Hi everyone,
I’m looking for technical advice on my current banking setup and a "sanity check" on a long-term geographic arbitrage plan. I am in my mid-30s, living in the Zurich area on a fixed income of ~4k/month (IV & BVK Pension). I do not receive EL (Ergänzungsleistungen).
The Financial Picture:
- Real Estate: I own a flat (Stockwerkeigentum) near Zurich outright. Debt-free.
- Note: Needs maybe ~CHF 50k renovation. High monthly costs of ~CHF 1,000 to the owner association (renovation fund, maintenance, etc.).
- Savings: CHF 30k (Migros Bank).
- Obligations: 5k (maturing 2028), 7k (maturing 2033).
- Current Investment (40k total at Migros Bank): Currently investing CHF 600/month into:
- 10k in MB (CH) Fd 85d
- 24k in MB (CH) Fd IntStk A
- 6k in Fd Swimmo A
Part 1: The Broker / Migration Question I’ve realized the fees on my Migros funds are likely high, but it's hard to decipher their fee PDF. I want to transition to a low-cost World ETF (VT or similar).
- Saxo vs. IBKR: I am considering Saxo for its Swiss regulation and easy tax reporting, but I am considering moving abroad in the near future.
- Expat logistics: If I move to SE Asia (e.g., Thailand), is it better to switch to IBKR now to avoid "non-resident fees" from Swiss banks later? Or
avoideh I mean, optimize taxation? - Safety: Are there significant tax/safety concerns (US situs assets, etc.) for a Swiss non-resident holding a large sum in a US-based broker like IBKR versus a Swiss one?
Part 2: The "Exit" Logic & FIRE My 4k income is tight in Zurich. To increase my savings rate and quality of life, I’m considering moving to a lower-cost region.
- The Yield Dilemma: Renting the flat (with 1k Hausgeld + management fees) yields almost nothing—estimated ~CHF 600 net. Selling would net roughly ~CHF 750k (before the substantial property gains tax / Grundstückgewinnsteuer that would entail).
- The Plan: Is it a valid strategy to sell, invest the proceeds in a diversified portfolio of ETFs, and live abroad on that + the Pension?
Personal Note: It is mentally quite tough knowing I can't "earn" more money through work to build savings the traditional way. My goal is to reach a point of "FIRE" where I am no longer solely reliant on the IV, but have my own passive income stream to ensure my independence.
Note: I used an AI to help me structure this post and clarify technical terms, as I am currently a bit overwhelmed by the financial and legal aspects of this plan. Please assume I am a beginner when providing feedback!
Thank you for your insights!