#66 Six rules for investors over 60

The following six rules offer practical guidance:

1. Keep investing as you age

Even after reaching retirement age, you generally still have a long investment horizon ahead of you. Statistically speaking, men live an average of over 20 more years, and women as many as 23. This timeframe clearly suggests continuing to invest at least part of your assets in stocks to benefit from long-term return opportunities.

2. Ensure sufficient liquidity

It is especially important to remain flexible in retirement. Therefore, invest in liquid assets that you can sell at any time if necessary. Exchange-traded funds (ETFs) are particularly well-suited for this purpose, as they are generally easy to trade and broadly diversified.

3. Plan your lump-sum withdrawal early

The choice between a pension, a lump-sum withdrawal, or a hybrid option from the 2nd pillar requires careful consideration. Each option has its own specific advantages and disadvantages. Our calculator helps you compare the two options.

If you opt for a lump-sum withdrawal, tax optimization opportunities also become available. Depending on your pension fund’s regulations, you can make an initial withdrawal as early as age 58. Starting at age 60, regular payouts are also possible from Pillar 3a. Since lump-sum payments in Switzerland are usually taxed progressively and cumulatively, it is advisable to spread withdrawals over several years.

4. Set a realistic investment horizon

Your investment horizon is closely linked to your life expectancy and your risk tolerance. Both factors have a significant impact on your investment strategy. As a general rule, the longer your investment horizon and the higher your risk tolerance, the higher your equity allocation can be.

5. Investing and drawing down capital are not mutually exclusive

Many retirees rely on regular withdrawals from their assets. A structured withdrawal plan can help with this. Through systematic payouts – such as monthly or quarterly payments – you maintain control over your finances while avoiding the need to guess the optimal time to sell.

6. Pass on your knowledge

Financial knowledge is a valuable asset that costs nothing to share. Those who have successfully built wealth possess valuable experience. By passing on your knowledge to the next generation, you make an important contribution to the sustainable management of capital.

What other aspects are important to you when it comes to your retirement planning? Send me an email.