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Old 14.08.2012, 16:26
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3rd Pillar

Hi!

I've been thinking about opening a 3rd pillar account. I gathered some information from my bank and a financial adviser. And what I got is that the best strategy is to have a 3rd pillar with an insurance company (name it A) and another one with the bank (name it B).
(A and B are Generali and BPS(Suisse), respectively. It is not that I want to hide the names... it's just that I'm lazy writting :P)

The problem with A is that the income is fixed, you must pay each month and you cannot take the money back until retirement. The benefits are that you get a life insurance from time 0 and you have an assured amount.

With B you don't have any insurance, but you can take your money out if your leaving the country, the interests are higher and it is not mandatory to put money each month.

Therefore I've been advised to have a type A with a small contribution (say between 150-200/month) and a type B where I put money as I wish, up to the maximum per year.
(do not confuse what I call type B with pillar 3b, all this is just pillar 3a)

Does all this make any sense?
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Old 14.08.2012, 16:34
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Re: 3rd Pillar

The Type A will return 0 CHF in the first 2 years (or more depending on the t&c) even if you pay the maximum amount in it. After 2 years the assured sum will start from 0 CHF if you decides to stop this policy. It makes sense only if you intend to have it last the maximum tenure until your retirement.

Also do check with your advisor, I have an impression that the advisors are more willing to sell Type A as he/she is the one who is going to make the maximum out of your investment in Type A.

If you have a very good pension fund to support then there is no need of Type A at all.
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Old 14.08.2012, 16:57
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Re: 3rd Pillar

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The Type A will return 0 CHF in the first 2 years (or more depending on the t&c) even if you pay the maximum amount in it. After 2 years the assured sum will start from 0 CHF if you decides to stop this policy. It makes sense only if you intend to have it last the maximum tenure until your retirement.
If I understood it correctly, the first 2 years or so are for paying what? commisions? Then, this kind of insurance makes no sense unless I stay in Switzerland until retirement? If it is so, this raises another question: Is it worthy to have a life insurance? In Spain is quite common to have it. So if I want to have it here, is not having a 3rd pillar the best choice?

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Also do check with your advisor, I have an impression that the advisors are more willing to sell Type A as he/she is the one who is going to make the maximum out of your investment in Type A.
Yep. I have the same impression. That's why I asked here in EF.

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If you have a very good pension fund to support then there is no need of Type A at all.
What do you mean with with "a very good pension fund to support"?


Thanks!!
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Old 14.08.2012, 17:02
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Re: 3rd Pillar

Sounds like the advisor is trying to swindle your ass for CHF150 a month for the first two years!

Just get a normal Pillar 3a with a bank, no insurance no bullshit. You put the money in, reduce your tax liabilities, then take it away with you when you leave or use it as collateral for starting a new business or buying a house. Simples!

These insurance advisors are the biggest scammers on earth, all they are interested in is there commission, if you want to get this sort of thing, just go directly to the source!

PS: do a quick search you will get many other threads regarding this.
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Old 14.08.2012, 17:14
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Re: 3rd Pillar

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Sounds like the advisor is trying to swindle your ass for CHF150 a month for the first two years!

Just get a normal Pillar 3a with a bank, no insurance no bullshit. You put the money in, reduce your tax liabilities, then take it away with you when you leave or use it as collateral for starting a new business or buying a house. Simples!

These insurance advisors are the biggest scammers on earth, all they are interested in is there commission, if you want to get this sort of thing, just go directly to the source!

PS: do a quick search you will get many other threads regarding this.

Ok! I agree with you. I rather prefer a bank than insurance companies.
Now, my question is: if I want to have a life insurance what can I do? Is it better to have it decoupled from 3rd pillar? (which I don't know if it is even possible...)
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