Welcome, Money Essence Readers! ✨

Today we're diving back into pillar 3a – picking up right where we left off last time.

In my previous post (link below), I described what strategies and approaches matter to me when building financial freedom.

My First Pillar 3a Contribution in Switzerland: A Costly Beginner’s Mistake”

It was supposed to be simple: open a Pillar 3a account, make the first payment, and move on. Instead, I ended up with a portfolio I didn’t understand, a lot of nerves, and the sinking feeling that I had made a spectacular mistake. And that was only the beginning…

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Now it's time to go one level deeper – into a more technical world, but still written in a human, light, and very "me" way. Because if something's going to be the foundation of my freedom, I want to know what it's made of. 💪

One of the Bigger Mistakes – Mixing Pillar 3a with Insurance

Let's start with something I absolutely had to emphasize here. Right at the very beginning.

In Switzerland, many people – especially when they're just starting out – fall for offers from banks and insurance agents who propose a 3a account combined with a life insurance policy. Sounds safe, right? "You save for retirement and you're insured at the same time."

But in practice... it's often not a good idea.

Why? Because these products are rigid and expensive.

• You're obligated to contribute regularly for many years (sometimes 20–30!)
• Breaking the contract early means huge financial losses – sometimes you get back less than you paid in
• Plus, a large chunk of your contribution goes toward insurance, not actual investing

That's why more and more people are choosing pure, transparent 3a accounts – without the added "perks" that only pretend to be valuable.

This is something I luckily didn't do! And out of a sense of duty, I want to mention this right at the start.

So… which 3a provider do I use? 🤔

Oh wow, I searched, read, compared, overthought…

And all of that because I really, really hate overpaying.

Some friends recommended the insurance combo, but spending money “because someone said so” has never been my thing. A cheaper, cleaner solution just felt right.

Pretty quickly I realised:

• mixing 3a with insurance = nope
• traditional banks = also nope

The answer was pretty simple – it had to be one of the fintechs.

Because there: lower costs, more flexibility, and a much more modern approach to investing.

Below is a small comparison of the main players: VIAC, Frankly, Finpension and True Wealth.

Fees? They’re everything.

A difference of 0.2% per year over 30 years can literally eat up your dream holiday. 🌴

*applies to the highest equity allocation

What Was Important to Me?

My criteria were pretty simple, but consistent:

• Low fees – otherwise even the best strategy loses its point
• Lots of stocks – I don't want to keep money in something that loses to inflation
• Maximum global market exposure – I want the "breath of the world," not just Switzerland
• Diversity – because a portfolio without diversity is like a kitchen without spices

Does this make me an aggressive investor?

Maybe yes, maybe no – but within the Swiss 3a framework, probably yes. 😄

It's probably easy to guess now that the winner was Finpension. It met most of the criteria I needed. The problem everyone had (except True Wealth) was the lack of direct access to the most popular ETF indices. But I managed to deal with this topic more or less – especially since there's a large selection of fund providers.

Or maybe it wasn't easy to guess and I could have opened an account with True Wealth? After all, it only has a 0.18% commission?

However... I'll be honest with you: I'm planning to revisit this topic. And open another account there – just to buy ETFs. 🤓

Especially since many funds in 3a have TER = 0% (seriously!).

So long-term – they might shine even brighter.

But how do I actually build my portfolios…

This is material for a book, not a blog post... seriously. It's a bottomless well, and I sat with this for a long time myself before building something I felt good about.

I still don't feel ready to describe it super technically (because I'm still learning), but I can easily show you what guided me when I was putting together my own strategies.

I'll put it this way: before I figured out what to buy, I had to understand why I'm buying.

And that changed everything. ✨

Here are the things that led me step by step:

1. My portfolios have to match my overall investment strategy

Before choosing any fund, I sorted out my bigger picture: my timeline, my goals, my lifestyle, my needs.

Only then I started thinking about what actually fits into this puzzle.

2. I’m thinking long-term - truly long-term

I choose funds that in my opinion have the best chance of delivering results in 25 years, not tomorrow, not in a month.

This gave me a lot of peace at the beginning.

3. I defined my personal tolerance for market drops

Everyone's different.

Not everyone can calmly handle a situation where the portfolio drops -25% or -40%.

I also had to discover my personal limit.

4. Across 5 accounts, I plan to keep 2–3 strategies

That "third" one will probably be a variation of the first, just with different funds.

I like to compare, test, observe.

5. I don’t fight the market

Seriously.

I don't want to "beat the market" – I don't have the knowledge or time for that.

I want to flow with the market... maybe sometimes I'll get slightly ahead of it, but no stress.

Is that all? Definitely not, but these are the main factors that helped me establish my portfolio.

After a year, it's giving me quite decent returns, but I'm also not someone who wants to fight the market!

What worked for me in 2025?

I'm not surprised, because I calculated everything I could – but I'm happy that I consistently managed to contribute the full amount of 7,258 francs in 2025. I think it gave me a lot of motivation to keep developing.

But what was most important:

1. Overcoming my fear of investing

At the beginning, I wanted to deposit tiny amounts.

And in November?

I transferred the missing 802 CHF without even blinking.

2. Investing right after Trump’s decision weekend

It's not about timing (because timing DOESN'T work!).

It's about being in the market and buying when it's cheap... or not.

But be serious - IT WAS A HUGE LUCK!

3. Opening 3 different portfolio types

It helped me see, live, which strategies work better in which situations.

4. Humility

Catching the moment when I saw that I wasn't investing, but speculating. I don't possess all the world's knowledge to predict tomorrow's market behavior – I can only prepare for it.

What changes am I planning for 2026?

I have a few very specific ideas for the next year:

1. Max out the limit by May 2026

In 2025 I overcame my fear of investing. I learned that timing isn't important and being present in the market matters more.

So start stronger at the beginning of the year.

2. Open 2 new accounts

Consider whether I stay only with Finpension, or also open a new VIAC or True Wealth account.

3. Move funds from my weaker-performing portfolio into a new account

New year = better structure, new approach.

Financial freedom isn’t built on perfection. It’s built on awareness. Step by step. Choice by choice.

Now it's your turn – how do you approach retirement planning? Do you already have your 3a portfolio? Or are you just thinking about it?

Share your experiences in the comments – I'd love to hear your approach! 💬

With pride,

– ME, your Freedom Budget guide ✨