Investing your 3a, because letting money sleep is expensive

Many people in Switzerland save seriously, then leave that capital in an account that does not even keep up with inflation. Over a long horizon, like that of the third pillar, this default choice is one of the most expensive there is.

Time does the work

Investing is not speculating. Over twenty or thirty years, a diversified portfolio that you top up regularly lets compound interest do its work. Performance does not come from timing the market; it comes from time and discipline, especially when markets wobble.

Why start with your 3a

A Pillar 3a invested in securities combines two advantages, the 3a tax deduction and the potential return of the markets. It is the ideal way into investing, because it builds on saving you already do, over a horizon that is long by nature.

The golden rule is horizon before risk

The level of risk you can accept follows from your investment horizon and your plans, never the other way round. Money you will need in two years is not managed like retirement savings with thirty years ahead of them. A written strategy, controlled costs and regular contributions are worth more than a hunch.

• Define your horizon and your real saving capacity first.
• Diversify across asset classes, regions and currencies.
• Watch the costs, because every franc saved compounds for you.
• Automate your contributions and hold your course over time.