mypersonalfinance.chIntrospective on your tax rates is an important element of financial literacy. How much taxes will you pay if you increase your income by X? In this entry, we’ll learn how to answer this question. To do that, we’ll see how to estimate your marginal income tax rate. Your marginal income tax rate What is…Continue readingYour marginal income tax rate
Pillar 3a is one of the most popular investments for Swiss residents. In fact, it’s somewhat unpopular not to contribute to pillar 3a. In this entry, we’ll discuss how pillar 3a works. We’ll also review the biggest pros and cons of pillar 3a investments, as well as some important investment considerations. About this entry There’s…Continue readingHow pillar 3a works
An efficient ETF portfolio will help you build net worth faster. There are many attributes to look at when choosing an ETF. Examples are tracking index, TER, fund size, bid-ask spread, domicile and legal aspects (e.g. UCITS). This entry focuses on yet another important consideration: the choice of accumulating vs distributing ETFs. Accumulating vs distributing…Continue readingAccumulating vs distributing ETFs
There’s a first time for everything. Also to learn about taxes. The world of taxes is big, and it’s normal to have knowledge gaps. Especially if you’re getting started. This entry demystifies common tax misconceptions. Tax misconceptions #1: The difference between average and marginal tax rate This is not necessarily a misconception, but rather a…Continue readingCommon tax misconceptions
For most Swiss investors, it’s best to invest in US domiciled ETFs. At least to invest in equities. This entry will try to convince you of this statement. We’ll see why US domiciled funds are arguably a better alternative than Irish, Luxembourgish or Swiss counterparts. Five arguments for US domiciled ETFs Broadly speaking, there are…Continue readingWhy invest in US domiciled ETFs
One of the biggest realizations that I had when I first started my investing journey is the huge impact that small changes have over the long run. I don’t think I’m alone on this one. The compounding effect (or how things ‘stack up over time’) is counter-intuitive and relatively easy to underestimate. In this entry…Continue readingThe impact of TER and taxes on long term returns
Optimizing taxes for your ETF portfolio makes a difference. If you have a long investment horizon and invest heavily in ETFs, this entry is a must-read. The higher the share of your net worth ETFs represent, the more important tax optimization becomes. In fact, optimizing your ETF portfolio could be your biggest tax lever to…Continue readingTax optimization for your ETF portfolio
Ever wondered how taxes in Switzerland work? What kind of taxes are there? Who do you pay taxes to? And how to do you pay them? How much taxes do you you pay for a given income and wealth? This entry will help you answer all those questions. About this entry… This is an introductory…Continue readingTaxes in Switzerland 101