Etf for an 18 years old

[Haroldsun]

VT’s tax advantage for Swiss investors depends on individual tax rates and may disappear (or even reverse) in early retirement.

What do you say about that?

 

[Baptiste Wicht]

VT’s tax advantage for Swiss investors depends on individual tax rates and may disappear (or even reverse) in early retirement.

Yes, to an extent. But you only need a 15% marginal tax rate which should be reached by most people. And you need to pay taxes indeed because otherwise you won't get it back.

So, it may disappear in retirement depending on your taxes. But why would it reverse?

 

[gaijin]

and may disappear (or even reverse) in early retirement.

At this point we are talking about investment strategy before FIRE. So I think US ETFs are most efficient. Of course, revisiting this strategy once are your fully FIREed could be useful to determine if US ETFs are still the most efficient ones.

As for the reverse, my understanding is that if your marginal personal income tax rate goes below 15%, you will actually lose money with VT because the 15% are also withheld on dividends from non-US companies. Again, this is probably only applicable once you are fully FIREed.