Second pillar question

[OxygeN]

Hi @Baptiste Wicht - in one of your blog posts I've found following sentence from you:

• With my second pillar, I did not need any more bonds in my portfolio so I sold my bond ETFs.

With the above, do you mean that being the second pillar "bond-based", you don't want to have more bonds in your portfolio? Can you please explain the sentence of yours?
Thanks!

 

[Baptiste Wicht]

Hi @OxygeN

Yes, I consider the assets in my second pillar to be bonds, because they are quite safe.
So, if my total asset allocation is 10%, I would only need bonds if my second pillar was less than 10% of our net worth.

 

[OxygeN]

Thanks. Do you also make voluntary payments into your second pillar? I did this last year and was thinking about doing it this year as well - at least to have some tax reduction. What do you think?

 

[Baptiste Wicht]

Thanks. Do you also make voluntary payments into your second pillar? I did this last year and was thinking about doing it this year as well - at least to have some tax reduction. What do you think?

I am doing some contributions because I plan to move my second pillar into a vested benefit account before retirement age if my early retirement plays out.

 

[OxygeN]

I am doing some contributions because I plan to move my second pillar into a vested benefit account before retirement age if my early retirement plays out.

Thanks. You added another concept/definition, which I'm not yet aware of: vested benefit account. Do you have already some blog entry about this topic?

 

[Max]

Do you have already some blog entry about this topic?

Sure Vested benefits accounts: All you need to know!

 

[OxygeN]

So in a nutshell: vested benefit accounts are temporary allocation accounts, where one has to move his 2nd pillar money if he/she is unemployed for a longer time. This is mandatory because an employee cannot be member of a pension fund while he/she is not working - correct?

 

[Baptiste Wicht]

So in a nutshell: vested benefit accounts are temporary allocation accounts, where one has to move his 2nd pillar money if he/she is unemployed for a longer time. This is mandatory because an employee cannot be member of a pension fund while he/she is not working - correct?

Correct!