foreigner coming into Switzerland who didn’t know anyone at the beginning. It takes an investment of time and energy to get integrated here, but it’s been worth it to me.

I love going into our village and seeing people I know or that know me – it makes it feel like home.

Have you seen my new office scenery?! (photo taken near Schönenberg)

One of my next projects is cleaning out closets/de-cluttering our home so that eventually we may be able to rent it out when we go for longer periods of travelling. We are planning some longer trips such as to Asia and the Americas, but also to spend some time in places in Europe including e.g. Italy to learn and practice Italian. From the cleaning up project, it’s a nice feeling to donate things that we no longer need and make space for this next chapter of life.

A few of the activities I do earn some small amounts of money, including organising and leading hikes in the mountains for clients. I also recently did a training course with my partner for coaching, and we’ve had a few sessions with clients already.

I have also started providing some financial coaching to women friends, to share the knowledge and experience I’ve built up in this important and fun topic over the years. I am grateful to have learned the important fundamentals from my father when I was young, and I am happy to help others to be able to experience how good it feels to have your money work for you over time. It is certainly worth it.

As I highlight to them, it’s never too late to start investing – the important thing is to simply do it!

Advice for those who want to become FIRE

If retiring (very) early is your goal, I’d recommend “transitioning” to FIRE if possible. That’s what I did, switching from a 100% to a 60% role in my company two years before I left.

It was a great way to “test” my freedom and use this time to optimize my portfolio, as well as to work on developing my “side activities” to move forward after the departure.

Conclusion

From a money perspective, my total amount of money is above (but not excessively) 25 times my annual expenses, so just above the 4% rule.

I feel fine with this for a few reasons including:

• I’m earning some extra money from my side-gigs which are now officially my self-employment income
  • For everyone, I anyway think it’s important to keep doing things that earn a bit of money for a sense of contribution to society. Best is when it’s not required for living (as enough comes from the investments), but feels like extra pocket money
• AHV and Social Security (US) are not included in this net worth computation
• Apartment equity not included in my calculation neither, plus we’re planning to rent out our apartment when we travel for long periods
• Expenses are so far lower than I previously projected, since I enjoy being a minimalist, more and more as time goes by!

I find it’s actually easier to spend less money than I was spending previously, because I’m doing things that are free (in the great outdoors) and make me feel calm and happy, which results in less “impulse” spending or buying things that I might have previously as a reward since I was working hard.

What do you do on Tuesday afternoons? (Hüttnersee in the canton of Zürich)

Now, more than four months after starting my FIRE experience, I can confidently say that I do not regret at all the decision to go for it. I sleep extremely better than I did beforehand! And even though my total accounts balance has gone up and down since end of October due to the market changes during that time, overall it is higher than when I started FIRE even after expenses, so it is a good start!

Notes from MP about Becky’s story

The important of financial education for kids

As I read the story of Becky’s early life, I couldn’t help but think to myself: “This confirms to me that we’re doing the right thing by teaching our children the basics of personal finances and investment with Mrs. MP.”

Even though it’s up to them to decide whether or not to continue on the path they’ve been taught, without this education they’d be less well equipped for their adult lives.

There are two rules I’m looking forward to watching when they grow up:

1. Any money received is divided in two: 50% goes into savings, and they do what they like with the other 50%
2. All their savings are invested in the VT ETF. We set them up with an Interactive Brokers account each. And they invest themselves every quarter (well, with me next to them, because they click mega fast and I wouldn’t want them to click “Sell” by mistake haha!)

The power of the 4% rule

Reading Becky’s story reminded me of the day I discovered the 4% rule on Mr. Money Mustache’s website.

Thank you Internet though…

It was spring 2013.

And then, EUREKA!

I had finally found the method that would make me rich and financially independent in the long term. It was mathematical. It was logical. The opposite of all those Influencers-Insta-Youtube-Tiktok-quick-money-crypto-yo! I knew it would take years, between 10 and 16 in my case. But I knew I could stay the course with my persistence.

I’m looking forward to moving forward with our FI Planner tool to bring even more detail than the vague 4% rule to any Swiss who wishes to reach early retirement well before the official age of 65. If you’d like to join the waiting list, let me know by replying to any of my newsletters.

Freedom to deepen your why

While chatting with Becky by email in preparation for this article, she wrote me an important sentence:

‌Now that I have more free time, I might build up these “side jobs” [that I already had when being an employee] to earn more, and/or possibly other work where I feel I can add value and help people, but in general I am grateful that I don’t feel the pressure to HAVE to earn more money from them or any activity. I think actually that’s when things can take off even more successfully, i.e. when one focuses on the “Why” and not on the money earned.

I so agree with the last part of her sentence.

This is one of the reasons pushing me to “really” be FI before quitting my job as an employee. Because if there’s one thing I wouldn’t want, it’s to have to think about how to make money with the blog first, before considering the WHY behind it.

And you, what did you take away as inspiration or lesson from Becky’s story?

If you’ve just discovered my blog with this article, I’d recommend you to read about my experience with value investing.

In sum:

• Several years ago, I was looking to increase my stock market returns
• This was before I fell in love with real estate investment in Switzerland
• I had chosen Les Daubasses (paid newsletter) because of their effective “value investing” strategy which had a Cartesian reasoning that I liked
• Objective: +10% annualized return over the long term

The 2 reasons behind my decision

Since 2019, I’ve spent more and more time on real estate investments starting with a first rental property, then a second, you know the rest :).

It’s time-consuming, but I like it.

And like any good productivity geek, I know that focus helps to achieve success in any field.

Knowing that real estate offers me a greater return than the potential of my Daubasses portfolio, the latter has become a distraction in my strategy.

Also, the Daubasses newsletter and forum are hugely interesting but I never have the time to read, learn or delve into the subject, in order to potentially find my own little nuggets of value.

I’ve therefore decided to overcome the “FOMO” effect and stop my Daubasses portfolio for these two reasons:

1. Simplification of my global investment portfolio, by getting rid of the distraction and active management needed to buy/sell by strictly following the Daubasses signs. This is in order to put all my active management concentration into real estate in Switzerland (rental return and development).
2. Not enough time or desire to dig into the gold mine of information provided by Les Daubasses (the forum is incredible). It’s very individual, as some investors will prefer the appeal of being glued to their computer screen like Warren Buffett, while others see their future in the more, if I dare to say, interesting and beautiful real estate.

The gold mine of the Daubasses forum

Do I still recommend Les Daubasses?

You could wonder if I’m hiding something behind my decision.

And I’m really not.

If I wasn’t so active in real estate in Switzerland, I definitely would have kept this value investing part of my portfolio. I have to admit that being a bit active when it comes to my investments satisfies this part that every investor has inside them of wanting to “actively do something” (N.B. I only have CHF 38'000 in Daubasses, which represents 4.6% of my total wealth invested in the stock market).

My Daubasses track record

Just to give you context on what we’re talking about, here’s the performance of my Daubasses portfolio.

It’s separated into two, as there’s the 2019-2023 period when our Interactive Brokers account was in one of our two names, and the period from the end of 2023 up to today when we have a joint Interactive Brokers account.

If I combine these two periods, we get an annualized return of our Daubasses portfolio of… 8.1% between June 2019 and March 2025.

Note to myself: I was expecting more, but overall, over a period of 6 years, it’s actually not bad at all.

“But MP, it’s ‘just’ a few clicks every month at most!”

I can hear you saying this behind your screen already. And a part of my brain agrees!

But the other part of my brain which has read “The One Thing” knows how much simplification and focus are catalysts for success.

I had the same problem before when I had to give up several entrepreneurial projects just to write the blog that you’re reading. And I would never regret this decision!

So yes, I could keep this little bit of my portfolio in “Daubasses / Value Investing”… but no!

Example of a Daubasses buy alert received by email

How I’m going to divest from my value portfolio

I’m not on a kamikaze mission, so no, I’m not going to sell my entire Daubasses portfolio in one go, and endure several losses.

My strategy is the following:

• I won’t buy any new Daubasses stocks, nor strengthen any position when Les Daubasses do it
• I’ll sell each Daubasses stock when Les Daubasses sell them
• It may take several years to sell off the whole portfolio, but that’s fine with me

Conclusion

The beauty of simplicity can also be applied to the world of investing. I’ve decided to concentrate on the active management of my investments in real estate rather than value investing.

The main reason for me: I can reach a greater return via real estate (15%+ in rental, and much more in real estate development) than with Daubasses (10%+). However, it requires greater effort and time, and I fully acknowledge that.

Nevertheless, if I wanted or need to get into value investing again in the future, then I’d still do it with Les Daubasses. Their forum is a gold mine for anyone who is willing to devote the effort and time to it, and the same for their newsletter.

For me, when it comes to the stock market, I’m pleased to only have a single interest with my favorite VT ETF:)

At least I’ve tried it, and I have no regrets!

How about you, have you reviewed your investment strategy? Which part did you end up cutting out?

The transcription of the article was pretty long. So, I thought it was better to separate my thoughts in this dedicated article.

Red wine, yes, but above all the mirror effect!

I laughed a lot at their mention of red wine, which helps to resolve all of their problems. It’s clear that alcohol reduces the obstacles in your brain, and enables you to be creative.

But red wine alone wouldn’t be as effective.

I get the impression that what helps them to find a solution to a significant problem is the fact that there are two of them around the bottle of red. With the well-known mirror effect, like when you go to a therapist or coach, and you talk about your problem.

The person opposite reshapes it.

This makes you become more aware of it, and helps you to better understand your own thoughts and emotions…

…and often to find your own solutions.

Because if Fabienne or Benoît were alone in such a situation, he/she would end up stuck in “daydream” mode. With or without alcohol :)

So wine, yes, but with someone else (a person in whom you have 100% confidence), it’s even better!

Life phases (and transitions)

When we were talking about the psychological threshold between nomadic life and sedentary life, Fabienne responded by saying that it had been done gradually. And not out of the blue.

That immediately made me think of a problem, in my very Cartesian brain (haha!), where I too often see the life of financial independence as moving from one life to the next overnight.

You’re working on a Tuesday. And then boom, on Wednesday you’re FIRE! 💥

Although, since I’ve been getting closer and closer to financial independence in the last 2-3 years, I’ve realized like Fabienne mentioned that it happens gradually.

And I think it’s really important to see it as a transition from one life phase to another, which takes time. Otherwise, it can be very destabilizing psychologically.

That brings to mind a book that a reader recommended to me many years ago: “Transitions” by William Bridges.

The book 'Transitions' by William Bridges (recommended by MP)

This book made me realize at the time how past rituals (like from the time of Yakari etc.) were important.

We need rituals. Previously, there were rituals for each transition through an important point in life. Adolescence, reaching adulthood, etc.

But now, we no longer have these milestones which can seem to us to just belong in folklore…

However, that really helped to apprehend such changes, like the transition from nomadic life to sedentary life, or from employee to FIRE.

One of the ways of managing such transitions (when you’re right in the middle of it) is to write your autobiography, in order to verbalize where you’re coming from, and in order to better see where you’re going. And that’s sort of what Fabienne and Benoît are doing when they do their annual review. As I think that helps them a lot more than a simple annual recap.

This also makes me realize that my own reviews (in the form of “blog anniversary” articles) help me just as much. Interesting :)

I’m mentioning all this to tell you that if you’re in a period of significant change (marriage, divorce, change of job — and whether it’s positive or negative, it’s still a change of life phase), then I strongly recommend this book to guide you.

And it’s not an esoteric book, pitched at a high level or whatever, it’s actually very rational ;)

I want to give it all up haha!

You feel like giving up… get to work!

Fabienne got me with this Paulo Coelho quote:

If you think adventure is dangerous, try routine. It is lethal.

I’d already read it when I was younger, but now, a few years away from my FI date, it just makes me want to pull the plug. NOW :)

Find your why

I felt that Fabienne and Benoît were truly fulfilled. Really satisfied.

That then reminded me how much the higher you go up Maslow’s hierarchy of needs, the more it’s important to know your “why”. Because otherwise, nothing makes sense anymore.

Earn money? Why when you don’t need it to live anymore.

Have free time? You have ALL the free time in the world, but to do what, you ask yourself…

I’m talking about this here as it’s the same for a plan to become financially independent. You need to know your why for two reasons:

1. It’s a strong “why” that will enable you to keep going when your morale dips over a journey of 10 to 17 years to achieve FIRE
2. And it’s a strong “why” that will enable you to be as fulfilled and full of satisfaction as Benoît and Fabienne clearly are

Because no, having a pile of cash (as big as it may be) doesn’t increase your baseline happiness.

I’m living proof of this. For example, I get a good hit of dopamine for 30-45 minutes when CHF 10'000 arrives in my account via my stock market investments. And when a reader tells me that my blog changed her life, this same dopamine easily makes me feel good and full of satisfaction for a day.

All this means: define your why, and the rest will follow! (tip to help you: Ikigai)

South America on my list

Ah, traveling…

The Machu Picchu of the Incas, in my dreams!

I love big open spaces. Scandinavia, Canada, Siberia, all these names transport me just by writing them.

And I admit that when I think of big open spaces, South America doesn’t spring to mind.

Chile (photo credit: novo-monde.com)

But when Benoît responded without a second thought at the end of the interview by saying: “South America without hesitation, for its big open spaces!” — well, that immediately set me thinking.

I did a search on Google Images straight away, and now South America is on my list of the next trips to do :)

Tayrona National Park in Colombia (photo credit: grubenvadrouille.com)

Do you want to adopt their lifestyle?

Whether it’s to become a nomad (digital or not ^^) during a round-the-world trip, or live in a coliving space, the only thing that differentiates you from them right now is simple…

Taking action.

As I often talk about on this blog, it’s clear that the idea of giving up your job and heading off for a year can be terrifying or too big a step. But you don’t need to go in so strong.

You can already read their blog to inspire you, then plan a trip of one week more than your usual two weeks’ vacation, and to a place that you don’t know at all.

This principle of gradual exposure to a new experience is what works best for daring to take the plunge into any adventure that scares you: from the stock market to living in a coliving space;)

And talking of coliving space, if you dream of setting one up, the first good step could be to simply reserve a few weeks of remote working at Alpiness Coliving, it seems like the owners are cool ;)

The most important thing being: stop daydreaming, and take action, now.

The places mentioned by Fabienne and Benoît

I wanted to share here a few photos of the places mentioned by our two fellow travelers, around their new paradise of Les Haudères in Switzerland:

Loop hike at Grande Dixence: the Prafleuri hut

All the photos are credited to Novo-monde.com (Fabienne and Benoît):

Climb above the Grande Dixence dam

Oh, these glacial blue rivers and Swiss mountains <3

The view from the summit of Col de Roux

All the details for this hike to the Prafleuri hut are in this Novo-Monde article.

Hike to the Aiguilles Rouges hut and sunrise on the summit of Mont de l’Etoile

Again, thanks to Benoît and Fabienne for these extraordinary photos:

Aiguilles Rouges hut

Stop on the summit of Mont de l'Étoile

Panorama from the Aiguilles Rouges hut

Sunrise on Mont de l'Étoile

Aiguille de la Tsa

Arolla's blue lake

And all the details about this hike are in this Novo-Monde article.

Unicorn trainer <3

Fabienne made me laugh out loud when she mentioned being a unicorn trainer.

I’ve already talked to our children about believing in their dreams, and not letting themselves become discouraged by people who just project their own fears onto you.

But this new angle of a unicorn trainer is so fun that I shared it with our MP children and they loved it haha!

In Fabienne’s words:

The important thing is to try and not be afraid to take risks. In fact, as long as you’re doing something and you continue to learn, it’s never the end of the world.

When they’re older, I’ll tell them how I also believed in my dreams. And yet, in 2013, when I was explaining my financial independence plan to an acquaintance, this person tried to discourage me by saying that she’d already tried it and hadn’t even lasted three months… but in my case, I’ll have made it and would be living proof for my children ;)

Fabienne and Benoît are financially independent

After having edited the video and put together this article, I came to the realization that Fabienne and Benoît are in fact financially independent.

They’re living their dreams while receiving passive income from the blog and coliving space. Well yes, it’s not passive like a loafer would imagine on a beach with nothing to do but laze around for hours on end… on the contrary, it’s even more positive passive, with diverse and varied activities which fill them with satisfaction, joy, and appreciation.

Genuinely, bravo to you two!

And you?

What did you take away from this interview with Fabienne and Benoît from Novo-Monde / Alpiness Coliving?

Who are Fabienne and Benoît from Novo-Monde?

Fabienne and Benoît are two Swiss people who left to travel around the world in 2012.

This decision changed the course of their lives.

I came across them through their blog Novo-Monde, when I was also dreaming of doing a similar thing.

And as they’re Swiss, that made it all a bit more special.

Then, by chance (in fact not, as I created this chance!), I contacted Benoît to arrange meeting up for a coffee as two Swiss bloggers.

This was at the end of 2015. We met in the bar of a station in Romandie. And I then interviewed him for the first time on the blog on the subject of location independence.

Since then, we’ve always kept in touch, though irregularly.

Then, when I saw that they were launching a coliving space in Switzerland during 2023, I wrote to him to set up a new interview, of which here is the result.

Video with Fabienne and Benoît

Transcription of the video

If you prefer to read rather than watch the video, then here’s the transcription of my interview with the cofounders of Novo-Monde and Alpiness Coliving.

In light of the length, I’ve taken the liberty of summarizing some parts via ChatGPT :)

1. Can you introduce yourselves?

We both grew up in Switzerland, followed a traditional academic path, and started fairly conventional careers. I (Fabienne) studied statistics and econometrics, while Benoît completed a PhD in digital biomechanics. After our studies, we had our first expatriation experience in Vienna, where Benoît was doing his PhD, and I was working at a startup.

But soon, we felt the need to move even more. We decided to embark on a 19-month trip around the world. At the time, I was worried about how it would look on my CV, but in the end, the experience completely changed our perspective on work and life. It was also during this journey that our blog was born—originally just to share our travels with family and friends.

When we returned, we took jobs in Switzerland, but the corporate experience, especially for me, turned out to be frustrating. I ended up in burnout, and that’s when we decided to leave Switzerland and become self-employed. We first started building websites while continuing to grow our blog, which eventually became our main source of income.

We fell in love with the digital nomad lifestyle. We spent several years between Europe and Asia but quickly realized that finding a good place to live and work wasn’t always easy. That’s when we discovered colivings, particularly during a stay in Tenerife, where we had our first experience as volunteers in a coliving space. We immediately connected with the concept—a place where you can work efficiently, be surrounded by like-minded people, and avoid the isolation of remote work.

Since 2018, we’ve spent nearly 50% of our time in coliving spaces, and the idea of opening our own quickly became obvious. What impressed us the most was the impact a coliving space can have on a small village. In Galicia, for example, we saw a community of remote workers developing social and tech projects to help the local area.

Today, we have found our ideal place—in the heart of the mountains.

2. The Paradeplatz in Zurich or the jet d’eau in Geneva?

We are not made for city life, whether it’s Paradeplatz or the Jet d’Eau in Geneva. The urban rhythm doesn’t suit us. Personally, I have always preferred quieter places, while you used to be more of a city person. But today, we both agree: the city is too far from nature.

To be happy, we need to be able to start a hike right from our doorstep. This morning, for example, we went skiing for three hours before recording a podcast. That’s the kind of quality of life that, for us, is impossible to find in the city. So if we had to choose between the two… we wouldn’t choose either.

3. Which is the book you have gifted most often?

I tend to listen to podcasts more than I read books. Since Covid, I’ve been tuning into a lot of content related to environmental issues, a topic that matters to me. One of my favorite podcasts is Serw, which is actually a YouTube channel but also offers long-format podcast episodes. Not everything resonates with me, but I appreciate the in-depth discussions and diverse perspectives.

When it comes to books, I’ve read several by Naomi Klein, whose philosophy aligns well with my own. However, I don’t read traditional books often. I read a lot in school out of obligation, but nowadays, I consume more content online. This might be against the current trend of reading personal development and entrepreneurship books, but I’ve tried a few, and they don’t always click with me. For example, The 4-Hour Workweek was hugely popular when I was in Chiang Mai—everyone recommended it—but I just couldn’t get into it.

A documentary I absolutely loved, though unrelated to entrepreneurship, is The Biggest Little Farm. It follows two people who, after a career change, start a biodynamic farm, letting nature restore its own balance. The film beautifully illustrates how ecosystems self-regulate over time. For instance, they initially struggled with a mole infestation, but these moles actually aerated the soil, which later helped them avoid flooding. Then, owls arrived and naturally controlled the mole population, followed by lynxes that further stabilized the ecosystem. It’s a really inspiring documentary, even if farming isn’t your goal.

Lastly, one website that had a massive impact on my life is Le Site du Zéro, now known as OpenClassrooms. Originally a platform for learning to code, it has expanded to offer courses on a wide range of subjects. The creator of the site is truly inspiring, and he has been featured in several great podcasts. Without a doubt, this website has played a major role in shaping my journey.

4. If you could set up a giant billboard in the middle of the Paradeplatz in Zurich, what would it say?

A great way to promote our coliving space would be to contrast two different lifestyles. On one side, we could show an image of our workspace with a breathtaking mountain view, and next to it, a picture of the same resident skiing through fresh powder after finishing their workday.

A quote from Paulo Coelho could reinforce the message: “If you think adventure is dangerous, try routine; it is lethal.” The goal is to encourage people to rethink their priorities and break free from the rat race.

A catchy tagline like “I live and work where you go on vacation” would perfectly sum up the spirit of coliving—combining work and an exceptional quality of life.

5. What is a coliving space? And what’s your role as managers?

A coliving space is designed for people who work remotely. It is usually a large house with dedicated work infrastructure, such as a coworking space, a conference room, and excellent WiFi. In addition to professional facilities, it offers shared spaces like a large communal kitchen, a living room, and even a small gym. The goal is to create a comfortable home in a natural setting, close to the mountains, while ensuring an optimal work environment.

The Role of the Manager
As managers, our role will evolve over time. Right now, since we just launched the coliving space, we handle everything ourselves: logistics, administration, cleaning, and minor renovations. However, in the long run, our goal is for the management to require less effort, more like overseeing a large shared house.

Daily Life at the Coliving
Residents have different work schedules, some following European time zones and others American ones. To foster a sense of community, we organize group dinners from Monday to Friday, where everyone takes turns cooking for the group. This ensures a daily moment of social interaction and strengthens connections.

Beyond work, we organize activities to help residents explore the region: hiking, mountain hut stays, walks around the village, game nights, and movie screenings. Another key aspect of coliving is skill sharing. For example, a resident specializing in artificial intelligence recently gave a talk about his field, inspiring an interior architect to collaborate with him and launch a business project.

The Coliving Spirit
Coliving is not just about living and working together—it’s a space for networking, learning, and creating new opportunities. Our job is to facilitate these interactions and encourage collaborations among residents. While we still handle most operational tasks ourselves, we plan to delegate some of them over time to focus more on community-building and enhancing the coliving experience.

6. What type of clients does it attract? Only digital nomads, or people from other walks of life?

Coliving attracts a much more diverse crowd than the usual stereotypes suggest. While there are developers, designers, and online trainers, many professionals from various industries also take advantage of remote work opportunities for a few months each year. For instance, we’ve hosted employees from Galaxus, as well as HR professionals and people from other fields. Some choose a mountain coliving like ours in Switzerland, while others prefer seaside locations like Tenerife.

The age range is also quite broad: our youngest resident was 22, the oldest 54, but in other colivings, we’ve met people as old as 75. A particularly interesting case was a chef in his 60s who came to write a book on Peruvian cuisine. He tested recipes and let us taste his dishes, making for a unique and memorable experience!

Ultimately, coliving is for anyone with the flexibility to work remotely. For example, my sister, a statistician at Lausanne’s public transport service, often stays with us because she can adjust her schedule. Similarly, a real estate agent from Martigny arranges her property visits once or twice a week while handling administrative tasks from our coliving. So, coliving isn’t just for digital nomads—it’s a much broader and more adaptable lifestyle solution.

7. Do you consider yourselves financially independent with all your passive income from the blog?

Since purchasing our coliving space on April 19, 2023, we have barely worked on our blog, yet our revenue has remained stable. In fact, last summer, we recorded our highest earnings ever, even though we weren’t actively working on it. It’s a bit ironic, but it proves that our past efforts continue to pay off.

That said, so-called “passive” income still requires prior effort and ongoing maintenance. You can’t just sit back forever, or performance will eventually decline. However, our financial situation gave us a safety net, unlike those with traditional jobs who would see their income drop to zero if they embarked on such an intense project as renovating a hotel.

Our blog and related products (books, etc.) generate around 80'000 CHF per year. It’s not an enormous amount, but it’s stable and requires almost no effort at this stage, apart from keeping the site online with a steady traffic flow. This source of income allows us to maintain a comfortable lifestyle while fully dedicating ourselves to our coliving project.

8. How much did the hotel cost? How much for the work? Total cost once complete?

We haven’t finished the renovations yet, but the hotel cost us CHF 870'000. It’s a large 600 m² building with 11 rooms, a separate apartment, and a ground floor that used to house a restaurant and a bar, which we have completely transformed. The purchase price is comparable to that of a three-room apartment in Geneva, but with significant renovation work required.

The building is old and, while it was still inhabited, it hadn’t been in operation for 12 years. We have a budget of CHF 500'000 for renovations, with CHF 400'000 allocated for the exterior (facade, insulation, windows, and roof) and CHF 100'000 for the interior. So far, we have invested about CHF 100'000 in interior renovations, bringing the total project budget to approximately CHF 1'350'000.

However, the exterior renovations have been delayed compared to our initial plans. One of the key aspects of this project is that we did almost all the interior work ourselves, with the help of volunteers throughout the summer. This allowed us to renovate a 600 m² building for less than CHF 100'000.

We expect to receive some government subsidies for energy-efficient renovations in Switzerland, but we are not relying too much on them. They might amount to 40'000 to 50'000 CHF, but they will take time to be disbursed. Additionally, since our building is located in a protected village center, we must comply with specific regulations, particularly regarding the stone roofing and solar panel installations.

Finally, we had planned for these costs in our initial budget. We took out a mortgage covering the entire project, including both the purchase and the renovations, rather than just a mortgage based on the purchase price.

9. How much did you save in labor costs by offering bed and board in exchange for help with the renovations?

We spent around CHF 100'000 on interior renovations, but by doing much of the work ourselves, we saved nearly an additional CHF 100'000. For example, hiring professional painters would have cost about CHF 50'000, while we bought high-quality paint for only CHF 2'000. Similarly, we installed 150 m² of flooring ourselves, resulting in substantial savings.

For us, this project is not just a financial investment aimed at generating returns—it is a true life project. We are passionate about coliving and wanted to learn how to renovate, as relying on contractors in Switzerland is difficult. Initially, we had no DIY experience, but we have learned a lot and are now much more independent.

A key element was organizing a collaborative construction project. We invited digital nomads and remote workers interested in coliving to help us in exchange for free accommodation. Over the summer, about ten volunteers contributed to the work, allowing us to make much faster progress. Of course, it required management, but by assigning them the simplest tasks, we optimized their help.

For more technical skills, we hired a renovation coach. He taught us new skills (plastering, painting, flooring, etc.) in one-day sessions, guided us on material and tool purchases, and corrected our work. This service, not well known in Switzerland, turned out to be extremely cost-effective, as it helped us work efficiently and avoid unnecessary expenses.

We also hired a carpenter for a few weeks to renovate the kitchen. He taught us how to use various tools and supervised the work, allowing us to complete most of the renovation ourselves.

Finally, this collaborative approach had a huge impact on the launch of our coliving. Many volunteers stayed or spread the word about the project. As a result, even before opening in September, we had strong demand, and by October, the coliving was fully booked thanks to word-of-mouth from these early participants.

10. Was it not difficult to control quality with other people working onsite?

We believe it all depends on the approach. If the goal is to invest in real estate and scale quickly, we probably wouldn’t have done a project like ours. But in our case, it was a personal project in which we invested ourselves immensely. Of course, we would do it again, but it’s clear that it requires total commitment.

Physically and mentally, it was extremely exhausting. By the end of the renovations, we were barely sleeping, waking up at 5 AM every day to manage every detail. In fact, we appeared on RTS in the Forum show, and several people told us that we looked younger since August. In reality, we had simply regained a normal sleep rhythm after four intense months that had literally aged us!

In terms of work quality, we did almost everything ourselves, except for the installation of fire doors and the electrical system, which we entrusted to professionals. Ironically, these were the two elements that disappointed us the most. Not that they were a disaster, but deadlines were difficult to meet, and the work was sometimes rushed because construction professionals are often overwhelmed and prioritize speed over precision. In the end, we were more satisfied with the work we did ourselves than with what the professionals delivered.

11. How much did you take out in a mortgage vs. own cash?

We faced some challenges in securing funding, especially with our modest income and an unproven business model. However, we had approximately CHF 500'000 in equity, and I inherited an apartment in Zurich, mortgage-free, which allowed us to take out a CHF 450'000 mortgage on the property. Since this property had been rented for over three years at more than 2,000 CHF per month, banks were willing to lend to us.

Technically, we have CHF 820'000 in mortgages, but only CHF 400'000 is allocated to our current project. We received several rejections from traditional banks, but thanks to our long-standing relationship with the Swiss alternative bank (ABS) and our status as shareholders, we were able to obtain preferential rates. This made negotiations easier, although securing the mortgage would have been much more difficult without my grandmother’s apartment.

We chose not to maximize our debt and took out less than the initially proposed amount. However, without my grandmother’s apartment, it would have been impossible to secure such a high level of funding. Additionally, we had to sell our own apartment to complete the financing.

Banks are often more reluctant to finance commercial projects, and since coliving is still an underdeveloped concept in Switzerland, we had to work hard to convince lenders. However, ABS believed in our project, and we were fortunate to have a representative who advocated for our case. In the end, we had a choice between several banks and opted for ABS because it supports projects like ours while offering preferential rates due to our shareholder status.

12. What mortgage rate did you obtain? SARON or fixed?

Fabienne, who has the numbers in front of her, will give you more details, but here’s what I can tell you: we decided to increase the mortgage on the already rented apartment, which allowed us to get a better rate than for our commercial project. We chose a rate of 2.75% for 7 years for the apartment (loan of CHF 400'000) and a rate of 2.98% for the commercial project.

For the coliving project, we opted for a mix of Saron, with a loan of CHF 100'000 at 2.38% when we signed. This rate has probably changed since. We also took fixed rates for 3, 4, and 7 years based on our financial plans. We have obligations to pay off in 6 to 8 years, which influences our repayment decisions. We tried to find a balance between paying off debt and managing it.

We’re not experts in optimization, but we know we’ll keep some debt because it’s in our best interest. The idea is to repay part of it now, but without trying to maximize everything. In any case, the current rates are not alarming for us, and if our project can’t handle this, it would be a sign that there’s an issue with the project.

13. What will be your monthly overheads for the coliving space?

Fixed monthly expenses are around 3,500 francs for low occupancy (e.g., no customers), with mortgage interest at 1,000 francs, tourist promotion tax and other small charges such as taxes. If the coliving apartment is full, costs rise to around 4,000 to 5,000 francs, due to the additional costs of space management, energy consumption and the supply of basic kitchen products such as coffee and oil.

Before the move, the apartment we owned cost around 1,300 francs a month. Today, although the project costs around 3,000 francs a month, we no longer have these housing costs, so we only spend 700 francs more while benefiting from a much larger living area.

The worst-case scenario was calculated in advance, and even in this case, the income would be sufficient to live on. Today, with 100% occupancy until March, forecasts have been far exceeded, and the situation is better than expected.

14. How much do you expect to make in turnover and profits once the coliving is fully up and running?

In 2025, the goal is to generate between CHF 120'000 and CHF 180'000 in revenue with an occupancy rate of 60-80%. However, this includes periods of closure for renovations, such as the creation of a gym in the basement, which will result in months without income.

Currently, the goal is not to make a profit, as all revenue is being reinvested in major renovations like installing a gym, replacing windows, and repairing the roof. The profit will come later once these projects are completed. For now, all the money is reinvested into the project.

On the expense side, the couple has reduced costs by living in the building, meaning they do not need to pay themselves a salary. The coliving project is covering their living expenses with passive income.

The gym, while personal, also serves to attract guests. In the mountains, the off-season is perfect for activities like climbing, and having an indoor climbing wall is a strong marketing tool to draw in guests during low season. The couple also loves climbing, so this project is both a passion and a business opportunity. The climbing wall, located in the basement, allows for adjusting the difficulty of workouts and provides a fun way to improve technical skills.

15. Before the coliving project: what was the breakdown of your income from the blog?

Bloggers are often assumed to earn money through press trips or sponsorship deals, but this is not the case for us. Our values don’t align with such practices, so we mainly rely on affiliate marketing, which is our primary income source. We work with companies whose products we genuinely use, such as Trails (a hiking app) and Leader (a site for technical gear, which we use for our ski equipment). This model works well for us because it’s based on authentic relationships and products we truly believe in.

In addition to affiliate marketing, we also earn revenue from our books. We have three books published by Hvétique Editions and three self-published ebooks. Our royalties generate about 20'000 francs per year, and our ebooks bring in about 10'000 francs annually. While this isn’t enough to live solely from writing, it’s a good supplementary income.

Our business model relies on several small income streams that, combined, allow us to live in Switzerland. During the COVID pandemic, our income from hotels and partnerships dropped, but the sales of our books, especially those about hiking, increased. This helped offset the losses. The key to our success lies in diversifying our income sources, which makes us less vulnerable to fluctuations.

16. After the coliving project: what is the expected breakdown of income?

At the beginning, we didn’t set very high financial goals for the coliving project. Our business plan anticipated about 2000 to 2500 francs per month in additional income, but we don’t really need it, as this money would be reinvested into the project. The medium-term goal is to make the coliving independent, so that we are no longer essential to its daily functioning. This includes hiring a manager to run the coliving and creating processes that will allow it to function on its own.

We believe a salary of 2500 francs for someone working 20 to 25 hours a week with free accommodation could attract motivated candidates, especially from abroad. However, the goal is not pure profitability, but rather to reinvest funds back into the project.

We also plan to hire a housekeeper once the coliving is more full, to delegate some tasks. Currently, we rely on volunteers, often people starting their own businesses or looking to save money. These volunteers work about 15 hours a week, alternating between cleaning tasks and community-building activities.

This model allows us to free up time to focus on other aspects of the project while maintaining a good atmosphere in the house.

17. How did you manage to take the psychological leap from “free and location-independent nomad” to “a sedentary life stuck in a specific place”?

At the beginning, our strong desire to travel was a major driving force, but over time, we found joy in staying longer in certain places. After a year of traveling, we realized we missed the mountains, and that led us to reflect on a larger project. The Covid period was a turning point, especially after our blog traffic dropped. It made us rethink our priorities.

It was during this time that the idea of the coliving emerged, but not just as a business. We wanted to create a project with a real local impact, in a small village. For example, our coliving in a village with 300 inhabitants brings in digital nomads who shop locally, which energizes the community. We are also working on a public coworking space in collaboration with the local municipality to create a place where residents and visitors can interact.

This project requires a more settled lifestyle, which we weren’t ready for a few years ago, but now it feels essential. We’ve found a good balance between our coliving residents, our outdoor activities, and our involvement in the local community. It’s a compromise, but it motivates us every day.

The decision to choose the location for our coliving was based on the importance of working with local authorities to develop sustainable projects. Even though the village is small and integration can be difficult, the coliving helps us connect with the local community.

Finally, our initial vision is taking shape little by little, with projects like the creation of a women’s arm wrestling league, which has been a huge success in the village. It’s an example of initiatives that both integrate the locals and create connections. The project is still in development, and we are excited to see where it will go.

18. Do you plan to leave someone else to run the coliving space if you want to go away again for 3-4 months?

For over 10 years, our passion for travel has driven us. Even though we’ve settled down, the desire to travel is still there. The coliving project, in the long term, will not just be something for us, but a space to welcome people with various projects and foster connections. We want the interactions within the coliving to happen naturally, without us having to constantly intervene, and for that, we need to set up the right processes. Our goal is to make the coliving less dependent on us—not just so we can travel, but to make it a sustainable project for the community.

We already have people considering moving to Les Haudères, which would be a real change for a village that has always experienced depopulation. If the coliving attracts more nomads, it could really energize the local community. We’re open to the idea of people investing financially and taking part in the management of the project in the long term. If the right partner comes along, we could even consider opening up the capital. The goal is for the project to last, even if, in 4 or 5 years, we no longer have the same energy or desires. The coliving must be able to survive our departure, and for that, it must be bigger than us. It needs to keep growing, and future generations must take it forward.

19. In 5 years’ time, you meet a friend who you haven’t seen for a long time. They ask you how you are and you tell them that you’re “better than ever, life couldn’t be any more wonderful”. Why?

There are about ten nomads who have bought apartments in Haudères. We have endless fondue sessions with amazing people. Our coliving is full, and we’re there whenever we feel like it. I’ve learned to ski in fresh powder while doing backcountry skiing, and we’ve become more outdoorsy than before. In five years, maybe I’ll show you a 6c in climbing, or we’ll be doing skinning in more exposed areas. The communal space is working great, and we’re creating lots of synergies by connecting people from outside with locals. That’s the long-term vision.

20. What do you fear most that could upset your coliving business model and make you have to shut up shop (as happened with BlackBerry and the iPhone)?

One key point we mentioned is that if the coliving space depended entirely on us and we lost interest in the project over time, it could collapse—which would be a shame. But otherwise, coliving has proven to be quite resilient. Even during COVID, coliving spaces were full because people couldn’t travel and needed a place to stay.

Remote work isn’t going anywhere, and the mountains seem like a safe bet for the future. Sadly, with climate change, we’re already seeing an impact—last summer, when temperatures in Sion hit over 40°C, people reached out asking if they could work from our coworking space. They called themselves “climate refugees” looking for cooler spots in the mountains.

Since coliving is fundamentally about human interaction, AI isn’t really a threat to the model. Plus, most of our guests come through word of mouth, so even if Google completely de-referenced us, we’d still be full. Unlike hotels, which need a high number of short-term guests, we operate on a different scale. Our guests stay an average of 4 to 6 weeks, so with just 40–50 people per year, we reach full capacity.

This winter, for instance, we already have a waitlist—our first winter season, and there’s demand. It won’t be like this year-round, but overall, the coliving niche is still in its early days. We’re confident that there’s room to grow in the coming years.

21. Do you plan to franchise your model, in order to own several coliving spaces in Switzerland or around the world?

Yes, we’ve thought about it, but no, we’re not planning to do it. Running a coliving franchise sounds like a massive job, and I want to maintain a decent quality of life.

Living here, we naturally want to get involved in our village, and we already have plenty of projects. Some are in progress, and once they’re completed—or abandoned—new ones will take their place. We’ll never run out of ideas, and if one day we do, maybe we’ll reconsider. But we’re not the kind of people who want to scale at all costs—that’s just not our vision.

22. On a daily basis, what is THE thing that still generates fulfilment/releases dopamine in your brain today?

This week, I really realized that I’ve made good life choices. On Wednesday morning, we went climbing with the coliving group, then I worked in the afternoon. Yesterday, I went ski touring for three hours in beautiful sunshine before getting back to work. This morning, we enjoyed the first ski runs of the season before resuming our projects. Having this kind of flexibility and being able to live like this is an incredible privilege. Plus, on some evenings, I don’t even have to cook, which allows me to focus on my work until late.

For me, the dopamine doesn’t come from the blog anymore, at least not right now—it’s all about the coliving experience. Meeting people, having deep conversations until 1 AM, sharing moments… And of course, the mountains and sports. I’m not as extreme as Benoît, but I still appreciate our Wednesday and Friday morning outings. More importantly, doing something meaningful is incredibly rewarding. When you believe in your project and work on something that truly matters to you, it gives you a deep sense of fulfillment.

And the best part is that we get to do this together. Working as a team is a real advantage. During the renovations this summer, we both had our tough moments, and having each other’s support made all the difference. Last week, Benoît was in England for a workshop. The house wasn’t full, so it was manageable, but by the end of the week, I couldn’t wait for him to come back—not just because I missed him, but because we truly rely on each other. When one of us is away, we immediately feel the imbalance.

23. As successful entrepreneurs, what is the challenge that you’re facing again today that you already came up against when you started novo-monde in 2012?!

We’ve always struggled to set aside time for ourselves. Back when we started freelancing in Chiang Mai, we were so absorbed in our work that we forgot to eat—until one of us finally gave in and went to get food for the other. Now, with the coliving, it’s even harder. We had planned to take one day off per week, but we never really stick to it. Even when we take a 10-day vacation, we end up filling it with tasks instead of actually resting.

That’s the challenge with passion projects—you never really stop. When it was just the blog, things were simpler. But now, between the coliving and everything else, finding balance is even harder. We’re trying to improve, and after 18 years together, it clearly works. But there’s always a new project, always something to do. It’s a constant challenge, and we know we’re not the only entrepreneurs dealing with this.

24. What do you think of the FIRE movement? (honestly speaking, straight up!)

We really identify with the frugal side of the FIRE movement, as we’ve always been very minimalist, and you’re probably even more focused on optimization. However, traditional investing doesn’t really resonate with us, mainly because of our values. We do have investments, but they are based more on our beliefs than on financial returns. For example, when we had 500'000 francs in savings, we didn’t focus on optimizing them because it wasn’t our priority. Real estate, however, is an investment that we’re comfortable with and don’t shy away from.

Regarding early retirement, we don’t envision spending our days on a beach sipping cocktails, because we like to stay active. What we appreciate about FIRE is the freedom it can give to work on projects we care about, without financial pressure. With our stable passive income, we’re somewhat living the FIRE model, although it’s not “retirement.” Our income allows us to pursue new projects without money being the primary motivation. This helps us avoid making decisions just for financial necessity, which gives us the freedom to follow our true desires.

25. Over the course of the last 12 months, every time you had to make an important decision that your brain couldn’t resolve on its own, what was your process and/or mental approach in order to make it?

I won’t lie, sometimes we open a bottle of red wine and talk things through to solve our problems. Of course, it’s not something we openly admit, but the truth is that sharing a bottle of red has often helped us overcome mental challenges and find solutions through conversation. It’s not exactly politically correct, but that’s the reality.

26. Who was your mentor during your progression between age 20 and 35? Why?

We’ve had people who really inspired us at different times, but I wouldn’t say they were our mentors. For example, there was a travel blogger, Alex Viso, whose videos of his world tour made us want to go on our own adventure. He was a huge inspiration back then. More recently, we’ve also followed people like Pat Flynn with his blog Smart Passive Income. Even though we don’t agree with all of his values, he gave us lots of ideas. At every stage of our journey, we’ve looked up to people who were ahead of us, and that always pushes us to move forward. That mindset, always looking ahead instead of behind, is what helps us progress. Now, in the co-living space, there are also people who are like our mentors. They’re friends, but their way of living and their vision really resonate with us, and we try to replicate what they’re doing.

27. My daughter aged 10-15 asks you: “Hey, Benoît and Fabienne! I’d like to set up my own business, but also travel, as well as have a bit of stability… What route do you recommend I take?

Listen, what we recommend is to go on a backpacking trip. It’s an incredibly formative experience. It pushes you to step out of your comfort zone and solve unexpected situations, and that’s what helps you grow. Also, we advise you to follow your passions, even if they’re a bit wild. If you want to become a unicorn trainer, go for it! It doesn’t matter if it’s not a conventional job. In Switzerland or France, even if things don’t go as planned, you can always bounce back. The important thing is to try and not be afraid to take risks. Honestly, as long as you’re doing something and continuing to learn, it’s never the end of the world.

Quick questions

28. Round-the-world trip or coliving?

Actually, it’s a bit of the mindset for both. Co-living, because you travel by meeting people, but you can also go on a world tour by stopping in places like that, it’s true.

29. Backpacking in a tent or couchsurfing?

Backpacking in a tent.

30. South America or Asia?

Without hesitation, I’d choose the same thing—South America for hiking, the nature, the wide open spaces. My dream is to go back there with a van.

31. What’s the best decision you’ve ever made regarding your “lifestyle”?

At first, the idea of going on a world tour seemed unthinkable, mainly because of other people’s concerns, not my own. But once I took the leap, I realized how much this lifestyle helped me. The hardest part isn’t leaving, it’s daring to do it without being held back by others’ fears.

32. What’s the worst decision you’ve ever made regarding your “lifestyle”?

I don’t know. Don’t say your wife! Nah, I don’t have an answer to that question.

33. What’s your best hiking recommendation near your coliving space?

For a hike with teenagers, spending a night in a mountain hut is a great experience. Here are two easy-access options, suitable for those without vertigo:

1. Cabane de Prafleuri, above the Grande Dixence.
2. Cabane des Aiguilles Rouges, with a descent to the Lac Bleu the next day—a stunning setting.

For a more challenging adventure, after a night at Aiguilles Rouges, you can hike up to the summit of Mont de l’Étoile. Departure at 4:30 AM with a headlamp to witness the sunrise, offering breathtaking views of the Dent Blanche and the Matterhorn.

What I took away from my interview with Fabienne and Benoît

Given the length of the transcription, I’ve put my notes in a dedicated article here.

I’d like to thank Fabienne and Benoît once again for having given up an afternoon of their time to share their incredibly inspiring story.

2024 retrospective of the blog

I’m starting off with other projects related to the blog, and then I’ll end up with the blog.

My book: “Free by 40 in Switzerland”

As a reminder, my book will become a national bestseller once it sells 3'000 copies.

And at the time of writing this article, the total sales have reached… 2'947 copies sold!!!

So 2025 will be the year when the “National bestseller” banner (AND a proper preface… spoiler!) will appear on the book’s cover. I can’t wait!

But anyway, all that is mainly for my ego…

Because what I get more pleasure from is getting feedback from readers like this:

Testimonial from David about 'Free by 40 in Switzerland'

Testimonial from Lukas about 'Free by 40 in Switzerland'

I’d like to thank everyone who has supported me with this project since the beginning.

“Start investing in the stock market (in Switzerland)” beginners program

I came across the recommendation of a dentist (!) in 2024, who had become a blogger.

He said (I’m paraphrasing):

If you’ve already created a product on your blog or elsewhere, don’t go straight on to creating another. Instead, review it, improve it, make a v2 that people will like even more!

I found that interesting as I was about to start writing a new program or book.

But rather than going down that route, I decided to make 2024 the year of v2s!

After having requested and consolidated feedback from all the participants of my beginners program for investing in the stock market in Switzerland, I got down to work.

After several weeks of toiling on this big v2 update, I wasn’t disappointed in having followed the advice of a dentist! Here’s the feedback I received after launching it:

Testimonial from James

Testimonial from Ismaël

It brings me enormous pleasure (and a sense of pride as well) to help these readers overcome their fear of the stock market. Because I know it will have a very meaningful and tangible impact on their future life and their financial independence.

“Real estate investing in Switzerland” program

Likewise with my real estate investment program, I reviewed it in depth and released a v2.

It was Alberto’s feedback on his experience that had the biggest impact on me:

Testimonial from Alberto about my rental property investment program

It doesn’t get any better than that!

With that, you can imagine how my motivation was boosted like never before (if it needed to be)!

“Real estate investing in France (as a Swiss resident)” program

This program is the latest to be added to the list, so there was no need for a v2 (yet).

It’s funny because it’s thanks to everything I learned in this last one that I had the courage to take the plunge into real estate investment.

Once you get into it, including receiving rental income every month, it’s pretty hard to give it up :)

Rental income from my rental properties in France

Testimonial from David G.

Important note: as investing in real estate in France requires being able to speak French, this program is only available in this language. If I receive enough requests to translate it into English or German, then I might change my mind :)

“Club MP” private newsletter

I don’t often highlight this section, which is probably a mistake.

In this “Club MP” private newsletter (fee payable) I share more spontaneous news, like when I bought my second rental investment property in Switzerland as it was happening :)

In it, I also document each of my buying/selling transactions in the stock market in real time, as well as all the unfiltered figures of my wealth:

Details of my net worth for the month of November 2024 (including my FIRE progression)

Plus I use it to thank all the MP supporters up to now! As well as for all the discussions we have behind the scenes :)

YouTube videos

I nearly forgot my YouTube channel!

It’s a format that I both like and dislike.

I like it because it makes a change from writing, and it’s more alive. And I like it less because as I want to maintain my anonymity, video loses its alive aspect.

Nevertheless, the quality of those who appeared on the channel was very high in 2024! I’ll leave you to make your own mind up about the videos posted:

FI Planner

And before moving onto the main event, here’s the latest project: FI Planner.

If you missed this update, all the details of how this “Swiss financial independence planner” project came about are in this article.

The first piece of good news: we’ve found a name for it! (So it’s FI Planner)

The second piece of good news: we’re progressing much faster than we’d hoped. We’re in the process of pampering our first 10 clients of the prototype with personalized support.

The tool is functioning perfectly, but still needs some manual interventions from us, and also a proper design (but that’s for later).

Our goal is to launch the tool in 100% automated mode (meaning without Patrik’s or my human intervention) by the end of 2025, with a target of 100 regular clients.

I’ll show you a screenshot of where we’re up to currently:

Example of results from a FI Planner simulation

If you’re interested in getting more regular news about the FI Planner project (than via my usual articles), you can sign up through this specific form:

The one, the only, THE blog!

So, my old friend, I wish you a very happy 11th birthday.

I sense that adolescence is approaching, with the desire for new projects… I’m excited to see where we’ll be when you reach 18!!

Anyway, let’s do our usual review of the blog’s statistics.

Page views

As normal, I’ll start with what’s good for the ego (but which says nothing about the health of a business, by the way), which is the number of page views last year:

Number of page views of the Mustachian Post blog in 2024

Not so bad for a little personal project when we see that there were 1'274'301 page views of the blog!

Newsletter subscribers: +32% growth!

5'698 were subscribed at the end of 2023, and 7'554 were subscribed at the end of 2024.

I’m (pleasantly) surprised myself by this 32% growth (given it was +9% last year). But when comparing to previous years, it’s pretty much around average. I think that my regularity in publishing articles on a weekly basis has paid off.

Nevertheless, it’s the open rate of my newsletters that interests me the most. This means that out of 100 people who received my newsletter, how many actually opened it:

• 2021: 65%
• 2022: 71%
• 2023: 67%
• 2024: 67% as well

That’s perfect. Because the risk with an increase in subscribers is having a reduction in the open rate.

And knowing that I’ve set myself a range of 65-75%, we’re still on target. All’s well 👍 — especially compared to the industry “standard” which is around 17-38%…

Chart showing the number of subscribers to the Mustachian Post blog newsletter (updated end of 2024)

Traffic

And here’s a graph illustrating the number of visitors as well as the number of page views:

Graph showing the number of visitors and page views of the Mustachian Post blog (updated end of 2024)

The “decline” in 2024 has to be due to my change to Google Analytics 4.
As for the rest, if the difference from the previous year is not huge (around -20 or -50%), I’m not really concerned.

Articles

A good result is publishing between 35-40 articles.

As mentioned above, I’m therefore very happy to have achieved 36 articles published in 2024 (not counting the updates to existing blogposts).

Chart showing the number of blogposts published on the Mustachian Post blog from 2014 to 2024

Also, if you have any (constructive) feedback on the content and the direction the blog is taking, I’m open to hearing it! (simply respond to any newsletter that you receive in order to reach me)

Media

On writing this, I’ve just realized that there was no promotion of the blog in the media in 2024.

Well, actually, that’s not entirely true as, from memory, I received requests from two radio stations and podcasts. But they were unable or unwilling to change my voice so that I could maintain my anonymity. No big deal.

However, in 2025, I can already announce that I will appear on a new podcast.

On that note: if you’re a journalist or member of a community (like a university newspaper or any other type of media), contact me via media[at]mustachianpost.com if you’re interested in an interview on the subject of financial independence in Switzerland (aka FIRE). And we can have a good chat about it in person.

Blog income and expenditure

And finally, THE section that everyone’s been eagerly awaiting, including me: how much did the blog make and cost!

First, I want to add a note that is important for me:

One of my reader buddies recently asked me:

“But Marc, aren’t you worried about making people jealous? And that some people might no longer read your blog after reading this article?!”

I responded: “Are YOU jealous when you read these figures?”

“Well no, obviously not. On the contrary, it inspires and motivates me to chat to another Swiss entrepreneur who thinks the way I do!”

So my response was therefore: “Well, there you go! That’s exactly why I’m so transparent: to inspire readers. To provide them with some value. And the advantage of this strategy is that those who remain are the people with whom I want to chat and who then inspire me (i.e. and not the jealous ones)!”

And here are the figures:

Revenues, costs and profits of my Mustachian Post blog

I’m really pleased with the success of this little “personal project”, which has gradually transformed into a sustainable entrepreneurial project.

And talking of sustainability, I always have a little voice in my head that tells me I could already be FIRE if I wanted to… I could give up my job, and my extra free time would no doubt enable me to increase the blog revenue. And therefore be able to be properly financially independent.

But the other side of my brain (you know, the voice of the repressed and fearful entrepreneur) tells me not to risk it. And to see my current job — which I actually quite enjoy — as the primary investor in my entrepreneurial adventure :)

The expenses, however, have increased by 69%! This can be explained by various investments:

1. Creation of a v2 of my programs
2. Editing, post production, translation, and publication of videos on my YouTube channel
3. And of course, more book sales mean more printing costs :)

And as Warren Buffett says so well: distribution of dividends (i.e. paying myself the profits) should happen when there really is no better option for making the company’s available cash work for it ;)

Business ethic

Since 2020, I’ve copied and pasted this paragraph so that newcomers are aware of my policy on this subject:

“Profit is related to the subject of ethics. In other words, how not to get drawn into “making cash at any cost with the blog”, and end up losing readers one by one.

Because so that we’re clear, I’m the first to unsubscribe from a blog if I start to see that opinions are becoming biased due to money.

This subject is something that is close to my heart and translates into things like:

• Saying clearly to one of the banks I recommend that they won’t have exclusivity on my blog, as everything rests precisely on my honest comparisons (which they did actually understand very well)
• Continuing to recommend Interactive Brokers * as the best online broker for a Swiss investor. And this is even though I get a lot less affiliate commission than with other local online brokers
• Not accepting any sponsored articles (I get several requests every week!), because for one, they’re never tailored to Switzerland, and two, it would undermine the blog
• Being transparent in telling you which are affiliate links so that everything is clear between us (if I forget at some point, don’t hesitate to let me know — I need to improve on this again, as I’ve forgotten way too many times in recent months, sorry!)
• Not judging or religiously pushing my choices, like for example when a reader told me that he was going to stick with Raiffeisen, because it pays for itself with all the museums that he can visit for free every year with his family. And on the contrary, these chats encourage me to do some further thinking
• Never selling on email addresses of the readers who have subscribed to the newsletter
• And, lastly, even though this seems blindingly obvious to me, only recommending tools and services that I use and have tested myself in my daily life”

Forum

And lastly, here’s how the forum has evolved in 2024:

Statistics of the Mustachian Post forum between 2016 and 2024

We’ve really hit our stride in these last four years :)

Once again, an ENORMOUS THANK YOU to our three moderators — Julianek, Bojack, and newcomer Dr.PI — for their contribution to making the forum a high-quality place.

Outlook for 2025

The year of the FI Planner…

Since the start of my journey towards financial independence, I’ve always dreamed of having an accurate and reliable calculator, rather than just the 4% rule.

I’ve therefore decided that this “FI Planner” project will be my main focus for 2025.

I’d give anything to know what stage it’ll be at by 31.12.2025! Patience, patience…

…and ever more useful articles for you dear reader

Obviously, the “FI Planner” focus is on top of my main core focus: publishing an article every Thursday morning, in order to help you achieve your own financial independence in Switzerland!

Furthermore, if you have a subject related to money / investing / stock market / real estate that you’re struggling with, or a financial situation that you don’t know how to tackle, then continue to email me like some do. It gives me ideas for pertinent articles (because if you have a specific problem, there’s a strong chance that you’re not the only one in Switzerland!)

In terms of quantity, I’m keeping my objective of publishing 35-40 articles on the blog.

…and new disruptive interviews

I’m going to put less energy into YouTube in 2025.

BUT, I’ve got two planned that you won’t be expecting; in the sense that they’re people that you wouldn’t think of.

Stay tuned! (you can subscribe to my YouTube channel if you want to receive a notification when they’re released)

…and the year when my book is going to become a “National Bestseller”!

Finally, the last plan for 2025 is that my book is going to become a national bestseller in Switzerland!

Well yes, some say 3'000 copies sold, others 10'000, and then others 7'000. Basically, everyone takes the figure that suits them, but the minimum is 3'000, according to everything I’ve been able to read on this subject (and there is not that much information).

In order to celebrate all that, I’m planning to add a new preface to the book. Well, three prefaces I should say! Because I want a specific one for each language (as French-speaking Swiss don’t have the same references as German-speaking Swiss, or English speakers).

I’m already excited!

Thank you, genuinely!

I’m ending this article about the blog’s 11th anniversary by saying a big THANK YOU!

To those of you who have followed me since the beginning, or those who have joined more recently.

Without you, this would be meaningless…

Thanks!

And off we go again for a new year of chatting about money, FIRE, dreams, entrepreneurship, investments and so much more!

* This symbol indicates where my article contains affiliate links. If you use any of them, you won’t see any difference compared to a standard link — but the blog will receive affiliate commission. I thank you for that. As usual, I only write about and review things that I use in my day-to-day life, or in which I have confidence.

Main photo credit: pexels.com

As you know, investing is one of the main keys to achieving financial independence, in order to be able to live off the returns from your investments.

But you still need your investments to produce returns hehe :)

So let’s review all my Swiss and foreign investments, in order to see how much I’ve made from them.

List of my investments on 30.11.2024 (stock market, real estate and cryptocurrencies)

For any newcomers, here’s the exhaustive list of my investments at the end of the year 2024:

• Stock Market
  • VT ETF (my favorite global ETF)
  • VWRL ETF (the global ETF that I stopped using in May 2020)
  • My value investing stocks
  • Swiss shares in my company
  • Mrs MP’s VIAC 3rd pillar 3a invested with the Global 100 strategy
  • Mrs MP’s finpension 3rd pillar 3a invested with the Actions 100 strategy
  • My VIAC 3rd pillar 3a, invested with the Global 100 strategy like Mrs MP’s
• Real Estate
  • Rental property in France (#1)
  • Rental property in France (#2)
  • Rental property in Switzerland (#3)
  • Real estate development in Switzerland (#4)
  • I’m not counting the P2P real estate loans that we had these last two years as they are all now finished
• Casino
  • Cryptocurrencies - Bitcoin, Ethereum and Litecoin bought twice at the peak of their value… (in 2017 and at the end of 2021)

The amounts of my investments as at 30.11.2024

Breakdown between global and Swiss stocks

I’m going to put the spotlight on my stock market assets only, in order to see the division between investments in Swiss and global stocks.

VTF and VWRL ETF
As indicated in their respective information sheets, our favorite VT ETF contains 2.4% Swiss stocks, and the VWRL ETF contains 2.5%.

Value investing
Our value investing portfolio only contains CHF 500 of Swiss stocks, so as this is minimal, we’re going to say that it’s 100% global stocks.

3rd pillars
Then, our 3rd pillars are all invested in portfolios with 100% stocks, of which the proportion of Swiss stocks is around 39%.

Shares in my Swiss company
Lastly, the shares in my company are obviously Swiss.

So here’s a recap of my stock market assets at the end of 2024, classified by geographical area (global or Swiss stocks):

As expected, as I’m not buying any more shares in my Swiss company, the World/Switzerland ratio is going in the right direction and getting closer to my goal of 90-95% global stocks.

Performance of my investments as at 30.11.2024

How do I calculate the performance of my investments

I use the “Money-weighted return” when the info is available.

As I explained in my Interactive Brokers guide:

Overview of the performance of our assets as at 30.11.2024

Children’s portfolio

From this point onwards, I’m putting aside the portfolio for investing the children’s savings. Basically, it’s cash that we can’t/don’t want to touch (or not for holidays? haha, I’m joking).

Nevertheless, it’s interesting to see the evolution of their investment portfolio’s return as well.

As a reminder:

1. Up to 30.11.2024, their portfolio was 100% invested in VWRL ETF through the very-low-cost European broker DEGIRO
2. Since 01.12.2024, I’ve migrated all their investments to IBKR in a VT ETF with an Interactive Brokers account each (all the details are in this article)

And so here are the key data as at 30.11.2024:

• Amount in the children’s stock market portfolio (VWRL ETF): CHF 23'124.78
  • of which global stocks: CHF 22'546.66
  • of which Swiss stocks: CHF 578.12
• Annualized return: +9.27%

Remarks

On doing all these calculations for the returns of my various stock market and real estate investments, I’ve come to three realizations.

Firstly, I’m really starting to see for myself that my investment strategy can actually generate an annualized average return of 6-8% over the long term. It’s great in theory, but even better in practice :)

The second point is that this performance report is skewed by the election of Trump, particularly for the cryptocurrencies. But in any case, it doesn’t really matter on which date I do it as there’ll always be a global event that “skews” the review at a set moment in time. That’s just natural.

Finally, I need to harmonize my real estate yield calculations between France and Switzerland. Indeed, I include resale with added value for France (as this is my objective), but not for Switzerland. So I’ll have to include this capital gain for Switzerland, or remove it from my calculation for France. We’ll see next time.

Conclusion

Rather than give you a whole speech, I’m going to conclude as if I could give my 18-year-old self a list of 4 things to do:

1. Start investing in the stock market today (the best time would have been yesterday), and also all the assets of your 3rd pillar
2. Put the maximum amount of savings into your online brokerage account, every month or quarter
3. Wait patiently
4. Benefit from the growing amount, which gets bigger and bigger thanks to the magic of compound interest

FAQ

I’m eager to take the plunge, where do I start?

To motivate you to take the plunge, here are my two most useful resources:

• How would I invest CHF 10'000 in the stock market if I started today?
• Program for daring to take the leap into the stock market, for beginners (even ultra-beginners), with guaranteed success that you’ll succeed in starting to invest in the stock market by understanding what you’re doing at the end of the 39 days

What if you could live in perpetual summer? What if you could live 6 months in your home country, and 6 months in your preferred country in the world?

Sarah’s background

Hey MP, and hey dear reader of MP’s blog 👋

I’m Sarah, from Zurich (and many other places in the world haha). I love traveling, languages, and art. Yet… I don’t like being told what to do or when to do it. So I couldn’t really embrace the commonly accepted ideas of 9-5, and 20 days a year of holidays…

I mean, most of those days would have to be used up by visiting my family, who live in different countries! So, a secure 9-5 job with limited holidays really just didn’t fit my life vision.

I also love to paint, but didn’t want to live the life of the struggling artist.

I also don’t like being cold, but do like living in Switzerland.

Sarah the Artist en plein air!

In the light of these parameters, I decided to find an alternative way. Like many things in life, the solution didn’t become apparent straight away, but the path revealed itself over time.

If I had found the textbook back then, it would have said something along the lines:

• Go to art school
• Run your own business that has nothing to do with art
• And switch hemispheres every six months

But… this textbook never existed… so I created it, step by step, by living it.

Let’s travel around the world… just for one year…

So, back in the early 2000s, I quit my 9-5 job to go traveling around the world for a year.

This travel idea should have come with a warning: life will never be the same afterwards.

After 3 months of traveling, I met my husband-to-be in Asia, halfway between our homes, mine being Switzerland and his New Zealand. How lucky that is, that we are from two of the most picturesque places on the planet, although both have quite miserable winters in my humble opinion. But both have very pleasant summers, conveniently at different times of the year.

Steve in the van (painting from Sarah)

When I met Steve, he had already been traveling for 2 years, which was certainly a new concept to me.

“Oh”, I thought, “you can travel for more than a whole year, and still have enough money to live off.”

This was probably one of the first moments when my perception shifted and I realized that traveling is actually cheaper than living at home, if you do it right!

I also started to realize that just because everyone else does something a certain way, it doesn’t mean you should do that either. In fact, it is probably a good reason not to do it!

Refill travel funds needed…

We decided to make a go of things in Switzerland as it seemed a good place to refill our travel funds. My husband Steve got into teaching English in Zurich as it seemed the only thing he was qualified to do with a Master’s degree in Political Science, apart from digging up roads.

And after a couple of half-hearted attempts at working for someone else, I started my own business and became my husband’s boss – the poor man! I found the students and he taught them. This was the birth of nativespeakers.ch GmbH, our language school in Zurich, which started by teaching English, but branched out into French, German and Italian. The school is still going strong 20 years later!

After three years of Steve cycling around Zurich from client to client teaching them English, he came home one icy dark winter’s evening and said: “I can’t do this any longer. I haven’t seen the sun for 3 months!”

This was when we decided to do something differently.

“I haven’t seen the sun for 3 months. This needs to change.”

We thought, well, how about we go to New Zealand over winter and sublet our flat in Zurich in the meantime?

Everyone around us was very skeptical, because hey, this was 2005 and no-one sublet their flats back then, and there was certainly no talk of any digital nomads or remote working in those days.

I think we were the pioneers of the digital nomad movement!

Our office in the Outback :)

Steve managed to persuade a couple of students to take online lessons with him, but most didn’t like the sound of it.

So I found another New Zealander in Zurich to teach his students while we went away, and a friend to pick up the phone, and this was how nativespeakers.ch grew from the one-man show it was, into a school that now employs quite a large number of people.

I didn’t know how I was going to earn my money in New Zealand, but one of Steve’s colleagues had asked him if he could do a translation and he said: “Yes, but my wife would do a better job.” I had never done a translation in my life, but managed it successfully, and that is what I did when I was in New Zealand.

If there isn’t a path, then you just have to be brave enough to make one yourself.

Over the years it turned into a successful translation agency.

Proofreading in challenging circumstances

If there isn’t a path, then you just have to be brave enough to make one yourself.

This model was good for a few years, because it led to a perpetual cycle of summers!

The perfect, balanced life

We didn’t earn heaps of cash, but we were free to move around as we pleased and freedom was worth everything to us.

We would stay in Switzerland for the warm months, and then migrate to New Zealand for the warm months there. We would have a trip somewhere along the way between our two bases. This was good, because basically everywhere is on the way from Zurich to Wellington!

Our friends and family first thought we would only do this for a short while, but they have now come to the conclusion only to start messaging us about when we are going to be back once the weather has turned.

It always makes me smile when we get a message saying:

“It’s warm again; are you back yet?”

A neighbor recently said that he knows winter is about to drop like a stone when he sees us going down the street holding hands in the shape of a V like migratory birds!

An unexpected inspiration in… Namibia!

Our plans are generally quite fluid, but the seeds of ideas are sown with confidence and often come to fruition even if it is with a delay.

For example, I was traveling in Namibia and was sharing the drive with a fellow traveler and he was telling me about how every year he spent 3 months in Germany, 3 months in Mallorca, where he had family, 3 months in Australia, where he had friends, and 3 months traveling through Africa each year.

My commute to work

When I asked him how long he had been doing it for, he said: “Oh, about 20 years!”

When I asked him when he would stop, he said: “When I’ve had enough!”

What a brilliant idea I thought back then!

I don’t even remember the guy’s name, but his story really stuck with me. The only thing I didn’t like about his plan was the fact that he had contracted malaria and this flared up every year, so I decided to cut countries with malaria risk out of the equation. There are many risks I am willing to take, but this isn’t one of them. I saw him with a flare-up of malaria and I decided this was not part of my life vision.

Yet, his story was the inspiration for our next life stage!

Experimenting, and crafting our ideal life

Rather than the 6 months here and 6 months there, a new plan was emerging.

How could we roll more travel into the year, but still keep the two bases and the business on track?

Having a base is brilliant because it gives stability. Otherwise, I think you could easily get a bit lost. We have many relationships in both homes which are very important to us, and we have been able to maintain them for decades. We also make sure to visit our families regularly when we travel around the world, so as not to lose touch.

So, what we did is that we started extending our periods between Switzerland and New Zealand, such as when we spent a few months in India setting up a new website for nativespeakers.ch whilst keeping the cheeky monkeys at bay while in my “office”.

Fighting off monkeys in my 'office'

And then… the game changer!

And then COVID hit and things changed.

One change was that traveling wasn’t a thing any longer. Well, that was a hard one to swallow. So, to make the most of a global pandemic and travel bans we bought a campervan in New Zealand, and traveled round in it for 9 months until the border opened up to Australia. Then we shipped it over there to continue our van trip.

Along with COVID came the change in the openness to online lessons, so now Steve didn’t have to convince students to take online lessons. They preferred them!

The Australian Outback, Oil pastel by Sarah (for sale)

Hence, we plugged our modem into the van, and off we went with Steve teaching from his desk in the front of our van. From the New Zealand Alps to the outback in Australia, it was another day in the office for him.

And the students love it! They love to hear where he is, what it’s like and where to next. It seems a bit like being able to travel vicariously through Steve while at the same time improving their English skills.

Afterwards, we shipped our van over to Europe, and are now on a big trip there with plans to head to Morocco over winter, so come and join in on the fun!

Steve's open-air office in New Zealand

Stop marveling — just be brave enough

Everyone marvels about how we can afford to travel so much, but the bottom line is we save money by traveling. The irony of it is that we get to do what we love and, consequently, it minimizes our expenses, a double benefit!

The love of freedom and the love of travel are certainly the key drivers to our lifestyle. We have never been driven by the pursuit of money and this has afforded us many freedoms. We don’t earn huge incomes, but always have enough to do what we want to do and certainly never feel like we are missing out. We met traveling and are travelers at heart, so it works for us. I truly believe that if you want to do something, you should just go and try it out.

The path will show itself to you. You just have to be brave enough to go, and do it, and trust it will be fine.

Our first van – the legendary Mirage

Trusting oneself, life, and others

I feel we have been very blessed and haven’t had to struggle to get where we are, but maybe that is just my outlook.

There is a lot to be said for being grateful for what you have, rather than thinking about what you don’t have. Things always seem to fall into place, or maybe it is just the fact that we both are quite trusting of life in general and that things will work out, so they do, and if they don’t, we just make the best out of it.

For example, a friend of ours said: “You really know how to make the most out of a global pandemic” when we bought our van! But the only thing we did was to decide to make our own luck in life, and go, and do it.

Lots of people say they are envious of our lifestyle, which we have proved works, but nobody actually goes and does it.

Negative points for most, not for us! Except one.

There are lots of things that wouldn’t be everybody’s cup of tea.

I imagine one of the things that most people would struggle with is the lack of security that comes with a steady income.

Another thing many wouldn’t like is having someone sleeping in your bed and living in your home when you are not in it. On the whole we have had excellent experiences and our faith in people has been upheld. However, always looking for tenants to take over our homes for 6 months at both ends means that we have to look for tenants twice a year, which is a hassle and often we don’t find anyone until the last moment.

Embrace life!

Everyone around us seems to find it incomprehensible how we can be so relaxed about not knowing whether we have someone or not when there is only a week or so before our departure. We are just used to it and say to ourselves: “Well, you only need one person!”, and it has always worked out so far. So why shouldn’t it work this time again? It always has, and it is probably about 30 or 40 tenants we have found over the years! We only chose one bad egg, who was a crook flying under the radar, but even that all turned out ok in the end.

Another clear negative point (to us as well) in our lifestyle choice is the fact that our life admin is doubled because we live in two places, so we have to do everything double, including tax returns. This is a drag, but for us, it is definitely worth the hassle.

Last but not least, another major disadvantage is that I don’t get any Christmas cards anymore. My sister explained kindly to me that it is because no-one really knows where we live in December!

Some notes on subletting around the globe

Subletting in Switzerland is a legal right of every tenant, which is a dream for us and our transient lifestyle. We have been able to keep the same base in Switzerland for over 20 years. This gives us stability and allows us to slip back into our life really easily when we get back.

These days we barely bother putting anything into our locked cupboard because we know that everything we lock away, we will have to get out again in 6 months. When we left just before COVID hit, Steve couldn’t even be bothered taking his clothes out of the wardrobe to make space for the tenant, who was only going to stay for 3 months. Because we ended up being away for such a long time due to COVID, the poor tenant had no space in the wardrobe for ages!

'On the road' painting of Sarah (for sale)

In New Zealand tenants have fewer rights and subletting is a rare luxury, which we managed to negotiate for a number of years. Yet, one day in New Zealand, our luck ran out in terms of subletting our flat. So, it meant we were going to lose our base there.

That was a very difficult moment, because we didn’t really know what to do and knew we weren’t going to be able to find another flat to rent and sublet. So we had to find another solution, which involved either selling all our stuff and then staying in Airbnbs when we returned, or trying to buy a house and turning it into an Airbnb!

Luckily, we managed to find a house to buy, and now have a solid base again in New Zealand.

Live in the present moment

Our lifestyle changes quite quickly, and I find it interesting that when we see our friends or family, they always ask us if we are looking forward to our upcoming travels, or to returning to Switzerland, or to returning to New Zealand. And we just generally say: “We haven’t really given it much thought because it seems a million miles away in our world. We have to live in the moment and where we are and enjoy that day. Otherwise we would never be anywhere really!”

Minimalist and intentional

Living on the road is fantastic.

It’s great that we can see the world and still earn a living.

Every day is different and exciting.

Every day there is new visual input for my artist’s eyes.

But there are disadvantages of living in a van. I just don’t mind the disadvantages as much as I would mind having a regular daily routine, and living in a cold climate each year.

On the road again!

In a van, you have to live a very basic life and learn to appreciate all the things you normally take for granted. You start really appreciating it if hot water comes out of a tap or you use a flush toilet!

I think all this equates to appreciating life more and realizing that you don’t actually need that much to live a very content life. Needing less is another way of freeing yourself from the ties of having to earn a lot of money.

What’s next for the never-ending-summer couple?

I am an artist and artists always find creative ways of doing things, which is why I think I have ended up with the unusual life we have.

I never wanted to be the starving-artist cliché. I have spent many hours of my life dedicated to painting, art school and going to galleries. I do my art and when it sells, that is great, but if it doesn’t, I have other income streams to fall back on. This also allows me to create art that I want to do rather than doing what sells, and again this is the ultimate freedom as an artist. So again, freedom is the main driver.

I would like to continue with our unusual lifestyle as long as we can, and am interested to see where our path takes us. I mean, I’m up to only 72 countries, and Steve 91; we still have a huge part of the world to discover haha!

I hope it inspires others to be brave enough to forge their own unique paths.

Just go for it!

Just Do It

Notes from MP about Sarah’s story

Wow!

That story resonated deeply on some levels…

Follow the crowd… not!

It reminded me of 2013 when Sarah wrote: “I also started to realize that just because everyone else does something a certain way, it doesn’t mean you should do that too. In fact, it is probably a good reason not to do it!”

The second I read that sentence, a vivid memory came back.

It was in December 2013. I was at a coffee shop in Romandie. It was dark outside, yet illuminated with all the Christmas lighting of that little town’s central square.

I was telling an acquaintance of mine about my idea to embrace this financial independence journey.

His reply was somewhat scathing: “Nah, don’t bother with this dream. I tried it myself when I was your age, it’s not possible to sustain a frugal lifestyle for more than 1 or 2 months.”

And here I am in 2025, with close to 2 million CHF in the bank!

So yes, it was probably a good idea not to follow his advice!

Growth mindset vs. fixed mindset

The more I read about Sarah’s story, the more I told myself: “This couple has a strong growth mindset!”

For instance, when they said this: “Things always seem to fall into place, or maybe it is just the fact that we both are quite trusting of life in general and that things will work out, so they do, and if they don’t, we just make the best out of it. […] We just decided to make our own luck in life and go and do it.”

My analysis is: more than trusting in life, they remain open to any situation that is thrown to them, and transform it into an opportunity. I’m that type of person, or at least I work to increase this flexibility muscle, but they seem to master it quite well. Inspiring!

Living in the moment

That’s maybe where I’ve the biggest room for progress: “We have to live in the moment and where we are and enjoy that day, otherwise we would never be anywhere really!”

It reminded me of one of my articles from 2018: Stop racing, start living.

A recurring reminder worth it every single time.

Sarah is a Mustachian!

On top of being digital nomads before the movement started, I wonder the same about them being Mustachian before everyone else when I read:

Needing less is another way of freeing yourself from the ties of having to earn a lot of money.

What I like even more about their story is that they crafted their perfect, balanced life, all while being on their journey towards FI.

Their story also reminded me of this list we built with Mrs. MP.

It’s a list of countries we would like to explore depending on the season of the year:

• June to August: Switzerland
• September to December: Caribbean Islands, French Polynesia, South Africa, Hawaii
• January to March: Scandinavia or Canada (a “true” winter)
• April to May: Balearic Islands, Corsica, Morroco

‌(note from Sarah: I think you’re missing New Zealand from your list, aren’t you? hehe)

I’m going to share Sarah’s story with Mrs. MP right now (with the addition of New Zealand in December!), to make our future life even more tangible!

And thanks again Sarah (and Steve).

And you, what inspired you in Sarah’s story?

That’s what indirect amortization of your mortgage can enable you to do. If it’s done correctly!

What does indirect or direct amortization actually mean?

When purchasing your first home, you might plan to secure the best mortgage and repay the debt (along with the interest) directly each month until it’s fully paid off. This approach is known as direct amortization.

But there is an alternative where you put your mortgage repayments into a 3rd pillar. That’s what is called indirect amortization.

A little apartment in Estavayer-le-Lac?

Reminder of the mortgage amortization rules in Switzerland

For a primary residence, Swiss banks typically finance up to 80% of the property’s total value.

All mortgages taken out for your main residence are divided into two levels:

• The 1st level of your mortgage corresponds to 65% maximum of the total property price. You can keep this 1st level mortgage for life, without ever paying it back (however, you pay interest on this debt for life as well).
• The 2nd level of your mortgage corresponds to 15% maximum of the total price of the property.
  • You must repay this mortgage within a maximum period of 15 years OR before retirement age (depending on which comes first) if you choose direct amortization.
  • However, if you choose indirect amortization you can only repay these debts when you are 65 (and not within 15 years).

Or maybe a property in Appenzell — one of my favorite towns in German-speaking Switzerland <3 ?

The ideal mortgage amortization for a Mustachian (with a supporting example)

Another reminder: I’m assuming that you’re a Mustachian, and so you make all the money you save work for you — and that NO, you don’t spend it as quickly as possible.

Let’s imagine that you want to buy real estate worth CHF 720'000 in Switzerland (house or apartment, it doesn’t matter which).

Your financial plan might look something like this:

• 20% = CHF 144'000 of your own money as a deposit (to which will be added the notary fees which also have to come out of your own money)
• 65% = CHF 468'000 of 1st level mortgage
• 15% = CHF 108'000 of 2nd level mortgage

And concerning our other hypotheses:

• 2.5% mortgage interest rate
• CHF 7'200 of indirect amortization paid into your 3a pillar every year (I’m using CHF 7'200 in order to have a round number) ~ 1% of total mortgage amount
• 25% marginal tax rate (this is the tax percentage applied to every last franc earned)
• Approximately 5.5% tax on the amount withdrawn from the 3a to pay back the mortgage
• 8% annual stock market return, for the opportunity cost of tying up money in bricks and mortar by paying back directly (rather than putting this money into the stock market)

Three important points:
1/ I am not taking into account the growth of your 3a pillar portfolio that is invested 100% in stocks. After all, regardless of whether you’re doing direct or indirect amortization, you’re filling your 3a pillar to the maximum as a Mustachian.
2/ Similarly, I am not taking into account your 3a pillar tax deductions, as you’ll be entitled to this regardless as you fill it to the maximum whatever the type of amortization.
3/ I’m not taking into account the impact of direct amortization and the increase in tax on your wealth, as the latter has a minimal/negligeable impact on our calculations.

That therefore gives us these two scenarios, with a calculation over the next 15 years:

Comparison of direct or indirect amortization of a mortgage (table above)

In choosing indirect amortization, you’re ticking two boxes at the same time: you’re paying back your mortgage AND you’re filling your 3a pillar. And therefore you’re not tying up savings in property unnecessarily. And so you can put this cash into the stock market.

Direct or indirect amortization: Here is what the cash flow looks like:

• Direct amortization
  • 7'200.- in bricks and mortar every year (direct repayment)
  • 7'200.- to fill up your 3a
  • Money (if any left) invested in the stock market
• Indirect amortization
  • 7'200.- to fill up your 3a AND pay back the property later
  • 7'200.- that you can invest in the stock market at 8%
  • And any other money (if there’s any left) is also invested in the stock market

Indirect amortization of a main residence mortgage is therefore the preferred option for any self-respecting Mustachian.

Which 3a pillar should I choose for indirect amortization?

I’ve set out which is the best 3rd pillar for a Swiss Mustachian in this article. In sum, you want to choose the 3rd pillar where you can invest the maximum amount of money in stocks (99%, as 1% is always reserved for liquid funds in order to pay the service charges), and with the minimum fees. Currently, there are two main 3a pillars like this on the market which are the best. But the competition is furious about this, which is positive for us consumers.

So therefore, you’re going to want to do indirect amortization of your mortgage in Switzerland through such a 3a pillar invested 100% in stocks, in order to maximize your returns. Not all banks accept finance via such a product, but some do. Please read my full article on the best mortgage in order to get the most up-to-date information.

And a reminder: NEVER take out a 3rd pillar linked to life insurance, unless you want to lose several tens of thousands of Swiss francs like me…

Conclusion

Indirect amortization of a mortgage in Swizterland enables you to use a lever effect by only putting the absolute minimum into bricks and mortar, and investing the maximum into the stock market at the same time.

We’re talking there about the potential to gain several hundreds of thousands of Swiss francs over 15-20 years. Therefore, indirect amortization of your main residence is the obvious choice for a Mustachian. Because, every reader of this blog is looking to achieve financial independence one day, and is therefore going to invest their money so that it makes more money ;)

Note that this theory is correct as long as you invest everything in the stock market that you’re not putting into bricks and mortar through direct amortization. Otherwise, direct amortization can make sense (see the FAQ below).

And what about you, are you paying back your mortgage via direct amortization or indirect amortization?

Mortage Amortization: FAQ

Which type of amortization is best if you’re not a Mustachian?

If you stumbled upon this blog and your goal is to minimize costs so you can spend the rest of your money as you wish, the calculation becomes less straightforward: the choice between direct and indirect amortization of your mortgage will depend on the mortgage rate and the return on your 3a investments.

Our 'friend' the spender: Gladstone Gander

Here are two examples of different calculations when it comes to the level of interest of the loan and the return of the 3rd pillar:

Low mortgage interest rate, “high” 3a interest rate

High mortgage interest rate, low 3a interest rate

In summary, for a spender, the more the mortgage rate increases, the more direct amortization becomes interesting compared to indirect amortization.

But then, why does the advice of Swiss bankers always lean towards indirect amortization being always better for you? Because they have a huge conflict of interest in selling you this amortization:

1. The longer you stay with the banks, the longer you’re going to be paying interest to them
2. By selling you indirect amortization, these banks have the opportunity to sell you one of their 3rd pillars, which increases their profits further

Is it possible to have one mortgage tranche with one bank and the second with another?

I have rarely (never?) heard of a bank agreeing to share a mortgage with another financial institution. So the answer is no.

If you have another experience, email it to me.

Calculation details

[1] Mortgage interest and tax savings through mortgage interest deduction

Direct amortization:

Indirect amortization:

[2] Compound interest calculation of CHF 7'200 invested in the stock market (8% annual return)

Buyback 3rd pillar contributions!

On reading that, I thought: “GREAT, extra tax savings for us Mustachians!”

Effectively, while it’s not really optimal to do buybacks in the 2nd pillar (except if close to age 65), it’s more advantageous to fill gaps in the 3a retirement savings, as you can:

• Invest these 3rd pillar buybacks in effective and efficient products such as VIAC or finpension
• Deduct these 3a pillar buybacks from your tax

Good news from the Federal Council, but…

It’s very good news for Mustachians, but more for the future generations who won’t have been lucky enough to come across my blog before 2025…

Why?

The first 3rd pillar buyback will be possible during the 2026 tax year, for 2025.

So it’s impossible to buy back years for 2024 and earlier. Shame!

The other conditions for buying back 3rd pillar years

To be able to buy back years in a 3a pillar, a person will have to meet these conditions:

1. Have earned income that is subject to AVS (social security) in Switzerland, during the year for which they want to make a retrospective payment of contributions AND during the year in which they are making the buyback
2. Have paid the maximum 3a contribution deduction for the year in question (e.g. CHF 7'258 in 2026)
3. Buy back 3a years only up to the maximum amount of the current 3a, in addition to the usual contribution (e.g. the maximum 3rd pillar amount in 2026 is CHF 7'258, so you’ll be able to put in your usual CHF 7'258 for the year 2026, and the maximum 3a years you can buy back is CHF 7'258)
4. Buy back 3a contribution years only for the last ten years at most (and from 1.1.2025)
5. Option to fill the gaps of a calendar year in one single buyback (e.g. it’s not possible to fill the 3a gaps for the 2025-year in 2026 and 2027, they need to be bought in one transaction maximum)
6. Option to fill the gaps with several calendar years in one single 3rd pillar buyback (e.g. it’s possible to buy back 3a pension savings gaps from 2025 and 2026 in one go in 2027)
7. 3rd pillar buyback years are no longer permitted if the pension plan member receives an old age benefit (meaning they have withdrawn their 3a)

Overall, the good news: the 3a buyback amount will be fully deductible from taxable income, in the same way as the standard annual contribution.

Should I buy back 3a pillar years?

To future readers who will come across the Mustachian movement a little too late, the answer to this question is a big YES!

Why?

Because since 2017, there have been numerous 3rd pillar solutions that enable you to invest this private pension 100% in stocks AND deduct this investment for tax purposes. And obviously, you’ll invest all these tax savings directly into the stock market yourself.

Which is the best 3rd pillar in Switzerland?

Every year around November-December, I update my comparison of the best 3rd pillars via this link.

In it, you’ll find out which is currently the best 3a. I also share my referral codes in it so that everyone gets a welcome bonus.

Conclusion

This development of the OPP 3 (the nickname for the 3rd pillar pension savings) is a good thing for us Mustachians. Or should I say, for the future generations of Mustachians.

Basically, as you can’t fill savings gaps in your 3a retirement savings before 1.1.2025, it’s not currently much use to us.

But it’s an excellent tip to add to our Swiss frugality’s toolbox.

FAQ

How can I find out how much money I have paid into my 3rd pillar in the past?

To find out which years you have gaps in your 3rd pillar, simply go back through all your tax returns. Then, for each year, you compare the amount paid with the maximum 3a amount for that year (for example, using the historic caps listed on the Moneyland website).

What has the Swiss government decided for the self-employed?

All the buyback rules for 3a pension funds in Switzerland for a private individual are valid for a self-employed person, except that the limit is obviously the limit that applies to self-employed people (and not private individuals).

Rather than keeping these helpful Swiss Comparators to myself, I’m sharing my list with you below.

This is in the hope that, as usual, you’ll say to me, “Hey, but MP, this price comparison tool is better for this, and I prefer that one to compare prices in Switzerland for that because of this and this.”

Oh, and while we’re on the subject, I’ll never claim to act as a full Swiss online comparison tool myself. That’s just impossible and a separate service in itself. What I do on my blog is documenting my choices of products and services as a Swiss Mustachian on the route to financial independence.

Which tasks do I use Swiss price comparison tools for?

Straight away, I started to list all the areas in which there’s a need to compare prices in Switzerland:

• Financial services (Swiss bank account, savings account, etc.)
• Insurance (contents and personal liability, car, etc.)
• Telecoms subscriptions (natel, internet, etc.)
• Health (Swiss LAMal health insurance, supplementary insurance)
• Real estate (renting or buying)
• Mortgages
• Flights
• Cars
• Everyday items (electronics, clothes, etc.)

Comparing Swiss banks and other financial services (accounts, cards, etc.)

I use Moneyland.ch for comparing banks, Swiss online brokers, and credit cards, among other things. It’s currently my go-to price comparison tool when I’m preparing an article for the blog. And once I’ve got my top 3 or 5 bank accounts or credit cards, then I add my Mustachian know-how to define the best financial service.

The bonus compared to other price comparison tools in Switzerland: they provide a (large) number of very well-designed calculators. I like to cite the example of the compound interest calculator as it really is a magic formula (in terms of increasing wealth over the long term!)

moneyland.ch online comparison website for my financial services

To tell you just how much I respect their work: it’s the only newsletter that I read out of all the other websites to compare prices in Switzerland. It’s high quality and objective, and there’s only one sponsored article, which is easily identifiable.

Insurance comparison tools

I’m going to divide up this section, as I don’t use the same comparison website for each type of insurance.

Contents and personal liability insurance comparison

Historically, I always used the contents and personal liability insurance comparator from Comparis.ch to find the cheapest insurance. I found their user interface and range of options easier to use.

However, since starting the blog, I’ve applied my multi-comparison strategy in order to make the final decision.

So every year I use Comparis.ch, then Bonus.ch, and then I check on the website of the insurer in question.

Comparison of contents and personal liability insurance on comparis.ch

Something I also check is if I have any other policies with the insurers in the top 3 or 5. Because sometimes these companies offer multi-policy discounts, which make it worthwhile having various insurance policies in the same place.

Car insurance comparison

I prefer to use the bonus.ch car insurance comparison tool rather than comparis.ch. Basically, the latter insurance comparator has added too many unnecessary data fields to try and make you use their Optimatis insurance brokerage system. So since around 2021, I’ve only used bonus.ch.

bonus.ch website for my car insurance comparison in Switzerland

Comparing cellphone and internet subscriptions

Historically, I used Comparis.ch to find the best Swiss cellphone subscription for my needs. Then, Sunrise brought out its QoQa cellphone plan AND its QoQa internet plan and since then, I’ve not been able to find a better option.

While writing this section, I’ve realized that Moneyland also provides a price comparator of cellphone and internet subscription plans.

If I had to find the best internet and cellphone plan today, and QoQa plans didn’t suit me, I would do this:

1. Compare prices on Comparis.ch
2. Compare prices on Moneyland
3. Check out every offer from the top 3 on the cellphone or internet operator’s website

I’ve tried bonus.ch several times, but I find their filtering system is not so well-designed for this comparison in particular.

A reader also recommended I try Dschungelkompass for all things telecoms. Old-school design, but complete and up to date, apparently.

Comparing LAMal health insurance

On chatting with friends living abroad, I realize that we’re really lucky in Switzerland when it comes to the public services provided by the Swiss Confederation.

And this is particularly the case for the health insurance premiums comparison tool priminfo. It is THE official comparison tool to use in order to find the cheapest and best health insurance in Switzerland that suits your needs. There’s no advertising or product placement, as it’s a public service funded by our taxes.

THE definitive comparison site for health insurance premiums in Switzerland

Every year in October, I use it for choosing health insurance for both Mrs MP and me, as well as the children.

Once I’ve found the 2-3 best options, I check the price in the health insurance comparison tool to see if there’s any additional discount for insuring all of our family with the same company.

Tip: Comparis was my automatic go-to for a long time, but it’s okay, as I’ve now trained myself to be usually use priminfo. I recommend you do the same ;)

Comparing supplementary insurance

Supplementary insurance is optional and therefore less regulated than the LAMal basic insurance. So there’s no priminfo for supplementary insurance.

To compare our various supplementary insurance policies (dental for the children and alternative medicine for Mrs MP), I use Comparis.ch and Bonus.ch.

I do this in 5 steps:

1. Compare prices on Comparis
2. Compare prices on Bonus.ch
3. I compare and check that the ranking doesn’t include an advert that isn’t obvious if you’re scanning quickly
   • Potentially I end up with a top 2 or 3 (with different rankings sometimes, due to the input criteria they take into account)
4. I then check on the insurer’s website that it is the same price as listed on Comparis and/or Bonus.ch (did someone say “control freak?” haha!)
5. I compare and change supplementary insurance if there’s a big difference

Comparis.ch insurance comparison website

Bonus.ch insurance comparison website

For info, the Swiss insurance comparator Comparis is also available in English (in addition to the usual Swiss languages), while bonus.ch isn’t.

Note concerning Mrs MP: She’s never changed supplementary insurance because we took it out when she was young. If we were to change it today, she wouldn’t get the prices listed by the insurers as she’d need to undergo a medical review, which would show that she uses the insurance quite a lot.

Note re the children: likewise, we took out dental insurance for the children when they were little. As they have had/are still having dental and orthodontic treatment, the fees listed are not what we would be able to get (meaning we would have much higher payments — and furthermore, they might not even accept us as clients).

Comparing property (purchase or rental)

When I want to know the price of a property, or the rental cost of an apartment, I mainly use the Homegate and Immoscout24 websites. And I then add Comparis.ch which scans many other platforms (and therefore those mentioned above as well, so I often have duplicates).

I sometimes still use these price comparison tools in Switzerland for my real estate investment projects to gauge the market.

Comparing Swiss mortgages

So many memories of looking for your first mortgage…

Doing it again today, I’d use this method in order to find the lowest interest rate:

1. Look at VZ’s comparison of current mortgage rates in Switzerland
2. Use Moneyland’s comparison tool
3. Choose my top 3 or 5, ideally including a cantonal bank, a large bank (UBS), and a smaller bank (like Valiant)
4. Book an appointment and go and negotiate with each of them directly

Pro tip #1: at the beginning of the year, banks generally have more room to negotiate, as their mortgage loan quotas have been reset to zero. Versus the end of the year, when advisers have less incentive as they’ve already achieved their objectives.

Pro tip #2: NEVER take out a mortgage from an insurance company. Why? Because in 99.9999% of cases, they’ll try to flog you a 3a pillar linked to life assurance, which is the worst legal scam in Switzerland. It’s usually very tempting, as insurers offer you cheaper mortgage rates than banks. Obviously, because they make their margins from their darn 3a pillars. I made the mistake myself twice in a row, and it cost me several tens of thousands of CHF to get out of it. NEVER AGAIN!

Comparing flight ticket prices

Preliminary note: we’re trying not to roast the planet, and we use airplanes in great moderation (I’m not talking from a political standpoint here — we’d all die of boredom…, but based on the most up-to-date scientific data that has been published).

That being said, when we want to visit some of our family on the other side of an ocean, we compare the prices for flight tickets like this:

1. Compare prices on the Kayak mobile app, with my dates set to “+/- 3 days” if my calendar allows
2. Then a comparison on a price comparator like Opodo
3. Verification of the top 3 flight ticket prices directly on the airline company’s website

Kayak mobile app for comparing prices of flight tickets (the date selector is really well-designed visually)

Comparing car prices

Ah, cars…

A little Mustachian reminder:

• You walk or cycle for most of your local journeys
• For further away, you take the train to maximize the ROI of your trip
• And if there’s really no choice, you buy a car

But not just any car: a good old Japanese hybrid for less than 10'000.- in order to save CHF 2'520/year, which is CHF 37'263/decade (vs. a much more expensive car, and/or worse leasing)

That being said, to find a secondhand car, I’ve almost always followed this process:

1. Autoscout24
2. Comparis
3. If I’m left with more than one vehicle, then I negotiate with the seller directly

Personally, I’ve always used a garage to limit the risks of a dishonest private seller.

Comparing prices for everyday items in Switzerland

I’m mainly talking about electronics here (smartphones, computer screens) and household appliances. But these sites also enable you to compare the price of socks or other everyday items.

My first port of call is to look on the Swiss price comparison website Toppreise.ch to see how prices have changed since the product first came out. You can also subscribe to price alerts when the item in question goes below a certain level in Swiss francs.

Toppreise.ch price comparison tool showing price history

Obviously, if it’s an item I can find secondhand, then I go directly to Anibis. But I still take a brief look at Toppreise, to see the price of a new item.

Conclusion

With a bit of method for comparing prices and a dose of discipline, you can often save several tens of Swiss francs, even hundreds or thousands depending on the subject.

And this effort is far from being in vain…

I’m always amazed to think that saving CHF 100 per month doesn’t seem much… but over 10 years, with the magic of compound interest, these 100.-/month transform into CHF 17'749!

And how about you: which Swiss price comparison sites do you use for different things?

UPDATE 22.08.2025
The development of FI Planner (our FIRE planning tool specially designed for Switzerland) is progressing well.
If you would like to receive news about the tool and be notified first when it is officially launched, sign up for the waitlist on our FI Planner website.

What if I could simply enter my personal finance data into a software tool, and get my financial independence date in return?

That’s the tool I’ve dreamed of creating since I made a serious start on my journey towards FIRE (financial independence, retire early) in Switzerland… a tool that could tell me at any given time what my predicted FI date is, based on my figures.

And even better if such a tool could tell me how much more I would need to earn per month (quantified targets) if the date of financial freedom that it gave me wasn’t to my liking…!

My financial independence planning journey

When I first set out on my path towards financial freedom in 2013, I used the standard 4% rule to find out the amount I would need to achieve in order to become FIRE.

Then I created my own graph by computing my FI date to see how many years it would take me to get there:

MP family financial freedom graph

Except that, while it’s pretty accurate and indicative as an estimate, the 4% rule doesn’t consider the plethora of particularities and choices related to Switzerland (pillar system: social security (AVS), 2nd and 3rd pillars, and other factors such as taxation).

So I sought out a financial advisor who would be independent and capable of making these kinds of calculations about my financial independence.

Suffice to say that it was a real uphill struggle as, in Switzerland in any case, it’s really challenging to combine independence and financial advice…

After a range of conversations, I found what I was looking for with the company VZ (and their Lausanne branch) as a guide. As I mention in my book, they gave me a funny look when I told them I wanted to retire early at the age of… 40 :D

Amazing to unearth this photo where I had my appointment with VZ Lausanne in 2015...

Unrealistic according to them… according to the “norm”…

I really had to convince them that yes, that was my goal, and that yes, I wanted to pay them to check it.

Two appointments and 10 financial consulting hours later, I had my precious graph that set out my future of financial autonomy:

My FIRE goal in a table, with the figure that I was looking for: at what amount and on which date could I be FIRE?! (source: 'Free by 40 in Switzerland')

Without forgetting the CHF 2'376 of charges later, haha!

And of course, if I wanted to update my figures, I’d have to get my wallet out again…

A Swiss FIRE calculator?

Since that day, I’ve dreamed of creating a SaaS service which, like YNAB does for my budget, would provide me with a clear overview of my financial independence goal.

The dream of a tool that computes the FI date remained just an idea for quite a while; it was filed as a project among my long list of projects to explore one day.

Then, in 2023, I met a long-time reader.

We chatted about investing, our respective FIRE plans, as well as our real estate projects. He told me about a “financial independence calculator” on which he was spending some of his free time, in order to model if and when he could no longer have to work for money… I told him that I also had an idea like this…

…and that we’d chat about it again…

Some time later…

“FI Planner” prototype in progress…

This arrived some time later, in spring 2024.

As I was expecting some large incoming payments (mainly with our Swiss real estate development), I was looking to update my financial independence projections.

So I got back in contact with Patrik, who kindly agreed to run my financial data through his tool.

Date of financial freedom for the MP family: 2031 (age 44)?!

I completed more than an A4 page of data to be input into his software.

It includes standard details about salary, 1st pillar, 2nd pillar and 3rd pillar, as well as all my stock market investment accounts and our various mortgages (main home and investment properties).

The result: I’ll be FIRE at the age of 44… ouch! Is there a bug in your simulation Patrik?! What a letdown… especially for someone who’s written a book with a big “40” on the cover haha!…

Result of my financial independence planning (still in prototype mode)

We discussed the results of my FIRE planning, and in fact, we’d done it in very conservative mode:

• I’m going to die at the age of 83 (while the average life expectancy for a man is 81)
• We only considered the returns (rent vs. charges) from my various real estate assets, and did not include any real estate gains
• We based it on a lifestyle costing CHF 100'000 per year, yet it’ll be much lower once the children have left home… but of course, we don’t know when they’ll move out or what kind of studies they’ll do

My initial conclusion

At the latest, and being mega conservative, I’m going to retire at age 44. There are worse scenarios.

My second conclusion

There’s no way!

I’ll make the move to financial freedom at age 40, and that will give me a further boost to increase our income (as you must have noticed, I’m focusing on real estate and digital entrepreneurship to achieve this rather than my salary — if you’re interested in this, please let me know and I’ll write an article on it).

Whenever it may be, 2027 or 2031, you’ll be the first to know when I announce my financial independence :)

Our lessons learned and tips gained from our experiment

On discussing my figures and scenarios with Patrik, we learned, realized and confirmed quite a lot about the subtleties of a FIRE calculation.

Your life expectancy has a big impact on your FIRE plan

By testing different life expectancy parameters (end of life at age 90 and 83), we were able to see that it made a big change to the date at which you can be FI.

It’s obvious when said like that, but much more so when using the figures.

For now, we’re using the standard value of end-of-life being age 83 for any simulation that we do.

The magic of compound interest

Patrik was telling me how he’s constantly impressed by assets invested in the stock market even if only for a few extra years… and the disproportionate increase that it has on your total wealth.

We can never repeat it enough: the best time to start investing was yesterday. The second-best time is today!

A small change with a big impact

Likewise, by doing financial independence simulations with my situation, we noticed that a “small” change like “taking early retirement in year X vs. year X+1” significantly affects all the rest of the simulation.

In particular, “retiring a year earlier” doesn’t just mean “1 year less of income”, It has many other consequences for your future figures.

I loved this analogy from Patrik:

I think that retirement planning is like ballistics: a tiny change in the firing angle can lead to a huge difference in distance. And then there’s the nice case where you shoot so hard that the shot never comes down (meaning when the money increases faster than you can spend it).

The Swiss tax system and pillars system = not so bad

When testing his software on “standard” Swiss profiles, Patrik realized that many had their investments in Swiss stocks (vs. global, like us Mustachians).

With this kind of portfolio, you can expect less than a 4% return (in relation to the 4% rule). But in fact, the tax system and pillars help.

Firstly, the Swiss tax system is very favorable to investors, as there are no capital gains taxes.

Then, Swiss social security (AVS, also known under the name of “1st pillar”) compensates a bit, because even stopping early, people with 30 years of contributions can easily receive more than 20'000 Swiss francs per year (more than 30'000 Swiss francs for couples). And the second pillar also represents quite a substantial amount of money.

The 4% rule is really not so bad

On analyzing the results of our FIRE planner, I couldn’t help but think:

In fact, CHF 100'000 x25 equals CHF 2'500'000. And our FI Planner is targeting total net assets of… CHF 2'419'284.30! So why bother creating a FIRE planning service?!

So, in effect, I could just stick with that.

But when it means giving up my job, I can’t see myself just being content to use the simple 4% rule.

I know that I’m freaked out by the idea of no longer having a salary, so I had planned to go to VZ to recheck all my figures anyway.

So that’s why we’re going ahead with this Swiss FIRE planner (who said “And global one day!?” :D)

26 cantons, 26x more complications, and opportunities…

For the moment, we’ve modeled 4 cantons out of the 26. So we’ve been able to get an insight into the differences in terms of taxation…

What we’ve also realized (again) is that Mrs MP and I could be FIRE even earlier if we moved. And learned Swiss German! Those are two pretty big constraints, but it’s good to know haha!

Well no, but alternatively, rather than Swiss German, how about true freedom in a boreal forest in Finland, OK!? (photo credit: pexels.com)

Project objectives and next steps

We’ve decided to do some of the journey with Patrik, by joining forces for this project. Without any pressure. We’ll see where it takes us.

We’re going to stay in R&D mode for the next few months, but our idea of a future SaaS is taking shape.

Our primary objective is to have an automated tool that works for the most standard cases. One of our challenges is adapting the tax calculations for each canton, but it’s in progress (it’s just really onerous having to work through the documentation in the usual barely understandable jargon…)

During this time, I’d like for us to be able to set a price at around a quarter of what I paid to VZ.

Ultimately, we aim for a more affordable SaaS system where users only need to enter their data once. When there is a salary change or an inheritance, updates can be made seamlessly, similar to how the YNAB budget functions.

Interested?

We’re still looking for some early adopters (paying customers), with a “standard” profile (read: not a finance expert with a thousand complex investments).

So, if this project appeals to you and you want to be one of the first to test this tool (still in manual mode, before it becomes a SaaS), let me know by email (by responding to any of my newsletters)!

PS: following my interview with JL Collins, I increasingly use the term FI (Financial Independence) rather than FIRE (Financial Independence Retire Early), as I’m still waiting to meet someone who is capable of not dying from boredom after spending several days sipping cocktails on a beach. We need meaning, purpose, and connections. Not retirement per se.

What if we were to “legalize” our joint bank account situation in Switzerland? Or should I say “formalize” or even “simplify”…

A joint bank account in one of our two names…

Since we moved to the 100% online bank neon, we’ve only ever had a single bank account in one of our two names.

We each paid our salary into this bank account, with which we paid all our outgoings. Simple. Efficient.

However, we did receive a few questions from one of our two employers, who quickly accepted the situation after verifying that the bank account was indeed registered under the spouse’s name.

Except that… if you read the small print of the bank neon’s account properly, only money destined for the beneficial owner (i.e. the one who has the business relationship with bank neon) can go into the neon bank account.

I wasn’t too concerned about this up until now, as we’re married, and the HBL legal side didn’t say much…

Then came problems with transferring money…

Then, one of us started making large transfers for business purposes. To verify our legitimacy, we had to provide the relevant contracts. That’s when we had our first wake-up call — incoming and outgoing transactions were only allowed if they were in the name of the account holder.

Once, twice, and that was enough to raise the question of salaries. Not OK!

If we wanted to continue, we would have had to complete a form for each deposit to prove that the money coming in definitely belonged to the bank account holder (to absolve the bank of all responsibility) … that’s going to be a lot of paperwork!

So, it was time (and reasonable, I admit) for us to properly formalize our situation.

But then, a subsidiary question…

Alternative Swiss accounts for couples (and a comparison of them)

I will put together a dedicated article for you comparing every available Swiss joint account, and setting out which is the best.

To give you a quick overview, meanwhile, here is my Swiss joint account comparison in three points:

• BCV (and other cantonal and traditional banks): they offer things like “free Swiss joint account if you maintain a minimum account balance of CHF 15'000 at all times, otherwise CHF 15/month”
• neon duo: then there’s neon and its 100% online joint account, for CHF 6/month
• Bank WIR: and there’s the new “Bankpaket top” from Bank WIR at CHF 0/month, even for a joint account!

My reasoning was first simple, and then a dilemma.

Ruling out BCV was easy — I have no interest in letting CHF 15'000 sit idly in a bank account just so they can profit from my money. Investing that same 15k CHF in the stock market, even at a modest 6% return, would generate CHF 900 instead.

After that, came a dilemma: on one side bank neon with its neon duo account for couples option, but CHF 6/month (as CHF 3/month/partner) … and on the other side, the Bankpaket top by Bank WIR.

I was on the verge of ditching bank neon and going with Bank WIR…

But on thinking about it again, I thought:

• neon needs to be the best and most competitive with the quality of their products, because they don’t (yet) have any mortgages or other products that would enable them to maintain working capital with the risk of resting on their laurels
• Whereas Bank WIR’s mobile app is quite outdated, and doesn’t really get developed
• Some examples: the integration of Wise into neon, the onboarding user experience (incl. on neon duo) is really great

Another reason for my hesitation in using WIR Bank’s joint bank account is that my mortgage is already with them. I’ve always aimed to avoid being entirely dependent on one banking institution to maintain my negotiating leverage. In the end, I transferred my VIAC mortgage to them without any negotiations. But anyway…

Also, as we’ve seen with several banks in the past, they launch an attractive product, then after a while, they change the conditions. While with bank neon, at least, I know that there’s an account fee right from the start.

On this point, I’m now waiting to see if WIR Bank will play fair over the long term.

But… CHF 6 per month for a joint bank account in Switzerland feels steep when you’re trying to be frugal.

Despite this, I decided to test out the neon duo joint account over 12 months, and then I’ll re-evaluate the situation.

Meanwhile, I view these CHF 72 as support for the development of neon bank (for now, anyway haha), who I’ve really liked ever since they started out.

UPDATE 12.12.2024: you will find my comprehensive comparison of joint accounts in Switzerland on this link.

Opening a neon duo joint account (in 6 minutes!)

As always, I’ve captured a few screenshots to show you the process of setting up our shared banking account with neon duo.

While the user experience isn’t normally the most important thing for me, given my financial tools, it was a joy to be able to open my Swiss joint account, neon duo, from my sofa in less than… 6 minutes!!

Click on 'Profile' > 'Accounts', then 'Open joint account'

Summary of the advantages of neon duo

You'll be eligible for a neon duo debit card (one for each partner)

Then you just need to:

1. Check your personal details
2. Confirm your address (it must be the same as your partner, if you’re a couple, or the other person with whom you live)
3. Generate an invitation code for your partner
4. Select the option why you’re opening an account for couples (personal use such as paying your joint rent or credit cards, owning and managing assets for a third-party account like a charity, business payments, or payments for the third-party account)
5. Accept the various general conditions
6. And… that’s it! Then all you need to do is wait 2-3 days for each of the two people to receive their respective credit cards

Even nicer: you can see where you are in the queue for your account to be created!

Don’t forget to transfer standing orders and eBills

We plan to use neon duo as our sole bank account, so we had to transfer all our standing orders and eBills from one of our personal accounts.

I therefore got out my old change of bank checklist which works well for making sure I don’t forget anything.

FAQ

neon eBill (with neon duo)

I wondered how I was going to be able to transfer my current and future eBill payments between my private neon bank account and our joint neon duo account.

In fact, the process is relatively simple:

1. Cancel all your future eBill payments on your private bank account
2. That makes them reappear as “to be paid” in the eBill section
3. Once your neon duo account has been created, go back into eBill (via the link in the neon app), and go to pay a bill
4. At the payment stage, you just need to select “Neon joint account”, and, that’s it!

Explanation of how eBill works with the neon duo joint account

Select your private account or neon duo joint account, depending on which one you want to pay with

Bank neon, neon, or neon bank?

I’m often asked if bank neon or neon bank are different entities. Well, no, they’re just the different marketing names, but they all refer to the online bank neon, which you’ll find through this URL.

Conclusion about the neon duo bank account for couples

After two weeks of using the neon duo joint account, I must say I’m really quite won over by bank neon’s solution. The way you can move quickly between private and joint accounts is really well-thought-out in their ebanking, as are money transfers between these two accounts.

Extracting all my joint account transactions into CSV format works as it should (so that I can do my tracking in YNAB).

Likewise, the eBill system in e-Banking allows me to choose between a private account and a joint account to decide which funds I want to use for my eBill payments.

The only downside is the CHF 3 cost per partner, totaling CHF 6/month. If it’s not free, I was thinking more like 3-4 Swiss francs maximum.

So we’re going to try out neon duo for the next twelve months, and then we’ll review things again.

How about you, what joint account have you chosen to manage your couple’s personal finances in Switzerland?

I’d just received a notification from the MP forum where the participants had again raised the question about SIPC protection through Interactive Brokers UK, after having received some confusing responses, to say the least, from the IB support…

My heart skipped a beat.

What investor protection applies to a Swiss resident holding an account with Interactive Brokers UK?

What if my Interactive Brokers account in Switzerland, as a Swiss client, were not under SIPC protection (Securities Investor Protection Corporation) but instead covered by the UK’s Financial Services Compensation Scheme (FSCS)?

For newcomers, that would mean that if IBKR went bust, my assets would only be protected up to:

• If SIPC (US entity): USD 500'000 (~425kCHF)
• If FSCS (UK entity): GBP 85'000 (~95kCHF)

On one hand, I was concerned about my own Interactive Brokers investment accounts, but above all, I was worried that I’d given wrong information to the readers of my blog…

Wait, Interactive Brokers UK for a Swiss investor?

Interactive Brokers exists throughout the world. IBKR enables you to invest in the stock market. It’s the best trading broker for Swiss investors, even though Interactive Brokers is not based in Switzerland. For the whole European region, the business entity is located in the United Kingdom (UK).

When you open an Interactive Brokers account in Switzerland, you automatically have an account with the Interactive Brokers UK entity (and not Interactive Brokers US).

IBKR: FSCS or SIPC protection?

So straight away, I got in touch with my contact person at Interactive Brokers to ask them:

As Swiss clients get their account through Interactive Brokers UK, I need some clarification on this subject: are we under the protection of American SIPC (USD 500'000), or the British entity FSCS (GBP 85'000)?

And I added:

‌PS: IB support mentioned both responses depending on whether you speak to the support team in English or German… which is not very reassuring!

A few days later, I received this response:

“The stocks of all IBUK accounts are covered by the US SIPC protection. This includes the accounts domiciled in the United Kingdom and Switzerland under IBUK.”

And she added: “If these accounts have a separate UKL segment (segment regulated by Interactive Brokers UK, which holds products such as CFDs, physical metals and certain futures and index options based in the European Union), this UK segment is protected separately by the FSCS up to GBP 85'000.”

When checking this on the internet, I came across a Reddit article which referred to a page on the IB UK website explaining: “Forex CFDs, like other CFDs, are carried by IB UK and therefore if you have an IB LLC account, you will be prompted to open an IB UK segment. The IB UK segment will have your current account number followed by the suffix F.”

Which clearly means: when you open an IBKR account via the website interactivebrokers.co.uk, you get a trading account with IBKR LLC, which is protected by the SIPC (up to USD 500'000).

However, if you trade in CFDs or gold that you buy on European markets, then the Interactive Brokers website will ask you to open an IB UK account (which will end in “-F”). Therefore, you will be aware if you have an IB UK segment/account :)

Conclusion

After quite some worry, I’m now reassured.

All my investments in US and Swiss ETFs via my Interactive Brokers UK account are indeed protected by the SIPC up to USD 500'000. And the same goes for you :)

If you want to go into the subject of why I chose IB, you can read my complete Interactive Brokers guide for beginners here.

FAQ

What steps should be taken once an Interactive Brokers account exceeds USD 500,000?

One could imagine creating a second IB account. But it doesn’t work like that, because the SIPC would consider it as the same “capacity”. This SIPC article explains the concept well.

Alternatives I can think of:

• Two individual accounts per member of the couple (2x 500kUSD)
• A joint account (500kUSD)
• A corporate account (additional 500kUSD), if you have a business, of course

That’s one of the questions that I asked myself (along with many of you in the comments too) at the beginning of this project.

As usual, when I’m stuck on an issue that can have significant consequences (we’re talking about several hundred thousand Swiss francs), I find my answers by paying a professional. So I went to see a lawyer from a well-known firm in the Lausanne area.

But first, let’s go back a bit for the newcomers.

Summary of the situation (incl. capital gains)

Up until now, we had only invested in rental real estate. Then, an opportunity came along to get involved in a Swiss real estate development.

The key points:

• We set up a general partnership, established through a partnership agreement (also called “convention”)
• This general partnership links our respective individual limited companies (we haven’t bought anything under our private names)
• We each put in 50% of the funds (= CHF 500'000) via our limited companies
• We bought the land with the current building at a price of CHF 3'200'000 (including notary and other costs)
• We’re planning to sell the project with the new construction at CHF 6'500'000
• We’ve estimated a pessimistic margin of CHF 700'000 (so CHF 350'000 per partner) before tax
• The optimistic margin is CHF 890'000, but we’re sticking with the pessimistic margin in order to be conservative

You’ll find all the details of my first development set out in this article.

The 3rd Porsche that a non-frugal investor would buy themselves after a real estate venture like this... (photo credit: Porsche Centre Bristol)

Isn’t there a maximum interest level for loans between individuals?

First of all, I wondered about the legality of our general partnership agreement.

As, with my limited legal knowledge, I thought that the agreement could be similar to a loan between individuals… And from what I knew, the amount of interest on a loan between individuals (in any case, private individuals) was limited by law to around 11-14%…

My lawyer confirmed that a loan with a too-high interest rate could be illegal under article 20 of the Code of Obligations (art. 20 CO).

But, before seeing the contract, she told me about a related-party loan which might better correspond to our situation.

A related-party loan is a loan paid for by participation of the lender in the profit of a company or operation determined by the borrower (in addition to potential interest agreed in advance).

Well well, interesting to know!

In the meantime, I gave her our partnership agreement.

General partnership agreement, or excessive interest?

First of all, my lawyer looked at the legality of our contract.

She checked points like:

• Are there any family/friendship/other links (meaning not linked to business) between the two members of the general partnership?
• Is my partner a private individual or a legal entity? (response B, Jean-Pierre!)
• In which canton are the two companies that form the partnership located (for the tax part)?
• In which canton is the purchased property located (again for the purposes of calculating taxes)?

Check, check, check, and re-check. We were all good.

Although the initial aim wasn’t to check every line of the partnership agreement, it’s always great to have a template checked by a lawyer.

Following that, she confirmed that everything was in order regarding my question about potential excessive interest:

Establishing a general partnership agreement like this is legal, and is not affected by the issue of excessive interest. In fact, in a general partnership agreement, the lender can lose some of what they put in, which is not the case with a loan contract where the interest and capital are repayable whatever happens.

Well, that’s a good thing to have checked!

And the tax on the property capital gain in all that?

My lawyer continued with the property tax question.

She confirmed that our company will only be taxed on the net profit made by the general partnership (and not on the CHF 500'000 contribution) at a rate of 13.79% when completing our tax declaration.

This rate of 13.79% includes Swiss federal tax, cantonal tax and municipal tax.

I’ll cite it here:

There has a been a notable decrease in tax on companies since January 1 2019. Prior to this, the overall rate was over 20%. I should point out that the rate of 13.79% is the average rate for the canton of Vaud. It varies slightly depending on the municipality. It is lower for municipalities with a low tax rate, and slightly higher (around 14%) for municipalities with higher tax rate. So if you count on it being 14%, then you’ll have a good estimate of the amount of tax to plan for.

I quickly whipped out my calculator to do: CHF 350'000 x 14% = CHF 49'000

So the conservative estimate of my total net profit from this real estate development will be CHF 301'000 (= CHF 350'000 - CHF 49'000).

So I say… let’s do it! :)

Pay attention to the details

If you get involved in a similar scheme, my lawyer brought to my attention the importance of correctly declaring a general partnership in the accounts of my Swiss company.

Specifically, you must declare any “Participation in the general partnership” as an asset.

And when it comes to knowing whether to declare that as a current asset or fixed asset, here is her response:

Under art. 959 para. 3 CO 3, current assets include cashflow and the assets that will most probably be realized during the twelve months following the reporting date, in the normal course of business or in another way. All the other assets are classified as fixed assets.

Conclusion

All this contract and tax verification cost me some CHF 1'000 in legal fees…

But I see it more as an investment for my next Swiss property investments where I’ll have a readymade checked and legal partnership agreement template, AND where I’ll be sure of the expected amount of tax on the real estate capital gain in the Vaud canton for a company.

Our actual general partnership agreement in Switzerland

The bonus of all this is that I’ve found a lawyer who is fine with working 100% by email, in a super-efficient manner, without chit-chat over the phone, or, even worse, meetings in their office! She asks a lot (too many! haha) of questions in order to know the full context, but that also shows her professionalism. And she then answers my questions clearly and directly. That’s great for my future legal needs!

In any case, I’m delighted to be able to write the next article where I’ll include a screenshot of my company’s bank account with the final amount of profit from this real estate development.

Stay tuned!

And what about you, are you involved in real estate development? If so, I’d be interested in discussing it over email! And when it comes to lawyers, who do you work with in your region? Are you satisfied with them (efficiency, tariffs)?

FAQ real estate tax in Switzerland

Is there no degressive tax for real estate capital gains in Switzerland?

In Switzerland it’s important to distinguish between whether the owner listed on the property register is acting as a private individual or legal entity. An individual taxpayer will pay tax on the real estate capital gain based on how long they have owned the property (art. 72 LI for the canton of Vaud).

This property tax is separate from the private individual’s income tax.

Degressive tax rate according to the number of years of ownership (canton of Vaud, private individual)

The situation differs from canton to canton, as shown here with the canton of Zurich

On the other hand, if you’re a company (SA or Sàrl), the gains from the real estate value are included in the taxable profits of the company (for the Vaud canton in any case).

How can you pay less tax on real estate gains?

If you bought your property as a private individual, the best way to reduce your tax on property gains is to keep it for as long as possible before selling it. You’ll benefit from a degressive tax rate over time, as described in the point above.

The other option is to buy the property through a company in order to only pay tax on the profit. In a French-speaking canton like Geneva or Vaud, you’ll only pay 14%. If you’re lucky enough to live in German-speaking Switzerland, you’ll be able to optimize your tax even more, like in the canton of Zug with its attractive 11.85% rate of tax on profits :)

What is the definition of bien-fonds?

I’ve often seen this term in official documents. I thought that it related to a company (working capital). But no, in fact, it means a piece of land, with or without a building attached, which forms a property. That includes the ground, the natural resources on the site and everything which is permanently fixed to the land, like a house or apartment building.

Budget tracking effort / cashback gain ratio

My reasoning was the following: it takes me more effort in budget tracking via YNAB, than it brings me in cashback (200-300 Swiss francs per year).

To be precise, by budget tracking effort, I mean:

• Open another two apps to download the CSV files, change them into the YNAB format, and import them into YNAB
• And this needed to be done once a week, or at least once a month

On reading it like that, a part of my brain tells me that I’m exaggerating and that it takes very little time… but the other part of my brain (yeah, I know, it works pretty well! ^^) which is minimalist, knows to what extent it isn’t just about time, but also the additional mental load that it generates.

I had written my previous article 1.5 months after I started using this system, and I was already seeing the benefits.

And so, one year later, I can tell you that we’re keeping this system. It’s so practical to only have to export my neon debit card transactions and import them into YNAB.

And that’s it!

My YNAB budget accounts, before and after having stopped my credit cards

The only exception to my use of credit cards

As I already said it a year ago, I won’t repeat myself… and so I’ve only used my credit card once or twice this year for large expenses (> CHF 1'000).

And to avoid having to keep track of the credit card, I repaid the transaction amount straight away with a payment from my neon bank account.

Conclusion

The only thing that would make me go back is if the credit card institutions started to use the Swiss NextGen API, so that all the transactions were automatically imported into YNAB, in real time. However, it’s already been several years, and things only seem to be moving extremely slowly…

Also, my minimalist side really likes only having a limited number of accounts in YNAB, so I’m not 100% sure that I would go back… We’ll see!

And what about you? Are you more about maximizing cashback or financial minimalism?

PS: In my article from a year ago, I explained how to import your bank transactions into a CSV format in YNAB, as well as how to block your Swisscard Cashback credit card and/or your Certo One credit cards via the mobile app

What would happen if the person in our MP couple who has the Interactive Brokers account in their name were to suddenly pass away?

It would be a mess…

Succession and Interactive Brokers (IBKR) trading account

For personal reasons, until now, we had one single Interactive Brokers account for Mrs MP and me, in one of our names.

Every time someone we knew passed away, we said that we ought to change that.

Beyond the emotional impact, an unexpected death would also create financial complications. The surviving person could be locked out of the majority of our net assets for weeks or even months while the succession process is finalized. This is an important factor to consider when choosing an online broker, as access to funds during such situations can be critical.

We sorted that all out properly with a will and power of attorney each, but as Interactive Brokers (IBKR) is an American company, and we are Swiss, I think it would be a real mess and take a lot of time!

As we were talking about succession with my parents, I decided that we should stop talking about it and take action ;)

Transform an individual IBKR account into a joint account?

I didn’t want to sell all the ETFs in the individual Interactive Brokers account, transfer all this money into the joint account, and buy back the ETFs.

Why? To avoid exiting the stock market at the worst time (the lowest), and entering at an equally bad time (the highest). I can’t address every question you might have in a situation such as this.

I therefore wrote to Interactive Brokers Switzerland support to ask them if it’s possible for a Swiss investor to simply transform an individual account into a joint account.

The response of the brokerage firm:

“Dear Mr Pittet,

Please note that IBKR does not support direct reclassification and conversion of one type of account into another, as each entity generally requires specific information about the account holder, legal agreements, and, in certain cases, declarations by the taxpayer. Unfortunately, it is not possible to change the type of account into a joint account.

Please see below for the procedure to follow in order to open a linked joint account: […]

Best wishes,
IBKR Client Services”

Oh, well, that’s a shame…

So I then asked if it was possible to create a joint account into which I could automatically transfer all our stocks from the individual account.

The response:

“I would like to inform you that the following criteria for the IB accounts must be fulfilled in order for an internal transfer to be possible:

• The account names, national IDs, tax IDs, country of legal residence, and the IBKR entities must match on both accounts.

As your account is an individual account and the other account is a joint account, the internal transfer option is unfortunately not possible. In this case, you may request a manual internal transfer, but that can take from 1 to 3 weeks due to the need to review the case from a compliance perspective, and there is no guarantee that it will be accepted.

There are two types of manual transfer: partial transfer and full transfer. For a partial transfer, you are only seeking to transfer some of the holdings from the source account to the destination account. In the case of a full transfer, this means transferring the entire account. When a full transfer is requested, the source account is closed shortly after the transfer has been completed.

If you wish to request such an undertaking, you will need to create a ticket in the Client Portal (select the “Funds & Banking” category and “Other Deposits and Withdrawals” as the topic).

In the ticket, you must specify the account numbers of the source and destination accounts and state “Full manual account transfer” in the subject if you want to transfer everything. State “Partial manual account transfer” if you only want to transfer a certain amount of funds and/or positions, and list everything that you want to transfer.”

It’s a shame that this can’t be done automatically (via their IBKR website or IBKR mobile app), especially with the best online broker. But I get that it’s a rare case they don’t encounter often.

So, even though it’s a bit of a hassle, we decided to go ahead with a manual internal transfer.

Transfer of an individual IBKR account to a joint account

I’m going to answer questions about my experience with Interactive Brokers Group customer support below. I’ve also outlined the key steps to follow if you want to switch from an individual Interactive Brokers account type to a joint account.

1. Open your new IBKR joint account (in the same way as you open an individual account — full tutorial here)
2. Configure the trading permissions in the same way as your individual account so that the transfer can be made (i.e. US ETFs, the countries where you want to buy stocks, like Switzerland for example, margin account, and stock yield enhancement program)
3. Choosing the type of IBKR joint account: if you are asked to choose the type of joint account, I chose “Joint tenant with rights of survivorship (most common)” (the other options are: “Tenancy in Common”, “Community Property”, or “Tenancy by the Entirety”)
4. Request a manual internal transfer (full or partial) from your individual account (number ABC) to your new joint account (number XYZ), and explain the reason
5. Complete the Letter of Authority or LOA document (by the individual account holder) that the support department will send you, physically sign it, scan the doc, upload it to the IBKR secure messaging service, and attach proof of identity
6. Call Interactive Brokers client support (Interactive Brokers number in Switzerland on their website in the “Support” section) in order to confirm your request to them verbally and provide the ticket number (two-level security to avoid an ill-intentioned transfer)
7. Await approval then confirmation of the transfer
8. Enjoy your new joint account with Interactive Brokers Switzerland!

Below is the above-mentioned LOA:

Fill in from which account to which IBKR account you want to make the transfer

Signatures of both account holders of the Interactive Brokers joint account

Add your initials and the date (I leave the table empty as I want to transfer ALL my holdings into the new IBKR joint account)

UPDATE 19.09.2024: Under founder and former CEO Thomas Peterffy, the process has been simplified since I wrote the article. Swiss and European investors can now do a digital signature of the Letter of Authority, and that’s it. No downloading, printing, or anything like that. Thanks to the reader, Javier, for pointing it out.

Conclusion

When I read IBKR’s first two responses, I thought it was going to be a battle to transfer the individual account into a new IBKR joint account.

And in fact, it was a piece of cake, as everything is done for you by IBKR’s client support.

The only small hassle is having to redefine the same trading parameters in your joint account, but by having two web navigators open side by side, you can easily copy all that from your old individual account.

So anyway, that’s done! We can die in peace :D

What about you? Have you taken out a joint account with Interactive Brokers Switzerland?

FAQ Interactive Brokers manual internal transfer

How long does an account transfer take with Interactive Brokers Switzerland?

To be on the safe side, plan for about 1 to 1.5 months for the process. In my case, I sent my first message at the beginning of November, and the transfer was completed by the end of January. However, I delayed responding to some of their messages in December because I was busy with the blog. Plus, there was a two-week break over the Christmas holidays, which also slowed things down.

Is the IBKR Switzerland account transfer free?

Yes, transferring an account with IBKR Switzerland is completely free. This is a big advantage, considering that the process involves manual identity verification for the new joint account. However, since you continue to be a client, it makes sense that no custody fees or extra charges apply. This keeps your investment in Swiss Francs as efficient as possible.

Is it possible to transfer a margin?

Yes, it’s possible to transfer the margin from your individual account to your Interactive Brokers joint account. It seemed complicated to me (in my head, as in the end it’s only figures in a computer ^^). Nevertheless, IBKR support say that you have to wait for them to fully review your request in order to confirm whether it’s possible.

For me, I ended up with a negative balance in CHF on our new IBKR joint account. So it works :)

Does IBKR Switzerland sell and buy back your stocks, or is it really a straight title transfer?

As IBKR support told me: “Please note that IBKR transfers the positions as they are in the source account to the destination account and does not close or open positions.”

What do you mean by the “same trading permissions”?

At the time of the transfer, I still held my Daubasses portfolio stocks. They are from different countries like Japan, Canada, Germany, etc. Except that in order to hold these kinds of stocks, when I opened my individual Interactive Brokers account, I had to request permission to trade securities from these countries.

That’s why I had to make the same (automated) request on my new IB joint account so that the transfer could be done.

As stated by the Interactive Broker’s support department:

Please note that the destination account does not have the necessary authorizations (JPY stocks, CAD stocks, EUR stocks - France, Germany, Spain and Netherlands) to hold the source account positions. Please request the necessary trading authorizations on the destination account. To request the required trading authorizations on the destination account, connect to the client portal, go to the menu, and select Parameters > Account parameters. Click on the Configure icon (cog wheel) for “Experience and trading authorizations”, make the appropriate selections, and complete the online steps.

Is there any other information to consider during an IBKR account transfer?

When I received approval for the transfer of my individual account to my new joint account, I was sent a list of points to note.

I’ve picked out the most useful ones for you:

• Submitting a transfer request is not a guarantee that we will process.
• We will be unable to complete the transfer if the source account holds futures, futures options or equity or index options positions, unless the account registrations are identical.
• If clients would like IBKR to CONSIDER transferring option positions, they will need to obtain a letter from a reputable U.S. attorney opining on the implications of the transfer as related to CBOE rule 6.7(a).
• If clients would like IBKR to CONSIDER transferring commodity positions, they will need to obtain a letter from a reputable U.S. attorney opining on the implications of the transfer as related to CME rule 853.
• If approval for the transfer of these positions is NOT granted, any positions will need to be removed from the source account or otherwise omitted from the request, prior to the execution of the transfer.
• For FULL ACCOUNT transfers - The source account will be slated for closure and will not be able to be used again once the transfer is complete. Any deposits, transfers, postings, etc., will automatically sweep to the new account and cannot be moved back.
• Market data subscriptions will not transfer and may not terminate on the source account if applicable.
• Stock Yield permissions, loans, and borrows will not transfer.
• Depending upon the circumstances, open orders on the source account may not automatically be canceled and should be reviewed.
• Once final approval has been received, these requests can be queued for overnight processing on a best efforts basis.
• Wire instructions on the source account will not move to the destination account. They must be reentered on the destination account if they do not already exist there.
• Any deposits or transfers to the source account will automatically sweep to the destination account.
• Kindly review your GTC orders as some may not have canceled on the old account and now will be on place on the new account.

Personally, never…

But things seem to change with time. Even in our old Swiss banks ;)

For newcomers, neon is my default Mustachian Swiss bank. I compared all those on the market in this article.

neon bank is the best.

And as with all the other financial services I use, I made it my mission to interview their founder and/or manager.

So here’s my neon bank interview with the man who co-created THE most innovative Swiss bank to date.

MP video interview with Jörg Sandrock

Here’s the interview with neon’s co-founder:

Important note: You can activate German or French subtitles if they don’t appear automatically.

Two other notes: firstly, the interview was recorded at the end of 2023, and then, at one point, Jörg Sandrock states that “all employees have access to all data”. This is true for business data, but obviously not for private customer data of neon bank (they follow data protection regulations to the letter).

Video transcript