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View Poll Results: Early withdrawal of 2nd pillar for property amortisation
Withdraw 2nd pillar and use freed-up investable money to better invest over 30 years 10 71.43%
Keep 2nd pillar untouched. 4 28.57%
Voters: 14. You may not vote on this poll

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  #21  
Old 21.02.2017, 11:53
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Re: 2nd pillar to amortise property

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EU? How did you manage to do that?
It depends on if compulsory insurance is required in the country your going to. Of course most people assume something rather than just read the law as written

http://www.sfbvg.ch/xml_3/internet/E...on/d51/f62.cfm
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  #22  
Old 21.02.2017, 15:48
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Re: 2nd pillar to amortise property

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... I think there is the factor of a "safe" pension fund , and swiss funds must be about as safe as they get, being a good place to have some money to support you in old age. You are assuming you are a wise investor, but even clued up investors get burned. -especially when dementia sets in
Indeed, swiss pensions are a safety net. However with 30 more years till retirement, it is not like one completely gives up this safety net.

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... My question - Is the 35% calculated on the buying price (as I assume) rather than on the estimated market value?
Buying price.
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  #23  
Old 13.03.2017, 14:38
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Re: 2nd pillar to amortise property

Hi All - Thanks for all the answers.

Just a quick update: I spoke to the bank who re-evaluated the property and informed me that I no longer have to amortise as the mortgage (minus my pledged 3a) is below the 67% threshold

Which means the question is no longer a question and the conclusion is obvious: invest in the stock market and stop 3a payment until about 4-5 years before earliest retirement age.
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  #24  
Old 15.03.2017, 23:19
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Re: 2nd pillar to amortise property

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Hi All - Thanks for all the answers.

Just a quick update: I spoke to the bank who re-evaluated the property and informed me that I no longer have to amortise as the mortgage (minus my pledged 3a) is below the 67% threshold

Which means the question is no longer a question and the conclusion is obvious: invest in the stock market and stop 3a payment until about 4-5 years before earliest retirement age.
If you leave it until retirement, or until(if) you leave Switzerland, you can withdraw as a lump sum and pay approx 5% tax.

If you withdraw now, I believe you will pay income tax at your marginal rate. Presumably 35%.

ps. I thought this was a Pillar 2 fund. Is it a Pillar 3a?
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  #25  
Old 28.03.2017, 12:39
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Re: 2nd pillar to amortise property

I always felt in my bones it would be better to keep the 2nd pillar where it is and wait until I could afford a property without it.

This comes from my general view of only buying things that I can afford!
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  #26  
Old 28.03.2017, 14:06
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Re: 2nd pillar to amortise property

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I always felt in my bones it would be better to keep the 2nd pillar where it is and wait until I could afford a property without it.

This comes from my general view of only buying things that I can afford!
So you wait (waited) until you can buy the property 100% cash down...it might take a while...
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Old 28.03.2017, 14:17
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Re: 2nd pillar to amortise property

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So you wait (waited) until you can buy the property 100% cash down...it might take a while...
My wife just bought a house with cash a couple months ago.

Tom
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  #28  
Old 28.03.2017, 14:22
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Re: 2nd pillar to amortise property

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My wife just bought a house with cash a couple months ago.

Tom
and exactly how is that a good financial decision? The opportunity cost must be enormous.
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  #29  
Old 28.03.2017, 14:43
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Re: 2nd pillar to amortise property

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and exactly how is that a good financial decision? The opportunity cost must be enormous.
A standard answer by st2lemans always goes against the mainstream, whether it is having liability insurance, carrying your permit when you cross the border, or buying a house.

Such a rebel or troll.

In this case, was it a dolls' house or a foreign property?
The devil is in the details.
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  #30  
Old 28.03.2017, 14:56
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Re: 2nd pillar to amortise property

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In this case, was it a dolls' house or a foreign property?
Or a one-room uninsulated house without electricity literally in the woods?
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  #31  
Old 28.03.2017, 15:41
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Re: 2nd pillar to amortise property

I think it's covered above but.. as I have some of my 2nd pillar in my flat then I can confirm..until you pay back in what you took out.. you cant rent out your flat and you wont get tax relief on any over payments into your pension.

For me the big advantage of owning a flat was a monthly mortgage bill around half of what a similar property would cost to rent. Plus, I'm pretty sure the flat's worth quite a bit more than I paid.. so the pension money I 'invested' in the flat has done better than it would have done.
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  #32  
Old 10.12.2017, 23:57
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Re: 2nd pillar to amortise property

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One disadvantage of withdrawing is that you can't make voluntary tax deductible contributions to the pension fund anymore after it. They will be treated as repayments at first and not tax deductible.
Wait, is this true? It comes a bit as a surprise to me. I wrote to my pension fund, but do you have some document supporting this?
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  #33  
Old 11.12.2017, 00:02
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Re: 2nd pillar to amortise property

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Wait, is this true? It comes a bit as a surprise to me. I wrote to my pension fund, but do you have some document supporting this?
http://lmgtfy.com/?q=einkauf+nach+vorbezug

From the first google hit:

"Einkauf von Beitragsjahren
a) nach einem WEF-Vorbezug
Seit dem 1. Januar 2006 dürfen freiwillige Einkäufe in die berufliche Vorsorge erst wieder vorgenommen werden, wenn allfällig früher getätigte Vorbezüge für die Wohneigentumsförderung zurückbezahlt sind (Art. 79b Abs. 3 Satz 2 BVG)."

You can pay, but it'll be treated as a repayment of an earlier withdrawal with the consequence that you only get back the taxes you paid earlier on withdrawal, which are tiny, but save nothing on income taxes which is the main prize.

This only affects additional voluntary contributions, not the regular deduction from your paycheck - that's still fully deductible from income
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